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Mortgage Broker News | 05 Aug 2015, 09:00 AM Agree 0
It’s a tactic that lenders – and their underwriters – may not be too keen to implement, but one broker is suggesting his lender partners take a page out of the bank playbook.
  • Robert | 05 Aug 2015, 06:21 PM Agree 0
    Many brokers know that a large number of Underwriters already work 6-7 days a week during busy periods, adding work days would not address the issue mentioned here. I believe the majority of Underwriters would agree the primary issues causing backlogs are: Inaccurate submissions, requesting multiple changes and documents not matching the application. These all take more time than you think to correct and/or change.

    I’m not able speak to inefficiencies on the Lender side, but I can outline a few ways to help reduce turnaround times on submissions:
    - Know what the client wants; people change their minds, but an informed client who is asked the right questions is less likely to request multiple changes. I’ve seen many submissions with 10-15 change requests, each one having to be resubmitted for insurer review, snowballing into longer.
    - Have a complete understanding of your chosen Lenders guidelines and risk tolerance(s).
    - Ensure details on the submission are accurate, income and property details are by far the largest culprits. Remember; monolines who back insure must resubmit all changes to the MI, which can affect your approval and snowballs into longer turnaround on the Insurer side. Also, MI and Investor audits do include data accuracy and, with new legislation, is increasingly important.
    - When you’ve chosen the lender fit for your client; clear/concise supporting rationale will go a long way towards an approval.
    - Try to provide a complete package when submitting documents, and address any deficiencies in that package. Sending one document at a time, or satisfying one condition at a time, is inefficient.

    I would like to point out that the majority of brokers currently do this - it is the minority that cause delays for everyone else (and still expect the same service as a highly efficient and profitable broker). In my opinion, if that minority would consider the above points you would not only help keep your Underwriter happy, but also decrease turnaround time for all and create a better, more profitable relationship for all parties.

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