Suffice it to say, getting through the Wells Fargo Home Equity subordination process was not the walk in the park I was lead to believe it would be and we were faced with more requests and even redundant requests. Finally on April 30, 2012 after several emails, I finally got word from Faith that Wells Fargo Home Equity was requesting additional information. Upon reviewing the items requested I thought they were really stretching to find a reason not to approve my subordination request.
“Frank” the income analyst at Wells Fargo Home Equity wrote that “Per Wells Fargo Home Equity credit and compliance policy the above transaction requires a full and complete analysis of all sources of income. This process includes obtaining current and prior income information.”
I am sorry but I could have sworn I just went through all of that with Wells Fargo Home Mortgage, what could we possible be missing? It turns out they missed the memo in the file that my company was sold during the course of 2011 meaning I had two employers that year.
They were also requesting 2010/2011 partnership returns with all schedules, supporting statements, and K-1’s for property I inherited from my grandfather, that have no liens against them, and that I had only a 1/8th ownership in at the most! Ugh! I dutifully called my accountant and first found out what a K-1 was, second I asked for the documents to send to the Wells Fargo Home Equity income analyst.
Seeing that it had taken from Friday morning to late Monday afternoon for the original request to be forwarded to me I picked up the phone and called Frank to see what other information he might need and to let him know I was sending the requested documents right to him instead of through the slow, long winding roads from Wells Fargo Home Mortgage’s originator to the processor to the Wells Fargo Home Equity processor to him.
By May 1, 2012 I had gotten all of the paperwork together the income analyst requested and emailed it over, copying my loan officer Faith in on the emails.
On May 3, 2012 I heard back from Frank the income analyst that he needed:
- [Rental in Portland, OR]. – Is this property still being rented out? How much is the mortgage payment (principal, interest, taxes, and insurance)? [note, I am not on the mortgage of this property, my husband is on the mortgage]
- [Inherited property in which I have a 1/8th ownership]. – noted that you made a capital contribution per the 2010 K-1 in the amount of $120620. Can you please clarify the purpose of the contribution and if additional capital contributions were made in 2011 and year-to-date 2012.
Question one was easy to answer, question two I had no idea on since it was all part of my father’s estate so we had to wait for my accountant to return from vacation to answer the questions. All I knew what that I did not write anyone a check for $120,620.
One thing I have to give Frank the income analyst credit for is his responsiveness. While I think some of his requests were a bit overboard, I could appreciate the fact he was a numbers man and was only interested in the numbers. After his initial shock at my tracking him down and calling him, he was very pleasant and helpful as we worked through the red tape at WFHE. He even sent me an email on May 9, 2012 to let me know he was done with his review and had forwarded it to underwriting for final review.
My trip to the Carolinas had come and gone and I was looking for a new silver lining. Hearing directly from Frank was the thread I was holding onto. Interest rates were back down at 3.75% and I was ready to jump ship but this seemed so close to closing I decided to hang in there for a few more days.