Meet Sonora Hartzog, our Loan Abstract Team Lead. Sonora oversees our team of loan specialists. Read more on her unique perspective on LoanBoss and how it saves firms a lot of headache and a lot of money.
Q: Can you tell us a little bit about your role at LoanBoss?
My team functions as the assembly line that builds everything that goes into LoanBoss. Once the loan documents are organized and ready to go, my team does the abstracting. We also do two rounds of quality assurance and prepayment verification.
Q: What’s the hardest part of accurately and completely abstracting loan docs?
There’s so much subjectivity in these documents. Each individual can interpret loan doc information differently, so we need to become experts in the language — and in the potential issues that can arise. Between lawyers, underwriters, and the special circumstances around each loan, certain items can be difficult to interpret. As abstracters, we need to figure out the most accurate interpretation of the loan docs during QA.
Q: How often do you catch mistakes?
We often find mistakes or issues when clients send us their documents, and we always go back to them to discuss these potential errors. Recently, we had a client who sent over all their documents and we found that their outstanding principal balances were mismatched — it turns out their bank had been doing the math wrong. We were able to correct the problem. That’s a major benefit of using LoanBoss — it’s smart, and as long as we do our part, it catches things that borrowers haven’t noticed.
Q: What are some of the most interesting things you’ve seen written into docs?
We deal with a lot of clients who are leasing a space to someone, and, depending on the space, they’ll add a lot of provisions on what the space isn’t allowed to be used for, which can be humorous. One of our clients in Colorado specifically has many points on how you’re not allowed to lease the space out to a dispensary, which is not something you’d expect to come across when reading a super official and legal document. Also, a lot of documents are in such old-fashioned language that they literally sound like they were written in colonial times. Lastly, you might be surprised how long some of the documents are. Some can be as long as 200 pages.
Read more about the unusual loan terms we've found!
Q: Do you think firms underestimate the cost and requirements of their debt?
Yes, absolutely. I think it would come as a shock to anyone who hasn’t been involved in debt like this, how expensive it can be. It’s the nature of doing business with banks and lawyers. You’re going to get nickel-and-dimed left and right, and you’ve got to be ready for it. Debt is the most expensive cost center you're not thinking about.
Q: What do you recommend to firms who are just starting out or to firms who typically do one type of asset or loan type and now plan to diversify?
Be prepared to be put through the ringer! These banks are lending millions of dollars, so be ready for severely strict requirements. Do your research and talk to other people in the industry who do what you’re planning to do, as well as shop around, to see who may be the best fit for what you’re looking to do.
Q: How do you think LoanBoss can help clients use their data strategically?
Something that comes to mind right away is our NOI projections and refinance calculators. If clients want to refinance, they can pick their scenarios. They’re able to build it out and see what their cash out will be, which is hugely helpful since it helps them choose what’s best for them.
Learn more about what makes LoanBoss different at LoanBoss.com!
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