How to Survive Working in Mortgage Lending in 2008

What is happening today in mortgage lending:
TIP How to Surviving Working in Mortgage Lending in 2008 by Shirley Nault

Make sure when taking your application you are clear on the financial picture of your customer. You need to be asking a multitude of questions with each loan application. The more Thor you can be the better chance you have of making a deal work. I find too often as an account rep that I wished I could talk to the customer because the loan package appears to be unclear and possibly with just a few more questions maybe the deal could work. Consider the following questions

Do you understand how your borrower is paid? How long have they received this type of income? Does the type of income meet underwriting guidelines? Do they have a 24 month work history? Do they have other income that can be used? Does the income documentation your customers have support the income reported at application? If not why? Will they receive a raise soon? Can it be documented? Do you know the type of documentation that is required for the type of income your customer is receiving?

Does the customer have other property? How long have the had other property? What is their equity position in their other properties? What is the rent? How long have they rented? Can they document this? Do they own more than 4 properties?

Is the subject property going to be an owner occupied property? Does the type of property make sense to the transaction?

Where will the money come from for down payment and closing cost? Have you documented it? Is it from an acceptable source? Will it need to be seasoned? Will they need reserves after closing to make the transaction work? Has the reserves been documented?

Is the subject property in a declining market (may need two appraisals)? Does the value seem in line? Does your review of the appraisal indicate the property is in a declining market? Does the property need repairs will it meet the lenders requirements?

How does the credit look? Don't just look at the FICO score and say that will work, review the last 12-24 months of credit. Do they have any lates during the last 12-24 months? Are the lates isolated? Do they have any recent judgments, collections, BK or foreclosures? Will the lender require perfect credit? Why did they have credit problems?

What is the best program for your customer?

These are just a few questions and I know you have your list of questions as you go through an application, but I suggest to build on that list. The more complete you can be from the beginning the sooner you will know if you have a viable deal to work on.

Once you determine you have a viable deal put the loan package together as a professional or hire someone to do this for you. An inexperienced Loan originator or processor can kill a good deal by just not understanding what needs to be in the loan package to support the credit worthiness in today's market.