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"? ›

The 7 Cs stand for: clear, concise, concrete, correct, coherent, complete, and courteous. Though there are a few variations. You can use the 7 Cs as a checklist in your written and spoken messages.

What are the correct 7 Cs? ›

The 7 Cs stand for: clear, concise, concrete, correct, coherent, complete, and courteous. Though there are a few variations. You can use the 7 Cs as a checklist in your written and spoken messages.

Which is not one of the 7 C's for a better paper? ›

Co-ordination in work is not one of the seven C's of effective communication. The seven C's of communication involves: clarity, completeness, conciseness, concreteness, courtesy, correctness and consider. these seven C's of communication is of utmost necessary to facilitate an effective communication process.

Which of the following are 7 good C's to remember when writing? ›

The 7 C's are:
  • Clear.
  • Correct.
  • Complete.
  • Concrete.
  • Concise.
  • Considered.
  • Courteous.

What are the 7 C's in? ›

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 success? ›

By following a simple yet powerful framework, you can cultivate the mindset, habits, and actions necessary to achieve your goals and fulfill your potential. One such framework is the "7 Cs of Success," which includes clarity, competence, constraints, concentration, creativity, courage, and continuous learning.

What is the 7C model strategy? ›

The 7C model suggests that the seven Cs (Connection, Concurrency, Comprehension, Communication, Conceptualization, Collaboration, and Collective intelligence) play a central role in the knowledge creation process.

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 C's in writing? ›

In this post, I discuss the seven Cs of effective writing and how to apply them to communicate in the clearest, most effective way possible. If the purpose of writing is communication, then all writers need to be clear, coherent, complete, concise, consistent, correct and credible.

What are the 6 C of good writing? ›

  • COMPLETENESS. Effective writing includes everything the reader or decision maker needs to know. ...
  • CORRECTNESS. Effective writing focuses the reader's attention on what is being said and avoids errors in typing, spelling or grammar. ...
  • CLARITY. ...
  • CONCISENESS. ...
  • CONCRETENESS. ...
  • COURTESY.

How important is 7Cs of communication? ›

In conclusion, the 7 Cs of communication are essential for effective communication. They provide a framework for delivering messages that are clear, concise, complete, correct, courteous, considerate, and concrete.

Which of the 7Cs emphasizes using exact and accurate facts? ›

CONCRETE

Concrete messages are clear and usually supported with facts. It gives a laser focus touch to your messages without being vague. There are details in the message without it being too long. A concrete message is solid and specific.

What are the 7 C's of ethics? ›

From these theoretical foundations, the emergent 7Cs ethical model of communication is constructed via the concepts of: Collaboration, Culture, Community, Conservation, Capacity, Care, and Consistency.

What are the 7 C's of knowledge? ›

Abstract. Leadership is a key influence on the conduct and outcomes of knowledge management in organizations and economies. This chapter advances and describes seven essential aspects of effective knowledge leadership: context, competence, culture, communities, conversation, communication, and coaching.

What are the 7 C of vocabulary? ›

The 7 Cs are:
  • Concise.
  • Complete.
  • Coherent.
  • Clear.
  • Courteous.
  • Concrete.
  • Correct.
Oct 27, 2022

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's of learning? ›

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 data? ›

The process can be described using what we call the "Seven C's" of data curation: (1) Collect—Interface to the data sources and accept the inputs; (2) Characterize—Capture available metadata; (3) Clean—Identify and correct data quality issues; (4) Contextualize—Provide context and provenance; (5) Categorize—Fit within ...

What are the 7 C's of company? ›

Summary: The 7 C's of Business Communication

They can assist you in getting your point across your audience, while maintaining a professional and conversational tone. Clear, concise, complete, considerate, correct, courteous, and concrete content can take your business to the next level.

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!

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