October 20, 2022 • 52 mins
In this episode we discuss the importance of sourcing funds in a mortgage transaction and what it means to "sourcing funds". We dive into the pitfall of using cash specifically related to the mortgage process and the challenges it creates.
Jeff Cunningham is a REALTOR (license # 301547) with United Realty Group (Broker license C34827) serving the Triad NC area.
Jeff can be reached at
Email - jeff.cunninghamrealtor@gmail.com,
website, jeffcunningham.mysalecore.com,
Facebook,- https://www.facebook.com/jeffcunninghambroker/
Gina Milloway is the Mortgage Loan originator NMLS #1676070 & CEO of Triad Mortgage LLC, NMLS # 2385260,
Gina can be reached at,
Email: gmilloway@traidmortgagellc.com
Web: https: https://www.ginamillowayloans.com/
Facebook - https://www.facebook.com/mortgageswithgina/
Office -336-290-1891
NMLS Consumer Access: https://nmlsconsumeraccess.org/
Privacy Policy: https://www.ginamillowayloans.com/privacy-policy
Triad Mortgage is an equal housing lender
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:02):
Hello and welcome to Let's GetMoving With Jeff and Gina.
I am Gina Millway, your localmortgage advisor, and this is, I
am Jeff Cunningham.
I am your local real estateagent here in Greensboro, North
Carolina.
Part of the triad.
It's about to get interestingthis weekend.
We're getting, uh, some remnantsof a Ian and uh Oh, absolutely.
(00:24):
I think outdoor activities aregonna be limited if not
eliminated this weekend.
Yeah.
Unless you like to be wet andplay in the rain.
Exactly.
Which I mean, you know, could befun.
So, mm-hmm.
you know, I've seen those, thosevideos of people having
hurricane parties where they gooutside and try to win to serve.
Yes, absolutely.
Yes.
That makes for, well, let's,let's hope that we don't get,
(00:45):
uh, that kind of activity.
It is.
We are supposed to get, supposedto get a lot of rain here in the
central part of North Carolinathis weekend.
Yeah.
And, um, and yeah, I just, youknow, part of, uh, well just
part of, part of the hurricaneseason here and living in the
south, the hurricane season.
That's right.
And Florida right now as we'rerecordings, probably getting
pretty hard right.
Right about this time, I believeit was May a category five.
(01:07):
It was as it was coming ashore.
Yeah.
Which is, which is a prettyintense storm, even for Florida
in an area that gets it on aregular basis.
So I hope everyone down therestays safe and evacuated if they
needed to.
Indeed, indeed.
And yes, uh, the roads are,roads are crazy down there.
But, um, yes, I spoke with my,my aunt who's in, uh, the
villages down there, um, myaunt, my uncle, and, um, and
(01:29):
yeah, they're battening down thehatches.
They've, uh, they're, they'repretty much, uh, restricting
movement for people.
Um, again, safety reasons, but,um, but yeah, uh, villages is a
huge community down.
And, um, right, right in thecentral part of Florida.
And, uh, and yeah, they're, uh,yeah, the diners and the grocery
stores are jamming right nowdown there.
(01:51):
So, yeah.
Um, you know, all good thoughtsand prayers go out to these guys
this weekend.
Yeah, it, it's, it's scary.
It's terrifying.
I lived in Florida for a whileand the good thing about Florida
is they get beat up so muchabout hurricanes that a lot of
buildings will, will stand it, alot of the powers underground.
So, um, if it had hit adifferent area, wouldn't be the
story, you know, as we've seenin other cases.
(02:13):
So, Hopefully it'll beminimized, but it's still, it's
still a pretty intense storm, soYeah.
Yeah, it is.
And uh, and then yes, so, soit's supposed to go through
Florida, then wrap right backaround the other side, East
Coast and then, uh, and thencome up and visit us there, like
you were saying.
Um, Friday, Saturday, Sundaythis weekend.
So, Yeah, so Rain Weekend timeto get some cleaning done inside
(02:34):
That's right.
Get some cleaning done.
We will definitely be insidewatching some Netflix or
probably renovating the house,so, Yeah.
Yes.
And maybe all the football gameswill not be canceled and uh, and
we'll be able to get some ofthat in there as well.
Mm-hmm.
Mm-hmm.
Yeah, boys.
He might have to be productivethis weekend.
Well, yes.
Uh, you know, unfortunately, youknow, I'd have to say most of my
(02:58):
showings will be canceled, um,just for that reason, you know,
Um, number one, yeah, theweather's gonna be terrible to
be out and about, but numbertwo, yeah.
The sellers are gonna be like,Geez, I, you know, please take
your shoes off.
Take your socks off.
Yeah.
You know, take everything off ifyou can, cuz uh, you know, we
just don't want you in the housewith all this mud and water, so.
Mm-hmm.
I have seen open houses where,But I've been to one
(03:22):
specifically that I rememberwhere there was literally
probably six inches of waterstanding in the front yard and
there were still people just inand outta the house trying to
make offers.
I was crazy.
Yeah.
Yep.
Well, yeah, this, uh, lastcouple years we've seen just
about everything.
So Yeah.
Yes.
Uh, you know, before that wewould certainly say, Hey, Wipe
(03:42):
your feet off, Put on yourlittle booties, put on, you
know, let's, let's berespectful.
Yeah.
It's mad Dad.
Absolutely.
Yeah.
We'll be swinging back that way,you know, in due time.
Um, you know, but right now, uh,you know, we're still hot and
heavy over here.
Um, yeah.
I mean, even with JeromePowell's best efforts to.
(04:05):
Good luck.
Throw, throw a couple of curveballs at us.
Oh yeah.
They're trying, but I don'tknow.
Mm-hmm.
So we'll see what happens.
Yep.
We'll see.
Um, it's, it's been interestingwith, with rates we've had, You
know, I don't wanna spend awhole lot of time on this
because it may be a littledepressing or shocking, but um,
for, you know, check on yourloan officer friends.
(04:25):
We're not Okay out there rightnow, so, um, Yeah.
Yeah.
It's, it's, it's shocking isreally what it is.
It's shocking and I'm not gonnasay the rates are good about,
it's just shocking.
Considered where we've been withrates in the twos and threes,
and now here we are with ratesin the sevens.
The rates are in the sevens insome cases.
Right.
And in the month of, I believe Isaw, um, I saw some information
(04:49):
put out.
I think it was very habi, butthe information was in the month
of September.
The overall number drop thatwe've had in basis points, which
is how we kind of measure, um,the mortgage bonds we've had
over a 400 basis point drop.
Hmm, that's about two fullpercentage points, but that drop
(05:12):
has been in September.
that September, 2022.
Yes.
Well, so, so, so, so we, again,don't get folks a little too
confused.
So these basis point drops areagain, uh, what the interest
rates counter to correct.
(05:33):
So the interest rate would go uponce our basis points go down.
It's not, it's not a mirroringeffect.
Right, right, right, right.
It's a worsening, That's abetter way to put it.
It's a, it's a worsening.
Do you have the mortgage bonds?
Um mm-hmm.
worsening and, and, well, weconsider dropping, um, but it is
a worsening.
Sure.
(05:53):
So as the mortgage bonds drop orworsen Yes.
Do go up in response to that.
Yes, absolutely.
So, Gotcha, gotcha.
Yep, yep.
So, and then we had, I mean,just this last week and one day
we had 170.
Uh, basis points drop, which wasalmost a full percentage point
in that day, which is the mostthat I've seen.
Wow.
(06:14):
Wow.
I, it, it's a huge number.
That's a huge number for oneday.
And we've had some bounce back,so I mean, it, it's better
today.
Um, but it's still, we're stilldown a lot, so hopefully we can
get that back.
I don't know.
Yeah.
Well, just the economicaleconomic environment, you know,
again, that we spoke about alittle earlier.
Um, you know, it's, it's.
It's just a volatile time and,and, and mm-hmm.
(06:37):
and historical time, I shouldsay.
Yeah.
Uh, with the US economy, Um,yeah.
The US and global.
I mean, it's, Yeah.
Yeah.
Which is, you know, playing abig part in our economy as well
as the global Sure.
The global economy, which Iguess it does on a regular
basis, but there's so manythings going on out there that
are just countering each otherand causing.
(06:57):
volatility.
Yes.
But yes.
Housing the fun It is, it iskeeping us busy, but, Right.
Let's, uh, so let's talk alittle bit about some of those
aspects that may be a bitconcerning mm-hmm.
um, in, in a better environmentor in a worse environment.
Um, yeah, absolutely.
And we're speaking today aboutcash.
Yes.
(07:17):
Um, and, and how to use cash inour transactions.
Um, and we're not talking abouta total cash transaction where
we're buying a home or aninvestment with cash, but we're
talking about today with, um,you know, deposits, um, and
managing your bank accounts in away that, uh, that an
underwriter is going to see.
(07:40):
And, um, and what we're gonnatalk about, I guess today is a,
is a couple of red flags and,and possibly how to avoid a
couple of those.
Yes.
And I like the way that you usethe word manage because it
really is about managing it.
Mm-hmm.
it's not that you, you can't usethe cash.
It's about managing how you doit.
Yeah.
And that's what really, really,really important here.
And you know, as muchinformation is out there and as
(08:03):
hard as we try to educateborrowers, it still happens.
Someone will try to use cash as.
You know, for their down paymentor you know, for some part of
the transaction.
And it really, really causesmm-hmm.
a big issue.
Yeah.
It really can cause a big issue.
And we're gonna talk a lotabout, you know, why the
(08:24):
different types of cashdeposits, you know, that I've
seen maybe a few differentscenarios and what's happened
and staying out of the gray areawhen we come to Mm-hmm.
underwriting.
Exactly.
Underwriting your mortgage.
You don't wanna be in the grayarea.
And what I mean by that, So thegray area is something that
calls for the underwriter'sdiscretion or the underwriter to
(08:45):
make a call on it, whether thatcall is good or bad.
And that just basical basicallyputs their antennas up to say,
mm-hmm Hey, we need to go take alook at this and well, a gray
areas give them the ability tomake the call on something to
decide if we can use it or wecan't.
That means there's not a guide,there's not a specific guideline
(09:06):
that covers your specificscenario maybe, and that they
have to make the call.
And what you have to understandis that underwriters are judged
on their, their loanperformances.
And there's a lot of peoplelooking for jobs right now.
And so underwriters are gonna becareful.
Yes.
And, and they wanna maintaintheir job security.
And, and I think everybody canunderstand that if you look at
(09:28):
it from that point of view, thatthe underwriter's really trying
to maintain their, they'retrying to keep their job.
Sure.
And as well as the integrity ofthe loan, you know, again, for
the investors involved.
Um, but yes, uh, their, theirperformance is very tied into
their employment.
Yeah.
So let's talk about.
(09:49):
Let's talk about funds.
So I don't wanna make this acash, I wanna make it like a,
like a funds discussion, becauseyou can screw up in other ways
too.
Okay.
And one of the, the things thatI have, have actually seen or
come across, had the questionsof it recently is your, your
deposits on your contract.
Mm-hmm.
(10:10):
one.
Your deposits.
Thankfully we can't use it atleast here, not North Carolina.
It has to be a, you know, acheck or a money order.
Mm-hmm.
So thankfully your due diligenceand your honors money can't be
cash anyway.
However, what I have seen happenis, Let's say, you know, Bobby
is buying a home, and Bobby'smom was like, Oh, I'll just run
(10:32):
down and pay it because youcan't make it to the attorney's
office.
I'll give them the depositcheck.
I'll just write it out of myaccount.
No.
Mm-hmm.
no.
Stop.
Right?
Do not.
Mm-hmm.
do not do that.
The funds need to be your funds.
Mm-hmm.
absolutely.
If mom is not on the loan, donot use mom's funds.
(10:53):
Mm.
If your wife is not on the loan,don't use your wife's funds
unless both names are on thataccount.
Absolutely.
Did you know that funds from aspouse is considered a gift?
Ooh, no.
I did not explain, yes.
If, if the borrower's name isnot on the spouse's bank
account, so like if Bobby'sgetting a loan mm-hmm.
(11:15):
and Susie has her own bankaccount and Bobby's named not on
the bank account.
Mm-hmm.
she gives him money.
It's a gift.
Yeah.
If, if mom writes that duediligence check out of her
account, it's a gift.
Mm-hmm.
Mm-hmm.
that we then need have to seemom's, uh, banking account.
We're gonna need two months ofMom's bank account.
(11:35):
Correct.
Correct.
So, so, absolutely.
So, so So we wanna make surethat folks.
at the time of transaction.
Uh, meaning once we get acontract written or we're
writing a contract again, weneed to verify or at least ask
our clients to verify again,their funds and where they are
(11:55):
in that and where it sits today.
Yes.
And, and, and again.
Those that are involved with thetransaction, um, need to be, you
know, again, making thosedeposits.
Mm-hmm.
And those that are not involvedwith the transaction need not to
make these deposits.
Right.
And we try as loan officers, atleast, at least I do, I'm
(12:16):
reviewing bank statementsmm-hmm.
Going into pre-approval.
I don't, I don't give apre-approval unless I look at
the bank statement.
And so we try really hard to.
Scan, almost underwrite the loanahead of time.
Mm-hmm.
we're looking to see what's inthat account.
Is there something that's gonnashow up that might be an issue?
And particularly, one thing I'mlooking for is a, is a large
deposit or a cash deposit.
(12:37):
Mm-hmm.
And, but I can tell you peoplesneak it in they will find a way
to sneak it in.
No matter how much you gothrough it with'em, no matter
how much you tell'em, don't.
Yes.
People will find a way to sneakit in and you, it causes an
(12:59):
issue.
And it causes an issue all thetime.
Yes.
Um, so, um, a couple of thoseinstances, I know that you and I
have covered this a couple oftimes, but just like you said,
you know, if, if Bobby's momwants to run down there and drop
off that earnest money check forjust say a thousand dollars and
she's not part of.
Transaction.
(13:19):
Then again, we usually don'tfind this out until about a week
before we close, so that we'realready past due diligence in
most cases.
Mm-hmm.
and, and, and we are in amortgage transaction.
We're not buying straight outwith cash.
Um, but at the same time, wherewe're going, uh, with this is
just the fact that this, uh,money, um, for all parties needs
(13:42):
to.
What we talked about earlier istraceable is traceable and
sourced.
Yes, source and source is thekey word in the mortgage
industry.
But yes, source means traceableand, and there's, that's loaded.
So it can mean a lot ofdifferent things and different
scenarios.
And I wanna back up just onesecond before I go down this
(14:04):
horse and we'll rabbit hole.
Cause I can be there for, Yeah.
The reason that it could be anissue if, let's say somebody
else on the loan writes thatmoney or uses their funds is
one, yes, we do have to includeit as a gift, and that's not
always a bad thing, but it couldbe.
Mm-hmm.
a gift on a loan if you don'talready have that on the
profile.
(14:25):
A gift on a loan is consideredan additional risk layer on the.
So what is basically tellingour, our, um, ai, our
underwriting system, is that youare not using all of your own
funds.
Mm-hmm.
you're having to get funds fromsomebody else to make this
transaction happen.
Mm-hmm.
So it's an added risk layer toyour file.
Well, maybe you're already maxedout on your added risk layers.
(14:48):
You add that gift and now you gofrom having an approve or a
doable loan mm-hmm.
to one that's not approv.
Right.
And that can make a huge, huge,huge difference.
I mean, you go from being okayto, to not being okay.
Mm-hmm.
so then we've gotta figure thatout.
The other thing where it comesback to is mom wanting to
(15:11):
provide her bank statements orwhoever's gifting you the, the
funds.
Mm-hmm.
People don't like to give outtheir bank statements.
Correct.
They don't want their kidshaving their bank statements.
I mean, shoot, some wives don'teven want their husbands having
their bank statements and viceversa.
Right.
People get weird about that kindof stuff, their financial
information, and I get it.
I completely understand it.
Mm-hmm.
but.
(15:32):
Just because you don't wannagive it out doesn't mean that I,
I still don't have to have it.
Right?
Yes, yes.
I still gotta have it.
If you offer up a thousanddollars of your money to, to
help them buy a home, you'vegotta show me where the funds
come from.
Mm-hmm.
So once you gotta overcome thehurdle of that donor being okay
with giving up their bankstatements.
Right.
And two, what have they done?
(15:54):
How does their, how does theirbank statement.
Do they have some big deposits,some cash deposits?
We're gonna have to run downthis huge rabbit hole of chasing
that money when if it had justbeen done correctly in the first
place, we wouldn't be in thisscenario.
So that's what we're trying toavoid with this.
Mm-hmm.
this little message, it's like,just, just stop.
(16:14):
Don't, don't add the extrahurdles.
Right.
Talk to your loan officer.
and, and make sure that you'redoing it the way it's supposed
to be done, because it can be abig deal and it doesn't, you
know, like you don't think aboutit being a big deal.
Right.
You know, but it is.
Yes.
Yes.
And, and, and we've had somechanges here in the last, uh,
(16:37):
last period of time.
Uh, Patriot Act being one ofthose mm-hmm.
uh, coming just after nine 11,um mm-hmm.
And again, that's just, uh,keeping an eye out, you know,
And the public funds, you know,your bank accounts, not to say
that they're public.
Yeah.
But, you know, if the governmentcan get ahold of that and or
they're, they're regulating thebank accounts mm-hmm.
(16:57):
then those are the ones that aregonna be asking, or at least
have their eyes on.
on certain deposits.
Um, Right.
Yeah.
And, and if they question those,you know, again, that's, that's
great that again, we understandby using a bank, we're, we're,
we're under the bank'sguidelines.
Yeah.
The banks are required todeposit anything over 10,000 to
the government.
(17:17):
Right.
And, and that's been around fora while as part of the Bake Make
Secrecy Act and also the, um,Patriot Act that was passed, so
especially after nine 11.
So they're trying to avoid moneylaundering and.
Oh, what's the word I'm lookingfor?
Terrorist Activity Funding.
Yeah.
Type thing.
Fund funding.
Illegal activity.
Right, exactly.
(17:38):
So the banks are reporting anydepo cash.
Cash deposits, specifically over10 grand, so mm-hmm.
Um, but as far as the mortgagegoes, really the, the biggest
culprit that we have forsourcing funds comes around
cash.
Yes.
It has to be proven.
It has to be.
Gotcha.
All right.
So now that we've, uh, ruffled afew feathers and maybe, maybe a
(18:01):
few made a few people nervoushere.
What is the best way to handle,um, say a cash transaction if,
um, uh, you know, um, Bobby andSusie, I think of the names you
were using earlier.
Say, Hey, we're about ready togo look for a new.
And grandma says, Absolutely,I'd love to help you with that.
Um, you know, I've got$5,000 setaside that I wanted to put in
(18:25):
your, um, account, however youwanted to do that.
How would somebody manage, um, adeposit or a gift prior to, um,
their beginning, their mortgagejourney, which again, looking
for a.
And there's two, there's twodifferent things there, and
they, there's two different, um,scenarios around it.
(18:47):
Two different procedures.
One is cash and the other is thegift.
Mm-hmm.
Now, if the gift is a cash, thenit kind of all falls under the,
the cash thing.
So, mm-hmm.
let's start with, let's startwith why this is important or
what's gonna happen.
So, When you do a loan, you givebank statements typically, cuz
(19:10):
you have to bring money to theclosing table.
You're gonna need bankstatements.
Mm-hmm.
And so the underwriter's gonnalook for those bank statements
and they're gonna look foranything that's classified as a
large deposit.
Mm-hmm.
Now most of the issues withlarge deposits come around cash
because we have to be able tofind the source of the cash.
Mm-hmm.
Now large deposits such aschecks, irs, you know, tax
(19:32):
returns, things like thattypically have a source.
They're not as difficult.
Cash can be.
Cash can be a deal killer, andthat's why I specifically wanted
to talk today.
Cash can be a deal killerbecause it's hard to source it.
It's not impossible.
There are exceptions and there'sdifferent rules around it, so, a
large deposit.
Specifically speaking about cashis it's gonna be a deposit
(19:56):
that's over a certain amount,and it's different per the loan
guidelines.
Like for instance, in VA'sFresh, in my mind, I believe
VA's is 2% of the loan amount.
Okay?
So if you have a loan of, um,2%, let's see.
If you have a loan of a hundredthousand mm-hmm.
and you have a deposit, 3000,well, that's over 2% of a
(20:19):
hundred thousand, which is twogrand.
Sure.
3000 would be considered a largedeposit.
We're gonna need to source it.
Where did this cash come from?
Mm-hmm.
Your mattress is not a, is not agood source.
can't use it.
Keep all my money, right?
No, you can't.
You can't do, No it, it's notokay.
(20:39):
Can't use that.
Right.
The bad part about it is if wehave to back those funds out,
let's say we can't source it andwe have to back those funds out,
we have to subtract that threegrand or whatever the amount is
from your available balance onyour now current statement.
We can't go back and say, Oh,well I use that three grand to
pay my rent.
No, no.
(20:59):
We have to take it.
So if you only have 3,100 areshowing on your new.
your new account balance andthat deposit from two, almost
two months ago, but it's stillon there.
Mm-hmm.
is 3000.
Well now you have like a hundredbucks left in your account.
That's usable funds to close.
Right.
So it can become a really,really big issue.
And there's no, there's not manyways around it once it's there.
(21:22):
So that's one.
It's the large po.
The other is, is is the gift.
Anytime there's a gift, you needto make sure you're alone,
officer know.
Because again, it goes back tothat, um, adding that risk layer
to your loan and, and it may ormay not approve of that gift on
there.
And then it also goes back to,you know, grandma showing her
(21:44):
her bank statements and beingable to source the funds.
It's all about sourcing thefunds.
So cash deposits can be a reallybig issue.
Okay.
Right.
So the next question would be,How do we get around it?
How do we avoid these, thesegray areas?
(22:04):
How do we avoid it?
Now, I, I will say, you know,there are some ways that it's
okay, you know, where, where wecan source it.
But when, when you deal withcash and it's, and it's
considered a large deposit, it'sbig enough to be a large.
you put yourself in that grayarea, uh, potentially for
underwriter discretion.
(22:25):
Mm-hmm.
And what that, what that's gonnamean with cash is if the proof
that you're giving them, is thatenough to, um, convince the
underwriter that that was thesource of the cash.
Mm-hmm.
cash is not traceable.
Mm-hmm.
for, so they're having to takesomebody's word.
Now, let's say for instance, um,you're selling a car and you're
(22:47):
gonna take the, the money fromthat car, you get cash.
And you're gonna put it in yourbank and use it.
That's potentially okay.
You need a bill of sale that'ssigned by everybody, and here is
the very, very, very importantpiece of that.
If you sell the car for$4,200,you need to deposit$4,200 in
(23:10):
cash.
Mm-hmm.
you can immediately take out.
Whatever.
Mm-hmm.
from it, you can withdraw it,but that deposit needs to match
the bill of sale.
Gotcha.
And this, again, may be in thatgray area, but from my
experience, what I've seen fromunderwriters, they want it to be
(23:34):
exact.
Mm-hmm.
if it's$4,200 and five.
they may ask for it to be$4,200and 5 cents in the deposit.
Mm-hmm.
it needs to be the same thing sothey can without question, match
that up.
Mm-hmm.
Cause remember they'reprotecting their job.
Sure.
Gray area, they're making thecall that protects them.
(23:56):
So make sure it's the exactamount.
Make sure you have a bill saleif you have, can have it
notarized.
You know, input on their, youknow, cash payment of 42 0 5 or
whatever it is.
Mm-hmm.
the more proof you can get, thebetter.
Sure.
Now, if you sold a campertrailer last summer and you've
been saving that cash under yourmattress and wanna deposit it
(24:18):
mm-hmm.
no, not Okay.
They're not gonna take it fromthat long ago.
can't do that either.
Ok.
No, you can't do that either.
It has to be re it needs to be.
So the best thing to do is ifyou get that money, put it in an
account.
So, and that's gonna be comingback to your mention of how do
we get around this?
It's not really getting aroundit, it's going through the
(24:39):
proper methods of what we callseasoning your funds.
Gotcha.
We can use cash, but they haveto be.
You know, and I don't meanseasoning like you put a little
barbecue sauce on and I meanseasoning like you put it in
your bank account.
Yeah.
Yep.
Absolutely.
So that, that's all seasoning isseasoning is taking that money
(25:01):
and putting it in a bank accountand let it sit there.
So I, I need to see two fullmonths of bank statements.
Mm-hmm.
that do not show that deposit.
Gotcha, So, So you say two fullmonths, two cycles, and that
could be anywhere from 45 daysto more than 60 days if it
(25:25):
could.
Yeah.
You know, Yeah.
Yep.
It depends on, they make thatdeposit, it hits the bank as a
quote, unquote deposit as a lineitem, shows that dollar amount.
And again, if that 4205 centsdoesn't match up with the$4,200,
It would be best to go ahead andlet that money season, let it
(25:47):
season two cycles.
It's honestly, it's better tolet it season in general.
Yeah.
Yeah.
I mean, it, it really takes awaythe question because then we
don't see it.
Okay.
Cause it's all about seeing thatdeposit.
Mm-hmm.
if the underwriter sees it, theycan't unsee it.
Correct, Correct.
Right.
And so when we turn in a loanfile, if you're bringing funds
(26:11):
to close 99% of the cases, weneed two months of bank
statements.
There are some exceptions tothat.
So loan officers listening don'tget in a wad.
But there are exceptions tothat.
But in general, if you, ifyou've cleaned it for two
months, if you season it for twomonths, we're not gonna have an
issue.
Right.
But if I'm turning in two monthsof statements and that last
statement catches that deposit,You know?
(26:33):
Mm-hmm.
on the very first day of thatstatement, it's in there.
The underwriter's gonna see it.
It doesn't matter if we say, Oh,well we got a new bank statement
coming out.
We.
we can exchange it.
You know, we can use the newbank statement.
No, sure.
The underwriter's seen it,right?
So, So we also wanna make sure,at least for our standpoint
(26:53):
going forward, we are notcoaching folks on how to quote
unquote, Launder money and or doanything negative, uh, or
breaking the law.
Uh, what we are discussing heretoday, of course, is, uh, is
avoiding the gray areas,avoiding the pitfalls of, of
having to go back and, and, andexplain and, or, uh, put our
(27:15):
donors, relatives possibly, uh,you know, uh, through a, through
a ringer, uh, which again, wecan avoid.
Again, following a couple ofsimple guidelines, which, uh, by
this one, using cash in thistransaction or this type of
transaction, uh, we're lookingat seasoning, like you said, and
like we said, uh, for at leasttwo cycles, right?
And again, that removes the grayarea from the.
(27:39):
Underwriters.
Yes.
Um, point of view.
And, and then that way they arelooking at, again, a seasoned
amount of cash available funds.
Yep.
Funds, which, uh, which are now,uh, again, able to use in the
transaction, which we'respeaking of, which is a
mortgage.
Right.
Without any discretion.
Yeah.
Any issue.
So, Perfect.
Perfect.
(27:59):
Just wanna make sure that we're,we're putting out our public
service announcement here, thatwe're not, we're, we're not
advocating any of this negative.
No, And it's nothing.
Yeah, no.
And there's nothing illegalabout it.
I mean, this is just part of theprocess and it's how it's done.
I didn't come up with thoserules.
Those are just, Those are justthe rules.
The money has this evening.
Mm-hmm.
The banks are responsible fortaking care of the people who
are money laundering.
I mean, if you're depositing alot of cash in your account, you
(28:21):
may have to deal with the bank,but as far as the mortgage goes,
I can't see if I see that largedeposit we have to source.
And large deposits are not justcash.
There are other forms too.
Yep.
But cash tends to be the onethat causes the issue.
Sure.
Being able to source it.
Now I see people who, um, havesource of funds that are an
(28:43):
issue that we have a hard timesourcing because they've lost
the paperwork.
They don't know how to find it.
Um, they have to get astatement, like a retirement
deposit.
Sure.
Uh, I see people take money outof their, their retirements all
the time.
Like, Yeah, we're gonna, we'regonna take money out to the down
payment and that's fine, but youstill have to source that money.
I'm gonna need to see thestatement from that account.
(29:04):
Yeah.
And I, it's gotta be specific,like, I gotta see the money
coming out.
I gotta see the money coming in.
Mm-hmm.
Cash is not the only culprit,but cash is the one that
generally causes Yes.
Causes the most issues.
Yeah.
Yes.
And, and this again, is gonnahelp again with proper
communication, uh, and, orhonest, I should say
(29:26):
communication.
Mm-hmm.
um, you know, again, you're,you, you as a loan officer as
well as any of the otherbrokers, we would assume that
they would certain.
Give a forewarning to say, Hey,if, if you do, if you're looking
for a gift or whatever from arelative, fantastic.
Again, we would prefer not tohave that as cash, for the
(29:49):
reason being we need to have itsourced and to avoid again, um,
putting our relatives or orthese donors through the ringer.
You know, again, let's use adifferent method, uh, whether
or, or not that be a certifiedcheck.
Um, basically anything otherthan, Let's talk to your loan
officer.
That's, that's the best thingthat you can do.
(30:10):
Mm-hmm.
talk to your loan officer andlook, you gotta be honest.
I'm telling you right now, youneed to be honest about
everything you're doing withyour money and your finances.
Yep.
It's going to come up.
If you're hiding it from me,I'm, I may not find it as the
loan officer mm-hmm.
but it, it very well will comeup during the underwriting
process.
Yes, Yes.
So just and untimely again,these are untimely.
(30:33):
Yes, yes.
These discoveries usuallyhappen, you know, three days,
always three days or maybe aweek before closing.
And, um, and this is where itbecomes an issue.
Sometimes two or three daysbefore closing.
Yes, yes, yes.
Absolutely.
I, that happened, I'm, you know,I've, I've, I, you know, it
happens and, you know, and thatbrings me kind of to another
(30:54):
one.
Cause I have a similar situationand it's, it has to deal with
cash, but it doesn't have todeal with bonds to close, so.
Mm-hmm.
I wanna touch on this realquick.
There are other things that welook at in the mortgage industry
that are used to supplementsomebody's file.
And one of those is rent.
(31:15):
Oh, rent history can play a bigpart of your mortgage
application.
Um, sometimes it depends on, youknow, somebody maybe has a lower
score.
Or it's a, a, a file that's amanual underwrite, which means
it's kind of, it's one of thosefiles that's, there's a lot of
gray areas on when it's a manualunderwrite.
There's a lot mm-hmm.
and they have a lot moreoverlays and rules when it's a
(31:37):
manual underwrite.
They're doable loans.
But we gotta be careful, Wegotta, you know, cross our t's,
dot our i's, make sureeverything's good, and that
underwriter is going to pickthis file apart.
Okay?
Mm-hmm.
Rent can play a really, reallybig part of that type of loan.
Mm-hmm.
especially on a va.
Um, VA's, you know, one of theones where it does so mm-hmm.
(32:01):
we get a, what's called averification of rent.
And again, it is differentdepending on the loans.
So I'm just gonna speak ingeneral.
We may need a 12 month, we mayneed a 24 month verification of
rent.
And what that is, is where wesend a letter to the landlord
and we have them fill out a formand they send it back to us.
(32:22):
Mm-hmm.
So let's say that the landlordsends it back to us and it's a
private lender.
Mm-hmm.
or a private landlord.
My apologies like, Jeff, youhave a rental house and you
don't have a property manager.
You go and, you know, they bringthe rent check to you every
month or whatever it may be.
(32:42):
So it's, it's considered aprivate landlord.
It's not a, a mark a propertymanagement or any corporation
like an apartment buildingmanaging it, right?
So if when it's a privatelender, underwriters get a
little more particular, theguidelines can get a little more
particular about how we provethat rent is being.
Sure.
So they may ask for proof of itcoming outta your bank account.
(33:04):
Mm.
They may ask for 12 months tocancel checks.
Sometimes they'll ask for 24months to cancel checks.
It just depends on the pile.
Mm-hmm.
But let's say they ask forproof.
They either they want 12 monthsto cancel checks.
Well, what if Bobby's paid hisrent and cash every month?
Mm-hmm.
Right.
That's no proof.
And now we're in a pickle.
Yes.
(33:24):
Yes indeed.
Yes, indeed.
One a.
A really big one.
Mm.
Okay.
So there are some lenders outthere, and I'm not talking about
like va, fha, I'm talking aboutactual mortgage companies that
will not accept cash payments.
It.
There's possibility of gettingaround, not getting around it,
but working through it is morelike the thing.
(33:44):
If you have receipts, maybe aletter from the landlord type of
stuff, you can work through it.
But again, it's putting you intothat gray area and it is a
discretion of the underwriter alot of times.
Mm-hmm.
Mm-hmm.
paying cash for your, yourmortgage is not good.
Or your, your rent is not good.
Right.
Um, the other thing too isyou're leaving yourself wide
(34:05):
open for that landlord to reallytake advantage of you and take
your cash and run off with it.
Well, yes, of course.
That would be the worst thing.
That would be the worstscenario.
Absolutely.
And people don't think aboutthis, but.
This is something that actuallycomes up a lot.
I've actually had to tell peoplethat I couldn't do a loan, you
know, because of this so, If youare renting from a family
(34:28):
member, don't pay them casheither, right?
Okay.
Pay them rent, pay them whatyou're supposed to pay them, but
give them a check or give them amoney order.
Give them a certified check.
Do not pay them in cash.
And honestly, it works better.
Like if you're trying to buy ahome and you're a first time
home buyer, you're trying tobuild your credit, you're trying
(34:50):
to, to get into your first home.
Mm-hmm.
it looks better.
on the file.
If you've been paying rent, ifit's 500, if it's 600, whatever
it is, a thousand dollars amonth.
Mm-hmm.
if you can establish thatpayment history, you are 10
times better off than somebodywho's just paying them in cash.
(35:10):
So pay, pay them.
If you're supposed to be payingthem rent, pay them.
Mm-hmm.
But don't let them talk intogiving them cash because it does
you a disservice.
Now, if you don't ever plan onbuying a.
there's, there's no way you'reever gonna buy a house.
I mean, that's up to you.
You're taking your risk.
That's, you know, your call.
But if you have a, a plan ofbuying a house in the next year,
(35:34):
and you need to be thinkingabout this a year to two years
out in this situation.
Mm-hmm.
don't pay cash.
Right.
It doesn't exist.
If you pay cash, it doesn'texist.
You have lost all of thatrental.
Okay.
About paying and cash.
And is, uh, it typically, uh,you know, nowadays where
(35:55):
realtors, um, are asking forfolks, uh, pre-approval and or
pre-qualification lettersmm-hmm.
typically in thepre-qualification or
pre-approval process, um, is, isthere, uh, Um, much scrutiny
involved, uh, you know, again,pre-qualifying or pre-auth, uh,
(36:15):
you know, uh, pre-approvingfolks for, for mortgages, it
depends on the loan.
Initially, it depends on whattype of loan it is, whether we
ask for it or not.
Some or room, some are moredifficult than others when it
comes to rental history, so itjust depends on the, the type of
(36:37):
loan.
and it's one of those thingslike VA's really particular
about it.
They want it so it's a VA loan,it, it's something that should
probably yeah.
Be discussed.
Mm-hmm.
upfront.
If it's an FHA or conventionalloan, it doesn't come into play
as much as it does, so, Okay.
It's not, honestly, it's notalways an upfront question and
(36:59):
it honestly, it probably shouldbe an upfront question, Do you
pay rent?
What is your rental situation?
Just in case we need it.
Sure.
Sure.
So, so, so, you know, again, agood loan officer will ask those
questions, uh, again, dependingon what kind of, uh, uh, loan
we're getting into, what kind ofproduct we're using.
Okay.
Right?
Yeah, exactly.
Fantastic.
All right.
(37:19):
Yeah, and just protect yourself.
I mean, it's all about one, evenif you're getting a mortgage or
not getting a mortgage, protectyourself.
I mean, yes.
I, I have seen it happenpersonally where people, you
know, you turned in cash.
It never makes it.
I had a friend gets Yeah, itnever gets there.
I had, honestly, I had a friendthis weekend, um, down, and she
(37:40):
lives in a complex where theyhave a box to put their rent
money in.
Mm-hmm.
and a lot of people paying cashand they put their envelope and
they slide it through the holeand they put it in there.
Mm-hmm.
Well, they caught somebody atthis box.
With a magnet or a, uh, somekind of, that they had come up
with something with like astring.
(38:00):
Mm-hmm.
and like something sticky on theend.
And they were pulling theseenvelopes out of the box.
Oh, well, And stealing money.
Yeah.
Stealing the money.
Yes.
Stealing the money.
So then what happens?
There's no proof.
There's no proof.
Well, the landlord didn't getthe money.
You paid it, you're out.
I mean, do you have anadditional.
(38:22):
Additional money to come up withanother.
Mm-hmm.
you know, eight,$900 in cash.
Mm-hmm.
to pay your landlord that month.
Probably.
I mean, you know, nobody, evenif you do, you don't want to.
Right.
You know, So protect yourself.
Don't you know, Don't use, don'tuse cash.
Yes.
Yes.
Let's let this void, let usavoid using excessive cash,
(38:43):
Underst.
and if you're going to buy anightstand off of, you know,
Facebook marketplace, you know,big deal, you know?
Mm-hmm.
Mm-hmm.
Venmo.
Honestly, Venmo is, you know, mygo-to, but Okay.
Um, well that's, that's, that'sa good point there.
So, so in today's world, you gotVenmo, PayPal.
Mm-hmm.
you a couple of these otheritems, uh, or I should say, uh,
(39:06):
cryptocurrency opportunities tomove money from one place to
another.
Um, are, are those consideredcash transactions and or would
your underwriters be looking atyour PayPal accounts and so
forth?
Not typically.
And, you know, it's notsomething that I have really
dealt with, and I'm trying tothink this through as you're
talking to me about it.
(39:26):
So what happens with the, theelectronics sources of funds
like Venmo and, and PayPal toget the money to make the money
usable, uh, for something like.
that's not a Venmo transactionor a PayPal transaction.
Mm-hmm.
you have to transfer that moneyinto your bank account.
Mm-hmm.
So if you transfer the moneyinto your bank account, and, you
(39:51):
know, most of the transactionsthat I see are smaller when it
comes to these things.
There's, you know, 3, 4, 500bucks maybe.
Mm-hmm.
they're usually not largeamounts, but if it were a large
amount, if it, if it crossed thethreshold to be considered a
large deposit, you would have tosource.
To use it.
Just because it came from PayPaldoesn't mean that's, that's not
(40:14):
a source that money.
Where did it come from?
Why was PayPal giving it to you?
Because PayPal is not a source.
PayPal is just a method ofmoving money.
Correct.
PayPal's not a job, right?
PayPal's not the IRS pay.
PayPal is not your pension.
It's not earning you money inany way.
It's a source of moving funds.
Mm-hmm.
So in order to use that money,I'm probably gonna have to
(40:34):
source where the money camefrom.
So if you.
you know, Jimmy off themarketplace, you know,
transferred you 600 bucks ormm-hmm.
I don't know, let's say 6,000bucks for a car or something.
Mm-hmm.
Mm-hmm.
You're gonna have to source it,you're gonna have to show a bill
of sale, or you're gonna have tosee Jimmy's, you know, account
statements or something as akid.
Absolutely.
Or you're gonna have to let thatmoney sit in your bank account
(40:56):
past the, the two month mark.
Yes.
Season seasoning cash.
Yes.
All right, fantastic.
On that one.
Um, and, and we already covered,there's no real dollar figure,
so, you know, where bankslooking at$10,000 in order to
report to IRS and, and meettheir guidelines.
(41:17):
Um, an underwriter does not careabout a specific dollar amount.
What they're looking for isdeposits in and again, deposits
out.
Well, there the source, there isthere, there are, Yes.
There are.
Dollar amounts.
Yes, there are.
Mm-hmm.
the rules vary depending on theloan product.
Gotcha.
Yeah.
So they're looking for Depo,They're not looking out.
(41:39):
They do look it out for likebills that are not being
disclosed, but they're lookingat money coming in.
Mm-hmm.
how much is it and if it, if itsurpasses or crosses that large
deposit threshold, whatever itis for that loan.
Sure.
Where did it come from?
Right.
Okay.
(42:00):
Wonderful.
So, so, uh, as we were gettingready, uh, to come on here
today, um, I did make a smalllist of, of, um, uh, simple
rules.
I hate to use the word rules.
Rules, but, uh, but guidelines,you know, again, to kind kinda
keep.
Um, on the up and up, yes.
(42:20):
Uh, but at the same time, keepus away from that gray area
where the, uh, underwriter, youknow, again, with, you know,
sees a flag and, and, and, andstarts questioning.
Keep us outta the gray area.
Keeps us outta the gray area.
All right, so, uh, you know,number one I was looking at, of
course, Uh, was, was, was,again, the two cycles.
(42:42):
We need to mm-hmm.
we need to make sure that,again, if we have a deposit in
there, we're not gonna see thatdeposit of excessive funds, cash
funds.
Uh, again, looking out beyond,again, a two cycle, uh, two
cycle process.
Two, yeah.
Two full bank statements.
Two full bank statements.
Um, and I, I, I also wrote down,you know, basically if we have
(43:03):
a, if we do have a large cashdeposit, just like you said, you
know, you may have sold, uh, abunch of old cars outta your
front yard that have beensitting there for a while, you
know, and, and the junkcollector came by and offered
cash fee to do that.
If you were to go ahead anddeposit that cash, we're looking
at, again, two cycles, or what Imade over here for a, for a note
was three months.
(43:24):
Um, Or, or make sure that yourreceipts match up.
Exactly.
You get a receipt and thereceipt says that you got six
grand for the junk cars.
Make sure that that deposit sayssix grand.
That can still be a little, canstill be a little iffy.
It helps if it's a professionalreceipt, like from JJ Auto or
(43:45):
something of that extent, butyeah.
But, but it may be, you know,doable if you have the receipt.
Yeah, so, so there are someinstances where we can get, you
know, accept it.
Gotcha.
Perfect.
Um, the third one I have downhere is basically open
communication with all parties.
Yes.
Yes.
(44:06):
Okay.
All parties, meaning your team.
So basically if you're buying anew home, um, it is going to be
you and whoever you're buyingthe home with, spouse or not.
and your mortgage representativehere, as well as your realtor
mm-hmm.
um, as well as the attorneysinvolved, uh, and so forth, that
(44:26):
again, everybody's gonna getsome portion of acknowledgement
of these funds and ortransactions.
Yes.
If, uh, if anything was to showup again in the gray area.
Right.
So, Yeah.
Yeah.
And I want to encourage, youknow, anybody who might be
listening, whether it's arealtor, whether it is.
(44:47):
An attorney.
Mm-hmm.
Mm-hmm.
uh, seller's agent.
Mm-hmm.
any of those.
If you get a check that is adifferent name for a due
diligence deposit or an earnestmoney deposit, and it's not, you
know, if you have Bobby Smithand you get the, the check and
the last name is, uh, more or adifferent name.
Mm-hmm.
ask questions.
(45:07):
Mm-hmm.
Sure.
Absolutely.
Because it's better to catch itthen before that deposit is
made.
Yes.
Once that deposit is made, thenwe've.
We may potentially have a lot ofbacking up that we have to do.
So catch it.
Just ask the question.
Hey, is, you know, um, or call.
If you don't wanna ask theborrower, call, call me.
Call me, call your loan officer.
You should have a relationship.
(45:27):
You guys should be speaking.
Pick up the phone and say, Gina,I is, is, you know, is Mrs.
Moore on the loan?
I gotta check here.
I just wanna make sure we'reokay.
That's cool.
Exactly.
And I'll tell you, um, yeah,we're good to go.
I, I've already known aboutthis, Emily, like, whoa.
Hold on.
No, I don't even know who Mrs.
Moore is, so, Right.
Um, yeah, so just, just followup, just communicate, you know,
(45:50):
and it's, it's like justcatching those little red flags
could really save a deal.
Yes, Yes.
And, um, and, and in today'smarket or today's world, yes.
Uh, we would like to avoid anyof these hiccups, uh, you know,
again, as much as possible.
Um, and, and as quick aspossible being notified of
anything that we need to know.
(46:10):
Okay.
And, and, and, and along withthat, of course, I, I, I
mentioned the gifts, uh, andbank statements.
Mm-hmm.
um, and again, withcommunication, you know, uh,
Aunt Mary went ahead and sentme, you know,$10,000 two months
ago as my marriage gift, and Ideposited that.
Mm-hmm.
um, you know, again, if you seethat deposit in there, we just
(46:31):
need a copy of the check in mostcases.
Otherwise, if we season that, ifwe season those funds and we're
beyond the two statement, Thentypically that money is in there
and, and can be used as, asfunds moving forward?
Well, if you get a, if you get acheck from somebody, you're,
you're gonna have to sourcethat.
(46:52):
You're gonna have to have, havetheir bank accounts.
Okay.
If the, if the check comes from,like, if it comes from an
individual, you're gonna have tosource it.
Mm-hmm.
If it comes from a company,let's say it's a pay stub, it's
the irs, it's a pension, thenyou still have to source.
It's a little easier to sourceit.
Mm-hmm.
But if it comes from anindividual, you may be getting
(47:13):
their bank statements, somm-hmm.
Right.
Se season, the seasoning is thetrick on that.
It keeps you from having to jumpthrough so many flipping hoops,
you know, So Understood.
Understood.
Yeah.
Understood.
And, and, and of course, as Imentioned to all my clients, you
know, um, it's fun to startlooking for a house.
Yes.
It's a little stressful once youfirst get under contract.
(47:35):
Um, again, negotiations, gettinga purchase price.
Earnest money, due diligence,funds to be deposited, things
like that.
Um, and, and that's a stress atthe beginning of our process.
Mm-hmm.
and, and I say that's basicallyyour process, the mortgage side
of things.
Mm-hmm.
And we have typically a, uh,maybe a two or three week window
in between where we have ourinspections done.
(47:57):
We're explaining, we'renegotiating a couple of things.
And then again, we have ourfinal week.
Can be very stressful.
Um, items like this do pop up ona regular basis.
Uh, they do need to be.
Um, and or as we, as we keepmentioning sourced, and, um, and
again, if we, uh, if we havethese items out in front of the
(48:19):
clients buyers, um, you know,again, they shouldn't be such a
surprise, but you and I all knowyou and I well know, um, you
know, it pops up all the time.
if it can happen, it's going.
Yes, Yes, yes.
Exactly.
And it does all the time.
And I get that everybody, youknow when they finally get to a
place and you realize you canbuy a home, you get excited
(48:41):
about it and Absolutely.
You get excited about it.
And if you're like me, I like todo, I'm like right now, like,
Okay, I can buy a home.
I'm ready to buy a home.
I'm gonna buy it tomorrow.
Right?
I don't wanna wait.
Yeah.
Right, But you may need to, youknow, you may need to wait.
It may be in your best interestto give it those two or three
months before you even startthinking about it or going under
contract.
Cuz once you're under contract,things have to start happening.
(49:03):
So let's, let's planaccordingly.
Talk to your loan officer.
Tell them all about yourfinances, overshare.
Tell them where you're gettingyour down payment from.
Where is it coming from?
Even if you don't think it's anissue, it could be an issue.
Tell them overshare it.
Give them details we need toknow.
And confidentiality of course issomething that, uh, and your
(49:24):
side of the business as well asmine.
Yeah, absolutely.
You know, we, we, we are workingas fiduciaries and we certainly
do not share this informationand ethically it's, it's against
just everything that we do.
Um, so, Right.
Absolutely.
Um, you know, again, humannature being what it is, you
know, you must have some levelof, um, faith or trust in, in
(49:46):
your team.
Um, and if you don.
Again, it might be time to look,look for other team members.
Again, someone that youcertainly do trust, but
regardless of who those folksare, uh, this information is
going to be shared and orinvestigated, um, by all
parties.
Um, so whether it's you, whetherit's me, whether it's, you know,
(50:08):
one of our competitors, youknow, again, these, this
information is gonna be sharedand asked for, uh, by all folks
involved, right?
Absolutely.
Okay, good.
All right.
Well, what would you have thenfor a final message or a final,
Um, yeah, just, just, just notefor what it is that we're
(50:28):
covering today and, and, and howto stay outta this gray area.
Yeah.
So if you have a specificscenario that you know, you
think may cause you an issue,call, you know, call me.
Or if you were working with aloan officer, call your loan
officer.
Call, call your financialperson, your lender, and ask
them.
What do I do here?
Mm-hmm.
I, I plan on using this cash.
(50:49):
How?
How can I use it?
How can we be okay?
Ask the question up front.
Don't wait.
Absolutely.
Absolutely.
And, and, and as you mentionedearlier, that in itself could
save the deal.
Um, Yep.
And, and, and in today's world,again, our, our, um, due
diligence deposits as well asour earnest money deposits are,
are, are larger than they havebeen, you know, in the past five
(51:11):
or six years.
And, you know, we don't want tojust give that money away or for
intents and purposes, lose thatmoney.
No.
Um, again, because we are, youknow, not.
um, as communica notcommunicating as best as
possible.
Yep.
Absolutely.
All right.
Well, Gina, how would somebodyget in touch with you, Yeah, so
(51:35):
you're gonna see a link in theshow.
You're gonna have my emailaddress and my, my socials will
be down there, so you can shootme a, a mess book message on
Facebook.
You can shoot me an email.
Um, believe my office number islisted down there as well.
Absolutely.
And, and again, if you have realestate needs, my contact
information is down below aswell.
Um, And, and, and I'm gonna beworking on more of my social
(51:55):
media existence, uh, as well asanything else that needs to get
out there.
So, um, so yeah, a few folkshave any questions, uh, about
anything that we discussed todayand or anything with the real
estate or mortgage industry.
Please don't hesitate to give usa shout.
All right, you guys, thanks forlistening in and talk to you
soon.
Thanks, Jen.
Have a great day.
Thanks.
Hello and welcome to Let's GetMoving With Jeff and Gina.
I am Gina Millway, your localmortgage advisor, and this is, I
am Jeff Cunningham.
I am your local real estateagent here in Greensboro, North
Carolina.
Part of the triad.
It's about to get interestingthis weekend.
We're getting, uh, some remnantsof a Ian and uh Oh, absolutely.
(00:24):
I think outdoor activities aregonna be limited if not
eliminated this weekend.
Yeah.
Unless you like to be wet andplay in the rain.
Exactly.
Which I mean, you know, could befun.
So, mm-hmm.
you know, I've seen those, thosevideos of people having
hurricane parties where they gooutside and try to win to serve.
Yes, absolutely.
Yes.
That makes for, well, let's,let's hope that we don't get,
(00:45):
uh, that kind of activity.
It is.
We are supposed to get, supposedto get a lot of rain here in the
central part of North Carolinathis weekend.
Yeah.
And, um, and yeah, I just, youknow, part of, uh, well just
part of, part of the hurricaneseason here and living in the
south, the hurricane season.
That's right.
And Florida right now as we'rerecordings, probably getting
pretty hard right.
Right about this time, I believeit was May a category five.
(01:07):
It was as it was coming ashore.
Yeah.
Which is, which is a prettyintense storm, even for Florida
in an area that gets it on aregular basis.
So I hope everyone down therestays safe and evacuated if they
needed to.
Indeed, indeed.
And yes, uh, the roads are,roads are crazy down there.
But, um, yes, I spoke with my,my aunt who's in, uh, the
villages down there, um, myaunt, my uncle, and, um, and
(01:29):
yeah, they're battening down thehatches.
They've, uh, they're, they'repretty much, uh, restricting
movement for people.
Um, again, safety reasons, but,um, but yeah, uh, villages is a
huge community down.
And, um, right, right in thecentral part of Florida.
And, uh, and yeah, they're, uh,yeah, the diners and the grocery
stores are jamming right nowdown there.
(01:51):
So, yeah.
Um, you know, all good thoughtsand prayers go out to these guys
this weekend.
Yeah, it, it's, it's scary.
It's terrifying.
I lived in Florida for a whileand the good thing about Florida
is they get beat up so muchabout hurricanes that a lot of
buildings will, will stand it, alot of the powers underground.
So, um, if it had hit adifferent area, wouldn't be the
story, you know, as we've seenin other cases.
(02:13):
So, Hopefully it'll beminimized, but it's still, it's
still a pretty intense storm, soYeah.
Yeah, it is.
And uh, and then yes, so, soit's supposed to go through
Florida, then wrap right backaround the other side, East
Coast and then, uh, and thencome up and visit us there, like
you were saying.
Um, Friday, Saturday, Sundaythis weekend.
So, Yeah, so Rain Weekend timeto get some cleaning done inside
(02:34):
That's right.
Get some cleaning done.
We will definitely be insidewatching some Netflix or
probably renovating the house,so, Yeah.
Yes.
And maybe all the football gameswill not be canceled and uh, and
we'll be able to get some ofthat in there as well.
Mm-hmm.
Mm-hmm.
Yeah, boys.
He might have to be productivethis weekend.
Well, yes.
Uh, you know, unfortunately, youknow, I'd have to say most of my
(02:58):
showings will be canceled, um,just for that reason, you know,
Um, number one, yeah, theweather's gonna be terrible to
be out and about, but numbertwo, yeah.
The sellers are gonna be like,Geez, I, you know, please take
your shoes off.
Take your socks off.
Yeah.
You know, take everything off ifyou can, cuz uh, you know, we
just don't want you in the housewith all this mud and water, so.
Mm-hmm.
I have seen open houses where,But I've been to one
(03:22):
specifically that I rememberwhere there was literally
probably six inches of waterstanding in the front yard and
there were still people just inand outta the house trying to
make offers.
I was crazy.
Yeah.
Yep.
Well, yeah, this, uh, lastcouple years we've seen just
about everything.
So Yeah.
Yes.
Uh, you know, before that wewould certainly say, Hey, Wipe
(03:42):
your feet off, Put on yourlittle booties, put on, you
know, let's, let's berespectful.
Yeah.
It's mad Dad.
Absolutely.
Yeah.
We'll be swinging back that way,you know, in due time.
Um, you know, but right now, uh,you know, we're still hot and
heavy over here.
Um, yeah.
I mean, even with JeromePowell's best efforts to.
(04:05):
Good luck.
Throw, throw a couple of curveballs at us.
Oh yeah.
They're trying, but I don'tknow.
Mm-hmm.
So we'll see what happens.
Yep.
We'll see.
Um, it's, it's been interestingwith, with rates we've had, You
know, I don't wanna spend awhole lot of time on this
because it may be a littledepressing or shocking, but um,
for, you know, check on yourloan officer friends.
(04:25):
We're not Okay out there rightnow, so, um, Yeah.
Yeah.
It's, it's, it's shocking isreally what it is.
It's shocking and I'm not gonnasay the rates are good about,
it's just shocking.
Considered where we've been withrates in the twos and threes,
and now here we are with ratesin the sevens.
The rates are in the sevens insome cases.
Right.
And in the month of, I believe Isaw, um, I saw some information
(04:49):
put out.
I think it was very habi, butthe information was in the month
of September.
The overall number drop thatwe've had in basis points, which
is how we kind of measure, um,the mortgage bonds we've had
over a 400 basis point drop.
Hmm, that's about two fullpercentage points, but that drop
(05:12):
has been in September.
that September, 2022.
Yes.
Well, so, so, so, so we, again,don't get folks a little too
confused.
So these basis point drops areagain, uh, what the interest
rates counter to correct.
(05:33):
So the interest rate would go uponce our basis points go down.
It's not, it's not a mirroringeffect.
Right, right, right, right.
It's a worsening, That's abetter way to put it.
It's a, it's a worsening.
Do you have the mortgage bonds?
Um mm-hmm.
worsening and, and, well, weconsider dropping, um, but it is
a worsening.
Sure.
(05:53):
So as the mortgage bonds drop orworsen Yes.
Do go up in response to that.
Yes, absolutely.
So, Gotcha, gotcha.
Yep, yep.
So, and then we had, I mean,just this last week and one day
we had 170.
Uh, basis points drop, which wasalmost a full percentage point
in that day, which is the mostthat I've seen.
Wow.
(06:14):
Wow.
I, it, it's a huge number.
That's a huge number for oneday.
And we've had some bounce back,so I mean, it, it's better
today.
Um, but it's still, we're stilldown a lot, so hopefully we can
get that back.
I don't know.
Yeah.
Well, just the economicaleconomic environment, you know,
again, that we spoke about alittle earlier.
Um, you know, it's, it's.
It's just a volatile time and,and, and mm-hmm.
(06:37):
and historical time, I shouldsay.
Yeah.
Uh, with the US economy, Um,yeah.
The US and global.
I mean, it's, Yeah.
Yeah.
Which is, you know, playing abig part in our economy as well
as the global Sure.
The global economy, which Iguess it does on a regular
basis, but there's so manythings going on out there that
are just countering each otherand causing.
(06:57):
volatility.
Yes.
But yes.
Housing the fun It is, it iskeeping us busy, but, Right.
Let's, uh, so let's talk alittle bit about some of those
aspects that may be a bitconcerning mm-hmm.
um, in, in a better environmentor in a worse environment.
Um, yeah, absolutely.
And we're speaking today aboutcash.
Yes.
(07:17):
Um, and, and how to use cash inour transactions.
Um, and we're not talking abouta total cash transaction where
we're buying a home or aninvestment with cash, but we're
talking about today with, um,you know, deposits, um, and
managing your bank accounts in away that, uh, that an
underwriter is going to see.
(07:40):
And, um, and what we're gonnatalk about, I guess today is a,
is a couple of red flags and,and possibly how to avoid a
couple of those.
Yes.
And I like the way that you usethe word manage because it
really is about managing it.
Mm-hmm.
it's not that you, you can't usethe cash.
It's about managing how you doit.
Yeah.
And that's what really, really,really important here.
And you know, as muchinformation is out there and as
(08:03):
hard as we try to educateborrowers, it still happens.
Someone will try to use cash as.
You know, for their down paymentor you know, for some part of
the transaction.
And it really, really causesmm-hmm.
a big issue.
Yeah.
It really can cause a big issue.
And we're gonna talk a lotabout, you know, why the
(08:24):
different types of cashdeposits, you know, that I've
seen maybe a few differentscenarios and what's happened
and staying out of the gray areawhen we come to Mm-hmm.
underwriting.
Exactly.
Underwriting your mortgage.
You don't wanna be in the grayarea.
And what I mean by that, So thegray area is something that
calls for the underwriter'sdiscretion or the underwriter to
(08:45):
make a call on it, whether thatcall is good or bad.
And that just basical basicallyputs their antennas up to say,
mm-hmm Hey, we need to go take alook at this and well, a gray
areas give them the ability tomake the call on something to
decide if we can use it or wecan't.
That means there's not a guide,there's not a specific guideline
(09:06):
that covers your specificscenario maybe, and that they
have to make the call.
And what you have to understandis that underwriters are judged
on their, their loanperformances.
And there's a lot of peoplelooking for jobs right now.
And so underwriters are gonna becareful.
Yes.
And, and they wanna maintaintheir job security.
And, and I think everybody canunderstand that if you look at
(09:28):
it from that point of view, thatthe underwriter's really trying
to maintain their, they'retrying to keep their job.
Sure.
And as well as the integrity ofthe loan, you know, again, for
the investors involved.
Um, but yes, uh, their, theirperformance is very tied into
their employment.
Yeah.
So let's talk about.
(09:49):
Let's talk about funds.
So I don't wanna make this acash, I wanna make it like a,
like a funds discussion, becauseyou can screw up in other ways
too.
Okay.
And one of the, the things thatI have, have actually seen or
come across, had the questionsof it recently is your, your
deposits on your contract.
Mm-hmm.
(10:10):
one.
Your deposits.
Thankfully we can't use it atleast here, not North Carolina.
It has to be a, you know, acheck or a money order.
Mm-hmm.
So thankfully your due diligenceand your honors money can't be
cash anyway.
However, what I have seen happenis, Let's say, you know, Bobby
is buying a home, and Bobby'smom was like, Oh, I'll just run
(10:32):
down and pay it because youcan't make it to the attorney's
office.
I'll give them the depositcheck.
I'll just write it out of myaccount.
No.
Mm-hmm.
no.
Stop.
Right?
Do not.
Mm-hmm.
do not do that.
The funds need to be your funds.
Mm-hmm.
absolutely.
If mom is not on the loan, donot use mom's funds.
(10:53):
Mm.
If your wife is not on the loan,don't use your wife's funds
unless both names are on thataccount.
Absolutely.
Did you know that funds from aspouse is considered a gift?
Ooh, no.
I did not explain, yes.
If, if the borrower's name isnot on the spouse's bank
account, so like if Bobby'sgetting a loan mm-hmm.
(11:15):
and Susie has her own bankaccount and Bobby's named not on
the bank account.
Mm-hmm.
she gives him money.
It's a gift.
Yeah.
If, if mom writes that duediligence check out of her
account, it's a gift.
Mm-hmm.
Mm-hmm.
that we then need have to seemom's, uh, banking account.
We're gonna need two months ofMom's bank account.
(11:35):
Correct.
Correct.
So, so, absolutely.
So, so So we wanna make surethat folks.
at the time of transaction.
Uh, meaning once we get acontract written or we're
writing a contract again, weneed to verify or at least ask
our clients to verify again,their funds and where they are
(11:55):
in that and where it sits today.
Yes.
And, and, and again.
Those that are involved with thetransaction, um, need to be, you
know, again, making thosedeposits.
Mm-hmm.
And those that are not involvedwith the transaction need not to
make these deposits.
Right.
And we try as loan officers, atleast, at least I do, I'm
(12:16):
reviewing bank statementsmm-hmm.
Going into pre-approval.
I don't, I don't give apre-approval unless I look at
the bank statement.
And so we try really hard to.
Scan, almost underwrite the loanahead of time.
Mm-hmm.
we're looking to see what's inthat account.
Is there something that's gonnashow up that might be an issue?
And particularly, one thing I'mlooking for is a, is a large
deposit or a cash deposit.
(12:37):
Mm-hmm.
And, but I can tell you peoplesneak it in they will find a way
to sneak it in.
No matter how much you gothrough it with'em, no matter
how much you tell'em, don't.
Yes.
People will find a way to sneakit in and you, it causes an
(12:59):
issue.
And it causes an issue all thetime.
Yes.
Um, so, um, a couple of thoseinstances, I know that you and I
have covered this a couple oftimes, but just like you said,
you know, if, if Bobby's momwants to run down there and drop
off that earnest money check forjust say a thousand dollars and
she's not part of.
Transaction.
(13:19):
Then again, we usually don'tfind this out until about a week
before we close, so that we'realready past due diligence in
most cases.
Mm-hmm.
and, and, and we are in amortgage transaction.
We're not buying straight outwith cash.
Um, but at the same time, wherewe're going, uh, with this is
just the fact that this, uh,money, um, for all parties needs
(13:42):
to.
What we talked about earlier istraceable is traceable and
sourced.
Yes, source and source is thekey word in the mortgage
industry.
But yes, source means traceableand, and there's, that's loaded.
So it can mean a lot ofdifferent things and different
scenarios.
And I wanna back up just onesecond before I go down this
(14:04):
horse and we'll rabbit hole.
Cause I can be there for, Yeah.
The reason that it could be anissue if, let's say somebody
else on the loan writes thatmoney or uses their funds is
one, yes, we do have to includeit as a gift, and that's not
always a bad thing, but it couldbe.
Mm-hmm.
a gift on a loan if you don'talready have that on the
profile.
(14:25):
A gift on a loan is consideredan additional risk layer on the.
So what is basically tellingour, our, um, ai, our
underwriting system, is that youare not using all of your own
funds.
Mm-hmm.
you're having to get funds fromsomebody else to make this
transaction happen.
Mm-hmm.
So it's an added risk layer toyour file.
Well, maybe you're already maxedout on your added risk layers.
(14:48):
You add that gift and now you gofrom having an approve or a
doable loan mm-hmm.
to one that's not approv.
Right.
And that can make a huge, huge,huge difference.
I mean, you go from being okayto, to not being okay.
Mm-hmm.
so then we've gotta figure thatout.
The other thing where it comesback to is mom wanting to
(15:11):
provide her bank statements orwhoever's gifting you the, the
funds.
Mm-hmm.
People don't like to give outtheir bank statements.
Correct.
They don't want their kidshaving their bank statements.
I mean, shoot, some wives don'teven want their husbands having
their bank statements and viceversa.
Right.
People get weird about that kindof stuff, their financial
information, and I get it.
I completely understand it.
Mm-hmm.
but.
(15:32):
Just because you don't wannagive it out doesn't mean that I,
I still don't have to have it.
Right?
Yes, yes.
I still gotta have it.
If you offer up a thousanddollars of your money to, to
help them buy a home, you'vegotta show me where the funds
come from.
Mm-hmm.
So once you gotta overcome thehurdle of that donor being okay
with giving up their bankstatements.
Right.
And two, what have they done?
(15:54):
How does their, how does theirbank statement.
Do they have some big deposits,some cash deposits?
We're gonna have to run downthis huge rabbit hole of chasing
that money when if it had justbeen done correctly in the first
place, we wouldn't be in thisscenario.
So that's what we're trying toavoid with this.
Mm-hmm.
this little message, it's like,just, just stop.
(16:14):
Don't, don't add the extrahurdles.
Right.
Talk to your loan officer.
and, and make sure that you'redoing it the way it's supposed
to be done, because it can be abig deal and it doesn't, you
know, like you don't think aboutit being a big deal.
Right.
You know, but it is.
Yes.
Yes.
And, and, and we've had somechanges here in the last, uh,
(16:37):
last period of time.
Uh, Patriot Act being one ofthose mm-hmm.
uh, coming just after nine 11,um mm-hmm.
And again, that's just, uh,keeping an eye out, you know,
And the public funds, you know,your bank accounts, not to say
that they're public.
Yeah.
But, you know, if the governmentcan get ahold of that and or
they're, they're regulating thebank accounts mm-hmm.
(16:57):
then those are the ones that aregonna be asking, or at least
have their eyes on.
on certain deposits.
Um, Right.
Yeah.
And, and if they question those,you know, again, that's, that's
great that again, we understandby using a bank, we're, we're,
we're under the bank'sguidelines.
Yeah.
The banks are required todeposit anything over 10,000 to
the government.
(17:17):
Right.
And, and that's been around fora while as part of the Bake Make
Secrecy Act and also the, um,Patriot Act that was passed, so
especially after nine 11.
So they're trying to avoid moneylaundering and.
Oh, what's the word I'm lookingfor?
Terrorist Activity Funding.
Yeah.
Type thing.
Fund funding.
Illegal activity.
Right, exactly.
(17:38):
So the banks are reporting anydepo cash.
Cash deposits, specifically over10 grand, so mm-hmm.
Um, but as far as the mortgagegoes, really the, the biggest
culprit that we have forsourcing funds comes around
cash.
Yes.
It has to be proven.
It has to be.
Gotcha.
All right.
So now that we've, uh, ruffled afew feathers and maybe, maybe a
(18:01):
few made a few people nervoushere.
What is the best way to handle,um, say a cash transaction if,
um, uh, you know, um, Bobby andSusie, I think of the names you
were using earlier.
Say, Hey, we're about ready togo look for a new.
And grandma says, Absolutely,I'd love to help you with that.
Um, you know, I've got$5,000 setaside that I wanted to put in
(18:25):
your, um, account, however youwanted to do that.
How would somebody manage, um, adeposit or a gift prior to, um,
their beginning, their mortgagejourney, which again, looking
for a.
And there's two, there's twodifferent things there, and
they, there's two different, um,scenarios around it.
(18:47):
Two different procedures.
One is cash and the other is thegift.
Mm-hmm.
Now, if the gift is a cash, thenit kind of all falls under the,
the cash thing.
So, mm-hmm.
let's start with, let's startwith why this is important or
what's gonna happen.
So, When you do a loan, you givebank statements typically, cuz
(19:10):
you have to bring money to theclosing table.
You're gonna need bankstatements.
Mm-hmm.
And so the underwriter's gonnalook for those bank statements
and they're gonna look foranything that's classified as a
large deposit.
Mm-hmm.
Now most of the issues withlarge deposits come around cash
because we have to be able tofind the source of the cash.
Mm-hmm.
Now large deposits such aschecks, irs, you know, tax
(19:32):
returns, things like thattypically have a source.
They're not as difficult.
Cash can be.
Cash can be a deal killer, andthat's why I specifically wanted
to talk today.
Cash can be a deal killerbecause it's hard to source it.
It's not impossible.
There are exceptions and there'sdifferent rules around it, so, a
large deposit.
Specifically speaking about cashis it's gonna be a deposit
(19:56):
that's over a certain amount,and it's different per the loan
guidelines.
Like for instance, in VA'sFresh, in my mind, I believe
VA's is 2% of the loan amount.
Okay?
So if you have a loan of, um,2%, let's see.
If you have a loan of a hundredthousand mm-hmm.
and you have a deposit, 3000,well, that's over 2% of a
(20:19):
hundred thousand, which is twogrand.
Sure.
3000 would be considered a largedeposit.
We're gonna need to source it.
Where did this cash come from?
Mm-hmm.
Your mattress is not a, is not agood source.
can't use it.
Keep all my money, right?
No, you can't.
You can't do, No it, it's notokay.
(20:39):
Can't use that.
Right.
The bad part about it is if wehave to back those funds out,
let's say we can't source it andwe have to back those funds out,
we have to subtract that threegrand or whatever the amount is
from your available balance onyour now current statement.
We can't go back and say, Oh,well I use that three grand to
pay my rent.
No, no.
(20:59):
We have to take it.
So if you only have 3,100 areshowing on your new.
your new account balance andthat deposit from two, almost
two months ago, but it's stillon there.
Mm-hmm.
is 3000.
Well now you have like a hundredbucks left in your account.
That's usable funds to close.
Right.
So it can become a really,really big issue.
And there's no, there's not manyways around it once it's there.
(21:22):
So that's one.
It's the large po.
The other is, is is the gift.
Anytime there's a gift, you needto make sure you're alone,
officer know.
Because again, it goes back tothat, um, adding that risk layer
to your loan and, and it may ormay not approve of that gift on
there.
And then it also goes back to,you know, grandma showing her
(21:44):
her bank statements and beingable to source the funds.
It's all about sourcing thefunds.
So cash deposits can be a reallybig issue.
Okay.
Right.
So the next question would be,How do we get around it?
How do we avoid these, thesegray areas?
(22:04):
How do we avoid it?
Now, I, I will say, you know,there are some ways that it's
okay, you know, where, where wecan source it.
But when, when you deal withcash and it's, and it's
considered a large deposit, it'sbig enough to be a large.
you put yourself in that grayarea, uh, potentially for
underwriter discretion.
(22:25):
Mm-hmm.
And what that, what that's gonnamean with cash is if the proof
that you're giving them, is thatenough to, um, convince the
underwriter that that was thesource of the cash.
Mm-hmm.
cash is not traceable.
Mm-hmm.
for, so they're having to takesomebody's word.
Now, let's say for instance, um,you're selling a car and you're
(22:47):
gonna take the, the money fromthat car, you get cash.
And you're gonna put it in yourbank and use it.
That's potentially okay.
You need a bill of sale that'ssigned by everybody, and here is
the very, very, very importantpiece of that.
If you sell the car for$4,200,you need to deposit$4,200 in
(23:10):
cash.
Mm-hmm.
you can immediately take out.
Whatever.
Mm-hmm.
from it, you can withdraw it,but that deposit needs to match
the bill of sale.
Gotcha.
And this, again, may be in thatgray area, but from my
experience, what I've seen fromunderwriters, they want it to be
(23:34):
exact.
Mm-hmm.
if it's$4,200 and five.
they may ask for it to be$4,200and 5 cents in the deposit.
Mm-hmm.
it needs to be the same thing sothey can without question, match
that up.
Mm-hmm.
Cause remember they'reprotecting their job.
Sure.
Gray area, they're making thecall that protects them.
(23:56):
So make sure it's the exactamount.
Make sure you have a bill saleif you have, can have it
notarized.
You know, input on their, youknow, cash payment of 42 0 5 or
whatever it is.
Mm-hmm.
the more proof you can get, thebetter.
Sure.
Now, if you sold a campertrailer last summer and you've
been saving that cash under yourmattress and wanna deposit it
(24:18):
mm-hmm.
no, not Okay.
They're not gonna take it fromthat long ago.
can't do that either.
Ok.
No, you can't do that either.
It has to be re it needs to be.
So the best thing to do is ifyou get that money, put it in an
account.
So, and that's gonna be comingback to your mention of how do
we get around this?
It's not really getting aroundit, it's going through the
(24:39):
proper methods of what we callseasoning your funds.
Gotcha.
We can use cash, but they haveto be.
You know, and I don't meanseasoning like you put a little
barbecue sauce on and I meanseasoning like you put it in
your bank account.
Yeah.
Yep.
Absolutely.
So that, that's all seasoning isseasoning is taking that money
(25:01):
and putting it in a bank accountand let it sit there.
So I, I need to see two fullmonths of bank statements.
Mm-hmm.
that do not show that deposit.
Gotcha, So, So you say two fullmonths, two cycles, and that
could be anywhere from 45 daysto more than 60 days if it
(25:25):
could.
Yeah.
You know, Yeah.
Yep.
It depends on, they make thatdeposit, it hits the bank as a
quote, unquote deposit as a lineitem, shows that dollar amount.
And again, if that 4205 centsdoesn't match up with the$4,200,
It would be best to go ahead andlet that money season, let it
(25:47):
season two cycles.
It's honestly, it's better tolet it season in general.
Yeah.
Yeah.
I mean, it, it really takes awaythe question because then we
don't see it.
Okay.
Cause it's all about seeing thatdeposit.
Mm-hmm.
if the underwriter sees it, theycan't unsee it.
Correct, Correct.
Right.
And so when we turn in a loanfile, if you're bringing funds
(26:11):
to close 99% of the cases, weneed two months of bank
statements.
There are some exceptions tothat.
So loan officers listening don'tget in a wad.
But there are exceptions tothat.
But in general, if you, ifyou've cleaned it for two
months, if you season it for twomonths, we're not gonna have an
issue.
Right.
But if I'm turning in two monthsof statements and that last
statement catches that deposit,You know?
(26:33):
Mm-hmm.
on the very first day of thatstatement, it's in there.
The underwriter's gonna see it.
It doesn't matter if we say, Oh,well we got a new bank statement
coming out.
We.
we can exchange it.
You know, we can use the newbank statement.
No, sure.
The underwriter's seen it,right?
So, So we also wanna make sure,at least for our standpoint
(26:53):
going forward, we are notcoaching folks on how to quote
unquote, Launder money and or doanything negative, uh, or
breaking the law.
Uh, what we are discussing heretoday, of course, is, uh, is
avoiding the gray areas,avoiding the pitfalls of, of
having to go back and, and, andexplain and, or, uh, put our
(27:15):
donors, relatives possibly, uh,you know, uh, through a, through
a ringer, uh, which again, wecan avoid.
Again, following a couple ofsimple guidelines, which, uh, by
this one, using cash in thistransaction or this type of
transaction, uh, we're lookingat seasoning, like you said, and
like we said, uh, for at leasttwo cycles, right?
And again, that removes the grayarea from the.
(27:39):
Underwriters.
Yes.
Um, point of view.
And, and then that way they arelooking at, again, a seasoned
amount of cash available funds.
Yep.
Funds, which, uh, which are now,uh, again, able to use in the
transaction, which we'respeaking of, which is a
mortgage.
Right.
Without any discretion.
Yeah.
Any issue.
So, Perfect.
Perfect.
(27:59):
Just wanna make sure that we're,we're putting out our public
service announcement here, thatwe're not, we're, we're not
advocating any of this negative.
No, And it's nothing.
Yeah, no.
And there's nothing illegalabout it.
I mean, this is just part of theprocess and it's how it's done.
I didn't come up with thoserules.
Those are just, Those are justthe rules.
The money has this evening.
Mm-hmm.
The banks are responsible fortaking care of the people who
are money laundering.
I mean, if you're depositing alot of cash in your account, you
(28:21):
may have to deal with the bank,but as far as the mortgage goes,
I can't see if I see that largedeposit we have to source.
And large deposits are not justcash.
There are other forms too.
Yep.
But cash tends to be the onethat causes the issue.
Sure.
Being able to source it.
Now I see people who, um, havesource of funds that are an
(28:43):
issue that we have a hard timesourcing because they've lost
the paperwork.
They don't know how to find it.
Um, they have to get astatement, like a retirement
deposit.
Sure.
Uh, I see people take money outof their, their retirements all
the time.
Like, Yeah, we're gonna, we'regonna take money out to the down
payment and that's fine, but youstill have to source that money.
I'm gonna need to see thestatement from that account.
(29:04):
Yeah.
And I, it's gotta be specific,like, I gotta see the money
coming out.
I gotta see the money coming in.
Mm-hmm.
Cash is not the only culprit,but cash is the one that
generally causes Yes.
Causes the most issues.
Yeah.
Yes.
And, and this again, is gonnahelp again with proper
communication, uh, and, orhonest, I should say
(29:26):
communication.
Mm-hmm.
um, you know, again, you're,you, you as a loan officer as
well as any of the otherbrokers, we would assume that
they would certain.
Give a forewarning to say, Hey,if, if you do, if you're looking
for a gift or whatever from arelative, fantastic.
Again, we would prefer not tohave that as cash, for the
(29:49):
reason being we need to have itsourced and to avoid again, um,
putting our relatives or orthese donors through the ringer.
You know, again, let's use adifferent method, uh, whether
or, or not that be a certifiedcheck.
Um, basically anything otherthan, Let's talk to your loan
officer.
That's, that's the best thingthat you can do.
(30:10):
Mm-hmm.
talk to your loan officer andlook, you gotta be honest.
I'm telling you right now, youneed to be honest about
everything you're doing withyour money and your finances.
Yep.
It's going to come up.
If you're hiding it from me,I'm, I may not find it as the
loan officer mm-hmm.
but it, it very well will comeup during the underwriting
process.
Yes, Yes.
So just and untimely again,these are untimely.
(30:33):
Yes, yes.
These discoveries usuallyhappen, you know, three days,
always three days or maybe aweek before closing.
And, um, and this is where itbecomes an issue.
Sometimes two or three daysbefore closing.
Yes, yes, yes.
Absolutely.
I, that happened, I'm, you know,I've, I've, I, you know, it
happens and, you know, and thatbrings me kind of to another
(30:54):
one.
Cause I have a similar situationand it's, it has to deal with
cash, but it doesn't have todeal with bonds to close, so.
Mm-hmm.
I wanna touch on this realquick.
There are other things that welook at in the mortgage industry
that are used to supplementsomebody's file.
And one of those is rent.
(31:15):
Oh, rent history can play a bigpart of your mortgage
application.
Um, sometimes it depends on, youknow, somebody maybe has a lower
score.
Or it's a, a, a file that's amanual underwrite, which means
it's kind of, it's one of thosefiles that's, there's a lot of
gray areas on when it's a manualunderwrite.
There's a lot mm-hmm.
and they have a lot moreoverlays and rules when it's a
(31:37):
manual underwrite.
They're doable loans.
But we gotta be careful, Wegotta, you know, cross our t's,
dot our i's, make sureeverything's good, and that
underwriter is going to pickthis file apart.
Okay?
Mm-hmm.
Rent can play a really, reallybig part of that type of loan.
Mm-hmm.
especially on a va.
Um, VA's, you know, one of theones where it does so mm-hmm.
(32:01):
we get a, what's called averification of rent.
And again, it is differentdepending on the loans.
So I'm just gonna speak ingeneral.
We may need a 12 month, we mayneed a 24 month verification of
rent.
And what that is, is where wesend a letter to the landlord
and we have them fill out a formand they send it back to us.
(32:22):
Mm-hmm.
So let's say that the landlordsends it back to us and it's a
private lender.
Mm-hmm.
or a private landlord.
My apologies like, Jeff, youhave a rental house and you
don't have a property manager.
You go and, you know, they bringthe rent check to you every
month or whatever it may be.
(32:42):
So it's, it's considered aprivate landlord.
It's not a, a mark a propertymanagement or any corporation
like an apartment buildingmanaging it, right?
So if when it's a privatelender, underwriters get a
little more particular, theguidelines can get a little more
particular about how we provethat rent is being.
Sure.
So they may ask for proof of itcoming outta your bank account.
(33:04):
Mm.
They may ask for 12 months tocancel checks.
Sometimes they'll ask for 24months to cancel checks.
It just depends on the pile.
Mm-hmm.
But let's say they ask forproof.
They either they want 12 monthsto cancel checks.
Well, what if Bobby's paid hisrent and cash every month?
Mm-hmm.
Right.
That's no proof.
And now we're in a pickle.
Yes.
(33:24):
Yes indeed.
Yes, indeed.
One a.
A really big one.
Mm.
Okay.
So there are some lenders outthere, and I'm not talking about
like va, fha, I'm talking aboutactual mortgage companies that
will not accept cash payments.
It.
There's possibility of gettingaround, not getting around it,
but working through it is morelike the thing.
(33:44):
If you have receipts, maybe aletter from the landlord type of
stuff, you can work through it.
But again, it's putting you intothat gray area and it is a
discretion of the underwriter alot of times.
Mm-hmm.
Mm-hmm.
paying cash for your, yourmortgage is not good.
Or your, your rent is not good.
Right.
Um, the other thing too isyou're leaving yourself wide
(34:05):
open for that landlord to reallytake advantage of you and take
your cash and run off with it.
Well, yes, of course.
That would be the worst thing.
That would be the worstscenario.
Absolutely.
And people don't think aboutthis, but.
This is something that actuallycomes up a lot.
I've actually had to tell peoplethat I couldn't do a loan, you
know, because of this so, If youare renting from a family
(34:28):
member, don't pay them casheither, right?
Okay.
Pay them rent, pay them whatyou're supposed to pay them, but
give them a check or give them amoney order.
Give them a certified check.
Do not pay them in cash.
And honestly, it works better.
Like if you're trying to buy ahome and you're a first time
home buyer, you're trying tobuild your credit, you're trying
(34:50):
to, to get into your first home.
Mm-hmm.
it looks better.
on the file.
If you've been paying rent, ifit's 500, if it's 600, whatever
it is, a thousand dollars amonth.
Mm-hmm.
if you can establish thatpayment history, you are 10
times better off than somebodywho's just paying them in cash.
(35:10):
So pay, pay them.
If you're supposed to be payingthem rent, pay them.
Mm-hmm.
But don't let them talk intogiving them cash because it does
you a disservice.
Now, if you don't ever plan onbuying a.
there's, there's no way you'reever gonna buy a house.
I mean, that's up to you.
You're taking your risk.
That's, you know, your call.
But if you have a, a plan ofbuying a house in the next year,
(35:34):
and you need to be thinkingabout this a year to two years
out in this situation.
Mm-hmm.
don't pay cash.
Right.
It doesn't exist.
If you pay cash, it doesn'texist.
You have lost all of thatrental.
Okay.
About paying and cash.
And is, uh, it typically, uh,you know, nowadays where
(35:55):
realtors, um, are asking forfolks, uh, pre-approval and or
pre-qualification lettersmm-hmm.
typically in thepre-qualification or
pre-approval process, um, is, isthere, uh, Um, much scrutiny
involved, uh, you know, again,pre-qualifying or pre-auth, uh,
(36:15):
you know, uh, pre-approvingfolks for, for mortgages, it
depends on the loan.
Initially, it depends on whattype of loan it is, whether we
ask for it or not.
Some or room, some are moredifficult than others when it
comes to rental history, so itjust depends on the, the type of
(36:37):
loan.
and it's one of those thingslike VA's really particular
about it.
They want it so it's a VA loan,it, it's something that should
probably yeah.
Be discussed.
Mm-hmm.
upfront.
If it's an FHA or conventionalloan, it doesn't come into play
as much as it does, so, Okay.
It's not, honestly, it's notalways an upfront question and
(36:59):
it honestly, it probably shouldbe an upfront question, Do you
pay rent?
What is your rental situation?
Just in case we need it.
Sure.
Sure.
So, so, so, you know, again, agood loan officer will ask those
questions, uh, again, dependingon what kind of, uh, uh, loan
we're getting into, what kind ofproduct we're using.
Okay.
Right?
Yeah, exactly.
Fantastic.
All right.
(37:19):
Yeah, and just protect yourself.
I mean, it's all about one, evenif you're getting a mortgage or
not getting a mortgage, protectyourself.
I mean, yes.
I, I have seen it happenpersonally where people, you
know, you turned in cash.
It never makes it.
I had a friend gets Yeah, itnever gets there.
I had, honestly, I had a friendthis weekend, um, down, and she
(37:40):
lives in a complex where theyhave a box to put their rent
money in.
Mm-hmm.
and a lot of people paying cashand they put their envelope and
they slide it through the holeand they put it in there.
Mm-hmm.
Well, they caught somebody atthis box.
With a magnet or a, uh, somekind of, that they had come up
with something with like astring.
(38:00):
Mm-hmm.
and like something sticky on theend.
And they were pulling theseenvelopes out of the box.
Oh, well, And stealing money.
Yeah.
Stealing the money.
Yes.
Stealing the money.
So then what happens?
There's no proof.
There's no proof.
Well, the landlord didn't getthe money.
You paid it, you're out.
I mean, do you have anadditional.
(38:22):
Additional money to come up withanother.
Mm-hmm.
you know, eight,$900 in cash.
Mm-hmm.
to pay your landlord that month.
Probably.
I mean, you know, nobody, evenif you do, you don't want to.
Right.
You know, So protect yourself.
Don't you know, Don't use, don'tuse cash.
Yes.
Yes.
Let's let this void, let usavoid using excessive cash,
(38:43):
Underst.
and if you're going to buy anightstand off of, you know,
Facebook marketplace, you know,big deal, you know?
Mm-hmm.
Mm-hmm.
Venmo.
Honestly, Venmo is, you know, mygo-to, but Okay.
Um, well that's, that's, that'sa good point there.
So, so in today's world, you gotVenmo, PayPal.
Mm-hmm.
you a couple of these otheritems, uh, or I should say, uh,
(39:06):
cryptocurrency opportunities tomove money from one place to
another.
Um, are, are those consideredcash transactions and or would
your underwriters be looking atyour PayPal accounts and so
forth?
Not typically.
And, you know, it's notsomething that I have really
dealt with, and I'm trying tothink this through as you're
talking to me about it.
(39:26):
So what happens with the, theelectronics sources of funds
like Venmo and, and PayPal toget the money to make the money
usable, uh, for something like.
that's not a Venmo transactionor a PayPal transaction.
Mm-hmm.
you have to transfer that moneyinto your bank account.
Mm-hmm.
So if you transfer the moneyinto your bank account, and, you
(39:51):
know, most of the transactionsthat I see are smaller when it
comes to these things.
There's, you know, 3, 4, 500bucks maybe.
Mm-hmm.
they're usually not largeamounts, but if it were a large
amount, if it, if it crossed thethreshold to be considered a
large deposit, you would have tosource.
To use it.
Just because it came from PayPaldoesn't mean that's, that's not
(40:14):
a source that money.
Where did it come from?
Why was PayPal giving it to you?
Because PayPal is not a source.
PayPal is just a method ofmoving money.
Correct.
PayPal's not a job, right?
PayPal's not the IRS pay.
PayPal is not your pension.
It's not earning you money inany way.
It's a source of moving funds.
Mm-hmm.
So in order to use that money,I'm probably gonna have to
(40:34):
source where the money camefrom.
So if you.
you know, Jimmy off themarketplace, you know,
transferred you 600 bucks ormm-hmm.
I don't know, let's say 6,000bucks for a car or something.
Mm-hmm.
Mm-hmm.
You're gonna have to source it,you're gonna have to show a bill
of sale, or you're gonna have tosee Jimmy's, you know, account
statements or something as akid.
Absolutely.
Or you're gonna have to let thatmoney sit in your bank account
(40:56):
past the, the two month mark.
Yes.
Season seasoning cash.
Yes.
All right, fantastic.
On that one.
Um, and, and we already covered,there's no real dollar figure,
so, you know, where bankslooking at$10,000 in order to
report to IRS and, and meettheir guidelines.
(41:17):
Um, an underwriter does not careabout a specific dollar amount.
What they're looking for isdeposits in and again, deposits
out.
Well, there the source, there isthere, there are, Yes.
There are.
Dollar amounts.
Yes, there are.
Mm-hmm.
the rules vary depending on theloan product.
Gotcha.
Yeah.
So they're looking for Depo,They're not looking out.
(41:39):
They do look it out for likebills that are not being
disclosed, but they're lookingat money coming in.
Mm-hmm.
how much is it and if it, if itsurpasses or crosses that large
deposit threshold, whatever itis for that loan.
Sure.
Where did it come from?
Right.
Okay.
(42:00):
Wonderful.
So, so, uh, as we were gettingready, uh, to come on here
today, um, I did make a smalllist of, of, um, uh, simple
rules.
I hate to use the word rules.
Rules, but, uh, but guidelines,you know, again, to kind kinda
keep.
Um, on the up and up, yes.
(42:20):
Uh, but at the same time, keepus away from that gray area
where the, uh, underwriter, youknow, again, with, you know,
sees a flag and, and, and, andstarts questioning.
Keep us outta the gray area.
Keeps us outta the gray area.
All right, so, uh, you know,number one I was looking at, of
course, Uh, was, was, was,again, the two cycles.
(42:42):
We need to mm-hmm.
we need to make sure that,again, if we have a deposit in
there, we're not gonna see thatdeposit of excessive funds, cash
funds.
Uh, again, looking out beyond,again, a two cycle, uh, two
cycle process.
Two, yeah.
Two full bank statements.
Two full bank statements.
Um, and I, I, I also wrote down,you know, basically if we have
(43:03):
a, if we do have a large cashdeposit, just like you said, you
know, you may have sold, uh, abunch of old cars outta your
front yard that have beensitting there for a while, you
know, and, and the junkcollector came by and offered
cash fee to do that.
If you were to go ahead anddeposit that cash, we're looking
at, again, two cycles, or what Imade over here for a, for a note
was three months.
(43:24):
Um, Or, or make sure that yourreceipts match up.
Exactly.
You get a receipt and thereceipt says that you got six
grand for the junk cars.
Make sure that that deposit sayssix grand.
That can still be a little, canstill be a little iffy.
It helps if it's a professionalreceipt, like from JJ Auto or
(43:45):
something of that extent, butyeah.
But, but it may be, you know,doable if you have the receipt.
Yeah, so, so there are someinstances where we can get, you
know, accept it.
Gotcha.
Perfect.
Um, the third one I have downhere is basically open
communication with all parties.
Yes.
Yes.
(44:06):
Okay.
All parties, meaning your team.
So basically if you're buying anew home, um, it is going to be
you and whoever you're buyingthe home with, spouse or not.
and your mortgage representativehere, as well as your realtor
mm-hmm.
um, as well as the attorneysinvolved, uh, and so forth, that
(44:26):
again, everybody's gonna getsome portion of acknowledgement
of these funds and ortransactions.
Yes.
If, uh, if anything was to showup again in the gray area.
Right.
So, Yeah.
Yeah.
And I want to encourage, youknow, anybody who might be
listening, whether it's arealtor, whether it is.
(44:47):
An attorney.
Mm-hmm.
Mm-hmm.
uh, seller's agent.
Mm-hmm.
any of those.
If you get a check that is adifferent name for a due
diligence deposit or an earnestmoney deposit, and it's not, you
know, if you have Bobby Smithand you get the, the check and
the last name is, uh, more or adifferent name.
Mm-hmm.
ask questions.
(45:07):
Mm-hmm.
Sure.
Absolutely.
Because it's better to catch itthen before that deposit is
made.
Yes.
Once that deposit is made, thenwe've.
We may potentially have a lot ofbacking up that we have to do.
So catch it.
Just ask the question.
Hey, is, you know, um, or call.
If you don't wanna ask theborrower, call, call me.
Call me, call your loan officer.
You should have a relationship.
(45:27):
You guys should be speaking.
Pick up the phone and say, Gina,I is, is, you know, is Mrs.
Moore on the loan?
I gotta check here.
I just wanna make sure we'reokay.
That's cool.
Exactly.
And I'll tell you, um, yeah,we're good to go.
I, I've already known aboutthis, Emily, like, whoa.
Hold on.
No, I don't even know who Mrs.
Moore is, so, Right.
Um, yeah, so just, just followup, just communicate, you know,
(45:50):
and it's, it's like justcatching those little red flags
could really save a deal.
Yes, Yes.
And, um, and, and in today'smarket or today's world, yes.
Uh, we would like to avoid anyof these hiccups, uh, you know,
again, as much as possible.
Um, and, and as quick aspossible being notified of
anything that we need to know.
(46:10):
Okay.
And, and, and, and along withthat, of course, I, I, I
mentioned the gifts, uh, andbank statements.
Mm-hmm.
um, and again, withcommunication, you know, uh,
Aunt Mary went ahead and sentme, you know,$10,000 two months
ago as my marriage gift, and Ideposited that.
Mm-hmm.
um, you know, again, if you seethat deposit in there, we just
(46:31):
need a copy of the check in mostcases.
Otherwise, if we season that, ifwe season those funds and we're
beyond the two statement, Thentypically that money is in there
and, and can be used as, asfunds moving forward?
Well, if you get a, if you get acheck from somebody, you're,
you're gonna have to sourcethat.
(46:52):
You're gonna have to have, havetheir bank accounts.
Okay.
If the, if the check comes from,like, if it comes from an
individual, you're gonna have tosource it.
Mm-hmm.
If it comes from a company,let's say it's a pay stub, it's
the irs, it's a pension, thenyou still have to source.
It's a little easier to sourceit.
Mm-hmm.
But if it comes from anindividual, you may be getting
(47:13):
their bank statements, somm-hmm.
Right.
Se season, the seasoning is thetrick on that.
It keeps you from having to jumpthrough so many flipping hoops,
you know, So Understood.
Understood.
Yeah.
Understood.
And, and, and of course, as Imentioned to all my clients, you
know, um, it's fun to startlooking for a house.
Yes.
It's a little stressful once youfirst get under contract.
(47:35):
Um, again, negotiations, gettinga purchase price.
Earnest money, due diligence,funds to be deposited, things
like that.
Um, and, and that's a stress atthe beginning of our process.
Mm-hmm.
and, and I say that's basicallyyour process, the mortgage side
of things.
Mm-hmm.
And we have typically a, uh,maybe a two or three week window
in between where we have ourinspections done.
(47:57):
We're explaining, we'renegotiating a couple of things.
And then again, we have ourfinal week.
Can be very stressful.
Um, items like this do pop up ona regular basis.
Uh, they do need to be.
Um, and or as we, as we keepmentioning sourced, and, um, and
again, if we, uh, if we havethese items out in front of the
(48:19):
clients buyers, um, you know,again, they shouldn't be such a
surprise, but you and I all knowyou and I well know, um, you
know, it pops up all the time.
if it can happen, it's going.
Yes, Yes, yes.
Exactly.
And it does all the time.
And I get that everybody, youknow when they finally get to a
place and you realize you canbuy a home, you get excited
(48:41):
about it and Absolutely.
You get excited about it.
And if you're like me, I like todo, I'm like right now, like,
Okay, I can buy a home.
I'm ready to buy a home.
I'm gonna buy it tomorrow.
Right?
I don't wanna wait.
Yeah.
Right, But you may need to, youknow, you may need to wait.
It may be in your best interestto give it those two or three
months before you even startthinking about it or going under
contract.
Cuz once you're under contract,things have to start happening.
(49:03):
So let's, let's planaccordingly.
Talk to your loan officer.
Tell them all about yourfinances, overshare.
Tell them where you're gettingyour down payment from.
Where is it coming from?
Even if you don't think it's anissue, it could be an issue.
Tell them overshare it.
Give them details we need toknow.
And confidentiality of course issomething that, uh, and your
(49:24):
side of the business as well asmine.
Yeah, absolutely.
You know, we, we, we are workingas fiduciaries and we certainly
do not share this informationand ethically it's, it's against
just everything that we do.
Um, so, Right.
Absolutely.
Um, you know, again, humannature being what it is, you
know, you must have some levelof, um, faith or trust in, in
(49:46):
your team.
Um, and if you don.
Again, it might be time to look,look for other team members.
Again, someone that youcertainly do trust, but
regardless of who those folksare, uh, this information is
going to be shared and orinvestigated, um, by all
parties.
Um, so whether it's you, whetherit's me, whether it's, you know,
(50:08):
one of our competitors, youknow, again, these, this
information is gonna be sharedand asked for, uh, by all folks
involved, right?
Absolutely.
Okay, good.
All right.
Well, what would you have thenfor a final message or a final,
Um, yeah, just, just, just notefor what it is that we're
(50:28):
covering today and, and, and howto stay outta this gray area.
Yeah.
So if you have a specificscenario that you know, you
think may cause you an issue,call, you know, call me.
Or if you were working with aloan officer, call your loan
officer.
Call, call your financialperson, your lender, and ask
them.
What do I do here?
Mm-hmm.
I, I plan on using this cash.
(50:49):
How?
How can I use it?
How can we be okay?
Ask the question up front.
Don't wait.
Absolutely.
Absolutely.
And, and, and as you mentionedearlier, that in itself could
save the deal.
Um, Yep.
And, and, and in today's world,again, our, our, um, due
diligence deposits as well asour earnest money deposits are,
are, are larger than they havebeen, you know, in the past five
(51:11):
or six years.
And, you know, we don't want tojust give that money away or for
intents and purposes, lose thatmoney.
No.
Um, again, because we are, youknow, not.
um, as communica notcommunicating as best as
possible.
Yep.
Absolutely.
All right.
Well, Gina, how would somebodyget in touch with you, Yeah, so
(51:35):
you're gonna see a link in theshow.
You're gonna have my emailaddress and my, my socials will
be down there, so you can shootme a, a mess book message on
Facebook.
You can shoot me an email.
Um, believe my office number islisted down there as well.
Absolutely.
And, and again, if you have realestate needs, my contact
information is down below aswell.
Um, And, and, and I'm gonna beworking on more of my social
(51:55):
media existence, uh, as well asanything else that needs to get
out there.
So, um, so yeah, a few folkshave any questions, uh, about
anything that we discussed todayand or anything with the real
estate or mortgage industry.
Please don't hesitate to give usa shout.
All right, you guys, thanks forlistening in and talk to you
soon.
Thanks, Jen.
Have a great day.
Thanks.
Popular Podcasts
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!
Crime Junkie
Does hearing about a true crime case always leave you scouring the internet for the truth behind the story? Dive into your next mystery with Crime Junkie. Every Monday, join your host Ashley Flowers as she unravels all the details of infamous and underreported true crime cases with her best friend Brit Prawat. From cold cases to missing persons and heroes in our community who seek justice, Crime Junkie is your destination for theories and stories you won’t hear anywhere else. Whether you're a seasoned true crime enthusiast or new to the genre, you'll find yourself on the edge of your seat awaiting a new episode every Monday. If you can never get enough true crime... Congratulations, you’ve found your people. Follow to join a community of Crime Junkies! Crime Junkie is presented by audiochuck Media Company.
Ridiculous History
History is beautiful, brutal and, often, ridiculous. Join Ben Bowlin and Noel Brown as they dive into some of the weirdest stories from across the span of human civilization in Ridiculous History, a podcast by iHeartRadio.