203k Consultant SoftwareWe have been selling the best 203k software available for the FHA 203k and HomeStyle® Renovation Mortgage by FannieMae for over 25 years. We have the longest running software available to consultant in the business. All the original competitors have gone by the wayside.
I remember a meeting in DC back in early 1995 as I recall. A competitor on the software came up to me and asked if I was the one with the software and promised to run me out of business.
Another couple of guys asked me if I would consider selling my business in CA, way back then. I asked them, who were they? The informed me that they were doing business in 5 states and had 50 projects going… They did not have a clue till I told them we had over a hundred projects going in one state. I suggested they sell out to me. LOL.
Our software was designed to allow you, as a consultant, the maximum speed to complete the project paperwork, and manage your draw requests.
A few years ago, I was asked to take over a couple of projects where the consultant used another software product. I thought I would just use their scope of work to do the draws. I should have l looked at them more closely. It took them 24 pages to write up the scope… mostly because it takes too much time to walk through 24 pages where most of them are blank or have a bit of info on each page. It took about 45 minutes to do each draw request… I was a bit perturbed. When I got back to the office, I had one of my guys transfer the data to our scope of work pages, it took 3 pages to say the same thing for each of the projects. A draw request should typically take 10-15 minutes at the site. If it takes longer, it may be that additional questions needed to be answered.
In the early days, the draw form had a front page and a back page that required signatures. I had set up a draw request procedure that would keep fraud under control. I went to the project site and met with the contractor, but the borrower was not there. The contractor requested that I leave the paperwork with him and he would get the paperwork signed and return it to me. Well, that did not happen. What did happen is that the contractor changed the amounts on page one of the paperwork where he had signed, then the owner came by and did not inspect anything, instead, he just blindly signed the paperwork. It was then hand delivered to the lender.
If that is not funny enough, the lender then called me with “hey Mr Guru, you failed to sign the draw request.” I had them fax a copy to me, yes, in those days we did use fax machines. When I saw the items were much more than what I had put on the forms, I told them it was not to be paid out, I needed to get with the borrower and contractor to see who, or if both, had committed this fraud.
I recommend to all consultants everywhere that they always sign last, and I see that isn’t being done by all. Had I signed the paperwork it might have gone through as a valid draw request and I would have been an unwilling participant in a fraud.
If you are a consultant and you have been signing the paperwork and sending to your client for their signatures, it is only a matter of time before you will be involved in a fraud. Do yourself a favor and always sign last after everyone else signs the paperwork.
Mike Young, 203k Team Leader
We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.
To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation". If you like what you see here please take a look at Another blog by Mike Young in Spanish and other languages.
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