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Mortgage Broker News | 01 Sep 2015, 08:15 AM Agree 0
With a growing number of originations falling apart in the eleventh hour, one industry player is calling for a broker-appointed watchdog focused on holding lenders accountable
  • Robert Clancy | 01 Sep 2015, 10:17 AM Agree 0
    Thanks for post. I totally agree. This has being a growing concern over the last year or so. I have had 3 deals go this way. Fortunately I was still able to close but not without allot of stress. My thoughts are the tighter back end auditing is causing the problem. Lenders need to get files over to audit sooner to avoid the problems occurring. That way if something is missed by the underwriter or conditioner officer the broker or agent has time to fix or collect document. There is really no reason for this to be happening.
  • Tim | 01 Sep 2015, 11:00 AM Agree 0
    I suspect is a staffing issue more than anything else: doc review takes too long, and problems only come to light upon review (i.e., at the last minute).

    I think Lenders are having difficulty finding qualified candidates, and in any event are reluctant to hire sufficient staff to meet current volume needs, for fear of having to lay them off should volumes subside.

    As Brokers, we have to do out best to manage expectations and stay one step ahead of underwriters: many (most?) lenders publish lists of Approved Solicitors, and you can always call the BDM if you are unsure of the solicitor your customer has selected.

    Kinda not fair, but that's life as a Broker ...
  • Ron Butler | 01 Sep 2015, 11:21 AM Agree 0
    Staffing is definitely part of it but systems are a bigger part of it. At the very big monolines they have built out tech that speeds their processes significantly.
  • M A | 01 Sep 2015, 12:34 PM Agree 0
    I thought I was the only one. Last year I had several files like this. Lucky I did not loose any of them but my customers did have sour grapes at the end. Everything from last minute or the need for more information past the normal blood and urine examination. But we experience the lawyer bit and we ended up bullying our way through with threats of notifying Amba, Caamp, Reca and notifying the brokers of Alberta with nonsense of an approve list of lawyers. I know the BDO's read this or subscribe and their hands are tied in most cases, but when it comes down to either loosing the deal or that your customer has so many sour grapes and it doesn't matter to them that we are only the messenger they may never be repeat customers. My lawyer was "a major builder lawyer in Calgary" whereby they cover the fees. Also a huge law firm. Yikes!
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