Although electronic submissions mean less human contact with underwriters than in days past, an originator still needs to put the human into the equation
By Dave Hershman
Special to MPA
I really enjoyed your self-employment webinar you presented recently. It helped me understand many concepts that I needed to know and it is not like I am a rookie--I have 15 years experience in the business. Some of the techniques you talked about are great--but how do I get underwriters to listen?
--Elliott from New York
That is a good question. Today, there is less and less "human" contact with underwriters because of electronic submissions and centralized systems -- at least in many companies.
I am old fashioned. I still advise that loan officers write cover letters to state their case. Your job is to put the human into the equation. Think about it--all the underwriter sees is a bunch of numbers and a bunch of documents. You know the people behind the numbers and their situations.
With regard to self-employment, if you are going to overcome issues such as less than two years self-employed or declining income you must have facts on your side and you must state your facts in a logical manner. This is what a cover letter is all about. Plus it makes the job easier for the underwriter that must justify their decision. In today’s era of “ultra-compliance,” the importance of this last fact cannot be understated.
--Dave Hershman
Do you have a reaction to this commentary or another question you would like answered? Email Dave at [email protected].
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at [email protected].
Special to MPA
I really enjoyed your self-employment webinar you presented recently. It helped me understand many concepts that I needed to know and it is not like I am a rookie--I have 15 years experience in the business. Some of the techniques you talked about are great--but how do I get underwriters to listen?
--Elliott from New York
That is a good question. Today, there is less and less "human" contact with underwriters because of electronic submissions and centralized systems -- at least in many companies.
I am old fashioned. I still advise that loan officers write cover letters to state their case. Your job is to put the human into the equation. Think about it--all the underwriter sees is a bunch of numbers and a bunch of documents. You know the people behind the numbers and their situations.
With regard to self-employment, if you are going to overcome issues such as less than two years self-employed or declining income you must have facts on your side and you must state your facts in a logical manner. This is what a cover letter is all about. Plus it makes the job easier for the underwriter that must justify their decision. In today’s era of “ultra-compliance,” the importance of this last fact cannot be understated.
--Dave Hershman
Do you have a reaction to this commentary or another question you would like answered? Email Dave at [email protected].
Dave Hershman has been the leading author and a top speaker for the industry for decades with six books authored and hundreds of articles published. His website is www.originationpro.com. If you have a reaction to this commentary or another question you would like answered in this column? Email Dave directly at [email protected].
