From the Editor
By Will McDermott
Will McDermott is editor of Scotsman Guide Residential Edition.
Reach him at (800) 297-6061 or firstname.lastname@example.org.
The importance of underwriting should not be lost
May is traditionally the month when flowers begin to bloom across the northern states and homebuyers begin
in earnest to search for new homes. May also is the month when Scotsman Guide traditionally highlights
Under writing can be a tough subject to cover. Mortgage originators generally spend most of their time following
leads, working with referral sources and building relationships with potential borrowers to maintain a steady
flow of loan applications. Underwriting occurs at the other end of the process, but is nevertheless,
just as important to the success of a mortgage company as applications — if not more.
Top originators understand the importance of underwriting. They make sure they
prepare their borrowers for what’s to come and help their underwriters by obtaining
all necessary documents. This keeps underwriters and borrowers happy, makes
the entire process run smoother and faster, and gets loans to closing faster,
which everyone wants.
To help mortgage originators better understand their important role in the
underwriting process, we present a number of articles about underwriting this
month. We start on Page 37 with an article by Scott Olson of the Community
Home Lenders Association, who takes a look at issues and improvements in
liability, transparency and enforcement within underwriting. Turn to Page 136
next to read the article by Shirleen Von Hoffmann of Home Builders Edge, who
discusses how originators can avoid adding to the risks that their under writers face.
For a look at how technology will be shaping underwriting in the near future,
turn to Page 42 to read an article by Brian Kucab of Genworth Mortgage Insurance.
For those originators interested in the differences between underwriting conventional
versus hard money loans, turn to Page 46 to read the article by Ian Walsh of Hard Money
Bankers LLC. These and more underwriting articles can be found in this issue.
Of course, as always, we have plenty more articles on a variety of mortgage topics to offer this month. In the
aftermath of one of the worst years of natural disasters in U.S. history, many mortgage companies may be
worried about keeping the lights on the next time a hurricane or blizzard threatens. Christopher Cash of Envoy
Mortgage has some insights, beginning on Page 75.
Niki Nevarez of Mountain West Financial also has some tips for managers who are looking to open their doors to
telecommuting originators. Turn to Page 113 for that article. Then, check out the article on Page 50 by Tom Gillen
of Churchill Mortgage, who provides his thoughts on originating mortgages in an unpredictable economy. All of
these articles and more can be found within the pages of this issue.
Time to say goodbye
This is my last issue as editor of the Residential Edition of Scotsman Guide. After more than 30 issues, it is time to
move on to my next challenge. I have accepted the role of managing editor for Ask a Lender ( www.askalender.com),
the consumer-facing platform that matches borrowers and lenders, created by the good people here at Scotsman
Guide Media. If you haven’t checked out Ask a Lender, take a look and create a profile. It is a great way to connect
directly with borrowers. See you there.