"says that the call-center atmosphere pressures LOs to put deals through whether a buyer is ready or not. And what I've seen is with the proliferation of a lot of online mortgage lenders, they hire licensed loan officers, yes, but they're often more like phone solicitors, and they're just initiating and starting more and more loans because of the pressure and the sheer number of phone calls people get when we start a loan now, he explained."
"Most terminated applications are officially logged as buyer withdrawals, but that isn't always the real reason, Worthington said. Sometimes approvals fall through because buyers simply didn't provide additional paperwork. Finding a loan officer who is the right fit could also influence how application withdrawal data is interpreted. A lot of cases are withdrawn, yes, but I'd be curious what percentage were closed by somebody else, he mused. It's not uncommon for a client nowadays to start an application with more than one loan officer."
Buyer preparedness or lack thereof contributes to canceled mortgage applications. Newer loan officers frequently start loans that should have been delayed for borrower education. Call-center atmospheres and online lenders create pressure to initiate high volumes of applications, leading to premature starts. Many terminated applications are logged as buyer withdrawals, though some fall through because buyers fail to provide additional paperwork. Clients often shop multiple loan officers, so some withdrawals reflect switching lenders rather than true exits. Confused or discouraged buyers who see different numbers from different officers commonly abandon transactions. Lenders face buyers who cannot afford current rates and buyers waiting for expected rate declines.
Read at www.housingwire.com
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