Our Mortgage Analysts (MAs) pre-approve over 200 files every month. They see more files in a single month than the average loan officer sees in five years. This is why our MAs are so well-versed when it comes to guidelines and pre-approvals.
As a result, their conclusions about pre-approvals and pre-approval amounts are very accurate. Knowing this, many Realtors often ask me why other lenders approve loans or loan amounts that we can’t. There are several reasons:
1. Less experienced loan officers simply screw up, and those loans come back to JVM. This is the most common scenario.
2. Less experienced loan officers screw up, and the lender funds it anyway. These lenders either portfolio the loan (if they are a bank), but this is very rare, or they “bury the loan” in a large pool of Fannie Mae loans and hope the error does not get discovered. This is very risky b/c lenders can end up with a loan buy-back or unsalable loan.
3. Some of the large banks have looser guidelines for jumbo/portfolio loans. While we all have to adhere to the same guidelines for Conventional and FHA loans, banks can set their own (looser) guidelines for Jumbo loans that will remain in their portfolio.
Founder/Broker | JVM Lending
(855) 855-4491 | DRE# 01524255, NMLS# 335646