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Which Mortgage Lenders Will Be Around Tomorrow

Author: DirectMortgage Total views: 2 Word Count: 429

Foreclosures and credit tightening have rocked the mortgage industry, causing some lenders to go out of business. In this critical time when it's harder to close the number of loans you're used to, having relationships with lenders that will be around tomorrow and the next day is important. But how can you tell which ones will close their doors and which ones will stem the tide? This article presents four key signs of a mortgage lender that is more likely to remain strong in these turbulent times. If you do business with lenders who meet these criteria, you'll be able to spend your time finding and closing loans instead of searching out new lenders.

These four keys to success are:

1. Comprehensive Loan Portfolio.

2. Quickly adapting loan programs to the changing environment.

3. Automation allowing rates competitive with top-tier lenders.

4. Technology that leads to better quality loans through a rapid alignment with secondary market investor requirements.

Loan programs exist that meet a variety of borrower financial situations. The greater quantity of these programs that your lender provides, the greater possibility it has of providing a loan for which your borrower will qualify. Additionally, the safer it will be if some of its loan programs disappear from the market. You'll want a lender who not only provides a comprehensive portfolio of loan products but who also has the ability to rapidly adapt its loan programs to meet the requirements of secondary market lenders. This is important because if the loans do not meet investor guidelines, the lender will not be able sell its loans, resulting in less capital to fund additional loans.

Also look for a lender who uses an automated underwriting system (AUS) that allows for easy modification of loan program guidelines. The AUS will use the programmed guidelines to quickly underwrite loans and help ensure that borrowers qualify. Lenders can better assure that they receive saleable loans when they rapidly adapt their loan programs and utilize an AUS. Having consistently saleable loans will contribute to keeping lenders strong and prices competitive.

A third factor for success is automating multiple processes and incorporating the underwriting into the lending workflow. That way the lender reduces costs and increases its efficiencies, which allows it to provide competitive rates. Great rates are an incentive for brokers to use that lender and contribute to the lender's strength.

If you're a broker searching for a wholesale lender who will stick around, look for one that exhibits the four signs listed above. Such a lender will help you earn more money in less time.

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About the Author

Among mortgage wholesale lenders, Direct Mortgage is a leader in online technology for the mortgage industry.

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