I've been a Loan Officer for a long time, it seems that I started somewhere just after electricity was discovered. So needless to say I've seen a lot, and yet some things strike me differently still
like I'm seeing them for the first time.
I just submitted a loan package, for a first time homebuyer, and after a processing review, which included a checklist of 66 items, the file was sent to the underwriter for an initial review.
that's how we do it. we like to get the file to the underwriting department, fast.
The processor as a courtesy forwards a copy of the complete package to me also.
the "complete" package
155 pages...yup 155 pages
okay so about 45-50 pages are just disclosures, but
the rest include;
3 years of tax returns (all pages), 3 years of W2's, 2 months of bank/asset statements (all pages), tax transcripts, appraisal, case # ordered, geotrack, flip check, fraud report, flood cert, DU, contract, and more...a lot more
now here's the fun part.
as a loan officer I have collected a great deal of these documents, but I have met with the client, and I have been able to ask questions, and I have established a bond with my clients, but the underwriter
they haven't had the opportunity to do any of that, and in all likelihood they will never have any direct contact with the client.
they're seeing this information, for the first time
now, after reviewing all of these documents they have some questions. They come back to the processor as needs/conditions.
here's a question for all of you.
If you had never spoken with, been introduced to, or had any contact whatsoever with the applicant, and you received a application package consisting of 155 pages, what do you think would be a fair amount of questions/needs/conditions?
psst remember now, this is a first time homebuyer (not perfect, as you may assume)
here's another question.
they want to borrow over $113,000. If it was your money and/or your decision, what do you think would be fair?
on the average, and my expectation is that I will get 15-20 items either requesting documentation, or some sort of clarification. Usually they are split, pretty evenly, although not always, between items directly involving the buyer, and work needed to be done by the processor, and or loan officer. and actually I think
that's not bad...considering
so that's just a quick little, uncomplicated look at what an underwriter does, so next time things are taking a little longer than we'd like, just sit back for a moment and
give this some thought