As a mortgage broker, lender, or bank, you have much competition when trying to sell loans. The unfortunate truth is that borrowers have many options when finding the best loan and don’t focus only on interest rates and fees. They also compare customer service and how they’re treated. Borrowers want it all, but loan officers can’t always provide it.
Suppose you’re a broker or lender feeling overwhelmed at all the tasks involved in providing top-notch customer service. What do you do? The last thing you want is to reduce your pipeline, right?
In that case, it’s time to consider contract processing to ensure you provide the best customer service.
What Does a Contract Loan Processor Do?
It's understood, that a loan processor works alongside the loan officer to get the proper documents to the underwriter for approval. But what exactly does the contract loan processor do?
First, processors ensure borrowers provide all the necessary documents for the loan they choose. For example, suppose they are applying for a VA loan. The processor will ensure all financial documentation and the documentation to prove they are eligible for a VA loan, including their entitlement, is provided.
Next, processors ensure all documents have the proper signatures and dates, including tax returns. They also review title insurance policies, homeowner’s insurance policies, and bank statements ensuring they meet the loan guidelines. They also look for any red flags the underwriter might spot and get further documentation to back it up or discuss the issue with the loan officer. For example, if the processor discovers issues on the borrower’s credit report, they’ll ask for a letter of explanation to provide the underwriter. This prevents any delays in underwriting because the processor was proactive enough to get the information upfront. The processor will also request a Verification of Deposit forms from banks; request tax transcripts and get court documentation for things like child support or alimony.
Finally, the mortgage processor orders the necessary reports to clear the property in underwriting. This includes an appraisal and title work. The processor ensures the appraisal report is completed promptly, following up with the appraiser and the seller to schedule it. Processors also work with the title company to get the title report to ensure there aren’t any outstanding liens on the property.
In short, the loan processor is the loan officer’s right-hand man, ensuring the loan gets through underwriting fast without a lot of back and forth.
What are the Benefits of Using a Contract Processor?
Brokers, lenders, and even banks can benefit from using a contract processor for mortgage loan processing. Here’s why:
Faster Processing
If you have an in-house processor that quickly gets overwhelmed by all the work thrown at him/her, it can slow down your pipeline. Instead, you can outsource your processing needs to a contract processing company. You can use an outsourced company for your processing needs or fill in for specific times, such as when rates drop, or a processor is out on leave. Because contract processors only process loans, they don’t have the distraction of other tasks and can get the job done fast.
More Time for Loan Originating
A loan officer’s job is to originate loans, but without a quality loan processor vetting loans for them, there’s less time to originate. Using a contract loan processor, loan originators have a lot more time to bring in more business rather than reviewing documents and asking for more documentation from borrowers.
A More Accurate Review of Documents
Loan processing means more than gathering paperwork and checking them off a list. It means vetting the documents, ensuring they have the information the underwriter needs, and asking for more details when something doesn’t seem right.
Working with a contract loan processor with experience in underwriting can help you move loans through your pipeline much faster. You’ll know what the borrower must provide to close the loan and have the documentation needed to create a full package for underwriters.
Up to Date on the Latest Guidelines
Mortgage guidelines and regulations change often, and mortgage processors must be on top of those regulations. So when you work with a contract processor, you’ll know you’re getting top-of-the-line service that meets today’s guidelines. This ensures your loans will get through the underwriting process rather than face hiccups because of regulation changes.
Final Thoughts
Brokers should consider contract loan processing to ensure they get the most out of their loans. With a quality loan processor by their side, loan officers can close more loans and feel confident about the loans they send to the underwriters.
Processors are the bread and butter of the loan process, and sometimes outsourcing the job can be the most efficient way to get a loan closed. At Easy Mortgage Loan Processing, not only do you get timely and efficient loan processing services but they are completed by an experienced underwriter, giving you the best of both worlds.
Underwriters love the packages from Easy Mortgage Loan Processing because they are thoroughly vetted by one of their own, and ready for fast closing. When efficiency matters, partner with Easy Mortgage Loan Processing, you’ll be glad you did.
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