Building a better broker-underwriter relationship
Clear communication between brokers and lender underwriters is the key to ensuring a strong mutually beneficial relationship says Equity Financial Trust CEO and Mortgage Summit panelist Nick Kyprianou.
Video transcript below:
Mortgage Summit Speaker, Nick Kyprianou discusses how brokers and underwriters can build lasting relationships.
Nick Kyprianou, CEO, Equity Financial Trust
Nick Kyprianou: Well I think that the relationship between the mortgage broker and the underwriter to work is communication number one obviously. Specially we at Equity Financial Trust are B lenders, equity lenders, so due to that we need to have clear communication between the underwriter and broker. Broker needs to be completely honest, tell us what they need, what they can do, brokers need to make sure before they issue the commitment what the broker needs, what the client’s needs are, what the problems are with the deal, what the challenges are with the deal and then reach a kind of a conclusion together of what the pricing should be, loan to value and then issue the commitment.
What the problem is, is that I find is, there is a lot of times is that they agree the mortgage underwriter and the mortgage broker agree on the deal and then all of a sudden the broker still continues to shop the deal to save 5 or 10 basis points, when you know that broker could be spending time getting that more business, additional business and they are actually hurting the relationship between the underwriter and the broker. So I think that that first line of communication between the two is very critical of asking what you need, how you need it, what it needs to look like and then reaching a consensus and if you don’t reach the consensus, then the broker should just go shopping, he shouldn’t waste the time to get the commitment if he doesn’t think he can sell the deal.
I always believe the clients have already been turned down by the bank, they already know that they can’t get done by the bank, they are already expecting to get a higher rate, so to build that relationship why take all that additional time to save 5 basis points. Build your relationship with your underwriter, I believe that if you can do that and get, reach an agreement that works easily, that time when you do need a favour as a broker and say look, can we do, I really need a quarter off on this deal, you are more apt to get it if you build a strong relationship going forward.