Making the real estate industry more efficient


Top 10 Mistakes Of Underperforming Lenders: #4 – #6


Our webinar recently featured industry veteran Joe Garrett discussing the Top 10 mistakes of underperforming mortgage lenders. Here are mistakes #4- #6:

4.)   There is no segregation of duties:

Underperforming lenders fail to protect their interests by properly segregating duties within their organization. While consolidating responsibilities can make sense from a cost perspective, in can be counterproductive if that consolidation increases risk for the organization. For example, if the employee responsible for selling loans is also responsible for approving the sale price and confirming the sale. Mitigate risk by putting in place the appropriate checks and balances.

5.)   They do not track leakage:

Failing to track and monitor the variation between the rate lock and the sale price is another trait of underperforming lenders. Was the rate lock and price sold the same? If not, why not. Set an acceptable variance and compare every sale to that measure. If a sale falls outside your acceptable range, determine why it happened and what can be done to correct the issue on future sales.

6.)   Reporting is inaccurate:

Your analysis is only as good as the data you use. Faulty or inaccurate reporting, as is common with underperforming lenders, will result in faulty or inaccurate analysis. Understanding the logic and methodology of your reports will help assure the accuracy of both the data you use and the outcome of your analysis.

See all 10 Mistakes HERE and join us on March 29th for our next free webinar Registration Form

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