If it isn’t in the file, it didn’t happen

by: Cindy Williams

We know that fair lending is a hot topic right now and rightfully so. We all want to do the “right thing” in our lending practices. So, we take the time and effort to review our fair lending practices by conducting loan file reviews to ensure that all borrowers are treated fairly and equally.

One critically important aspect to the file review process is the documentation in the file. Have you ever run across a file where the borrower’s rate or closing costs were different than what you would consider typical, or were outside your lending policies? Of course, the first question you ask is “Why was it different?” If there is nothing in the file to answer this question, you are forced to track down the lending officer to see if they remember why there was a reason for the difference and hopefully, they can give you an answer.

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