Are Stocks Assets
can calhfa refuse to consider stocks as liquid asset?
We have applied for CALHFA loan with the down payment assistance (CHDAP) everything was going smoothly, our lender’s underwriter approved everything and at the last minute CALHFA came back saying our stocks are not liquid assets and since we need to show 3% in our reserves as available, we have to sell the shares and show the money in bank account. I am wondering if this is even legal. Stocks and shares are liquid assets, even as per their own website. How can CALHFA suddenly decide to consider otherwise? We did sell the shares but are wondering if this is a violation of our right
There is no LAW that states this either way, so there is no “legal” aspect to your question. If their website is saying that stocks ARE liquid assets, then show this to the agent. HOWEVER, if these stocks are in a 401k or IRA, then they are 100% correct as ANY retirement account is NOT considered liquid. Also, if these stocks are held in any sort of trust, then they are also correct. As long as these stocks are held in a normal investment account under your name, then you have a valid point. If they are not, then CALHFA is correct.
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