Back when a [specific number] page underwriting manual was actually read cover to cover...

I was helping a younger loan officer the other day with a commercial deal in Austin, and he asked me why I was checking the appraisal report for a specific flood zone map date. He had no idea that FEMA map changes can trigger different escrow requirements... it was in the manual from 2011. Now everyone just clicks 'approved' based on a software flag without ever looking at the actual terms. Anyone else notice how the old school stuff like reading the full hazard insurance binder gets skipped way too often now?

3 comments

3 Comments

margaret_gonzalez2529d ago

That whole bit about reading the full hazard insurance binder cover to cover, that was a huge one too. I remember checking for proper wind deductibles and replacement cost endorsements that software just skips over automatically now. It's scary how much liability gets ignored because nobody bothers to verify what's actually in the policy.

the_patricia29d ago

Yeah I read somewhere that wind deductibles are different in every state so that's a good catch.

owens.cameron18d ago

Margaret, you are absolutely right about those wind deductibles. @the_patricia, they vary so much that I spent an hour on the phone with an underwriter once just to confirm we had the right percentage for a Florida property.