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BG: My job is processing second mortgages, otherwise know as home equity loans and lines of credit, on houses. I am back office, but I do reach out to customers directly to gather information that I need, get appraisal appointments set up and to make certain the loan officer didn't s**t the bag when explaining the major details of what a home equity loan means. I don't actually take the application or sit down with the customer to sign the closing paperwork, but I am pretty much everything in between "underwriting gave a pre-approval" to "when would you like to close on this".
It starts with a branch assistant manager emailing me to ask how we decide what type of appraisal we're going to do.
Popular question. Depending on the circumstances, and appraisal could run upwards of $700, or be waived entirely, and since the cost of the appraisal is passed along to the customer at closing, a lot of customers want to know what exactly it's going to be upfront.
Unfortunately, it is very difficult to figure out the exact cost without a completed application, because there are a LOT of factors that go into the decision. There is a reason we just have the loan officers quote the maximum. But I'm game. I give the assistant manager the list of factors that go into the decision. I let him know the average cost for the most common appraisals we do. I warn him that the appraisal is not the ONLY cost involved, though it is definitely the largest single item.
Next a loan officer calls, from the same branch. He wants to know when we would waive an appraisal entirely, and makes it clear there is a specific customer pushing for the answer.
We do go over the exact costs as soon as we know them, and the customer is obligated to nothing upfront.
Customer doesn't want to put in an application. Okay, fine. I understand. Even if we don't charge for an application, it does pull credit.
So I'll do what I can. Get for me {list of specifics} and I will see if I can give a more likely estimate for the customer. I'm could at couching my estimates in caveats, and I do understand wanting
Amazingly enough, I get {list of specifics}. Exactly what I asked for.
And, from what I can see, there is an excellent chance I'll be able to waive the appraisal entirely. That... makes me nervous. I hate estimating a waived appraisal without an application, even with caveats. But I sigh, give the loan officer an estimate of the maximum possible fees without an appraisal included and ask him to make certain to let me know if the customer does put in an application, so I can make certain it is assigned to me.
Loan officer wants to know if he can pass my contact information to customer, particular email. Apparently she has more questions before putting in an application.
Email? I'm good with that. Emails can be answered in my own time.
So, now I get email from customer. She does have a ton of questions, but not over the normal stuff. Not the terms or rates or how a line of credit works, etc. No, basically she wants me to tell her, without putting in an application, whether or not she would be approved.
Lady, even AFTER you put in an application, any approval given is conditional. And no, I cannot even make a guess as to if you would be approved prior to an application. This isn't even a 1st mortgage product where I can give a set credit score goal. Home equity lines of credit don't have a minimum credit score requirement. The home is within one of the states we work in? Yes. You own the home? Yes. You living in the home? Yes. You have something resembling a source of income that would cover all of your loan payments? Yes. You don't want to borrow more than the house is assumed to be worth? No. Then you may very well qualify. Everything else is an underwriting decision, and dependent on title search results, verification of your application details, etc. If you want a decision, underwriting needs to review a completed application with full details and credit history available, before they can make a decision. [Note this was worded in a much more customer-friendly manner.]
She has a credit report. Can she send that and see if she'd be approved.
No. That will not work. We really do need a completed application before making any sort of decision, even a tentative one.
But...
*sigh* Okay, I'm going to have to do what I hate: I'm going to have to defer to regulations.
We cannot, legally, in ANY WAY, shape or form, give an underwriting type decision without a completed application. And not just because I am not, personally, an underwriter. They cannot give a decision pre-app either. Other than verifying the basic points that would make a person not qualify for a loan at all, points I have already ruled out, we must have an application because we are required to disclose in a specific manner the results and reasons of the decision, especially if it were to be denied.
I am not going to look at her credit report, because I will NOT verbally imply that it looks bad (if such were the case) because I am not permitted, by law to give a "verbal denial" without an adverse action letter detailing the reasons.
I can say what I have said already: underwriting looks at these general factors when making a decision.
I cannot, and they cannot, make a decision without an actual application. Which takes 15-20 minutes to fill in, another 15-20 for an underwriiter to decision with a conditional approval, if applicable, costs you nothing and obligates you to nothing. Except, yes, we do look at your credit, which is a hard hit.
... Okay. She understands.
So can she meet with me to discuss this before she puts in an application?
No. I am back office. I have no way (or time) to meet with a customer in person. Please refer to loan officer and assistant manager, and I'll be certainly glad to do my best for her if she does get an application approved.
*sigh*
It starts with a branch assistant manager emailing me to ask how we decide what type of appraisal we're going to do.
Popular question. Depending on the circumstances, and appraisal could run upwards of $700, or be waived entirely, and since the cost of the appraisal is passed along to the customer at closing, a lot of customers want to know what exactly it's going to be upfront.
Unfortunately, it is very difficult to figure out the exact cost without a completed application, because there are a LOT of factors that go into the decision. There is a reason we just have the loan officers quote the maximum. But I'm game. I give the assistant manager the list of factors that go into the decision. I let him know the average cost for the most common appraisals we do. I warn him that the appraisal is not the ONLY cost involved, though it is definitely the largest single item.
Next a loan officer calls, from the same branch. He wants to know when we would waive an appraisal entirely, and makes it clear there is a specific customer pushing for the answer.
We do go over the exact costs as soon as we know them, and the customer is obligated to nothing upfront.
Customer doesn't want to put in an application. Okay, fine. I understand. Even if we don't charge for an application, it does pull credit.
So I'll do what I can. Get for me {list of specifics} and I will see if I can give a more likely estimate for the customer. I'm could at couching my estimates in caveats, and I do understand wanting
Amazingly enough, I get {list of specifics}. Exactly what I asked for.
And, from what I can see, there is an excellent chance I'll be able to waive the appraisal entirely. That... makes me nervous. I hate estimating a waived appraisal without an application, even with caveats. But I sigh, give the loan officer an estimate of the maximum possible fees without an appraisal included and ask him to make certain to let me know if the customer does put in an application, so I can make certain it is assigned to me.
Loan officer wants to know if he can pass my contact information to customer, particular email. Apparently she has more questions before putting in an application.
Email? I'm good with that. Emails can be answered in my own time.
So, now I get email from customer. She does have a ton of questions, but not over the normal stuff. Not the terms or rates or how a line of credit works, etc. No, basically she wants me to tell her, without putting in an application, whether or not she would be approved.
Lady, even AFTER you put in an application, any approval given is conditional. And no, I cannot even make a guess as to if you would be approved prior to an application. This isn't even a 1st mortgage product where I can give a set credit score goal. Home equity lines of credit don't have a minimum credit score requirement. The home is within one of the states we work in? Yes. You own the home? Yes. You living in the home? Yes. You have something resembling a source of income that would cover all of your loan payments? Yes. You don't want to borrow more than the house is assumed to be worth? No. Then you may very well qualify. Everything else is an underwriting decision, and dependent on title search results, verification of your application details, etc. If you want a decision, underwriting needs to review a completed application with full details and credit history available, before they can make a decision. [Note this was worded in a much more customer-friendly manner.]
She has a credit report. Can she send that and see if she'd be approved.
No. That will not work. We really do need a completed application before making any sort of decision, even a tentative one.
But...
*sigh* Okay, I'm going to have to do what I hate: I'm going to have to defer to regulations.
We cannot, legally, in ANY WAY, shape or form, give an underwriting type decision without a completed application. And not just because I am not, personally, an underwriter. They cannot give a decision pre-app either. Other than verifying the basic points that would make a person not qualify for a loan at all, points I have already ruled out, we must have an application because we are required to disclose in a specific manner the results and reasons of the decision, especially if it were to be denied.
I am not going to look at her credit report, because I will NOT verbally imply that it looks bad (if such were the case) because I am not permitted, by law to give a "verbal denial" without an adverse action letter detailing the reasons.
I can say what I have said already: underwriting looks at these general factors when making a decision.
I cannot, and they cannot, make a decision without an actual application. Which takes 15-20 minutes to fill in, another 15-20 for an underwriiter to decision with a conditional approval, if applicable, costs you nothing and obligates you to nothing. Except, yes, we do look at your credit, which is a hard hit.
... Okay. She understands.
So can she meet with me to discuss this before she puts in an application?
No. I am back office. I have no way (or time) to meet with a customer in person. Please refer to loan officer and assistant manager, and I'll be certainly glad to do my best for her if she does get an application approved.
*sigh*
And yeah, it's free money if she waits it out.
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