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In the military, the expression “Got your 6” means that someone on your team is watching your back.
The saying originated with US fighter pilots during the First World War, meaning to cover the rear of another’s airplane when in battle. Over time this phrase has come to be used by many when referencing protection of someone’s back side.
When making mortgage loans, especially in today’s heavily regulated environment, lenders need to ensure that someone is carefully watching their 6. Keeping an eye out for potential problems on the loans originated and closed. There no such thing as being too careful.
With the recent hacking of NPPI at Equifax, the increasing incidents of identity theft and other cyber security breaches, much of the information that lenders normally rely on for loan approvals may not be reliable. When times get tough, although lenders may take precautions, criminals get more creative and daring.
While lenders are putting more emphasis on finding ways to generate new business, going out and concentrating more of their time and efforts on loan production, who is back watching the ranch?
Who’s protecting the company by ensuring that what is being originated and closed is being done in compliance with all lending laws as well as secondary market requirements?
It’s not an easy job and one that sometimes gets overlooked when deciding where to spend money and place resources. It’s one that is easily viewed only as an expense when it should be viewed as an investment. An investment in quality that when done right will pay for itself in savings of potential lost revenues.
With loan originations become increasingly more challenging, lenders need to balance their resources between what they believe is needed to increase production and what they know is required to maintain quality.
There are no shortcuts to either, but when production declines and lenders look for places to cut expenses, it’s easy to look to non-producing back office areas like QC.
Be careful. It’s smart to looks for areas to trim the fat, but not to cut out too much muscle. If anything, lenders should have learned that loan quality and compliance is as important as loan production.
What good is it to originate loans that cannot be sold or serviced because of defects? By doing so, some lenders found they originated themselves right out of business.
Make sure that someone has your 6. Whether you use an in house program with knowledgeable, trained staff that is supported by the proper technology or through a vendor that specializes in quality control reviews, reporting and management, loan quality and compliance cannot be overlooked. No matter how challenging it gets for new business.
If it is, you may find that problems sneak up behind you that cannot be corrected after your loans are closed.
Editor’s Note: Got Your 6 is an organization that unites non-profit, Hollywood, and government partners to empower veterans. They believe that veterans are leaders, team builders, and problem solvers who have the unique potential to strengthen communities across the country. As a coalition, Got Your 6 works to integrate these perspectives into popular culture, engage veterans and civilians together to foster understanding, and empower veterans to lead in their communities. Got Your 6 knows that most veterans leave the military seeking new challenges, and the campaign ensures that there are opportunities for them to continue their service. To learn more go to Got Your 6.
