“What we look for from the brokers is a complete package,” says Rosa Shirani, manager of lending, heading up Paramount Equity Financial Corporation’s underwriting department, “and what we find is that some agents will send us a blurb, because they are used to submitting to A lenders. The email/summary will be around Beacon score, what their income is like, what the reason is for the refinance; when really what we need is just the meat of it.”
The case of a Toronto broker’s client being charged an extra $100 “monoline surcharge” by their lawyer elicited an avalanche of broker complaints around the practice.
In the case highlighted in the MortgageBrokerNews.ca article, that added expense was tabbed onto to a bill for closing costs and specifically meant to compensate the lawyer for a protracted and confused closing process.
But the underwriting process that precedes settlement is often held up by paperwork that trickles in from brokers and their clients. That need to change.
Making the underwriting work the first time is what can make or break a deal, says Shirani, and the broker should understand what the lender is looking for when the paperwork is sent in.
Solid broker understanding of underwriting can avoid a lot of the problems that lead to extra fees and unexpected surcharges, says one lender.