MARY KAY SCULLY
BENCHMARKS & BEST PRACTICES
It’s All A Process
Time to take a look at how you get things done BY MARY KAY SCULLY | CONTRIBUTING WRITER, NATIONAL MORTGAGE PROFESSIONAL
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path, it’s also easy to make errors. According to STRATMOR, 3 of 5 loans originated contain a critical error that could cost the loan officer a referral down the road. Critical errors include:
AVOIDING CRITICAL ERRORS
The word “critical” makes these errors sound catastrophic when many of the issues listed above can be fixed with diligent communication. To fix some of the most common critical errors, have a communication process in place and stick to it. Keeping up or following up with borrowers can often make the difference between a successful close and a rocky one. Any compliance or critical errors cost valuable time, money and ultimately create risk. It is imperative that loan officers are on top of their game and follow the processes set out for them if they want to be efficient, accurate and helpful.
anuary is a good time to do inventory, not just of your education but of your processes and procedures for the year. The truth is, not everyone is always on the same page. Especially with remote work and the effects of 2020, processes have changed and without being in the office to discuss these changes, many employees might not be up to speed. Without clear protocols, it is easy to slip into bad habits or cut corners. Even where processes are clearly spelled out for loan officers, sometimes they may need an update. One of the many lessons 2020 has taught us is that you must adapt and change to survive and thrive. Many procedures that worked in 2019 have changed drastically to accommodate a challenging economic year. If your processes have remained unchanged, it’s time to reevaluate. Having clear-cut and up-to-date processes and procedures ensure that every loan is being handled in a safe and compliant way while borrowers receive the service they need.
When processes veer off their normal
· Not providing a checklist · Not asking for documents multiple times · Not calling the borrower for updates · Not closing at the expected rate and fee · Not contacting prior to closing · Not starting the closing on time · Not closing in expected timeframe · Experiencing problems · Requiring unreasonable documentation · Providing inaccurate closing documents
EVALUATING CURRENT PROCESSES While many times the issue that surfaces is due to miscommunication or mistakes, sometimes it’s specific to the
process itself. If that’s the case, it’s time to reevaluate. Experiencing a critical error in a file not only reduces your chances of a referral, but it also costs your organization money. Having a definitive mortgage process is critical in the regulated mortgage world and essential for productivity, quality and customer service. Loan volume surges generally strain a process. Add a pandemic, an increase of remote employees and your process may be experiencing a level of instability beyond what is normally seen with a volume surge. It is vital that you review your process and metrics to help identity instability and assess the cause and magnitude. Your LOS may generate reports, but are you sure you know what they mean in the current operating environment? To start reviewing fall out may not be useful without reviewing where in the process the fall out is occurring, and identifying the reason and fall out type (cancelled, withdrawn, net operating income, denial, etc.). Do take notice of trends. Do some loan officers, processors etc. have a higher number? If so, it could indicate a training issue. For example, reviewing approvals vs. declines may not be valuable without reviewing the number of change of circumstances per loan, the number of counter offers (i.e. a change of product or program) or the number of non-standard conditions issued at approval. Similarly, reviewing the number of days from approval to close may not be valuable without also reviewing title issues like ordering delay, defect, backlog due to COVID-19; collateral issues like valuation errors or appraisal delays; or even borrower-related
