Sam West

Mortgage Lenders, Please Treat buyers With Respect.

Mortgage lenders, please treat buyers with respect. The process of purchasing a home is a journey full of emotional highs and lows. From the initial excitement of embarking on a new chapter to the apprehension surrounding financial commitments, buyers navigate a complex landscape of emotions. Mortgage brokers are integral to this journey, tasked with facilitating connections between buyers and different lenders to secure the most advantageous loan terms. 

While the array of options available through mortgage brokers offers promise, recent observations have shed light on a disconcerting trend: a lack of regard for buyer well-being within the lending process. As intermediaries, mortgage brokers serve as the vital link between buyers and lenders. However, an inherent asymmetry in communication often leaves buyers feeling isolated, frustrated and uninformed.

In my extensive industry tenure, I have encountered instances wherein initial buyers’ loan approvals are swiftly followed by a barrage of conditions, ranging from the mundane to the obscure, serve as prerequisites for final loan approval, ostensibly ensuring meticulous due diligence. Yet, the manner in which these conditions are communicated and enforced can often exacerbate buyer anxiety and impede the seamless progression of the transaction.  Until a buyer secures final loan approval, his deposit—and the transaction as a whole—are at risk due to the ticking clock.  Of particular concern is the perceived omnipotence of the lender’s underwriter, whose decisions wield significant influence over the fate of the transaction. Shielded from direct interaction with buyers, underwriters possess unchecked authority to impose arbitrary conditions, thereby subjecting buyers to undue stress and uncertainty.

The repercussions of such practices pose tangible risks to both the financial and emotional well-being of buyers. It is imperative to treat buyers with respect and approach these systemic deficiencies diligently and persistently.  Based on my experience, I would advise buyers to utilize self-funding lenders in order to avoid this situation; this is different from direct lenders (like Chase, Citibank, etc.), who only carry their own lending programs. 

Self-funding lenders, however, are lenders that fund their own loans with multiple investments and offer numerous options to fit their buyers’ needs.  Under these arrangements, the respective underwriters are not only local and with the same company, which makes the process much easier.

In conclusion, let us collectively reaffirm our dedication to fostering a culture of accountability within the realm of mortgage lending. By treating buyers with respect, we not only honor our professional obligations but also contribute to the realization of their homeownership aspirations with empathy and integrity. Feel free to reach out with any question you or someone you know may have.

photo courtesy of James Ward Litz

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