With the precipitous changes that have left the mortgage industry reeling, how can a broker or loan officer know which small and mid-size mortgage banks will be around tomorrow? While there are many factors that determine success, this article presents four keys that can help a mortgage lender remain strong in these turbulent times. Such lenders will be able to provide better service to their brokers and are more likely to remain in business. For brokers this means that instead of trying to discover a new lender, they can spend their time finding and closing more loans.

These four keys to success are:

• Diverse Loan Portfolio
• Adapting loan programs to the changing environment
• Automation allowing rates competitive with top-tier lenders
• Technology aligned with the requirements of secondary market investors, leading to better quality loans

Mortgage lenders create loan programs that meet a variety of borrower financial situations. The more programs they provide, the better opportunity borrowers have of qualifying for a loan that meets their needs. Look for a lender who provides a large portfolio of loan products and has been able to rapidly adapt its loan programs to meet the criteria of secondary market lenders. This is important, because if guidelines aren’t met, then an investor will not buy the loan, resulting in the lender having less capital to fund additional loans.

Coupled to the process of modifying loan program guidelines is inserting those guidelines into an automated underwriting system (AUS) that uses the programmed guidelines to underwrite loans in seconds, thus quickly ensuring that the borrower qualifies for a specific loan program. By rapidly adapting its loan programs and utilizing an AUS, the lender can help ensure that brokers submit saleable loans. This will contribute to keeping the lender strong and prices down.

A third factor for success is automating multiple processes and incorporating the underwriting into the lending workflow. That way the lender reduces costs and increases its efficiencies, which allows it to provide competitive rates. Great rates are an incentive for brokers to use that lender and contribute to the lender’s strength.

If you’re a broker looking for the best wholesale lender, make sure whoever you choose uses the four keys listed above. Doing so means you’ll be able to earn more money in less time.

You can read about Direct Mortgage's own automated underwriting system.