Kyle Concannon (pictured top), VP of product and wholesale at Constructive Capital, said one of the biggest challenges he sees for brokers is that with non-QM loans, the files must be complete before uploading them into the system. This means looking over everything before sending it becomes critical.
“They have to build that complete file before they put it in,” Concannon told Mortgage Professional America. “It’s really just taking 5 to 10 minutes. Just stop and look at everything you gathered over the last week, because everyone’s so excited, like, ‘Hey, I have a complete file. I finally got the appraisal. I finally got the title insurance.’ But did you look at it?”
Check the basics
Concannon said many of the potential issues he sees with files could be prevented by a quick scan by the broker. He encourages brokers to look at the files as if they were underwriting their own loan.
“Put your underwriter cap on for 5 or 10 minutes,” he said. “Think through it. Look at the guidelines as you’re doing it. Are you going to meet every basic guideline? If there’s stuff that’s out of left field, we’re not expecting them to catch that. Just the basics. Do the assets qualify? Does the DSCR qualify? Did you look at the credit report? Are there mortgage lates on the history that you need to be concerned about?
“Look at the appraisal. How do the comps look? How are the distances of the comps? That takes a lot of training. I just wrapped up an hour-long call with a new broker, but that’s just the beginning. That teaches them a lot. That’s enough to be dangerous, but there’s still more that you can learn and get better.”
