The Loan Status Field
I would like to take a moment this week to discuss the loan status field, and discuss why it is important to all parties that the lenders update this field in a timely manner as the loan status changes.
Upon receiving and reviewing a new proposal, the lender has an opportunity to either Decline the proposal or Follow-up. Simply by clicking on one of these two choices, three things happen: (1) the lender is invited to give reasons for declining, (2) the status is changed to either Declined or In Process accordingly, and (3) an e-mail notice goes to the borrower/broker informing them of the decision and the reasons (if reasons are given). This simple act either gets the ball rolling on the process, or opens the door for the borrower/broker to revise and reattempt submission with potentially more acceptable loan parameters (loan amount, term … that sort of thing).
Now, if the lender chooses to Follow-up, it is likely that they will give the borrower/broker instructions on how to proceed from that point forward, and phone or e-mail may be utilized to continue the transaction.
As the transaction proceeds toward closing, it is important that the status be updated accordingly within Lendicom. This tracking information is important not only to the borrower/broker but also to us. We doesn't ask much in return from our users but we do ask and ultimately require that the lenders update status in a timely manner as it changes throughout the life of the loan underwriting process.
Finally, we ask that the lender periodically review (every two weeks or so) the status of loans which are active on their home page and mark them Dead if it some time has passed with no follow up from the borrower/broker. This is quite helpful as it may actually "wake a loan up." The borrower/broker will receive a notice that the lender has marked the loan proposal Dead, and the borrower/broker may realize that the lender is actually waiting for item of follow up from the borrower/broker. It also opens a slot for the borrower/broker to re-submit the proposal to another lender (since there is a limit of the allowed at any given time).
If you are a borrower/broker and your loan proposal has been In Process but with no activity from the lender, you might want to let us know. We will check into the matter and probably change the loan status to Dead, freeing up a submission slot for you.