Know What Your Lender Knows: How to Verify a Property Value Using Purview

Whether it is a purchase mortgage or refinance, if the value of a property is not as high as initially thought, the deal may not close as larger down payments may be required or there may not be enough equity – so there is huge value in taking a moment to verify a property value at the application stage!

Purview For Mortgage Brokers continues to be one of the top tools that mortgage brokers and agents are using to cross-check property values that are provided in a mortgage application.

We are committed to your ongoing development and recognize that some may be new to using Purview, so this post will re-visit how to use Purview to verify a property value. 

1.      The first thing you will need to do is perform a property search. To perform this search by address or owner’s name, all you have to do is a) select your desired province from the dropdown menu, b) enter either the address or homeowner’s name, c) click search, d) review potential matches from the search results table.

2.      Once you have located the property, click to generate a Broker Report. 

3.      After clicking to confirm, the report will be generated.

The report will contain:

·        The address and legal description of the selected property

·        Who the homeowner is

·        The sales history on the selected property

·        The estimated value of the property

·        Ranges of values in the neighbourhood

·        Current mortgages registered

·        Sales comparables – both historical and at the current valuation date

·        Aerial views of the property, neighbourhood and closest sales comparables

You can download a sample report with section descriptions by clicking here.  

To learn more about the Purview For Mortgage Brokers or to schedule training please contact 1.855.787.8439.

3 Ways to Avoid an 80BPS Mistake

80BPS…The earning potential for many, but also the amount that can be lost if a deal explodes. All in all – a pretty important number. An amount that you see once your deal closes, despite that all of your work will occur in advance of payment. The stakes are high to make sure those applications you work hard to acquire are funded! 

Not all customers tell the truth – although this is often unintentional. Some deals will go sideways and in retrospect there was nothing that could have been done to avoid this – but through due diligence, most deals can be saved. The question is, how much should one invest performing due diligence?  

Well first, let’s review the actual cost of a deal lost due to omitted information. 

·        Assess an hourly rate that you think your time is worth and multiply by the number of hours you spend on a deal.

·        Cost of the credit report.

·        Things you may have paid for to land your deal – appraisals, condo certificates, etc…

·        Impact to credibility and closure rates – you know as well as we do that banks do not like wasting time either and many keep track of the number of applications you submit against the number of your deals that are funded. If a lot of your deals are not going through because information is wrong, whether it be value or some information that is discovered later like someone else on title, they may decide to deprioritize your applications or not deal with you at all. How about other partners like lawyers who may have started work on a file?

·        How about paper, toner, supplies, couriers, etc… that will be used through the course of working on a deal? 

The cost of a lost deal is huge and so it pays to invest in identifying a bad deal. What are some of the most common things that you can do to greatly increase your closing rates and the speed getting your deal closed? Some of these apply to purchase mortgages, some to refinance mortgages, and some to both. 

First of all, don’t just rely on documents provided by clients. You won’t always know how old they are and they may be inaccurate. Save time and perform your due diligence by verifying information directly, whether it be the government, other lenders, property title information, pay outs, etc…  

1.      Verify who is on title. So often others show up on title and so identifying this sooner rather than later enables you to get consent and/or mortgage applications from others on title, thus reducing fraud and showing your lenders that you know who is on title before you submit an application to them.  

2.      Get a general estimate of the value of the property. Generate comparable sales and estimate value using tools that enable you to generate an AVM. An AVM (Automated Valuation Model) is a mathematically based computer program that produces an estimate of the market value of a residential property based on the analysis of public record data, property location, market conditions and real estate characteristics at a specified date. This is a great way to gauge whether or not the homeowner or seller is way off on value and also identify non arm’s length transactions that may not have been disclosed and will reduce unnecessary appraisals and applications to insurers.

3.      Get an idea of what is owed on a property. It is undeniable that getting consent signed by the client and requesting a current mortgage statement or discharge statement is the best way to learn if the homeowner has properly estimated what is owed on the home. Requesting the mortgage statement from the bank can result in a $100-$250 admin fee being added to the client’s mortgage and it could take a week or two to receive an answer. An easier way to do this is to look at current mortgages registered on the property, when they were registered and their face value at the time of registration. You can pop that number and a realistic interest rate to ballpark the general balance of the mortgage. If there is a large discrepancy you can ask your client before submitting the deal and either discover prepayments that may have led to a lesser balance or the client may realize they can’t really accurately recall.  

Due diligence should be performed at the application stage because that is when it will yield the most benefit to both you and your partners.

 

Tools like Purview For Mortgage Brokers enable you in one central online location to verify who is on title, generate sales comparables and estimate values, see which mortgages are on title and the amount they were registered for and much, much more! To find out more call us today at 1-855-787-8439.

Post Mortem: The Years After the Mortgage Agent Education Requirement Changed

We are coming up to 8 years since the FSCO-administered laws surrounding mortgage agent and broker licensing changed. As some of you may recall, prior to 2006 there was no mortgage education requirement for mortgage agents, nor were they licensed, but a mortgage broker would have to complete an arduous 14 courses at Seneca College to become a broker. Mortgage agents could voluntarily take an introductory course at Seneca but it was not the law and did not result in a license or recognition from FSCO. 

After the changes, agents began being licensed and recognized by FSCO, and brokers could become brokers with far less in terms of the education pre-requisite and companies and brokers who administer mortgages would have their own unique licensing requirement and license. 

Also during this time, CAAMP came out with their AMP designation. Another new and innovative way for agents and brokers to achieve enhanced credibility in the market place through education and accreditation. This is now evolving to become a broker-only designation so it will be interesting to see how this impacts agents who are AMPs.

The changes to the laws to create a mortgage education requirement were made in large part to protect consumers. The question is now, 8 years later, has it really helped?

·        Has making it easier to become a broker resulted in more brokers, thus devaluing the title and creating more competition?

·        Has creating a mandatory mortgage agent requirement resulted in better educated agents, thus improving the industry?

·        Did the change improve/enhance the overall credibility of the profession?

It would seem to be common sense that more education and oversight of the industry by FSCO would lead to better protection for consumers and an improved perception by the public that arranging your mortgage through a mortgage agent or broker is a safe and competitive bet. 

We’d love to know what you think. Please chime in on our thread on Facebook: https://www.facebook.com/purviewformortgagebrokers.

Giving the Best Possible Service Means….

In an age where the competition is fierce and so many organizations push the promotion of the lowest interest rates and financial savings, does giving the best possible service even matter anymore? Will offering the best service matter to the more frugal prospects that are often pre-occupied with the bottom line? We think so. 

The purchasing of a home is one of the largest investments an individual makes, and likewise, arranging a mortgage is one of the largest financial products an individual borrows. While this should be a happy time for many, the process of finding, purchasing and financing is often actually quite stressful. 

Putting the emphasis on guaranteed lowest rates is something that many agents, brokers and financial institutions promote, but this really only represents 1 piece of the puzzle. Is a single customer only worth a single mortgage or could they potentially be worth 5 – 6 – 7 mortgages once they have referred their friends and family to you?

This is why service, above all else, matters, and funny enough it really is the small things that count! Let’s look at some of the small stuff that could mean the difference between a lifelong relationship and a single instance mortgage.

Making promises you may or may not be able to keep. This is a huge issue in the mortgage industry. Some agents, when trying to land a deal, will assure their prospect of an approval and sometimes even what they think the approval terms will look like. This can become a major problem. After the initial application, or each time a small component of what was promised changes, the little cracks begin to show, thereby leading to a relationship crumbling to the point where it cannot be repaired. Your client will respect you more if you present their options but tell them that you are negotiating with third parties and insurers – nothing is a sure bet but you will work your hardest to get them where they want to be.

Turn-around time. When someone is depending on you to arrange financing to make their dreams come true – or on the other hand, refinancing to resolve some form of financial or other problem – every moment that passes can feel like an eternity. Whether you have an answer or not, when you say you will call, call.  Don’t commit to aggressive timelines to achieve approvals unless you are 100% sure you can meet them. In this industry you are heavily dependent on third parties and they will often let you down with regard to timelines.

Listening and caring. Great service includes making a real connection with your clients - becoming more than just a rate shopper is crucial. By learning about their family, their short and long term financial goals, what they hope to achieve for their children is important in this equation. This will not only build relationships for life, it will also help you to know when to approach them concerning ongoing financial needs. Also, we suggest putting some focus into learning and understanding more about credit and other lending products that are not mortgages – whether you offer them or not. This way, when your customer needs financial advice they will turn to you as a central source for information. You can align yourself with other providers of peripheral financial services and establish referral relationships that can prove to be very fruitful in the long run.

Offering the best service is not difficult and is not expensive. It does however require consistency and sincerity. Offering the best service is one way that you can compete without having to have deep pockets and a large marketing budget.

For more ways to enhance your service and ensure long term relationships please contact Purview For Mortgage Brokers today by calling 1-855-787-8439.