Know Your Client- Know Your Lender!

KYC – we all know the importance of the Know Your Client guidelines. But how well do you Know Your Lender? Different mortgage lenders engage different processes and people when underwriting a mortgage file. Knowing your Lender’s process will allow you to set client expectations and increase their satisfaction. For example …

Some lenders assign the task of underwriting a complete mortgage file to one person, from start to finish. In this case, the Underwriter will underwrite the covenant and property from the application, and they’ll review the supporting documents too.

Other lenders will require one Underwriter to underwrite the application, and another Underwriter to review the documents that support the application. When ordering your appraisal report in this case, it’s important you include the name and contact information for the Underwriter who is reviewing the documents (commonly referred to as a Doc Support Specialist) rather than the Lead Underwriter who reviews the application. This ensures the correct person obtains and reviews the Appraisal Report without delay.

Never assume that your documents (including the Appraisal Report) will be forwarded to the correct Underwriter/Doc Support Specialist if you indicated the wrong person. From our experience, that doesn’t always happen.

Next up in the KYL basket: Lender guidelines. That's right, you need to know them as well or better than your lenders. This includes their appraisal requirements. Why? Because they can result in different estimated market values! Some lenders, for example, allow appraisers to use up to 6 months of historical sales data in their analysis, and others only allow 60 days. Some allow comparable property data to be used within a 1km radius, and others it's 5km. Keep that in mind when switching lenders.

Reduce funding delays and increase client satisfaction by following the KYL Rule - Know Your Lender!

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