Mortgage lenders take on a risk with every loan. This risk is the inability to predict the borrowers’ ability to repay a loan on time. It is the responsibility of underwriters to assess credit risk and determine whether a borrower will be able to repay the loan on time. Mortgage underwriting is an extremely process-oriented task. It involves a series…
mortgage underwriting
Did you know that underwriting subprime loans without assessing the risks was one of the prime factors that led to the downfall of Lehman Brothers in 2008? The ramifications of Covid 19 has had a crippling impact on the mortgage underwriting process. While on the one hand, underwriters had to qualify loan applications as per relaxed lending standards, on the…
The Covid-19 pandemic has hit the mortgage industry hard, and lenders are under tremendous pressure to keep operations running amid the chaos. At a time when potential homebuyers are trying hard to cash in on the low mortgage interest rates, the plummeting economy is being seen as the biggest roadblock. In particular, underwriters are facing a tough time to do…