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Quality Management-in-Finance.

Tuesday, 31 March 2015

Why provide full disclosure on a mortgage application and what's the use when "all" lenders seem to say "no"

THE CONTENTS OF A MORTGAGE APPLICATION, WHEN SIGNED BY AN APPLICANT, ARE CERTIFIED TO BE TRUE. WE DON'T EXPECT CLIENTS TO GIVE US ANY MORE INFORMATION UNLESS WE NEED THE INFORMATION FOR UNDERWRITING PURPOSES. IN SOME CASES, WE MIGHT ASK A CLIENT TO REVISE A MORTGAGE APPLICATION - OR PROVIDE ADDITIONAL INFORMATION - IF WE DETERMINE THAT THE ORIGINAL MORTGAGE APPLICATION CONTAINED ERRORS OR OMISSIONS.

THE MORE WE UNDERSTAND THE REALITY OF AN APPLICANT'S FINANCIAL SITUATION, THE BETTER WE ARE ABLE TO FIND A SOLUTION. WHEN IT COMES TO COMPLICATED MORTGAGE TRANSACTIONS, MERELY BECAUSE SOME LENDERS MIGHT NOT BE WILLING TO SAY "YES" OR GO BEYOND A CERTAIN LOAN TO VALUE DOES NOT MEAN THAT OTHER LENDERS ARE UNWILLING TO HELP; THE DISTINCTION BETWEEN A LENDER WHO IS "QUICK TO SAY NO" VERSUS A LENDER WHO IS WILLING TO HELP BUT MIGHT "TAKE TIME TO SAY YES", IS THE DEGREE TO WHICH INFORMATION IS READILY MADE AVAILABLE FOR THE LATTER, IN ORDER TO MAKE AN INFORMED DECISION.