Underwriter's deal processing

[puneetgandhi]

Debanked members,

Would be extremely helpful if I can have your expert views on two questions below.

1. How many deals a typical junior / senior underwriter is able to process in a day/month?

2. What are the typical approval / pass rates for deals we see at junior / senior underwriter stage i.e. out of 100 deals junior/senior underwriters see, how many deals would be passed by them for funding?

Many thanks

[DD23]

Underwriter's deal processing

Interesting question, any idea how automated the underwriting process is with most lenders and how long it typically takes to make a decision on a deal?

[CDG]

We are aware of shops that run the gamut of running through anywhere from 5-50 files per day. There are several factors that need to be taken into consideration when parsing out the ‘uw time’ allocated to each file. We work with several different lenders and they all vary. Some prefer to have a full underwrite when obtaining all necessary docs required whereas others just need a pre-approval based on minimal docs. A linear relationship exists between the lender and their adopted risk model. There are undoubtedly more files processed by an underwriter if less stips (based on a dollar funded) are required and/or the lender is taking a 2nd position.

In reference to approval/pass rates, this is subjective to the experience of the underwriter, risk model of the lender, quality of leads, etc. The approval of files isn’t necessarily a question that should be positioned towards an underwriter because of the factors involved and multiple variables. The role of the underwriter is to assess risk and protect your investment as a lender where they are not functioning as a sales person to approve as many deals as possible, but rather reviewing files accurately.

Contact us at team@centraldiligencegroup.com if you need an underwriting solution to fit your needs.