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With the precipitous changes that have left the mortgage industry reeling, how can a broker or loan officer know which small and mid-size mortgage banks will be around tomorrow? While there are many factors that determine success, this article presents four keys that can help a mortgage lender remain strong in these turbulent times. Such lenders will be able to provide better service to their brokers and are more likely to remain in business. For brokers this means that instead of trying to discover a new lender, they can spend their time finding and closing more loans.

These four signs of staying power are:

1. Variety of Loan Programs.

2. Ability to quickly adapt loan guidelines to the changing environment.

3. Automated systems that provide economies leading to competitive rates.

4. Technology aligned with the requirements of secondary market investors, leading to better quality loans.

You’ll want to find a lender with a large loan portfolio for two reasons. First, the greater the variety of loans offered, the more likely you’ll be able to find a loan that meets your borrower’s financial situations. Second, with a variety of loan programs, the lender will be safer if some loan programs are discontinued. You’ll also want a lender that can rapidly adapt its loan programs to meet the criteria of secondary market lenders. Some lenders sell their loans to investors in order to replenish their available capital. If the loans they fund do not meet investor requirements, the investor will not buy the loans and the lender may become cash strapped.

Coupled to the process of modifying loan program guidelines is inserting those guidelines into an automated underwriting system (AUS) that uses the programmed guidelines to underwrite loans in seconds, thus quickly ensuring that the borrower qualifies for a specific loan program. By rapidly adapting its loan programs and utilizing an AUS, the lender can help ensure that brokers submit saleable loans. This will contribute to keeping the lender strong and prices down.

A third factor for success is automating multiple processes and incorporating the underwriting into the lending workflow. That way the lender reduces costs and increases its efficiencies, which allows it to provide competitive rates. Great rates are an incentive for brokers to use that lender and contribute to the lender’s strength.

If you’re a broker searching for a wholesale lender who will stick around, look for one that exhibits the four signs listed above. Such a lender will help you earn more money in less time.