“MBA’s July 10th chart of the week highlights retail mortgage applications per underwriter with a ten-year trend in average monthly underwriter productivity for the retail production channel. For large lenders, generally in the top 25 nationwide, u/w productivity is 5 times lower than it was ten years ago, dropping to 33 applications per underwriter (per month) in 2014…

…from 165 applications per underwriter (per month) in 2005. Productivity for mid-sized lenders, originating an average $1.2 billion in 2014, has dropped to 37 applications per underwriter (per month) in 2014 from 135 (per month) in 2005.”, Excerpt from Mortgage Industry Newsletter, July 2015


“These days, I guess it takes ALL DAY for underwriters to make the decision (to approve or reject) on about ONE and ONE HALF home loans (three every two days), with all the post-crisis, CYA, form-over-substance, industry regulation??? Pre-crisis, underwriters used to be able to decision a home loan in a little over an hour. Underwriting a home loan isn’t rocket science!!! That’s outrageous and that increased cost is one of the many reasons that American homeowners are paying thousands of dollars in increased government regulatory/compliance costs (largely hidden/imbedded within a higher interest rate for their mortgage) for nothing. NO benefit to the borrower/homeowner. And very little real benefit to the lender or investor in the mortgage.”, Mike Perry, former Chairman and CEO, IndyMac Bank

Posted on July 27, 2015, in Postings. Bookmark the permalink. Leave a comment.

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