As you all know and have experienced, the mortgage industry is no longer as we all knew it. It has significantly changed over the last year or so. Long gone are the days of the: No Doc, No Ratio, SISA, and SIVA loans.

Lenders, Fannie Mae, Freddie Mac, VA and FHA guidelines have all tightend up more than we ever imagined. Not only are they constantly changing, but the changes appear to be here to stay....and mostly likely it will get even tougher. We are now faced with strict, under the microscope "Full Doc" loans programs. Whether they be Conventional, Govt, Conforming, Jumbo, 2nds,etc., no borrower is immune to being scrutinized. In light of this, along side with Short Sales and REOs, loan originating, processing work load and over head costs have increased. This is not even taking into consideration that now, most loans that are being turned in, have added separate Co-Borrowers for qualifying purposes. This has caused some of our loan files to be physically 2 times larger than before.  

All of this unfortunately has added more over head costs regarding: paper, toner, fax, phone, and other miscellaneous supplies and expenses. Not to mentioned the additional work load, especially on our processors. As most if not all loans are now being turned in are full doc loans. Boy have times changed!

Gerard Ladalardo, CMPS
www.caloanpros.com