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Mortgage Underwriting Due Diligence in 1-2-3 – How to Create Powerful Lender-Broker Alignment That Leads to More Closed Deals

All lenders know the importance of mortgage underwriting due diligence, but sometimes that can be hard to do when you are working with other real estate professionals, such as mortgage brokers.

A recent mortgage consumer survey found that mortgage renewers made up 35% of the mortgage transaction market in 2017, which was up 9% from 2016. Mortgage refinancers made up 40% of the market, recent buyers made up 44%, and first-time homebuyers made up 55%.

The survey also explored why consumers use mortgage brokers. It found that 58% o with a broker out of a desire to get the best rate or deal, and 52% opted for a broker to get valuable advice and recommendations.

Overall, 72% of mortgage consumers were satisfied with their experience using a broker.

So, what does this mean to you? Brokers are not going anywhere, and they represent a huge opportunity to mortgage lenders. In fact, if you represent a financial institution that has a large book of broker-referred business then this article is even more valuable to you.

The more you are aligned with your brokers, the more you can enjoy faster, smoother closings and increased closing rates.

Getting aligned with your brokers means being in sync on:

  • Current products, services, and associated lending guidelines.
  • Using the same underwriting tools to ensure that you are dealing with the same information.
  • Your expectations when receiving business from your referral partner as far as process and disclosure.

A lack of alignment can occur when a broker doesn’t have a solid understanding of a lender’s guidelines, is not digging deep enough in their applications, and/or is not using the right tools to validate that their client’s information is accurate.

Credit reports are an excellent example of alignment. They come from two primary sources, Equifax and Transunion. When you’re looking at a credit report, you can be fairly confident that you and your brokers are seeing the same information.

But that’s not always the case with other tools, like Automated Valuation Models (AVMs). Depending on the product your broker uses, they could end up with a different property estimate than what you have.

Educating your broker on the tools you use and what they can do to contribute to a more fluid partnership will lead to a more powerful alignment and increased overall profitability for both you and your broker partner.

At Purview, we have AVMs that both mortgage lenders and mortgage brokers can access. Our property valuations are quick, accurate, and up-to-date. Learn more about how Purview can support your lender-broker alignment and increase your mortgage underwriting due diligence by calling 1.855.787.8439.

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