Summary
Mortgage banks - Cover Report: Residential Production
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Extract
Credit report roulette.
The credit report is a crucial document. It can make or break a loan. But originators tempted to play games with the credit report may end up wishing they hadn't.
THE MORTGAGE ORIGINATION BUSIness is driven by two masters--the need for prudent underwriting and the nagging demand for volume. Because credit reports play such a pivotal role in determining whether a loan should be made, providers of credit information often get caught in the crossfire produced by the desire to serve these twin masters. This, in turn, often places pressures on credit reporting agencies to "look the other way" or to take advantage of a secondary marketing guideline that may not be as clear on paper as it could be. This is where judgment enters in, and this business is full of situations where lenders are called on to make many very important judgment calls. It would be far easier if there was a hard and fast guideline for every single call in approving or denying credit. But if the business really were structured like that, some creditworthy borrowers might be denied the first step ...See the full content of this document
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