Why do mortgage underwriters wait until the last minute to request documents to close a home?

The mortgage process is severely broken almost beyond repair. There is a bunch of old and new startups including Quicken Loans “Claiming” they are trying or have fixed the process. Not even a chance. The reason is that underwriters are just mid-level workers.

Imagine your school principal doing your surgery that’s exactly what it’s like. I come from a family of surgeons and can tell you Just like surgery, underwriting has a lot of moving parts that require precise detailed attention. They will overlook things and make more mistakes than a trained surgeon who has attention to detail and immaculate memory to go with it.

Are we going to pay someone what a surgeon gets paid to do underwriting? Nope so, in other words, this broken process continues until the business is overhauled with future tech Blockchain etc. Document verification etc is a big part of the problem and tech will likely fix that to a high degree.

Until then borrowers will be asked for the same document 3 times and underwriters will hold up closings because they took a long lunch.


Check out our free mortgage shopping tools at https://www.parlend.com

This question was initially answered in Quora by our co-founder and mortgage ninja Kevin. View in Quora

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