Underwriting Changes

Just when you think the mortgage mess is idling down and coming to some normalcy again yesterday comes along and hits you like a ton of bricks. I received an e-mail from a prominent lender in the Mid-West region yesterday around 3:41pm CST announcing a wholesale list of changes to ALL programs and we literally had an hour and fifteen minutes to "lock" our files or risk losing the ability to close the loan. Now this is nothing new to the mortgage broker, banking representative or any other lending institution, however it had been a period of time before anything like this had been seen. We are seeing even more strict guidelines on the Fannie Mae and Freddie Mac side, changes to Loan Prospector and Desktop Originator (decision engines for Fannie and Freddie), loan-to-value changes, debt-to-income changes, risk assessment changes and many many others.

So just when you think the mortgage market may settle down something like this hits and you must react in a timely, efficient and effective fashion for both your livelihood and your clients well being; although I must admit at times is extremely difficult! It is a very stressful time for me right now as I truly take my clients mortgage process very seriously and do not / will not jeopardize my reputation or ethical standards as a result of "last minute" guideline changes. What does this mean? Well simply put at times I must open my pocket book and lose money to fulfill my word and my clients expectations! Are others doing the same?

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Your Columbia Missouri Mortgage Broker