When Goal Posts Move, Who Is to Blame? | Monday Morning Musing #25

One of the biggest frustrations for any broker is when the goal posts move unexpectedly. I have felt this pain personally, as I wear multiple hats as an investor, developer, and landlord so I genuinely know what it feels like. In our world, certainty is gold. So, when things shift mid-process, it raises real challenges.

In my experience, this usually comes down to one of three causes:

1. The broker did not capture or communicate the full picture
   Sometimes key information is either not asked for at the outset or not passed on clearly to the lender. During underwriting, these missing details emerge, and suddenly, the case changes shape due to material changes in the loan application
2. The business development manager (BDM) working for the lender lacks detailed knowledge of their own product
   Especially with larger lenders, BDMs are often the first point of contact. If they do not ask the right questions or take time to understand the broker’s memo thoroughly, terms can be issued too casually. The real scrutiny only happens later, when it's often too late.
3. The lender has not invested properly in training their team of BDMs
   Whether through formal training or learning on the job, if BDMs are not well trained and equipped, this leads to a disconnect between what is promised at the start and what is delivered in the end.

No matter which of these applies, the experience is frustrating. But the reality is that with the volume of deals lenders and brokers handle, these issues will crop up from time to time. The key is to ensure they remain the exception rather than the rule.

As you approach the funding market, prepare your applications, and decide which lender to work with, keep these in mind. Awareness upfront can save you time, energy, and disappointment later.

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