Speed = Sloppy = More Work for all in the process chain.

It is busy in the mortgage world.  Rates have dropped enough to spur a refinance boomlet, and the spring market has opened early due to fair weather and The New England Patriots loss. 

As frequently referenced in this post, the mortgage process is exacting.  It requires that all documents match and that the mortgage application is bolstered by the supporting documents.  The appraised value must be supported by the report and the comparable properties and the title commitment should be clear.

When business ramps up everyone gets busy and when everyone gets busy mistakes get made.  Those mistakes require extra work for all involved because there is zero tolerance for sloppiness in the mortgage process.

Recently an appraisal report was submitted for a second home on Cape Cod.  The report was written subject to the utilities being on and verification that those utilities work.  We went to the client on this refinance and they stated to us, “that does not make sense, we use the house year round, while the appraiser was there the heat was on, the lights were on and I gave the appraiser a glass of water out of the tap!”

Apparently there was an error on this report.  It can be a common practice for an appraiser to simply open their software and copy over an old report.  It is not uncommon to see erroneous data on an appraisal report due to this practice.  Now everyone in this transaction is impacted, our processor had to drop everything to call the borrower.  Then the processor had to reach out to the appraisal management company to get the report repaired to contain the correct information.  The appraisal management company had to connect with the appraiser who then had to fix the report and re-upload it into the system to be reviewed yet again.

These types of situations are experienced daily in the mortgage business, from incorrect condo questionnaires to incorrect listing data.  Remember that we in lending are held to a very high standard by our regulators.  We are supposed to have all information 100% perfect, yet we are only humans, dealing with other humans who we depend upon in this process.

In a tightly timed process with penalties that hit if the timing is not met, data has to be right the first time.  Take a few extra minutes up front before you fill in the blank.  Make sure that you have the right data going into the right box.  Rushing through this process increases the likelihood of errors and can create a chain reaction of more work for all in the process chain.  Speeding can cause accidents not only on the road, but also in mortgage transactions.

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