I have a new job. I am now an underwriter, which takes me well and truly away from working directly with the bank customers as every loan has a loan officer in between me an them.
Well, not every loan. Some loans, car loans, are sent in directly from the dealership instead. And the dealerships cannot exactly be called co-workers, so I'm going to call them customers, even if there is another level of customer beyond them.
Dealerships... dealerships suck.
Some car buying advice: if you have cash down, don't tell the salesman until after the price of the vehicle is determined. Why? Because you would not believe how many loans come to me with the sales price jacked up to mostly destroy the positive impact of that cash down. Loan-wise, it usually works, because if person qualifies for x dollars for x car, they qualify, but sometimes I wish I COULD talk to the customers directly again so I can ask them if this car is really in so fantastic of shape that they are willing to pay so many thousands more than invoice or retail value.
But I digress.
The tale of today is the dealer with a $70,000 end of month sale on the line.
Short story: Customer does not qualify for a $70,000 auto loan. Score is good. Income is good. If underwriting was solely about the score and the income, I'd be out of a job. This customer's high credit is 33k, paid on time for 18 months. (Plus enough small credit to be generally established, but 2k credit cards do not establish payment history for a 70k auto loan)
So, loan is declined.
And the dealer calls.
Customer has the income.
Doesn't matter. 33k at 18 months does not make a 70k auto loan.
Customer has a great score.
Based mostly on 2k credit cards. That does not make a 70k auto loan.
Then have someone else look at this!
*sigh* Fine. second look request for another underwriter. Second underwriter declines.
And the dealer calls.
... rinse and repeat the conversation above with the lovely little addition:
"Come on, this is the only customer I've got in the place!"
Making your commission is NOT my job.
Dealer goes through FOUR different underwriters, all of who decline the deal.
At least this customer wasn't some young 20s kid getting their second car. (Dealers take HUGE advantage of second-time auto loan borrowers. 1st time buyers, lenders are incredibly strict, but second time auto loans have just enough credit to squeak by the System Approval criteria, and some of the dealerships are really good are pressing those guidelines up to the line.
Well, not every loan. Some loans, car loans, are sent in directly from the dealership instead. And the dealerships cannot exactly be called co-workers, so I'm going to call them customers, even if there is another level of customer beyond them.
Dealerships... dealerships suck.
Some car buying advice: if you have cash down, don't tell the salesman until after the price of the vehicle is determined. Why? Because you would not believe how many loans come to me with the sales price jacked up to mostly destroy the positive impact of that cash down. Loan-wise, it usually works, because if person qualifies for x dollars for x car, they qualify, but sometimes I wish I COULD talk to the customers directly again so I can ask them if this car is really in so fantastic of shape that they are willing to pay so many thousands more than invoice or retail value.
But I digress.
The tale of today is the dealer with a $70,000 end of month sale on the line.
Short story: Customer does not qualify for a $70,000 auto loan. Score is good. Income is good. If underwriting was solely about the score and the income, I'd be out of a job. This customer's high credit is 33k, paid on time for 18 months. (Plus enough small credit to be generally established, but 2k credit cards do not establish payment history for a 70k auto loan)
So, loan is declined.
And the dealer calls.
Customer has the income.
Doesn't matter. 33k at 18 months does not make a 70k auto loan.
Customer has a great score.
Based mostly on 2k credit cards. That does not make a 70k auto loan.
Then have someone else look at this!
*sigh* Fine. second look request for another underwriter. Second underwriter declines.
And the dealer calls.
... rinse and repeat the conversation above with the lovely little addition:
"Come on, this is the only customer I've got in the place!"
Making your commission is NOT my job.
Dealer goes through FOUR different underwriters, all of who decline the deal.
At least this customer wasn't some young 20s kid getting their second car. (Dealers take HUGE advantage of second-time auto loan borrowers. 1st time buyers, lenders are incredibly strict, but second time auto loans have just enough credit to squeak by the System Approval criteria, and some of the dealerships are really good are pressing those guidelines up to the line.
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