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Loan Correspondent Portal

Eric Hall

(NMLS #1269561)
Tel: (207) 608-4307
Fax: (207) 490-5812
ehall@partnersbankonline.com

 

 

Welcome to the Correspondent Lender Portal

April 2020

If there is one constant, it is that the seasons will change (sorry Mr. Gore), and gladly the days are getting longer and warmer. Figured it is a good time to talk about one of our portfolio offerings that tend to become more popular in the spring and summer months, and some of the challenges that can accompany some of the warm weather activity.

Partners Bank provides construction lending year-round, but without a doubt, activity peaks in the warmer months. The good news is that it creates business for us as lenders, and of course the contractors involved in building the homes. The less than good news (I will not go as far as to say it is bad news) is that borrowers suddenly come to the realization that they need to get their projects going ASAP.

Inherently, that is human nature. I don’t even think to register and have my motorcycle inspected until the first 70 degree day, which of course happens to be a Sunday in May. I know I should have gotten my rig street legal weeks ago, but can’t resist the urge to go for a spin. On at least one occasion, this inaugural season ride has cost me $180 in fines for driving an uninspected/unregistered bike. Similarly, without proper time and planning, the construction process can become more complicated and more expensive than it needs to be. Getting hit with a couple of fines is one thing, but “rushing” the construction planning process often results in added stress and expense that could have been avoided had the borrower taken their time with the planning/details.

For this reason, I call on my list of builders in late fall and winter months to educate them on the process and touch base. I also call upon some of my recent land loan borrowers to check in and sort of remind them that if they wish to build soon, they need to initiate that process with their builder and town (permitting process, etc.). IF you are working with a borrower that should have been working on their plan a lot earlier than they ended up doing so, please caution them to step back, take their time, and not rush something of such importance. I see it play out, and without a doubt, the properly planned projects go much smoother than those that are rushed. Construction lending can go from some of the “easiest” and most rewarding loans that you will be a part of, to some of the most exhausting and time-consuming loans, solely based on the plan and the time executing the plan.

Regardless of the time of year, if you have ANY questions on our construction loan program, please reach out to me. Trust me, no question is a dumb question, and every situation is unique, so please be sure that you and your borrowers are educated as early as possible. I have a construction loan FAQ/walk-through that I have circulated to most of you, but it is also in the document section of this site. There are always variables that exist, so if you have any questions after having reviewed the document, please do not hesitate to reach out.

Ride on!!!!

Be safe,
Eric

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Frequently Asked Questions

Q: Is there a minimum FICO score required for Partners correspondent loan submissions?
A: If there is a submission in which the mid lower score is <680, we need strong compensating factors to offset the risk.

Q: Who is responsible for obtaining conditions from the borrower?
A: Generally, the correspondent will be obligated to gather the required documentation/conditions. It is important that the customer knows that you are their contact, as that allows you to retain their business in the future.

Q: Can we utilize an existing appraisal?
A: If the anticipated LTV is less than 80% we can utilize the existing report, if the LTV exceeds 80%, we will require our own report. If we are able to utilize an existing report, please be sure to provide us with the invoice clearly indicating if it is paid or if payment is due. The appraisal must be fully reviewed and approved by Partners. For loans over 80% LTV, Partners will order, review, approve and provide a copy to the correspondent and borrower.

Q: How do we determine who does title and closing?
A: The coresponedent/borrower may choose the title and closing attorney, but the closing agent must be on Partners’ approved list (in the document section of this site). Partners will make the request and follow up the order.

Q: What are the main reasons for a delay in loan approval/credit decision?
A: Our underwriters and decisions makers are on site which allows for loan commitments to be provided within 24 to 48 hours. Any delays are generally as a result of insufficient documentation (incomplete loan packages). To avoid delays, the correspondent should provide a complete loan package.

Q: What constitutes a “complete” loan package?
A: Our requirement is likely the same as any investor loan. Loans submitted without the required documentation can mean significant delays and the risk of being suspended by underwriting. If the “standard” conditions aren’t provided at time of package submission, please provide a written explanation as to why it is missing and when it can be expected.

Q: What sort of turnaround times are to be expected from inception to closing?
A: A minimum of 30 days on purchase transactions is reasonable. (less than 30 days will generate an underwriting condition for an extension.)

Q: Why are photo IDs needed at time of application?
A: Because Partners is a banking institution we need verification of our customer’s identity before opening any accounts.

 

All loans are subject to credit approval.