[jotucker1983]

Daily Update : Swift just reduced the Loan amount for 40% ha ha .. Now Less than $5k and added many stips.

Maybe the file is risky?

[microboby]

Maybe the file is risky?

There is a risk involved on any Deal , that why Lenders are charging the rates they charge and merchants are taking them but as a MCA risk assessment case I would like to say is a medium Low risk.

And Yes , some lenders is will do a partial underwriting and when they get contracts back they will do a full underwriting which will cut down the offers or add additional stipulations . Maybe its the way money is raised or syndicated ...

[Chambo]

There is a risk involved on any Deal , that why Lenders are charging the rates they charge and merchants are taking them but as a MCA risk assessment case I would like to say is a medium Low risk.

And Yes , some lenders is will do a partial underwriting and when they get contracts back they will do a full underwriting which will cut down the offers or add additional stipulations . Maybe its the way money is raised or syndicated ...

They do it that way, so as not to waste time UW'ing deals that won't come back. The underwriters are paid whether your deal funds with them or not. Why not maximize the salary and have them only truly working on deals that actually have a chance of funding?

[jotucker1983]

There is a risk involved on any Deal , that why Lenders are charging the rates they charge and merchants are taking them but as a MCA risk assessment case I would like to say is a medium Low risk.

And Yes , some lenders is will do a partial underwriting and when they get contracts back they will do a full underwriting which will cut down the offers or add additional stipulations . Maybe its the way money is raised or syndicated ...

I don't know about the details of the file, but it might have more risk associated with it then you think, especially seeing as though it's a smaller file. Certain Underwriting procedures cost a good amount of money and Lenders try not to incorporate them until they are sure they are dealing with a client that is actually "interested" in closing.

Sure, the Lender could do all of that upfront during the quoting procedure before receiving a signed Agreement, but that could lead to a lot of wasted monies spent in a process (closing) that never truly "starts" (the receipt of the signed Agreement).

Usually additional stips are a result of doing the additional Underwriting procedures and finding additional things of risk on the file, such as an SOS Inactive Status, a Tax Lien, a Judgment Lien, the Landlord says they are one month behind, they find a second bank account with a significant amount of transfers, etc. These things create additional risk and instead of declining the file, additional stips are usually added in an attempt to "save" the deal.

Now, I don't have a lot of experience with said lender in particular, some lenders are just slower to underwrite v.s. others, and you would personally have to make a decision on which lender(s) to utilize for your own office.

But I do know that sometimes stips are added in a way to save a file after further underwriting was completed.