No. of Recommendations: 0
To give you a real life example...my son purchased a home in another state, so I couldn't originate the loan for him. It was clear from how the loan went down that after the bank's loan originator took my son and his wife's application, the LO had no idea whatsoever what was actually occurring on the file. With no disrespect to processors, a processor is a paper pusher/assembler, not a file's strategic thinker.

The submitted documentation contained potential problem areas but the LO had not read the documents--such as wife's employment contract--so he didn't know what to tell his processor to follow up on. The processor certainly didn't read the employment contract and would not have recognized the obstacles contained therein even if s/he had read the contract. Last minute snafus occurred that took enormous effort to correct, resulting in a lock extension and a rent-back from the sellers.

Many other obstacles occurred that would not have been obstacles had the LO personally analyzed the paperwork and asked for additional information.

My son's loan transaction was personally annoying because I know good loan origination when I see it. With my help, my son was able to navigate through the obstacles created by the LO as a result of the LO's lack of attention at the beginning of processing.

At one point, I said, "Write to Tom and tell him he's out of compliance" (which he was). Once Tom heard that, he was much more attentive. ;-)
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