Better Understanding of Underwriting

[Peter LeQuire]

I would assume that the 51% non-bank originators were made up of several types of firms?

 

[Terrel L. Shields]

40% of mortgages, and a much higher percent of the more complex properties like commercial and farm, are bank regulated. And bozos jobs are almost all NON Banks ORIGINATING loans....not real loan officers with a bank. I did very little work for non-banks. And there are some 40% of the work out there that is NOT commission based.

 

[Peter LeQuire]

To clarify - the compensation of lending officers, branch managers, tellers and etc. may not be commission-based, but - in my experience - there are dang few bank employees who interact with banks' customers who do not have some sort of production incentive/disincentive in their compensation and promotion potential matrices. My view of it is that there will be pressures that emphasize production rather than compliance as long as (1) banks' performance reporting emphasizes short term results (the quarterly report) and (2) as long as the principle decision makers (CEO, COO, Pres, department or loan type managers) have compensation packages that have any component related to volume and/or transaction profit - whether that incentive is paid as a portion of income, as a bonus or other incentive related to achieving production/profit goals, stock performance, market share increase or whatever.

That's my opinion - you're welcome to make it yours, to prove it wrong, or to argue a different experience.

 

[Renee Healion]

They get bonuses. I know from being asked to "help out" a bank LO who screwed up ordering after the order had been fulfilled. Reason: so they would not have a bad bonus., like I could relate.
I had to look up this strange word, "bonus".

 

[CANative]

I'm sincere in all I say and too, just a little bit too curious at times, although time is running out ...

I've been telling you for years that you need to be a lot more curious all of the time. Not in so many words, but when I say you need to read the handbooks and selling guides when you ask a question I'm NOT trolling.

I have PDFs of the selling guides and HUD handbooks and ML's on my desktop going back more than 17 years. I read a little virtually every day... even now.

Make a folder in your computer, call it "Manuals" or something, and start downloading, collecting and reading. I don't see how you can safely complete an appraisal assignment until you do that.

Best of luck.... G

 

[Mr Rex]

Isn't understanding underwriting alot like wanting to know what goes into Hargraves Potted Meat?