Quality Loans Rule: When Volumes Decline, Make Sure Yours Stand Out!
The mortgage market is a dynamic one, with volumes fluctuating from month to month and year to year. In the current climate, volumes have been declining, and lenders are looking to make sure their loans stand out. Quality loans rule!
Underwriting and Quality Control
Quality loans start with quality underwriting. Lenders should ensure that they have a thorough underwriting process in place, and that their loan officers are aware of the latest underwriting guidelines. Loan officers should also be given the proper training in order to ensure accuracy and quality in the loan process.
Beyond the loan officer’s individual efforts, lenders should also have a comprehensive quality control program in place. This will help to ensure that all loans meet the lender’s standards, and that any issues are identified and addressed before the loan is approved.
Technology also plays a huge role in the quality of loans. Lenders should invest in the latest technology to streamline the loan process and reduce the amount of time and effort it takes to get a loan approved. Automating certain aspects of the process, such as income and asset verification, can help to increase the accuracy and speed of the loan process.
In addition, technology can help to increase the accuracy of the loan decision. For example, lenders can use automated underwriting systems (AUS) to quickly and accurately assess the borrower’s creditworthiness. AUSs can also be used to quickly identify and flag any potential issues, such as income or asset discrepancies, that may need to be addressed prior to loan approval.
In addition to the underwriting and quality control processes, lenders should also focus on their marketing efforts. As volumes decline, lenders need to ensure that they are reaching out to potential borrowers and making sure they know about the loan options available.
Marketing can take many forms, from traditional print and radio campaigns to online advertising and social media. It is important to tailor the marketing message to the target audience, and to make sure it is clear and concise.
Finally, lenders should also take steps to ensure that the loans they originate are serviced properly. This includes making sure that borrowers are kept up to date on their loan status, that payments are received on time, and that any issues are addressed quickly and efficiently.
Servicing also plays an important role in loan quality. Lenders should ensure that they have a comprehensive servicing program in place, and that their servicing staff is knowledgeable and up to date on all relevant regulations.
Quality loans are essential in the current market. Lenders should take the necessary steps to ensure that their loan process is efficient, accurate, and compliant. This includes investing in the right technology, developing comprehensive underwriting and quality control processes, and making sure they have an effective marketing and servicing program in place. By taking these steps, lenders can ensure that their loans stand out, even when volumes are low.