Sometimes a loan gets approved that I personally might not have approved, but the algorithm makes the judgment call.
The Scenario:
This client was referred to me for a HELOC on his owner-occupied 2-unit. The banker referred him due to credit scores (629) because the bank has a minimum score requirement of 640.
I directed the client to our automated HELOC approval portal and saw that he was approved, then logged in to review the file.
Only then did I see that he had a RECENT 90-day late payment on his mortgage in February of this year. I asked him what happened, and he said it was on auto-pay but somehow wasn’t being made and he didn’t realize.
His debt ratios were under 30%. The CLTV was less than 60%. Overall, I guess our automated HELOC system thought it was a good credit risk and he was approved for an $80,000 HELOC, despite scores on the lower side and a serious mortgage late payment.
I would never have guessed this file would be approved, but he’s happy, I’m happy, and the banker who referred the deal is happy to have been able to point him in the right direction.
Why this might matter
HELOCs are not my primary business, but if you have a client who needs one, I might be able to help.
Work with me
Do you have a deal that you think might be approvable but doesn’t fit in the box at your bank or credit union? Reply to this email or call/text me at 616.298.2743 for a same-day answer.
One case study per week showing scenarios we’ve been able to help with