I’m skipping right past all of this bailout business to get to the stuff that affects us everyday. I almost feel weird not acknowledging it all so…how bout that bailout!
…ok, now on to the stuff that affects our jobs today.
Last week President Bush spoke on TV and declared what most of us heard as a Financial State of Emergency. Using words like crisis, panic, and instability, the message was clear that there was about to be some additional government influence in our world. Currently, the candidates are standing in front of us saying that their opponent, if elected, will make fatal mistakes for this economy. And everyday, we all show up to work and live with the definition of "tighter credit standards". If you are a builder, Realtor, underwriter, branch manager, account executive, or loan officer you are seeing and managing through Tighter Credit Standards and you may not even know it.
Have sellers with reasonable prices that can’t find buyers? ...tighter credit standards.
Trying to sell a house to a Self Employed customer with an 800 fico score and can’t figure out why he’s not ready to close? … tighter credit standards.
Submit a loan package and get 34 conditions on your approval? ...tighter credit standards.
Have a lender require 6 comps, a market analysis, and 3 pending sales...then request a second appraisal? Yup...tighter credit standards.
- Accurate 1003's. Seems simple, an application has to be accurate right? Well, it used to not matter if someone started there job in November of 2006 and the application didn't list the previous job, close enough to 2 year employment history, right? ...wrong! Know why? ...yep...Tighter Credit Standards.
- Solid appraisals from experienced local experts. We will only work with an appraisal that comes as a referral or is someone we know can deliver a "lendable value report." A value that can't be lent on is a waste of everyone's time and money. We work very closely to make sure that we are always dealing with a local (to the property) appraiser that has the expertise to answer any value questions.
- Two Stage Underwriting. Last quarter we rolled out a part of our process that has proven invaluable. Prior to submission to underwriting, every single loan that comes out of our office is "pre-underwritten" by me. Every one. Every pay stub is reviewed, every bank statement, and every 1003. While this has increased the time from application to submission by about 1 day, it has reduced our overall process time by 2 days!
Tightened Credit Standards mean to me that my job is to get a loan file to be perfect. A person will never be perfect, but I assure you loan files can be. It takes time, training, knowledge, and commitment, but I assure you a perfect loan file can be achieved and they literally FLY through the process. If you ever want to see what a perfect loan file looks like, it’s the one that’s closing...Tighter Credit Standards have changed one major thing in our world, loans don't close until they are perfect.
As an extra note, we are happy to announce a new addition to the Eagle Team! Fran Lupinetti comes to Eagle Nationwide with 13 Years of processing experience; some of you may know her from Chapel Mortgage where she was the post closing and warehouse manager. Fran’s grit, determination, and understand of the loan process will prove invaluable as we continue to grow and service your needs. Welcome Fran!
--Keith
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