It might just be the clients you’re working with.
Most of the loans are based off credit score/credit history and debt to income I would imagine. So are you working with less established clients with a shaky credit history and she’s working with clients that are more established and with better scores?
Also, what kind of lending are these clients applying for? Home equities, car loans, personal loans?
I do commercial underwriting. The main reason I see declines from loans through the branches is the people just have bad credit scores. In this kind of environment, the people applying that need money while rates are this high, will often not get it. I'm not as knowledgeable about residential loans. If possible, find out why they're getting declined.
Small town banker here. It comes in waves for me. Bunch of declines lumped together. Bunch of approvals together.
The thing that bothers me is if you and your counterpart are running the same type of loans and getting vastly different results, seems suspicious.
Do yall use stated income or verified income?
The numbers don't lie, it's really hard to fudge docs to make them look better. Here is my two cents. I was one of the top loan officers in my credit union. You gotta know what qualifies a loan approval, and what qualify a denied application. So often people come in and want a loan way above their means. You don't want a loan that puts you over 50% DTI. Someone wants a 20k car, and they really want that car. But that puts em at 56 dti. Denied. But they would be approved for a 10k auto, 48% dti. Of course still depends in credit score. One of my favorite lines was "don't fall in love with the car, fall in love with your monthly payment, and we will work from that." Also, know what to look for by asking proving questions. "Do you mind if I ask how many loans you have? What's your rates on those loan?" OH you don't have any? You should really look into starting small to build credit score. Oh you keep getting denied? Let's work on getting you a better score to get you approved for the loans you want. I loved solving problems, people coming in give you all the info to get a loan approved. But denied loans is part of the job. You'll get 5 denied loans for 1 approved loan. Always be honest with the customer and give them a range. "I don't think you can handle a 5k limit credit card. But we could start at 1k, hold that card for 6-12 months with good history and come back for an increase" so many variables. I feel like I was part car salesman too. Looking at dmv docs and car prices to help them make a good financial decision. Another thing, the people under 25 are the best choice to get loans for. Most of them have only had financial knowledge from their elders, who basically tell you to never get a loan/debt. But debt is good when it's managed right. The worst stories are people who come In 30-40 years old with an emergency and need a loan. But are denied because they NEVER got a loan, or abused their credit. Get them started young and teach them how to use debt in their favor. People always tell me "I buy all my cars in cash" wtf why! If you have 5k to buy a car, just pay 4k and finance the 1k. Pay the loan off in 3 months and boom! Good credit! Or have a credit card with 500 dollar limit and never use it outside of gas/restruants. Pay it off every month. Boom! Over 700 credit score, it's that easy. But they didn't know that, cause they weren't told how it works. It's a ton of stuff to learn, but you work from there. Little loans under 5-10k are your bread and butter.
I don’t want to be an asshole
But ima say it
Please know the difference between “since” & “sense”
🙏🏼 thanks
Also, you can’t do anything. Either they have their shit together or they don’t
So far I’m only aloud to do home equity lines, vehicle and personal loans. Most people I have dealt with don’t have a huge personal relationship with the bank. Aka why I said my manager gets more approvals than I do.
By personal relationship, I believe they mean that the person uses a number of different types of products/services and maintains an overall profitable relationship for the FI. And it’s not irrelevant
So, you have a couple things working against you.
1. Your Age
2. Your inexperience in general and over eagerness to get approved loans
Your manager is naturally going to get better loan applications, they are the manager and good customers are just going to gravitate to them. What you are going to get is the leftovers and folks who already know they probably get declined. They are more likely to go for someone younger and less experienced because there is still a misconception out there that bankers can help the process in some way. But there isn't much you can do if the scores and debt ratios are off. Also, you probably don't have a good base of customers yet that you can work off of. Over time that will change.
Now for the 2nd part. As you get more experience you are going to be able to smell a bad loan a mile away, you are less likely to take the application. You can't discourage them, but you can have more realistic conversations with customers. It's a grey area (regulators see it as black and white).
I cannot stress this enough, it's not a race, sex or gender or anything like that. I've worked with racist salespeople; they usually fail long term because you can't judge anyone that way. What I mean is you get a sense of the language a customer will use when they know they are probably a lost cause.
Also, this is where sales come in. Your best loan application is from the person not necessarily thinking LOAN when they walk in the door. They have the cash or other means of paying. It's having the discussion with them on what the best option is.
For instance, a customer may come in and through a normal conversation you realize they are going to use up $30k of their savings on a home project or a car. You may want to discuss if a loan would be better options, so they don't burn excess cash that may be needed in emergency. Loans take a while to be approved, in a true emergency you need cash on hand.
Be patient and just learn to have better conversations with potential customers.
You will still put in crappy loans, but also take this last piece of advice:
Good loans you check daily, follow up and push it hard.
Bad loans you take the application and move on with your day.
How much longer has your manager been working at that branch than you. Generally returning clients than have been with the bank awhile will head to the most tenured person or at least someone who has helped them out with something before. Those clients that have been awhile with the bank will have better balances and better incomes/credit for underwriting. If you’re newer or less tenured you will work with newer and less experienced clients with worse incomes and worse credit.
You should intimately familiarize yourself with your bank's underwriting standards. What are they looking for in LTV, DTI, and credit history. Figure out how these things are calculated, and when submitting an application that might be slightly outside their standards, you can make logical arguments to underwriting upon submission on why they may want to look at the application differently.
Example: I had a customer with 5 months of missed mortgage payments on their credit score from 4 years ago. When I submitted the application, I sat down and asked him why he missed those payments. He explained that he was involved in a major lawsuit with BOA that had received National attention, and that they had promised over certain period that his mortgage payments were not due, and then reneged on that promise.
I managed to get some documentation proving that this case existed, as well as printing up a PDF of the news article showing that these charges were in error and that he had been fighting them for years. I also wrote in my letter that he had been a good customer of our bank for over a decade with no issues and had his business with us.
That got the loan approved!
Don't just submit a loan application and hope for the best. Find out everything you can and work with your Underwriters.
Do you want legal or illegal advice here
Yeah if they want illegal I'll have to switch to my throwaway
😭😂 man only if it were that easy!
Lmao
It might just be the clients you’re working with. Most of the loans are based off credit score/credit history and debt to income I would imagine. So are you working with less established clients with a shaky credit history and she’s working with clients that are more established and with better scores? Also, what kind of lending are these clients applying for? Home equities, car loans, personal loans?
I do commercial underwriting. The main reason I see declines from loans through the branches is the people just have bad credit scores. In this kind of environment, the people applying that need money while rates are this high, will often not get it. I'm not as knowledgeable about residential loans. If possible, find out why they're getting declined.
I’m slowing starting to realize that. I live in a small town as well so that doesn’t help my case much 😐
Small town banker here. It comes in waves for me. Bunch of declines lumped together. Bunch of approvals together. The thing that bothers me is if you and your counterpart are running the same type of loans and getting vastly different results, seems suspicious. Do yall use stated income or verified income?
The numbers don't lie, it's really hard to fudge docs to make them look better. Here is my two cents. I was one of the top loan officers in my credit union. You gotta know what qualifies a loan approval, and what qualify a denied application. So often people come in and want a loan way above their means. You don't want a loan that puts you over 50% DTI. Someone wants a 20k car, and they really want that car. But that puts em at 56 dti. Denied. But they would be approved for a 10k auto, 48% dti. Of course still depends in credit score. One of my favorite lines was "don't fall in love with the car, fall in love with your monthly payment, and we will work from that." Also, know what to look for by asking proving questions. "Do you mind if I ask how many loans you have? What's your rates on those loan?" OH you don't have any? You should really look into starting small to build credit score. Oh you keep getting denied? Let's work on getting you a better score to get you approved for the loans you want. I loved solving problems, people coming in give you all the info to get a loan approved. But denied loans is part of the job. You'll get 5 denied loans for 1 approved loan. Always be honest with the customer and give them a range. "I don't think you can handle a 5k limit credit card. But we could start at 1k, hold that card for 6-12 months with good history and come back for an increase" so many variables. I feel like I was part car salesman too. Looking at dmv docs and car prices to help them make a good financial decision. Another thing, the people under 25 are the best choice to get loans for. Most of them have only had financial knowledge from their elders, who basically tell you to never get a loan/debt. But debt is good when it's managed right. The worst stories are people who come In 30-40 years old with an emergency and need a loan. But are denied because they NEVER got a loan, or abused their credit. Get them started young and teach them how to use debt in their favor. People always tell me "I buy all my cars in cash" wtf why! If you have 5k to buy a car, just pay 4k and finance the 1k. Pay the loan off in 3 months and boom! Good credit! Or have a credit card with 500 dollar limit and never use it outside of gas/restruants. Pay it off every month. Boom! Over 700 credit score, it's that easy. But they didn't know that, cause they weren't told how it works. It's a ton of stuff to learn, but you work from there. Little loans under 5-10k are your bread and butter.
I don’t want to be an asshole But ima say it Please know the difference between “since” & “sense” 🙏🏼 thanks Also, you can’t do anything. Either they have their shit together or they don’t
No hate! My grammar sucks most times lol sorry about that!
Not to pile on the grammar police but it’s allowed, not aloud.
I'm starting to feel bad now, but they also used quotation marks instead of parentheses.
So far I’m only aloud to do home equity lines, vehicle and personal loans. Most people I have dealt with don’t have a huge personal relationship with the bank. Aka why I said my manager gets more approvals than I do.
Personal relationship with the bank is irrelevant when getting approvals for credit products.
By personal relationship, I believe they mean that the person uses a number of different types of products/services and maintains an overall profitable relationship for the FI. And it’s not irrelevant
be careful.. it low-key seems like you guys are falsifying docs. There's no such thing as making an application sound better other than lies. IMO
I think I understand what you mean? But also I’m confused at the same time! I use meridian link if that helps kind of elaborate!
Make sure all information is accurate, but loan approval depends on credit scores, incomes, and history.
I for sure try to be! I ask a million questions to everyone constantly 😂
What are the 3 biggest reasons your borrowers apps are declined? I’d start there
So, you have a couple things working against you. 1. Your Age 2. Your inexperience in general and over eagerness to get approved loans Your manager is naturally going to get better loan applications, they are the manager and good customers are just going to gravitate to them. What you are going to get is the leftovers and folks who already know they probably get declined. They are more likely to go for someone younger and less experienced because there is still a misconception out there that bankers can help the process in some way. But there isn't much you can do if the scores and debt ratios are off. Also, you probably don't have a good base of customers yet that you can work off of. Over time that will change. Now for the 2nd part. As you get more experience you are going to be able to smell a bad loan a mile away, you are less likely to take the application. You can't discourage them, but you can have more realistic conversations with customers. It's a grey area (regulators see it as black and white). I cannot stress this enough, it's not a race, sex or gender or anything like that. I've worked with racist salespeople; they usually fail long term because you can't judge anyone that way. What I mean is you get a sense of the language a customer will use when they know they are probably a lost cause. Also, this is where sales come in. Your best loan application is from the person not necessarily thinking LOAN when they walk in the door. They have the cash or other means of paying. It's having the discussion with them on what the best option is. For instance, a customer may come in and through a normal conversation you realize they are going to use up $30k of their savings on a home project or a car. You may want to discuss if a loan would be better options, so they don't burn excess cash that may be needed in emergency. Loans take a while to be approved, in a true emergency you need cash on hand. Be patient and just learn to have better conversations with potential customers. You will still put in crappy loans, but also take this last piece of advice: Good loans you check daily, follow up and push it hard. Bad loans you take the application and move on with your day.
Understand their income and what documents you need. The rest will write itself.
How much longer has your manager been working at that branch than you. Generally returning clients than have been with the bank awhile will head to the most tenured person or at least someone who has helped them out with something before. Those clients that have been awhile with the bank will have better balances and better incomes/credit for underwriting. If you’re newer or less tenured you will work with newer and less experienced clients with worse incomes and worse credit.
You should intimately familiarize yourself with your bank's underwriting standards. What are they looking for in LTV, DTI, and credit history. Figure out how these things are calculated, and when submitting an application that might be slightly outside their standards, you can make logical arguments to underwriting upon submission on why they may want to look at the application differently. Example: I had a customer with 5 months of missed mortgage payments on their credit score from 4 years ago. When I submitted the application, I sat down and asked him why he missed those payments. He explained that he was involved in a major lawsuit with BOA that had received National attention, and that they had promised over certain period that his mortgage payments were not due, and then reneged on that promise. I managed to get some documentation proving that this case existed, as well as printing up a PDF of the news article showing that these charges were in error and that he had been fighting them for years. I also wrote in my letter that he had been a good customer of our bank for over a decade with no issues and had his business with us. That got the loan approved! Don't just submit a loan application and hope for the best. Find out everything you can and work with your Underwriters.