Are brokers to blame for slow turnaround times?

Are brokers to blame for slow turnaround times?

Are brokers to blame for slow turnaround times? New CMP research identifying turnaround times as brokers’ biggest gripe has lenders suggesting blame may ultimately rest with those same finger-pointing originators.

“If brokers would actually put notes in their apps that make sense,” writes on frustrated professional at a broker channel lender. “And stop sending deals to three or four lenders at the same time, it would likely improve service levels.”

He or she (the comment was posted to MortgageBrokerNews.ca anonymously) is by no means alone, with other “bankers” offering the same sort of defense against broker criticism that slow turnaround times are stifling growth.

On the contrary, say lenders, some brokers are guilty of throwing up their own obstacles to winning quick commitments for their clients.

“Brokers’ notes in the application improve the turnaround time,” writes another commenter, Kuldip Panesar. “Originators after processing the app should stick to the one lender.”

The inference is that brokers aren’t providing the kind of file details lenders increasingly need to satisfy underwriting guidelines. There’s also concern that brokers simply aren’t spending the requisite time because they’re sending out one-size-fits-all applications to multiple lenders in an effort to hedge their bets.

That may actually be working against them.

Still, this year’s CMP Brokers on Lenders survey points to growing broker dissatisfaction with lender turnaround times as a whole, although individual players are actually garnering more praise that in past years.

A new MortgageBrokerNews.ca poll is also adding weight to broker concerns.

Some 32 per cent of mortgage professionals responding to the online research question in September identified turnaround times as the “single-most important lender feature.” Underwriting support and interest rates came a distant second and third, capturing 25 per cent and 10 per cent of the vote, respectively. 
36 Comments
  • Mark Brennan 2014-10-17 12:38:09 PM
    100% agree. Learn your lender's guidelines, or ask your BDM before you throw it against their wall to see if it will stick. Then package your deal with concise notes for the underwriter!
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  • Adrian 2014-10-17 3:00:18 PM
    Agreed, sort of...Know your lenders and their appetites first and foremost. I collect and provide as much supporting docs up front as possible and give detailed notes. Very few issues with turn around times. As for multiple lenders.... That's just the game and why we have a 4 hour lock out.
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  • Z.M.Padar 2014-10-17 3:00:34 PM
    Just a suggestion: when deal is send to lender, should be complete and not bits an pieces. Explanation of situation and circumstances must be understood by underwriter ant their team, to enable them to provide quick approval and ultimately quick final approval, removal of all conditions. Upon a broker has done this work, collect all information and documentation upfront from client, the underwriting team will and do provide timely respond and funding will be fast and without problems. Way too many unprofessional people in the industry in my opinion, lack of experience and or willingness to learn.
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