Don't Blame the Underwriter - Blame the Loan Officer!
Steve are you out of your mind? Aren't you a loan officer?
There has been recent conversation about underwriting and underwriters and how grossly depraved and wicked they are - denying loans, taking a shotgun to files, stripping them of all their dignity ...
But as a loan officer that is experienced with both the broker side and the banking side of mortgage lending, I am here to say more times than not ...
BLAME THE LOAN OFFICER
We loan officers are on the front lines. It can be wickedly brutal out there. We work our brains and hands to the core to obtain business, and when we finally get the business in the door do you think we would ever admit that we made a mistake? (We all know what the answer should be, as well as the factual answer).
Enter the mythical creature known as the underwriter!!!
(Excerpt from an unknown work of Plato)
"The underwriter was born in the underworld, the offspring of Barney Frank and Michael Moore. (The one pictured above is actually a quite beautiful one). Underwriters are so mean because they never see light, they are fed LOTS OF CRAP, and people want them to be God and approve horrendously looking files that were DOA. "
The reality is as mentioned above. Loan officers more times than not are to blame when "files go wild". But as typical (oh that hurts) salespeople, loan officers think they are never wrong, always right, and you shouldn't question their authority. HOWEVER the mythical underwriter to blame is a wretched, depraved being that lives only to deny potential home owners from ever living the American Dream. After all, if the underwriter is damned to the underworld, he/she is not letting anyone else experience happiness.
WHAT REALITY SHOULD BE
LOAN OFFICERS SHOULD
Set the right expectations from day one
Write REAL pre-approvals
Be in constant communications
Under promise and over deliver
Take off the "Sales Hat" and be more professional
Be able to admit a mistake
Allow direct contact with underwriters so the truth can be told (yeah right)
Proactively provide sales contract and anything else important to the loan officer as fast as possible. (I've had agents send over contracts 2 weeks after being fully executed).
Listen to the loan officers regarding time lines, stipulations, potential pitfalls (assuming the LO does his/her homework)
Attempt to work with the same lenders and get a really good feel and working relationship under their belt (wonderful long term success)
Take initiative for their buyers and sellers and be in constant communication with the loan officer (agents on both sides of the transaction)
We could go on forever with tips and ideas. The fact is that a knowledgeable experienced loan officer is the most important part of the financing wheel ... more important than the underwriter, the lender itself, the appraiser, the rate, the closing costs ... (you get the point). Some of us have learned the hard way ...
Garbage in = Garbage out
Steve Kappre is a mortgage loan officer in New Jersey. For more info or questions feel free to contact Steve.
- NJ First Time Home Buyer
- Purchase, refinance, rehab loans
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