THE 7 "C'S" (2024)

THE 7 "C'S" (1)

Expert Mortgage Advisors THE 7 "C'S" (2)

Expert Mortgage Advisors

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Published Sep 8, 2023

7 C'S OF MORTGAGE MANUFACTURING

In the mortgage industry, we commonly learn about the 4 C's of mortgage underwriting: Credit, Capacity, Collateral, and Capital. However, I believe that there are three additional C's that are essential: Common Sense, Communication, and Collaboration.

1. Credit:

Credit refers to assessing a borrower's repayment ability based on their past credit history. Lenders evaluate factors such as payment history, debt-to-available-debt ratio, and types of debt to assign a credit score, which indicates the likelihood of responsible debt management. A higher credit score translates to better rates and terms for borrowers.

2. Capacity:

In addition to credit, lenders analyze a borrower's capacity to repay the mortgage by comparing their income to their debt. This assessment is often done using a debt-to-income ratio, which considers all monthly payment obligations. Each application is unique and requires careful evaluation.

3. Collateral:

Collateral involves securing the loan with an asset, typically the property itself. Through a comprehensive appraisal process, factors like comparable sales, location, size, condition, and rental income potential are considered to determine the property's value. Collateral provides security for the loan in case of default.

4. Capital/Cash:

Capital focuses on a borrower's financial situation after closing. It considers two aspects: cash in reserves and cash in the deal. Reserves indicate the availability of funds to handle unforeseen financial disruptions, while cash in the deal reflects the borrower's investment in the transaction. These factors influence the loan's strength and the borrower's risk level.

5. Common Sense:

Common sense lending goes beyond conventional criteria and takes individual circ*mstances into account. It involves understanding the borrower's situation, not just their credit score or income history. Common sense lending emphasizes practical judgment to make informed decisions tailored to each unique scenario.

6. Communication:

Effective communication is vital in the mortgage industry. Timely and transparent exchange of information, whether positive or negative, is key to success. For instance, promptly notifying stakeholders of a low appraisal value allows for swift decision-making and keeps the loan process moving forward to meet closing deadlines.

7. Collaboration:

Collaboration fosters teamwork and a common purpose. It involves working together to achieve shared business goals. In the mortgage industry, collaboration enables knowledge sharing and problem-solving among colleagues, even when direct managers may not be available. Collaboration enhances efficiency and ensures that expertise is leveraged for optimal outcomes.

Note:

By recognizing and incorporating these additional C's into the mortgage industry, we can enhance decision-making, improve customer experience, and strive for excellence in our practices.

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THE 7 "C'S" (2024)

FAQs

THE 7 "C'S"? ›

Using the 7 C's of communication, that is when you're clear, concise, concrete, correct, consider the speaker, complete and courteous, with your message, you will become an effective communicator and find more success in your interactions with people.

What do the 7 C's mean? ›

The 7 Cs of Communication help you to communicate more effectively. The 7 Cs stand for: clear, concise, concrete, correct, coherent, complete, and courteous. Though there are a few variations.

What are the 7 C's of leadership? ›

These C's are: Consciousness of self, Congruence, Commitment, Collaboration, Common Purpose, Controversy with Civility, and Citizenship.

What are the 7 C's of life? ›

in the book are as follows: Conception, Confidence, Concentration, Consistency, Commitment, Character, Capacity to Enjoy.

What is clear in 7Cs of communication? ›

Clear. Clarity is ensuring what you're saying is communicated clearly and with no room for misunderstanding. Good advice for being clear includes: Use simple language and focus on core points of your message. Don't use idioms to prevent any confusion and ambiguity.

What are the 7 C's of success? ›

Tom Morris calls the following "The Seven C's of Success": a clear conception of what we want, a strong confidence that we can attain that goal, concentration on what it will take to achieve it, consistent pursuit of our goal, an emotional commitment to the value of our goal, good character that guides us along the way ...

What are the 7C rules? ›

The seven C's of communication is a list of principles that you should ensure all of your communications adhere to. Their purpose is to help ensure that the person you're communicating with hears what you're trying to say. The seven C's are: clear, correct, complete, concrete, concise, considered and courteous.

What are the 7 C's of resilience? ›

To cultivate resilience in your life, it's important to apply the principles of the 7 Cs: competence, confidence, connection, character, contribution, coping, and control.

What are the 7 C's of self-leadership? ›

Those seven C's are competence, creativity, courage, communication, coaching, compass, and citizenship.

What are the 7 C's of change management? ›

I suggest the 7 Cs: Context, Communication, Confidence, Credibility, Conflict, Comfort and Consistency. I'll cover the first three in this post.

What are the 7 C's of caring? ›

These caring elements can be described as: Compassion, Competence, Confidence, Conscience, Commitment, Courage, Culture and Communication.

What are the seven C's of lifelong? ›

The seven skills are: • Collaboration • Communication • Creativity • Critical Thinking • Character • Citizenship • Computational Thinking If we believe our work as teachers is mainly to prepare students for successful futures, then we should give opportunities for students to strengthen these skills.

What are the Cs of life? ›

Indeed, the three C's—choice, chance, and change—are not individual components of the human experience but rather interdependent forces that work in harmony to propel us forward on our journey.

What are the 7 C's of project management? ›

These seven dimensions (7C's) are: customers, competitors, capabilities, capital, channels, communication, and coordination.

What are the 7 principles of communication? ›

According to the seven Cs, communication needs to be: clear, concise, concrete, correct, coherent, complete and courteous. In this article, we look at each of the 7 Cs of Communication, and we'll illustrate each element with both good and bad examples.

What is 7cs? ›

Using the 7 C's of communication, that is when you're clear, concise, concrete, correct, consider the speaker, complete and courteous, with your message, you will become an effective communicator and find more success in your interactions with people.

What are the 7 C's in school? ›

The seven skills are: • Collaboration • Communication • Creativity • Critical Thinking • Character • Citizenship • Computational Thinking If we believe our work as teachers is mainly to prepare students for successful futures, then we should give opportunities for students to strengthen these skills.

What are the 7 C's of knowledge? ›

knowledge networks. seven Cs (Connection, Concurrency, Comprehension, Communication, Conceptualization, Collaboration, and Collective intelligence) play a central role in the knowledge creation process.

What are the 7Cs of quality? ›

So how well does your organization score when it comes to data quality? The 7C's of Data Quality discuss in great detail the fundamental principles of achieving data quality: certified accuracy, confidence, cost-savings, compliance intelligence, consolidated, completed and compliant!

What are the 7 C of resilience? ›

Dr. Ginsburg identified the 7C's of resilience as competence, confidence, connection, character, contribution, coping, and control.

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