A few weeks ago, I filled out an application to borrow from the equity in my house. I wasn't approved at first, but then they did something they called a "reserve" plan, at which my interest rate was higher and then approved me. I am currently on maternity leave, but I go back on December 7th. My loan officer is now stating that the underwriter is concerned about my paychecks, which do not match my application (which they shouldn't considering the last 2 paycheck stubs were from my maternity leave -- which does NOT show what I actually make. ) I get paid on the 15th and the 30th, and work at a Group Home which requires overnights and 24 hour shifts. Of course, my sleep time and overtime are not reflected on my maternity leave paychecks. I did find an old check from May that showed my actual, average pay during the pay period. Of course, this check stub was too old. I also gave them my most recent w-2's. I told my loan officer that I would produce any amount of paycheck stubs prior to my maternity leave to show my average pay. I also told her to tell the underwriter that they could call my workplace to confirm that I will be returning with on those same terms. My loan officer also told me that the underwriter stated that I should go back to work and then produce a checkstub to reflect my hours. If I did this, I wouldn't get an actual check (showing my full schedule) until Jan. 15th. It kind of sounds as if I'm being discriminated against because I'm on maternity leave. The fact is... I am employed. I do have good credit (680), - - and there isn't a problem with debt to income ratios or anything like that. I know Im a good candidate for this, and I feel the only thing holding me back is the fact that I am on maternity leave. What is your take on this?

It sounds like a standard practice to me. When making a loan the lending company will consider your actual, current income. Not what it might be later. You are confident about what it will be in the future. They aren't.

An underwriter looks to make a loan that won't default. Therefore its natural they they might be concerned by leave checks. But they should accept a letter from your job about your returning. Maybe it would be easier to wait until after you get your first full check.

Hi,

I know that at the company I am with, we can use some common sense in such situations. I would normally obtain an back-to-work letter that allows me to demonstrate your overall earnings during the period prior-to Maternity leave and then show the back-to-work plan which woud document the time out of work and then back-at work pay. THis combined with verrification from the HR department or your direct suprovisor would do the trick for us.

Its certainly diffiicult for an underwriter to make judgements on "Future Consideration" but you are not asking them to do that in this case. You are gainfully employed on a maternity leave and will return to work. You can document this and with a FICO score of 680 you shouldnot present undue risk to an underwriter.

Ron Schwartz - Sr. Mortgage Loan Consultant

First, if the underwriter is asking you to return to work something is seriously wrong with your loan officer. The underwriter's role is to review and approve loans based on the risks that the loan profile represents. The loan officer is the one who should be your point of contact, your advocate and the one who translates the merits of your loan case file into an attractive package for you to review.

Either one of these clowns asking you to return to work while you are on maternity leave is like being asked to take medical advice from a Tow Truck Driver... it just doesn't fit... of course you feel discriminated against... if you actually took their advice you'd be practically neglecting your new-born child...

This process seems way too difficult.:confused: