This is part 2 in my 3 part series, Why Lenders Delay Closings. The question which gets asked all the time is, "Why are we hearing about this now?". Well, this is reason #2. If you missed reason #1, it is in one of my past posts.
A question which every single lender asks themselves just before closing is, "Can we sell this loan?". 90% of loans are sold in the secondary market. Whether you believe it or not, whichever bank you use sells almost all of their loans.
For that reason, the question asked every single time before issuing a clear-to-close is, "Can we sell this loan?".
More importantly, can we sell this loan to someone who is never going to talk to anyone -- not the customer, not the loan officer and the not the underwriter who approved it? They are only going to look at the paper in the file and decide whether or not this person should have been given this loan and was anything missed.
Now imagine that you are looking at 50 different files, each with 100 - 200 sheets of paper in each one, 50 loan officers are calling you once a day, 50 loan officers are emailing you 3 times a day, 5 loan processors are calling and emailing you, your manager is telling you that you have to approve more loans, you are being bombarded with documents being sent one at a time and your POST-closing department is coming back to you with loans from 9 months ago saying that you screwed up and if you screw up again, you are out of a job. Welcome to one day in the life of an underwriter (makes you want to take a Zanny, doesn't it?).
Would you give a loan to someone with a bankruptcy 3 years ago who got foreclosed on, then had 3 new cell phone bill collections put against them last year, who just changed jobs and is getting money gifted to them for the down payment because even though they have lived rent free for the last 3 years, they have not saved any money? I don't know about you, but I might have second thoughts when I ask myself, "Can I sell this loan to someone who I will never talk to". Being the last question an underwriter asks themselves before stamping the file "CTC", you might ask for 1 or 2 more items too at the last minute. Between delaying things and making sure that this file can get bought or just approving it to appease everyone and getting stuck with a $200,000 loan which will cost me my job, I'm asking for 1 or 2 more items.
The better that real estate agents AND LOAN OFFICERS understand the "behind-the-scenes" of loaning $200,000 to someone, the less stressful this job becomes.
As usual, for questions, scenarios or buyers whom you need Pre-Approved, call me at 1-216-780-1103. I specialize in difficult transactions and answer my phone and return calls like a lunatic. I am licensed in 14 states in our beautiful country, but can answer calls and scenarios from all 50. My company is not only a direct lender and I am a loan officer, but I am also an underwriter and I own the place (so the buck starts and stops with me).
Have a great day everyone!!
#khashtags
Comments(8)