One of the single largest delays in a lender’s underwriting operation is the incorrect disclosure and omission of information by clients. While this occurs to varying degrees, it nonetheless adds time to mortgage transactions and drives up the cost of underwriting, causing a trickle-down impact to both broker partners and lenders. Thus, it’s beneficial for lenders early on in the application process to look at how they can catch incorrect disclosures and omitted information by paying attention to key attributes in the mortgage application.
One search that is performed by every lender on every application is a credit report. These are pulled even before preliminary approval is given because poor credit means a full stop for many lenders, especially in the absence of substantial equity. Even if the applicant says early on in the process that they have great credit, it’s unlikely a lender would take their word for it and look at their credit report later in the application process.
So why wait to validate information related to home value, homeownership or registered mortgages? This information is just as easily accessible as a credit report and is just as important.
When receiving an application, here are some other things that you should look to validate, well before issuing an approval:
Who is the homeowner? Are there other people included on title? In cases of refinances, these are common reasons deals become delayed. A deal shouldn’t make its way to closing before this piece of information is uncovered.
What is the property worth? An automated valuation model is an excellent way for an underwriter to check a property’s value to decide if a deal should move forward to the appraisal stage.
What mortgages and/or liens are registered on title? Taking a look at all the details of the mortgages and liens registered on title and when they were registered can enable underwriters to determine if the balance stated is consistent with the balance it should have been when compared to the registration date and amount.
Taking the necessary steps to review this information at the application stage means that you save both time and expenses. PurView allows you to easily evaluate these crucial data points at the beginning of the application stage.
To learn more about PurView, contact an account manager for more details.