[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.