A couple of postings last week created sincere passion in a few people. If you haven’t gone back and read the comments, you’ll find them interesting; you might note that you can comment at any time after a posting is put up, not just that day.
In particular, the comments some of you had about Loan Officers were particularly passionate and really good. It was enjoyable to read. I’ll come back to those in a few days. This week, we’ll discuss the rest of the loan process (processing to funding) and then move on into other aspects of running a mortgage lending business. In case you are wondering, we are considering all you have to say, putting it up against industry standards, common practices, profitability, long-term success, etc. It will all then be put out in a Best Practices Guide.
Today, let me know your thoughts about the “Basics of Loan Processing.”
Sincerely,
Danny
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3 comments:
A processor's basic and most primary job should be to pre-underwrite the loan, collect documents, anticipate everything an underwriter and closer will want. Except on rare occasions, an underwriter and closer should be able to set down, validate information, input their required information to a computer system.
this seems rather extreem. how is a processor supposed to learn if it is not by an underwriter helping her through files?
I believe the BASIC or SIMPLIFIED requirement of a processor is 1) to make sure ALL information on the final loan app is accurate, verified and documented according to loan program guidelines. 2)Present the file along with all required forms, disclosures, etc. for underwriting in a neat and organized order. This will allow the U/W make sense of the file and underwrite it efficiently.
With today's culture of CYA, a processor should be prepared to go beyond the minimum documentation required. If a file is found to be fraudulent, the processor will be looked at as closely as the LO. AUS may allow for reduced documentation in the submitted file, but the information on the application is still required to be accurate. Reduced documentation may be submitted with the file but it would be in the best interest for the processor to have complete documentation for his/her file. Especially when working with LO's they are not familier with.
A good processor will pay attention to repetative cond's and carry that experience over to new files. Overtime minimizing the amount of conditions on a reviewed file. To say a great or good processor should have zero u/w conditions is unfair and unrealistic. With investors coming back with increasing numbers of exceptions, U/W will understandably look at files closer and find something that could be addressed a little better. In addition, an U/W fresh set on eyes on a file will catch "typo" type errors that need to be corrected but were easily missed after working on the file.
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