Broker discusses underwriter exceptions

Broker discusses underwriter exceptions

Broker discusses underwriter exceptions When it comes to difficult files some brokers avoid asking for exceptions from underwriters; but, according to one reader, it can often be the last recourse in trying to get a deal funded.

“I could not imagine not asking for an ‘exception ... within reason,’ after all efforts to finding a solution become exhausted,” MBN reader, Anthony C. wrote. “Provided that you have done your due diligence when qualifying the deal and there is supporting documentation to meet conditions precedent, isn't it our duty as originators to persuade the lenders to see the merits of the covenant, all the while doing so with decorum and without malice towards the lender, should they decline the file?”

The comment was in response to an article about the importance of being up-front and transparent with clients about the documents needed for underwriters to evaluate a file.

“I just tell clients up front that this is a federal government mandate and we’re happy to help but there are certain things we require from you,” John Thompson of TMG The Mortgage Group told “I get all the info up-front; some brokers shy away from asking for these requirements because they think it will scare the client away.”

For difficult files, Thompson also avoids asking underwriters for exceptions because he believes finding a solution is just one part of a mortgage broker’s job.

But according to Anthony, asking for exceptions is another facet of the mortgage broker’s job – when the need arises.

“Sometimes all it takes is just the right persuasive dialogue to get the lender to review/escalate/approve the deal … a little self-diagnosis is good on occasion and please be reminded that we are in the business of selling our deal to the lender,” he wrote. “Branch level and mobile mortgage specialists know this and argue the merits of their clients to their underwriters every day and that's a main factor as to why we lose business to the branches.”