"Mortgage lending has a Day 28 problem. Borrowers engage with lenders on Day Zero. Expectations get set. Loan options get discussed. Confidence gets built. Then income finally receives scrutiny on Day 28deep in underwriting, after time, money, and operational effort have already been spent. The result? Income surprises kill deals. Borrowers wait, frustrated. Lenders scramble to reposition files. What looked like a strong pipeline on Day Zero quietly erodes by the time income reality sets in."
"The income silo problem Lenders juggle multiple income calculation tools. One for agency loans. Another for non-QM. Often others for bank statement or specialty programs. Each operates at different speeds, applies different accuracy standards, requires separate workflows. Loan officers make early decisions based on partial income estimates. Operations teams hop between disconnected systems, reconciling outputs that don't agree. FHA, VA, USDA, agency, non-QM, investor overlayseach brings its own rules and failure points."
Income verification typically occurs late in underwriting, creating a Day 28 problem that kills loans and erodes pipelines. Multiple income-calculation tools and program-specific rules create silos that produce inconsistent early estimates. Loan officers base decisions on partial data while operations reconcile outputs across disconnected systems. FHA, VA, USDA, agency, non-QM, and investor overlays each introduce unique rules and failure points. Late-stage income failures drive lock extensions, re-disclosures, and lost borrower trust. Operational teams spend disproportionate effort on cleanup and reconciliation. Many loans fail not from borrower ineligibility but from delayed, insufficient qualification assessment.
Read at www.housingwire.com
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