Senior underwriter?

jcgalliard

Applying for a 85% ltv mortgage ftb with the Leeds. AIP - okay. All documents sent - okay. Valuation - okay.

Couple of weeks ago got a letter from lender asking for copy of employment contract (as I am starting a new job in Jan). Called them today to chase up mortgage offer and the lending team told me the documents are pending in queue to be checked by senior underwriter. I asked what this means and she said it was a random audit and the application was now being handled by a senior underwriter.

Really? Random audit? Is this just there way of declining me?

What is a senior underwriter? Is this the norm?

Any advice or previous exp would be appreciated.

Thrugelmir

Underwriters will have given levels of authority to make mortgage offers. The more borderline the application the higher the authority required.

jcgalliard

Thrugelmir wrote: »

Underwriters will have given levels of authority to make mortgage offers. The more borderline the application the higher the authority required.

So how would they consider my application to be borderline? New job?

Thrugelmir

jcgalliard wrote: »

So how would they consider my application to be borderline? New job?

The board of directors \ risk management team will set various hurdles that applicants will need to jump over to meet the requirements of a particular product. The underwriting team will conduct the necessary checks and balances to ensure compliance with this policies. On occasions one hurdle might trip up an application by a relatively small margin or individual factor. So the matter will be referred to a senior underwriter who is empowered to make a decision on behalf of the lender.

Credit scoring is a highly automated affair. Where the criteria can be changed instantaneously if need be. So isn't as black and white as it may appear.

holly_hobby

Underwriters have autonomy to lend on cases that are already known to be os of std criteria at application (ie pre placed by the broker) or the scoring system throws up a "manual refer". Each UW has a mandate upto to a certain LTV and amount of borrowing (exposure), of course for lenders that don't credit score all apps are reviewed by an UW and issued under their mandate level at submission stage.

The amount of their automony in both instances increases over the yrs as their exposure and experience grows - which is why you have different levels of UWs reviewing diff types of cases.

Random audits, are really just that, nothing to worry about (if eveything was revealled at application stage, and no subsequent changes ie increase to credit commitments/change to income/loss of job etc).

If the scheduled change of employment in Jan 14 was bottomed out with the lenders UW team pre submission, the DIP based on this, and the new employers contract mirrors any probationary period stated and salary quoted in your application, then you've nothing to fret about .... a manual check is simply reqd as its a new role you're yet to take up and the need to check the salary, terms etc.

Try and sit tight .... if you have a broker get them involved in chasing this through.

Hope this helps

Holly

jcgalliard

holly_hobby wrote: »

Underwriters have autonomy to lend on cases that are already known to be os of std criteria at application (ie pre placed by the broker) or the scoring system throws up a "manual refer". Each UW has a mandate upto to a certain LTV and amount of borrowing (exposure), of course for lenders that don't credit score all apps are reviewed by an UW and issued under their mandate level at submission stage.

The amount of their automony in both instances increases over the yrs as their exposure and experience grows - which is why you have different levels of UWs reviewing diff types of cases.

Random audits, are really just that, nothing to worry about (if eveything was revealled at application stage, and no subsequent changes ie increase to credit commitments/change to income/loss of job etc).

If the scheduled change of employment in Jan 14 was bottomed out with the lenders UW team pre submission, the DIP based on this, and the new employers contract mirrors any probationary period stated and salary quoted in your application, then you've nothing to fret about .... a manual check is simply reqd as its a new role you're yet to take up and the need to check the salary, terms etc.

Try and sit tight .... if you have a broker get them involved in chasing this through.

Hope this helps

Holly

Thank you for a very informative answer.

My new job starts on Jan 6th and it has no probationary period. Also, I told the lender I was moving as a result of being closer to where I was starting my new job.

Hopefully should be okay

ethank

A probationary period means nothing. Anyone starting a job after April 2012 has to wait for 2 years until they can take a case to employment tribunal (unless for discrimination or whistleblowing) - therefore lending to someone who has not even started a job yet is very risky for a lender.

holly_hobby

Completion won't be permissible until after the OP has commenced employment in their new role, and any further ad hoc UW checks have been completed.

Hope this helps

Holly

jcgalliard

holly_hobby wrote: »

Completion won't be permissible until after the OP has commenced employment in their new role, and any further ad hoc UW checks have been completed.

Hope this helps

Holly

Would this really be an important factor? I am still in full time employment at present (employed for 9 years) I finish with my current employer at the end of this month and take up my new job on the 6th Jan.

Why would the lender delay completion when I have a confirmed contract of employment from a well known reputable employer?

holly_hobby

When are you hoping to complete ? Is this before 6 Jan 2014 ?

jcgalliard

holly_hobby wrote: »

When are you hoping to complete ? Is this before 6 Jan 2014 ?

No. But if they need confirmation I have started my new job they just get in touch with the employer right?