I really don't understand this whole new phenomenom about REO listing agents (and now short sale & standard transaction agents) requiring a pre-approval from a "Direct Lender". Maybe I'm just bitter because my client who was told by a "Direct Lender" that their financing was secure and all they had to do was find a property. So I found them a property and then 20 days later the "Direct Lender" denies the client due to credit/employment/income factors (layered risk) that were present prior to the client being issued their pre-approval. Maybe its because for the most part the loan reps I see at Direct Lenders at the banking institutions I go to (Bofa, Chase, Wells Fargo) are young, seemingly inexperienced and likely unlicensed. Many loan reps working at banks now were the unlicensed LO's that put their clients into loans that are causing their current employers large financial losses. With the industry effort to blame the credit crisis on mortgage brokers and all the negative press, Mortgage Brokers that are still in the business in June 2009 are still around because they are doing something right. The independent brokers operating at this point in the game are the cream that has risen to the top. The flexibility independent mortgage brokers have to work with wholesale investors who offer the most competitive terms, service, u/w guidelines and turntimes can not be matched by Direct Lenders.
I think it is crazy hypocritical for our fellow independent real estate company colleagues to be blacklisting their fellow independent mortgage broker.
Here is what any loan officer, independent or bank owned should sit down and do before issuing a pre-approval and sending a client out to look for property:
- Collect borrowers income & assets documentation
- Pull credit
- Interview client and complete 1003 application (being good at this takes experience at being able to smell out typical client BS)
- Run DU
- And verify underwriting guidelines if financing scenario is at all out of the box
The loan manager at IET Capital in Whittier, Carla Moreno is excellent at this process. She can be reached 9-6pm M-F at (562) 360-1027. You can reach Carla via e-mail also.
Posted by Ben Nicolas on
2 Responses to "Direct Lender" pre-approvals are a JOKE
I never thought I could ever get pre-approved for a home loan and she made it possible. She is wonderful and I wish her success in the future. Thanks CarlaPosted by Rosemarie Garcia on Friday, June 26th, 2009 at 12:43pm
Hi Rosemarie,Posted by Ben Nicolas on Friday, June 26th, 2009 at 1:22pm
Thanks for the comment. I couldn't agree with you more. I've worked with Carla since 2005 and we've worked on lots of loan files together. Carla is one of the most thorough Loan Officers I know, and I trust her 100%. She's one of the best I know at finding a way to get the job done without doing anything to jeopordize her livelihood. If a loan is at all closeable, Carla will close it.
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