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Ways to Ramp up Your Closure Rates

closure ratesRamping up your closure rates is as simple as tightening your internal procedures and the way you put your deals together. Ramping up your closure rates means being able to quickly identify not only opportunities but also problem deals so as to maximize the use of your time.

So why don’t deals close?

The client backs out. Well, there is not much that you can do here other than try to learn why the broker is losing the deal and looking for ways to compete.

The property is not worth what was submitted on the application. The high ratio insured deal is particularly challenging because if you don’t identify discrepancies in value before the deal gets to the insurer and you have a high volume of submissions to the insurer where their internal AVM disagrees with your values, this can strain the relationship between you and your insurer. When a property fails to come in on value, your broker may get upset and disagree – not to mention the costs incurred if you were trying to land the deal and have paid for a drive-by appraisal, only to find out the value wasn’t there. Running AVMs on your deals at the point of application is one of the most inexpensive ways to validate a value before you submit a deal. You can even ask that your brokers use the same AVM tool as you so that they can validate this information before the deal even gets to you.

Discrepancies in home ownership. People often forget that they have other family members on title while others are straight out deceptive. Verifying home ownership information at the application stage goes an incredibly long way in preventing fraud, mitigating risks associated with deals that fail to close once with the lawyer, and finally enabling you to go back to the broker or branch who submitted the deal and ask the client to clarify discrepancies.

Encumbrances – this is a big one. Undischarged mortgages, undisclosed mortgages and liens come up all the time. More than discrepancies in homeowner information and just less than discrepancies in value – encumbrances can kill a deal fast because they can either signify that the borrower is higher risk than you initially thought or that there is not enough equity to make the deal happen. It is more than advantageous to identify this early on. This is especially a challenge for credit unions, trust and finance companies who write a lot of B business or second mortgages. It should be noted that a B lender or secondary lender should have a tool to check encumbrances on all deals.

Deploying tools and technology to close more deals will not only make you more competitive long term, it will also strengthen your relationships because you will be positioned to respond definitively to applications quickly.

For more about how Purview For Lenders can give you an advantage when it comes to identifying problem deals, please call us today at 1.855.787.8439.


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