by William DiPaolo
In occasional fits of literal despondency, I question whether the world really needs another blog – especially one as banal as this one.
Yet, in the course of a typical business day I’m reminded how little mortgage professionals truly understand about credit and credit scoring. And naturally, if those in the business lack understanding, how much more the typical mortgage loan applicant. So once again, I find myself behind the keyboard pounding out banality, hoping to educate the world one blog at a time.
This month my company signed a rather large mortgage origination shop. This company is doing well in a very difficult market, and as I’ve come to know some of the executives, I can understand why. Loan applicants are treated with respect, and the company pays for all prequalifying expenses. The company has solidly trained loan officers and even an executive solely responsible for corporate strategy. Its an honor to be supplying their credit management software.
Yet, in an operation this adept, this talented and this experienced, I must admit I was not overly surprised to discover how little they knew about credit proofreading – and the legitimate process of credit rescoring. It’s a fact that 15% of this company’s loan applicants that walked out the door without a mortgage each month could have been approved. Why? The sad fact is that the loan officers had no idea that these applicants credit scores were calculated incorrectly due to errors in their credit files. Errors they could have resolved in less than three days – providing the applicant with an accurate, properly calculated credit score.
The very good news is that this mortgage origination shop now “gets it” – and they are rapidly embracing the credit proofreading concept. Top management is taking the time to learn how to use Funding Suite’s credit proofreading tools which instantly identify harmful credit errors. And they are creating business practices to teach their loan officers to properly communicate this new capacity to borrowers.
So it goes, that each month this firms loan applicants will be served by loan officers possessing state of the art credit proofreading tools. And each month, 15% more of them will qualify for a home mortgage.