CmB magazine cmba-achc.ca spring 2017 | 35
Which Funding Ratios
Should I Track?
Different lenders track different ratios,
and you should know the ones that are
important to the lenders you use most oen.
Generally speaking, you should make a
habit of tracking – per lender – the two ratios
featured in the green box to the le, and
keeping them as high as you possibly can.
How Do I Maintain High
Funding Ratios?
Like anything in life, there are things you can
control and others you cannot. So let's focus on
what you can do to build great funding ratios:
n
Never submit the same application to
different lenders at the same time. Pick the best
lender for your client and submit. Only if the
lender declines your file should you submit
to another lender.
n
Never have a lender guideline decline.
Lenders make their approval guidelines
available. It is your job as a broker to know
them by heart (or have someone on your
team know them by heart). So if you submit a
file to a lender, you already know your client
meets that particular lender's guidelines. is
also applies to CMHC/Genworth/Canada
Guaranty guidelines.
n
Always run the file verbally by your own
BDM or underwriter before you submit.
is is especially important if you have
doubts about the approval. Get an indication
from them if it is worthwhile submitting or if
they feel the file will not get approved. Keep
notes of all conversations with U/W and
BDMs, and give them all relevant information
at the call (income, property, credit, ratios,
down payment or equity).
n
Always get a verbal commitment from
the client that should you get the approval
with the terms discussed, they will fund
the mortgage with you. Avoid submitting
applications where the borrower is not
committed to you or unsure if they will
want to continue with the application.
Explain how this can hurt you and how
you pride yourself on maintaining a good
reputation with your lenders.
n
Always have a complete package when you
submit. Do not submit if you do not have all
the relevant documents with you upfront;
this is particularly important with income
documents. Discuss the property condition
with the borrower and/or realtor to make
sure the property would be acceptable to the
lender.
e rewards of having high funding
ratios include, among others, VIP treatment
by lenders, more exceptions to your files, faster
turnaround time and a great reputation. Be
careless with your funding ratios and you will
experience low turnaround time for approvals,
a bad reputation, and worse, you may be
terminated by your brokerage and/or cut
off from lenders.
The rewards of high funding
ratios include VIP treatment
by lenders, more exceptions
to your files, faster turnaround
time and a great reputation.
