2026-01-26 – Weekly Loan Officer News : The case of the vanishing overtime

Last week, the forum buzzed with engaging discussions around loan processing and borrower dynamics. Members shared insights on managing commercial credit risks and debated effective stress testing methods. The community also delved into the nuances of continuing education in borrower analysis and risk layering. Additionally, there was a lively exchange about the practical challenges of implementing custom loans and understanding the intricacies of rescission periods.


This Week’s Hot Topics

Quick stress tests for commercial credit
A lively discussion unfolded on quick methods to stress test commercial credit, which is crucial for managing risks effectively.
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The case of the vanishing overtime
This thread examines how shifts in overtime policies are impacting loan assessments and borrower eligibility.
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CE that sharpens borrower analysis
Members explored how continuing education can enhance skills in analyzing borrower profiles, a key to better decision-making.
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Looking for CE focused on risk layering
The focus here is on finding the right educational resources to better understand and manage risk layering.
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When “custom loan” gets literal
A fascinating look at the hurdles and creativity involved in crafting truly custom loan solutions.
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What truly starts rescission clock
This conversation digs into the factors that actually trigger the start of the rescission period, an important compliance issue.
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My CRM called me out today
An interesting story about how automated systems can sometimes flag unusual patterns, sparking useful discussions.
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Why lenders watch the 10-year
A crucial overview of why the 10-year Treasury yield is a key indicator for lenders, affecting various loan products.
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Respectful collections that work
This thread shares strategies for conducting collections in a respectful yet effective manner, maintaining client relationships.
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Making the jump into auto lending
For those considering a shift, this discussion outlines the steps and challenges in moving into the auto lending sector.
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Looking forward to another week of insightful discussions. Stay engaged and keep sharing your valuable experiences.

When our overtime vanished in Q4, I cut rework by adding a one-click preflight in Encompass that auto-requests VOE/VOA and HOI at prequal, which dropped our first-pass conditions by about 30%; small caveat: for near-expiring locks I skip the macro and flag @Renee to fast-path the file so the upfront pings don’t slow the clock.

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I added a required “risk layering” field in Encompass at prequal so if an LO flags two+ risk factors (e.g., DTI > 45 and gift funds), a prompt forces a compensating factor before moving the 1003 milestone. It’s helped us cut rework since Q4, but be careful to whitelist scenarios like non-occupant co-borrowers so the rule doesn’t overfire.

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I get what you mean about managing conditions. One thing that worked for us was adding a quick tool to streamline our VOE requests — really helps in reducing turnaround time. It’s all about finding those small tweaks that make a big difference.

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