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.

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

Try another lender.

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.  

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. 

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

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

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'?

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

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)!

Taxpayers should not be treated this way !

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

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?

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

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.

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

Boy this is a first.

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

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.

thanks for the heads up on this!!!!

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.

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

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

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

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

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

Susie Kay nailed this one!

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

I have not heard of this happening.

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.

I  have not experienced this situation.

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

I have not heard of this before wow

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

wow! Interesting

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.

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.  

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.

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?

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

There are still many Federal restrictions regardless of local laws.

I have never heard of that!

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

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