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Turnaround times worry brokers

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Mortgage Broker News | 24 Aug 2012, 09:00 AM Agree 0
CMP’s upcoming Brokers on Lenders survey should highlight the growing concern brokers have about turnaround times, as they fight to retain a dwindling number of deals.
  • More broker complaints... who knew? | 25 Aug 2012, 09:01 AM Agree 0
    If brokers want faster turnaround times, then start filling out the applications properly, get your documents up front and stop wasting the lenders time with deals that will not fund. All brokers ever do is complain – “we want more money, we want faster turnaround time, we want better service, we want we want we want... waaah poor me I am a broker and my job is so haaaard”. Well - what are you going to give the lender - and don't say the business... because guess what - you don't even want the lender to have a relationship with the client, and most broker deals don't even last 3 years with a lender before the broker churns their book so they can make more money. You waste the lenders time with sending deals that you can’t even answer simple questions on because you can’t be bothered to really know your clients, most of you can barely fill out an application.

    Sure, there are some good brokers out there, maybe 1 out of every 500. Those brokers are too busy doing their jobs to spend time whining about what a terrible lot in life they have.
  • Amen!! | 25 Aug 2012, 11:19 AM Agree 0
    And that is why the big banks are slowly but surely shutting this channel down. It is just not profitable...
  • Tomas | 27 Aug 2012, 09:43 PM Agree 0
    No rebuttals?

    The silence is deafening. Thanks for the insight on how long broker deals stay with a lender before getting flipped over.
  • Liz | 28 Aug 2012, 02:32 AM Agree 0
    More broker complaints... who knew - Great comments! So true as well. Lets hope the lenders never do a broker survey. There always seems to be so much criticism towards the lenders. We NEED them. Don't take the anonymous surveys as a way to beat people up and criticize. Would be really nice to see some positive comments for a change.
  • Paul Therien, CENTUM | 28 Aug 2012, 04:29 AM Agree 0
    Although I do not agree with the tone of the comments made by the first person, I think that there is some validity to the points made.

    Better service levels enable brokers to compete on a higher level, and I believe that it is incumbent on lenders to do what they can to have service levels that compete with non-broker lenders. That being said, we as brokers, also have an obligation to do what we can to make it easier for lenders to accomplish this. We do have a responsibility to support their businesses in ways that extend beyond just sending them deals.

    In our industry there are many brokers who have a strong focus on efficiencies. These understand that it not only improves the experience of the lender and enables them to provide better levels of service, but also that it vastly improves the customers experience when dealing with a mortgage broker. The consumer demands a higher level of service year after year, and as service providers we need to do all that we can to meet these demands. Yes, lenders play an important role, but I suggest that we also need to look to our own businesses and seek ways to improve. To lay it solely at the feet of our partners is not a reasonable position to take in any business – regardless of what industry that business operates in.
  • A Former Underwriter | 29 Aug 2012, 01:22 PM Agree 0
    In my previous life as an underwriter, I've always had mixed feelings about these surveys. On one hand, I can understand that it is a way to gather opinions from the industry, but like a previous post mentioned, it also felt like a way for brokers to "beat up" the lenders, particularly the underwriters. If a broker has a legitimate complaint about such issues as turn around time, I suggest contacting the underwriting manager or RVP so that your concerns are addressed immediately. How is it going to help the broker or anyone else, if the concern is brought up once a year in a survey?

    I am glad that the people who posted before me brought up the fact that brokers need to consider the quality of their application before pointing fingers at the lender or underwriting team. After all, garbage in...garbage out right? I can not believe how many garbage applications an underwriter sees in a day. Based on my past experience, I would encourage brokers to know your clients and know your deal. If you can't answer a simple question like "where the down payment is coming from?" on a purchase request, then its a pretty good indication that you didn't ask the right questions. I can guarantee you that if you can't answer that question when the underwriter ask, you will not have a good experience.

    I also hope brokers realize that sometimes the delay is not because the lender is slow. For conventional deals, bulk insurance could hold it up for monoline lenders, and for high ratio deals, most of the time lenders need to wait for the insurer to approve the file before providing the broker with a commitment.

    I think the issue of turn around time will be a topic this industry may never solve as policy and procedures change all the time. Change usually affects turn around time. I wanted to provide a comment to this article in hopes that whoever reads this get a glimpse of what its like on the other side.
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