Increased Lender Scrutiny

Are they focusing on something specific or just asking questions that they should of been asking all along?

My focus lately has been interest reserves and buyouts. Where before we might let someone slide in they were a couple hundred thousand out of balance, now we are calling it. Where we might of let it slide if to you were 80% bought out instead of 85%, we are pushing hard on getting Borrowers to lock down those final contracts.

Pretty new to the job, so take this with a grain of salt. On a micro scale, my group has been pumping out originations for the past 18 months and letting the asset management/day to day responsibilities of a loan fall to the wayside. Now that we're not doing deals, we notice if amo. was deposited from the right account, what our operating account balances are at, if an asset has tested out of a cash sweep etc... We'll give you a bullshit line about market uncertainty, derisking our balance sheet, or some other consultant produced excuse but the honest truth is we're bored and have a lot more time to look at things with a fine tooth comb that we took at face value before.