Money well invested.

Mortgage BankingVol. 57 Nbr. 11, August 1997

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Summary


Advantages of training underwriters

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Extract


Money well invested.

Investing in training for underwriters has many returns. It can speed decisions - a plus in attracting new business and keeping old customers coming back. It also can help prevent unmarketable loans, another reason it makes good business sense.

A basic truth about underwriting is that it will never be a profit center. So why invest in it? For that matter, why should any money be spent on training underwriters if it's just a drain on already nonexistent origination profits. Right?

Well, not so fast. If training underwriters results in fewer nonmarketable loans, then certainly that's a good dollars-and-cents reason for investing in their training. If the same training results in fewer unnecessary underwriting conditions, then customer satisfaction increases. Certainly, keeping customers happy - be they Realtors, builders or borrowers - helps boost profits. This training is starting to sound like a key strategic investment.

Training underwriters is an investment in risk management as well. An untrained underwriter is more likely to make a nonmarketable loan. Andy Hubbard, national training manager for Banc One Mortgage Corporation in In...

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