Khash Saghafi NMLS, Mortgage Loan Officer, Cleveland OH NMLS 1114762 (Liberty Home Mortgage Corporation)

Spam prevention
Rainmaker
1,591,146
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Overlay: Extra crap (rules/requirements) mortgage lenders put on top of already existing guidelines from FHA, Fannie Mae, etc.

Jun 30, 2018 03:39 AM
Rainmaker
1,048,681
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

I do not need to-nor would, since that exceeds my license. I also do not explain taxes, law, insurance or comment on school districts...all are violations of my license.

Jun 30, 2018 06:41 AM
Rainmaker
1,618,650
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

I'm with Kat, she's got it.

Jun 30, 2018 05:16 AM
Rainmaker
1,353,480
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I do not.

Jun 30, 2018 05:08 AM
Rainer
140,210
Richard L. McKinney P.A.
Atlantic Shores Realty Expertise - Port St Lucie, FL
For Results that MOVE you on the Treasure Coast!

Overlays are basically loan requirements over and above what a lender normally accepts. 

This is important because lenders assess risk differently. For example they may quote your buyer a good rate but require them to have a lower debt to income ratio than a competing lender.

Jun 30, 2018 03:56 AM
Rainmaker
1,168,318
Joyce Marsh
Premier Sotheby's International Realty - Ormond Beach, FL
Premier Sotheby's International Realty

I read your blog earlier today so I am well informed.  Thank you for providing this valuable information.

Jun 30, 2018 02:56 PM
Rainmaker
785,983
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Questions like your's, Khash Saghafi,  are why I, an ex-banker, refer mortgage questions to mortgage professionals.

Jun 30, 2018 01:34 PM
Rainmaker
589,629
Tony Lewis
RE/MAX of Valencia (Hall of Fame) 30 year Valencia Resident - Valencia, CA
Summit Real Estate Santa Clarita & OC Laguna Nigel

It would be something that over lays the loan.

Jun 30, 2018 11:37 AM
Rainmaker
526,160
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Never heard the term. Just like loan officers never heard about water rights in Utah

Jun 30, 2018 10:18 AM
Rainmaker
1,306,592
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Sorry, not in my wheelhouse.

Jun 30, 2018 10:01 AM
Rainmaker
3,476,034
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

After reading your blog I can now!

 

Jun 30, 2018 08:24 AM
Rainmaker
2,886,061
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I could.  However, that is not my job. Not my circus. Not my monkey. That is the lender's job and I would not step into explaining what I do not own. 

Jun 30, 2018 08:00 AM
Rainmaker
5,388,650
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

I know DO understand it, and everyone should checkout your blog post with a detailed explanation....

Jun 30, 2018 07:21 AM
Ambassador
3,720,216
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

I'm with Kat Palmiotti and I'm betting we're going to get another great blog from you on this topic, Khash!

Jun 30, 2018 06:27 AM
Rainmaker
1,482,006
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

Each lender has their own ability and willingness to handle risk so they each have their own set of "overlays" (requirements) in addition to already established Federal Guidelines. 

Jun 30, 2018 06:25 AM
Rainmaker
686,309
Paul Antonelli
Antonelli Realty - Saint Cloud, FL
Broker Owner; Antonelli Realty

Its not my job to know so I dont

Jun 30, 2018 05:35 AM
Rainmaker
821,950
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

I do not.

My involvment in lending reqirements begins and end with the 36%. After that it belongs in someone else's wheelhouse where the dream lives or dies.

 

Jun 30, 2018 05:01 AM
Rainmaker
782,396
Ritu Desai
Samson Properties - Ashburn, VA
Virginia Realtor-Fairfax/Loudoun/PW-703-625-4949

Thanks for asking the question I don't mud with the lender but it is good to know what Overlay charges mean.

Jun 30, 2018 04:22 AM
Rainmaker
3,494,180
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I certainly can't, but given the complexity of lending these days I don't even go into those issues with my clients. What I do is refer them to the top lenders in my area.

Jun 30, 2018 03:51 AM
Ambassador
2,468,722
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

  I will summarize it for my clients, but I am sending them to Lender Khash Saghafi for a complete explanation.

Jul 03, 2018 04:55 AM
Rainmaker
881,609
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Kat Palmiotti got it in one - and "crap" is right LOL

Jul 01, 2018 11:38 AM
Ambassador
2,961,637
Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

well I can explain it, but I don't.  I stay in my own lane and let the loan officers explain their rules... 

 

Jun 30, 2018 08:49 PM
Ambassador
3,302,643
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

After reading your blog post I can now Khash...

Jun 30, 2018 08:29 PM
Ambassador
4,756,318
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Kat knows this well.

Jun 30, 2018 07:39 PM
Rainmaker
4,432,941
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I do not explain such things to buyers. It is up to the loan officer to discuss it

Jun 30, 2018 03:11 PM
Ambassador
3,985,307
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I have been very familiar with underwriting overlays for years and explain it to my clients as some lender have added rules for qualifying that are over and above Fannie Mae requirements which may make it harder to get qualified. With that said I know the lenders in my area that have more overlays and those that don’t. You can bet who I try to stay away from. 

Jun 30, 2018 03:10 PM
Rainmaker
3,676,349
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

When it comes to the "world of lending" I refer to the experts in that arena. 

 

Jun 30, 2018 08:49 AM
Rainmaker
1,091,930
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

Tolerance. I was told Feds will relax the requirements on lending to no name banks let them have more control.

Jun 30, 2018 08:25 AM
Rainmaker
775,782
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Each bank has its own credit standards.

Jun 30, 2018 08:24 AM
Rainmaker
3,637,425
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Never had it come up as a question from buyers. May have suggested a specific lender over the years to those on the fine line between acceptance and rejection 

Jun 30, 2018 07:32 AM
Rainmaker
3,066,356
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Hopefully none of them - that's up to a lender to explain

Jun 30, 2018 06:45 AM
Rainmaker
258,667
Lesley Wilson-VanGoethem
Innovative Realty Solutions Group - Winter Springs, FL
Residential Real Estate Broker Associate

additional requirements per each lender

Jun 30, 2018 06:36 AM
Rainmaker
4,798,831
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I have a rough idea.

Jun 30, 2018 05:36 AM
Rainmaker
2,557,820
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This would be outsourced by me...

Jun 30, 2018 05:31 AM
Ambassador
1,706,708
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Good to bring this up and is a reson why once you have confidence in a particular lender you are hesitant to recommend someone new.

Jun 30, 2018 04:45 AM
Rainmaker
4,383,064
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Wells Fargo used to have more overlays, but have gotten better.

Jul 04, 2018 07:16 PM
Rainmaker
510,224
Dan Tabit
Keller Williams Bellevue - Sammamish, WA

As a formerly licensed Mortgage Lender for 13 years, I can.  Fannie Mae & Freddie Mac say yes, XYZ bank says not yet, we need more documents, and more documents and more documents....then still maybe/maybe not. 

Jun 30, 2018 11:05 PM
Ambassador
4,306,997
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Not me, Khash Saghafi

Jun 30, 2018 10:23 PM
Rainmaker
4,921,226
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Kat Palmiotti has it

Jun 30, 2018 06:46 AM
Rainmaker
1,438,302
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

Kat said it right!

Jul 27, 2019 01:18 PM