An odd suggestion to help monolines better compete with banks

An odd suggestion to help monolines better compete with banks

An odd suggestion to help monolines better compete with banks One broker believes increased lender wait times could be addressed by lenders who choose to stay open on the weekends.

“I think seasonality and low rates are definitely contributing to longer wait times, but they are big enough and they should be able to prepare for these factors,” Joe Cutura of Dominion Lending Centres Origin told “Maybe the broker lenders could stay open on Saturdays – that way they don’t have to hire more staff and incur more training costs and still provide better service.”

Increased wait times are a perennial concern for brokers, especially during the busy summer season. And that trend is just being exacerbated by record-low rates that are drawing clients to the market.

Still, according to a recent poll 61 per cent of brokers say monolines have faster turnaround times, compared to 38 per cent who argue the banks do.

For his part, Cutura – a former big-bank employee – remembers being able to quickly push deals through as a banker when the need arose.

“Working at RBC we were mandated to give an answer to a submission within two business days, but it could be expedited when we needed to,” Cutura said. “Sometimes within a matter of hours.”

Last year’s Brokers on Lenders issue revealed brokers gave an average score of 3.7 out of a possible five for lender turnaround times, compared to an overall average score of 3.84 for all categories. The top seven were monoline lenders.

This year’s Brokers on Lenders survey is set to launch next week – will the results reflect the growing frustrating around turnaround times? Keep an eye out for the survey link next week.
  • Robert 2015-08-05 6:21:13 PM
    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.

    Post a reply