Article Advise

submitted: Aug 1st 2008 | by: DirectMortgage | Total views: 1 | Word Count: 388 | |

The mortgage industry has experienced tumultuous changes causing brokers and lenders to struggle. Some lenders have even disappeared. Since, as a broker, your relationship with lenders is critical to your success, how can you know which mortgage banks will be around tomorrow? Certainly there are many factors that determine success --this article presents four such factors. The lenders that meet this criteria are likely to provide better service to their brokers and remain in business. If you do business with these lenders, you'll be able to spend time finding and closing more loans instead of trying to become approved new lender that just might not be here tomorrow.

These four keys to success are:

1. Diverse Loan Portfolio.

2. Ability to quickly adapt loan guidelines to the changing environment.

3. Automation allowing rates competitive with top-tier lenders.

4. Technology allowing rapid alignment with secondary market investor requirements, leading to better quality loans.

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.

Besides modifying loan program guidelines, it is important to insert those guidelines into an automated underwriting system (AUS) that can underwrite loans in seconds, which will quickly ensure that borrowers qualify for a specific loan program. Rapid adaptation of loan programs and utilizing an AUS can help ensure that brokers submit saleable loans. This contributes to keeping the lender strong and prices down.

Additionally, you should look for the automation of multiple processes and the incorporation of underwriting into the lending workflow. These features reduce costs and increases lender efficiencies, allowing for more competitive rates. Brokers are more likely to use a lender with better rates, so these features add to the lender's staying power.

If you're a broker searching for a wholesale lender who will stick around, look for one that exhibits the four signs listed above. Such a lender will help you earn more money in less time.

About the Author

If you're a broker who would like to work with a mortgage wholesaler that is successfully surviving the market, contact Direct Mortgage Wholesale.

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