You Want Me to Ask What????

Written By: John Hoxsey
Certified Master Loan Processor (CMLP)

How many times has one of your loan officers looked at a list of conditions and exclaimed: “That’s the most ridiculous thing I have ever heard!!! Why does the lender want that??? Isn’t there any common sense left in this industry???”

Since processors deal with conditions on a daily basis we usually have a little more insight into why the underwriter may be asking for a condition. I, sometimes, make the mistake of arguing with the L.O. in defense of the underwriter and the condition. That is never a good idea, as it makes the processor sound like a know-it-all tyrant. It also creates division between the L.O. and the processor and that is where enmity in the business relationship can start to develop. The L.O. needs to feel like you are on their side.

I like the line of communication to be loan officer to processor then processor to underwriter. This keeps things from being lost in translation. The processor is ultimately responsible for understanding the conditions, so, therefore, it is absolutely necessary that they hear directly from the source, and not “through the grapevine” from the underwriter through the loan officer. So, if in some cases, the loan officer is to discuss conditions with the underwriter, and then come back to you and say that certain changes were approved, then it is absolutely the processor’s responsibility to go back to the underwriter and verify this information directly with the source. Otherwise, huge blow ups will occur later.

Also, the L.O. may try to get the rep involved. Reps are salespeople and many of them will tell the L.O. what the L.O. wants to hear. They may say they will try and get a condition waived or may agree with the L.O. but may not actually have the power to get the condition waived or even have the true understanding of the condition and why it is there. It is always best to go directly to the source.

Often times this puts the processor in the precarious position of asking an underwriter for an exception on something that we may full well know is justifiable. Many times I feel that what the loan officer wants me to ask is completely out of line but, then again many times I am surprised when the underwriter may actually waive a legitimate condition so it never hurts to ask, even though it may make you feel like a complete bird-brain.

Going out on a limb like this will make the L.O. perceive you as a team player. In addition, if it works out, then you will avoid a potential blow-up between the L.O. and the lender and it will save the underwriter the headache of dealing with a ticked off loan officer.

Also, by asking the lender, it takes all the pressure off of you. I use to try and explain why lender’s asked for certain conditions before I would ask for the exception. This made the L.O. feel as though I was not on their side and that I was just one more voice that lacked common sense in this industry. Many times, on the surface, a condition seems like it lacks common sense but in reality it makes perfect sense. Although trying to explain these things to an irate loan officer can be exasperating, and, really, an irate person is in no condition to be able to hear the truth anyway.

I wish someone would have told me that a master’s degree in psychology would have been a wise idea to procure before entering the mortgage processing field. Maybe NAMP should consider adding it to their list of classes. At the very least, I recommend that we all read Mars and Venus in the Workplace, and see if there is any possible way to make such opposite personalities work together in harmony.

Remember - Your reputation is your business.

Happy Processing!!!

About the Writer. As one of NAMP's volunteer writers, John Hoxsey is currently a NAMP member in good standing and is a NAMP Certified Master Loan Processor (CMLP). If you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.