The importance of human interaction in underwriting
Underwriting short-term loans still relies on human interaction according to Dena Thompson, head of underwriting at Alternative.
Thompson believes brokers should follow a set of guidelines to help streamline the underwriting of short term loans, including providing clear and concise information to the lender from the start and submitting all relevant documentation required.
Other guidelines include keeping in regular contact with the lender’s business development manager and/or underwriter on the progress of a case, and making sure the borrower has chosen an efficient solicitor used to dealing with short-term lending.
Thompson added: “Whilst technology is certainly an advantage for lenders, having a team of experienced underwriters is invaluable in being able to process ‘alternative’ deals.
“There also needs to be a mutual understanding, respect and trust between the broker providing the information on a deal and the underwriter responsible for assessing that information.”