AmeriHome Mortgage – A Western Alliance Bank Company To our valued clients, future clients and business partners of AmeriHome Mortgage As we announced in mid-February, Western Alliance Bank...

Given the events of the past few months, mortgage market participants are under tremendous pressure to balance record loan application volume, a seemingly unending barrage of guideline changes, and documentation requirements fueled by COVID-19 pandemic related credit risk factors. Add to it all, the new challenges faced with working from home and it’s easy to see how mortgage originators are finding it more difficult to deliver complete, saleable, and serviceable loan packages. We also understand that warehouse banks have become increasingly rigid with previously flexible lending requirements due to heightened credit risk concerns, which may lead to missed opportunities for growth and profitability for originators.
As a company focused on relationships, reliability, and results, AmeriHome is committed to ensuring service levels stay consistent and our clients can continue to turn their warehouse lines over quickly to keep up with the increasing demand for loan fundings. At AmeriHome, one of our goals is to maximize the efficiency of interactions with our clients. One way we do this is by assisting our clients with reducing the number of conditions per loan delivered to us. This, in turn, may improve results for loans delivered to any investor. As part of our commitment to transparency and providing feedback, this article shares insights from our loan purchase review process. The goal here is to help our clients deliver complete loan packages with their initial submission, increase their “Funded at First Review” results, and accelerate the loan purchase process. Typically, clients with higher Funded at First Review percentages have quicker purchase turn times and thus shorter warehouse bank dwell times.
Loan submissions with missing or deficient income, asset, and VOE documentation as required by the AUS have driven up underwriting and operational conditions per loan by 41% and 19%, respectively, since January 2020. The increase in conditions per loan has in turn resulted in a reduction of Funded at First Review results. Specifically, the top 5 file delivery deficiencies we are seeing:
To maximize your Funded at First Review score, here are 10 tips for credit package and collateral delivery:
Our experience is that clients almost always have the supporting documentation on hand when we issue the conditions report for the file. Spending a few extra minutes making sure the credit package is complete could save days in the purchase process. Funded at First Review results will improve, investors will purchase your loans faster, warehouse line dwell times will be reduced, and you will be able to fund more loans!
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Thank you for your time,
Greg McElroy
EVP, Head of Operations
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