A Guide for MLOs: Mastering Communication with Underwriters

Effective communication with underwriters is a crucial skill for mortgage loan originators (MLOs). Clear, timely, and accurate communication can significantly impact the smooth processing of loan applications and the success of closing deals. Here’s what every MLO should know about communicating effectively with underwriters to ensure a streamlined mortgage process.

1. Understand the Underwriter’s Role

Before diving into communication strategies, it’s important to understand what an underwriter does. An underwriter is responsible for evaluating the risk associated with a loan application. They assess the borrower’s creditworthiness, financial stability, and the value of the property. Understanding this role helps MLOs provide the necessary information and documentation that underwriters need to make informed decisions.

2. Be Thorough and Accurate

Accuracy is key when communicating with underwriters. Ensure that all documentation provided is complete and accurate. Double-check figures, verify income statements, and ensure that all supporting documents are included. Mistakes or missing information can lead to delays, requests for additional documentation, or even denial of the loan.

3. Provide Clear and Concise Documentation

When submitting documentation to underwriters, clarity is essential. Organize and label documents clearly to make it easy for underwriters to review. Use standardized formats and avoid jargon that might cause confusion. Providing a summary of key documents or explanations of unusual financial circumstances can also help expedite the process.

4. Communicate Proactively

Proactive communication helps prevent issues from escalating. If you anticipate any issues or foresee that additional documentation might be needed, communicate this to the underwriter as early as possible. Keeping the lines of communication open ensures that you can address potential problems before they become significant obstacles.

5. Be Responsive and Accessible

Underwriters may have questions or need additional information as they process the loan application. Respond promptly to their inquiries and be accessible for follow-up questions. Delayed responses can hold up the underwriting process and potentially derail the closing timeline. Consider setting up regular check-ins or status updates to keep everyone informed.

6. Manage Expectations

Clear communication involves setting and managing expectations. Let underwriters know about any potential delays or challenges that could affect the loan process. Being upfront about issues such as complex financial situations or potential complications with the borrower’s documentation helps underwriters plan and manage their workload more effectively.

7. Understand Common Underwriting Conditions

Familiarize yourself with common underwriting conditions and requirements. Knowing what typical conditions might arise, such as additional verification of income or clarification of credit issues, can help you prepare and respond more efficiently. This knowledge enables you to address common issues proactively and reduce the need for back-and-forth communication.

8. Build a Collaborative Relationship

Building a positive relationship with underwriters can improve the efficiency of the process. Show appreciation for their work and understand that they are working to ensure that all aspects of the loan meet regulatory and risk management standards. A collaborative attitude can foster a more cooperative and productive working relationship.

9. Follow Up and Confirm

After submitting documents or responding to inquiries, follow up to confirm receipt and ensure that the underwriter has all the information needed. Confirm that any additional documentation has been reviewed and clarify any points if necessary. This helps prevent misunderstandings and keeps the underwriting process on track.

10. Learn from Feedback

Feedback from underwriters can provide valuable insights into how you can improve the documentation and communication process. Pay attention to any feedback or suggestions they provide and use this information to enhance future interactions. Learning from past experiences helps refine your approach and improves overall efficiency.

Conclusion

Effective communication with underwriters is essential for mortgage loan originators to facilitate smooth loan processing and successful closings. By providing accurate documentation, being proactive, and fostering a collaborative relationship, MLOs can enhance their interactions with underwriters and streamline the mortgage process. Mastering these communication strategies will contribute to a more efficient workflow and better outcomes for both clients and lenders.