Foreclosures and credit tightening have rocked the mortgage industry, causing some lenders to go out of business. In this critical time when it’s harder to close the number of loans you’re used to, having relationships with lenders that will be around tomorrow and the next day is important. But how can you tell which ones will close their doors and which ones will stem the tide? This article presents four key signs of a mortgage lender that is more likely to remain strong in these turbulent times. If you do business with lenders who meet these criteria, you’ll be able to spend your time finding and closing loans instead of searching out new lenders.
These four keys to success are:
1. Comprehensive Loan Portfolio.
2. Quickly adapting loan programs to the changing environment.
3. Automated systems that provide economies leading to competitive rates.
4. Technology that leads to better quality loans through a rapid alignment with secondary market investor requirements.
Mortgage lenders create loan programs that meet a variety of borrower financial situations. The more programs they provide, the better opportunity borrowers have of qualifying for a loan that meets their needs. Look for a lender who provides a large portfolio of loan products and has been able to rapidly adapt its loan programs to meet the criteria of secondary market lenders. This is important, because if guidelines aren’t met, then an investor will not buy the loan, resulting in the some lenders having less capital to fund additional loans.
Coupled to the process of modifying loan program guidelines is inserting those guidelines into an automated underwriting system (AUS) that uses the programmed guidelines to underwrite loans in seconds, thus quickly ensuring that the borrower qualifies for a specific loan program. By rapidly adapting its loan programs and utilizing an AUS, the lender can help ensure that brokers submit saleable loans. This will contribute to keeping the lender strong and prices down.
A third factor for success is automating multiple processes and incorporating the underwriting into the lending workflow. That way the lender reduces costs and increases its efficiencies, which allows it to provide competitive rates. Great rates are an incentive for brokers to use that lender and contribute to the lender’s strength.
In your search for the best wholesale lenders, be sure to ask lenders about the features listed above. Working with lenders who exhibit all for keys of success will enable you to earn more money and spend less time searching for new lenders.
Tags: Loans