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Lender/Broker Communications

can telephonesCanadian Mortgage Professional ran an article that illustrated how vital communication is between a broker and underwriter.

Melissa Coburn, an underwriter with Paradigm Quest Inc., was quoted: “As soon as I get a deal, I am calling or e-mailing the broker at every step of the process so they know what’s going on…I try to communicate at every step so they’re not worried their deal is being sat on or lost in the shuffle, and because of that the trust builds.”

That is a standard by which all underwriters should be measured.

This is no more true than when lenders promise a specific turnaround time. Some lenders, for instance, will “guarantee” a 24-business-hour turnaround on approvals. They’ll even put it in a written “service level agreement” (SLA). 

That’s great. 

The problem is, from time to time, lenders get busy and ignore their own SLAs.

From a broker’s standpoint, there is little more damaging to trust and loyalty than when a lender promises X and delivers Y.  When a SLA is 24 hours then the broker should hear something in 24 hours. It’s that simple.

Even if it’s a quick email from an underwriter saying that their queues are backed up, and the file will be reviewed tomorrow. That is incredibly appreciated, compared to no word at all.

Brokers who send deals to lenders with SLA’s often do so because they know what turnaround times to quote their clients. In an age of flimsy service promises, lenders who acknowledge these commitments and notify brokers in advance when SLA’s can’t be honoured—will get loyalty back in spades.