I believe that when you strip down the components that surround a successful bridging transaction that aim to ensure satisfaction for all the parties involved, then I think that the 3 ‘B’s is a useful shorthand to guide every underwriter in the industry.
Simply put the 3‘Bs’ refer to the three key players in every transaction – namely the Borrower, the Broker and the Backer.
Each of these has to be completely sure that they want the deal to go ahead. For the Borrower, they must be satisfied that the deal gives them what they want. The Broker working on behalf of the Borrower, asks the Backer (the lender) to evaluate the case and only when the backer is happy that it meets their criteria will it then go on to completion.
It really is supposed to be as simple as that. Unfortunately, many lenders complicate what should be a simple proposition by either taking on cases which they know they shouldn’t because they aren’t in the customer’s best interest (overextending) or by deliberately moving the goalposts after saying they will do them at outset and then turning them down.
Underwriting consistency is a good habit that lenders ignore at their peril. In a crowded marketplace, no lender can afford to play fast and loose with introducers, if they are planning to have a long term relationship with brokers.
At Black & White, we maintain that every case is judged on its merits and importantly is assessed quickly so that the introducer and their client have certainty of outcome. Whether the case is accepted or not, the principle is the same. Immediate communication with the introducing broker to say ‘yes’ or ‘no’ and if it is turned down we ensure that the broker knows the reasons why.
Delivering a service that satisfies the needs of borrower, broker and backer should be a simple process, even on non-vanilla cases, provided the transaction is handled quickly, transparently and ultimately fits criteria. At Black & White, we stick to a simple set of rules. If it is a viable case, we will do it, give a decision quickly and then strive to complete the deal in the shortest possible time. Simples!
