Connie Jo Stubblefield, Residential brokerage specializing in horse proper (California Traditions Realty)

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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi Connie Jo - I haven't heard of that happening here in Colorado yet. The marijuana industry is in a weird kind of limbo, with it still being a federal felony, regardless of its state legality. I can see the lender's reasoning, as there is a chance that the job could disappear overnight if the feds decide to make it an issue, and they could even prosecute your client.

Oct 06, 2016 05:44 AM
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

And yet the irs expects all companies to have and ein and collect federal taxes.

Try another lender.

Oct 06, 2016 04:25 AM
Caroline Gerardo
Sun West Mortgage Corporation - Newport Beach, CA
C. G. Barbeau the Loan Lady nmls 324982

The bean counter at the bank who processed this loan really flubbed up. Almost impossible to turn around the prejudice the lender just doled out. They get a w-2 and file taxes, I could fix this foolishness.  

Oct 06, 2016 06:06 AM
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Legalized pot has brought up many concerns. I know I'm in CO. Although this is a new one for me. Have your buyer try going through a credit union. 

Oct 06, 2016 12:02 PM
William Feela
Realtor, Whispering Pines Realty 651-674-5999 No.

Interesting..the feds will find a way to enforce the laws.

Oct 06, 2016 09:11 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Complete & utter nonsense from one point of view. From another, Federally approved marijuana operations may not be in play thus this is illegal

Oct 06, 2016 06:33 AM
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Schocking!  A drug dealer supplier can't get a Fannie/Freddie backed mortage. What's this country turning into?

This buyer must do what the other dealers do, go to a portfolio lender.

It appears we will need to elect more dope smokers into top government positons so 'unrecognized enterprises' can be properly taxed.

Would that be Billary or the party of  'the deplorables'?

Oct 06, 2016 06:31 AM
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Sounds like a bunch of bs. The loan officer should have reviewed buyers tax returns long ago and should have known about this.

Oct 06, 2016 06:21 AM
Debe Maxwell, CRS | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

So sad, Connie!  Have you run it by other lenders?  This can't be the end of the road or buyers in any state where this is legal, working for any dispensary would never be buying a house - now or forever more (until federally approved)!

Oct 06, 2016 05:43 AM
Michael J. Perry
KW Elite - Lancaster, PA
Lancaster, PA Relo Specialist

Taxpayers should not be treated this way !

Oct 06, 2016 05:01 AM
Connie Jo Stubblefield
California Traditions Realty - Aromas, CA
Residential brokerage specializing in horse proper

As an update, a lender from this forum contacted us and is working on the file as we speak.  To be clear, my client is not growing and does not have ownership in the business.  He is a w-2 employee working for a company that manufactures products for a medically licensed dispensery.  This is totally different than being a grower.  This is what one lender sent us:

From: Annette Battaglia
Sent: Thursday, October 6, 2016 4:24 PM
Subject: Marijuana Dispensary Income Policy Revised
Hello Team Summit,
We are revising our Marijuana Dispensary Income policy (see attached and below):
August 17, 2016Revised 10/6/16
To:                  All Summit Funding Inc. Employees
From:             Annette Battaglia – Regional Underwriting Manager
Re:                  Income derived from Employment (Employee or Self Employed) that are “Marijuana-related”.
Although marijuana is legal within several states at the state level, it is not legal at the Federal level. Which of course leads to the issue that any bank, or government agency like Fannie Mae, Freddie Mac or Ginnie Mae (FHA, VA, USDA) not being able to accept marijuana-related income on their loan programs.
With that said, Summit Funding Inc. will not accept marijuana-related (or any activity deemed illegal by the Federal Government) income on any of our loan programs with the following exceptions:
Conforming Fixed Rate (No High Balance/Jumbo allowed):
1.     DU Approve/Eligible only (LP is not acceptable);
2.     Borrower is a W2 employee and does not have ownership in the Company where the income is  being derived (this must be documented fully);
3.     The subject property cannot have any marijuana growth/use;
4.     You must follow the Summit Funding Exception process in order for us to track and mandate the delivery to FNMA. Please note, you MUST document your borrower has no ownership in the business when you submit your exception request. If you do not, your request will be denied.

VA – Conforming Loan Limit (No High Balance/Jumbo allowed):
1.     DU Approve/Eligible only (LP is not acceptable) – Manual guides are acceptable if your DU is a refer;
2.     Borrower is a W2 employee and does not have ownership in the Company where the income is  being derived (this must be documented fully);
3.     The subject property cannot have any marijuana growth/use;
4.     You must follow the Summit Funding Exception process in order for us to track and mandate the delivery to GNMA. Please note, you MUST document your borrower has no ownership in the business when you submit your exception request. If you do not, your request will be denied.
5.     Please note: VA requires these loans to be underwritten and approved by Summit Funding and then they MUST be submitted to the local VA office for prior approval by VA. Please plan accordingly as this process could take up to an additional 30 days.

This revised policy is effective immediately.
  Annette Battaglia | Regional Underwriting Manager
   Office: (916) 571-3000
   Direct: (916) 571-3200
   Fax: (916) 571-3200


Oct 07, 2016 02:07 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I am with Kenneth J. Jones, SRES, SFR, SCGREA - they take takes but yet don't want to recognize them ... poppy cock!!! 

Oct 07, 2016 01:18 AM
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Geez, they need to just legalize the stuff -- or the freakin' government needs to get out of it and let the states have complete dominion. It's so ridiculous. But then, so is a lot of their overreach. How about a private lender?

Oct 06, 2016 09:45 AM
Susie Kay
Ultra Real Estate Dallas Fort Worth - Plano, TX
North Dallas Specialist

I haven't had any experience with this. Why didn't the lender look into this earlier?

Oct 06, 2016 07:41 AM
Bob Betel
Allstar Home Mortgage, Inc. - Sweetwater, TN
President, Allstar Home Mortgage, Inc

According to Fannie Mae, a w-2 employee does qualify, however the owner would not. Have your underwriter or lender call Fannie Mae and mention the June 21, 2016 notes by Debra Degarmo.

Oct 16, 2016 10:01 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

 Coming from Colorado where we have a dispensary every few blocks, have not heard of this.

Oct 08, 2016 08:06 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Boy this is a first.


Oct 08, 2016 06:38 AM
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     States' Rights vs. Federal Bureaucracy.  My ancestors tried to deal with this in 1861... unfortunately for America, the Federals prevailed.

Oct 07, 2016 02:46 PM
Ryan Huggins - Thousand Oaks, CA - Thousand Oaks, CA
Residential Real Estate and Investment Properties

I haven't seen this one yet, but like Dick Greenberg said "Mary Jane" is still a federal offense and even in cities that allow it (like Los Angeles) the DEA still raids the shops and arrests the owners.

Oct 07, 2016 12:11 PM
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

thanks for the heads up on this!!!!

Oct 07, 2016 04:28 AM
Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

I agree with a lot of the others here, not sure how they got this far in the process before that particular issue came up. Does seem like a private lender might be the way forward.

Oct 07, 2016 01:33 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Interesting.  I haven't encountered this situation.  Yet.  

Oct 06, 2016 11:01 PM
Jessie Cochran
Counts Real Estate Group, Inc. - Panama City, FL
Panama City Realty Group

That's odd, sounds like  a law suit waiting to happen

Oct 06, 2016 10:58 PM
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West - Carlsbad, CA
Presence, Persistence & Perseverance

Fortunately no. Lenders and their underwriters are using very broad brushes to deny loans to so many qualified buyers right now. I hate banks!

Oct 06, 2016 10:55 PM
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

That's a new one to me - maybe another lender would do better?

Oct 06, 2016 10:40 PM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

I have not heard that yet, however NH just allowed medical in so time will tell

Oct 06, 2016 10:38 PM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Susie Kay nailed this one!

Oct 06, 2016 10:33 PM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

First time I have heard of this! Probably not the last time!

Oct 06, 2016 09:48 PM
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have not heard of this happening.

Oct 06, 2016 09:40 PM
Kat Palmiotti
406-270-3667,, Broker/REALTOR® - Kalispell, MT
Helping your Montana dreams take root

I would think employment issues would be found out at the beginning of the process, not the end. I could see on the one hand why there might be a concern with a federally forbidden company. What if the state laws are overturned? On the other hand, the buyer has a job where he pays taxes and everything is on the books. 

I think I would just try another lender and see if there is one that could get this funded.

Oct 06, 2016 08:49 PM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

I  have not experienced this situation.

Oct 06, 2016 08:38 PM
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Connie Jo Stubblefield not yet! If you can, try additional options.

Oct 06, 2016 03:58 PM
Harry F. D'Elia III
RentVest - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I have not heard of this before wow

Oct 06, 2016 03:16 PM
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

We voters in CA are voting on the legality this year.   
There are other lenders ......

Oct 06, 2016 01:48 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

wow! Interesting

Oct 06, 2016 01:17 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I have not heard of this. I would ask to see the regulation. You may have to get in-bank financing or a hard money lender if it is true.

Oct 06, 2016 01:00 PM
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

It get's a little dicey for commercial operations in states where it's legal because it's still not kosher on the federal level.  

Oct 06, 2016 12:59 PM
Lyn Sims
Schaumburg, IL
Real Estate Agent Retired

If they have a Federal Tax ID # they are recognized. I would really look into this with some higher ups at Freddie or Fannie.

Is an acupuncturist a federal enterprise? Who's to say?

Discriminatory lending practices - doesn't pass the smell test here.

Oct 06, 2016 09:47 AM
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Yep! And title companies will not insure if they know the use of the property will be for marijuana. I wrote a blog about this after attend our OAR convention last week. How is recreational marijuana use in Oregon impacting real estate?

Oct 06, 2016 09:28 AM
Susan Laxson CRS
Premier Sotheby's International Realty - Naples, FL
Realtor in Naples & Marco Island, FL

Wow.. this is definitely a new one for me.

Oct 06, 2016 08:55 AM
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

There are still many Federal restrictions regardless of local laws.

Oct 06, 2016 08:34 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

I have never heard of that!

Oct 06, 2016 07:04 AM
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Connie Jo Stubblefield Last time I heard, this is a federal crime. It stands to reason why they would not approve the loan.

Oct 06, 2016 06:40 AM
Richard Weeks
Dallas, TX
REALTOR®, Broker

This a new one on me.  Hopefully some of lender members can jump in.

Oct 06, 2016 04:24 AM