By michael mekler
Founder and owner
Liberty First Capital
7 Tips for Faster Approvals
Streamline the underwriting process and avoid costly delays
Like so many other aspects of the mortgage industry, underwriting has changed drastically in the
past few years. Some lenders have even
had to scale back their workforce, and
their underwriting teams often are working harder than ever.
Meanwhile, mortgage brokers and
originators must explain to borrowers
why a mountain of papers and documentation is required for what, at
times, can be a slim possibility of approval. Underwriters now face strict
vetting processes implemented by
initial desktop-originator and desk-top-underwriter findings, and these
processes often can result in frustrating rejections.
Nonetheless, brokers and originators can take certain measures to
bolster their loans’ turnaround times
and their approval rates. Consider the
following seven tips for improving
your applications and averting underwriting delays that can turn into
1. Always send a full package with your
initial submission. A full package
should consist of:
• All of your initial disclosures, com-
plete with wet signatures.
• every page of every pertinent bank
statement, including the pages that
are left intentionally blank.
• The borrower’s complete job history dating back at least two years.
Related, if the borrower is self-employed, request personal and
corporate tax returns or extensions.
• All insurance-declaration pages for
all owned real estate properties, including commercial properties, for
refinances that include mortgage
• copies of Social Security cards and
driver’s licenses for all borrowers
on the loan.
2.run every scenario by your account
executive before submitting the file,
because that account executive is a
direct line to the underwriter. This may
sound tedious, but consulting with the
account executive can help you keep
track of overlays, which can change
with frequency. If you’re primarily
dealing with purchases, consulting
with the account executive before
submitting is essential, especially if
your closing ratios with that particular
lender are not 80 percent or higher.
michael mekler is the founder and owner of
Liberty First Capital. His office is in Carlsbad,
Calif., a suburb of San Diego. His passion for
writing about the lending industry drives him to
contribute to two blogs: SanDiegoMortgage
Reports.com and Minyanville.com. His mantra
is that the interests of the borrower come first,
and his dedication to running an exemplary
business is rivaled only by his dedication to his
family. Reach Mekler at (760) 536-6200.
By melanie attia
director of SaaS marketing
Sign on the Digital Line
electronic-signature services can help originators process more loans
With the recently expanded Home Affordable Refinance Program (HARP), some mortgage brokers and originators are experiencing a sudden influx of business.
Moody’s Analytics expects 1.6 million additional HARP refinances to be completed
by the end of 2013, a growth that the firm
predicts may create a small but meaningful boost in the housing industry.
For the mortgage brokers and originators who are fielding this rise in
refinance business, cloud-based
electronic-signature services can help
streamline the application process
— and result in even more loans. This
capability lets borrowers legally sign
documents in minutes rather than
physically signing multitudes of papers, a capability that’s convenient for
borrowers and brokers alike.
The Electronic Signatures in Global
and National Commerce Act was en-
acted in 2000 to allow the use of elec-
tronic records and signatures for com-
mercial transactions. The act enables
companies and organizations to adopt
a uniform e-signature process across
all 50 states with the assurance that re-
cords cannot be refused by a court of
law solely on the basis that they were
melanie attia is director of software-as-a-ser-vice (SaaS) marketing for e-SignLive, powered
by Silanis technology. To help the mortgage
industry prepare for new e-signing processes,
Silanis has set up a free offering of e-SignLive.
Interested companies can sign up for the free
pilot by contacting an e-SignLive e-signature
specialist at 855-My ESIGN (693-7446) or by
visiting e-SignLive.com/IRSFHA. Reach Attia