My Friend Patrick Spencer at Envoy Mortgatge has identified an area that needs to be addressed.
Here’s the problem:
1. Name on sales contract appears as James Smith. He signs the sales contract as James A. Smith and puts in the loan application to us As James Allen Smith. We pull credit as James Allen Smith.
2. When we get the loan into process we have to order the 4506-T for tax transcripts on all loans. If the 4506-T does not appear exactly as how Mr. Smith filed his 1040’s, we then have to retype the 4506-5, get him to sign exactly as how he filed his taxes, then we can get the transcripts.
HOW TO SOLVE PROBLEM:
A. When a sales contract is written, ask the client how their names appear on their tax returns and make the sales contract match those names.
B. Double check that clients have signed the sales contract correctly.
This alleviate the need for Lenders/Loan Processors from having to repull credit in the correct name and asking you to obtain an amendment to the contract showing the correct name.
C. We are now asking all clients when completing any application to put their name the same way as it appears on their tax returns.
