When was the last time you reviewed your underwriting process?
It can be easy to get into a routine, but if you haven’t looked at changing your process in the past few years, it may be time for a reboot.
When lending on mortgages, the majority of problems come up on a deal after it’s had an initial pre-approval of credit and income related to the property.
But when you optimize your underwriting process you can, actually spot these issues sooner. You’ll be able to:
- Identify problem deals sooner.
- Keep problem deals out of the underwriting cycle in the first place.
- Know more sooner in the process.
- Identify upsell opportunities.
- Save valuable operational costs.
- And more.
When you’re reviewing your process, here’s what you should make sure you find out early on:
- The property’s sales history.
- Ownership history and current ownership information.
- Registered encumbrances.
- Property value.
This can help you quickly weed out:
- Overstated values.
- Understated and undisclosed mortgages.
- Fraud.
- And more.
While this article from Mortgage Broker News is from 2015, it still contains some pertinent points.
Lenders sometimes inform mortgage brokers of issues with deals after it is too late to change anything, leading to a lost deal.
It’s in your best interest, and your partners’, to develop an underwriting process that allows you to head off any potential problems well before closing.
Of course, sometimes the underwriting process can be derailed by the client — they open a new credit account, something changes with their credit report, and so on. In these instances, you need your process to be scalable and flexible so you can quickly adapt.
Optimize your process by ensuring that you are asking the right questions at the right times and using technology that lets you access up-to-date, accurate information instantly so you can do proper due diligence.
At Purview, our property tools quickly let you look up sales history, ownership history, encumbrances, property value, and much more.
Contact us today to get started. Call 1-855-787-8439 or visit www.purview.ca.
