Role Of Mortgage Processor During Mortgage Process

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The Role Of Mortgage Processor During Mortgage Process

This BLOG On What Is The Role Of Mortgage Processor During Mortgage Process Was UPDATED And PUBLISHED On October 2nd, 2019

Role Of Mortgage Processor
Gustan Cho Associates

Prior to issuing a pre-approval, mortgage loan originator will request documents such as the following:

  • two years tax returns
  • two year’s W-2s
  • recent pay check stubs
  • 60 days bank statements
  • other basic documents in order for him to qualify and pre-approve home buyers for mortgage

In this article, we will cover and discuss the Role Of Mortgage Processor During Mortgage Process.

Automated Underwriting System

What is this Automated Underwriting System

Once the loan officer reviews the mortgage loan application and credit report, the loan officer will run the file through Automated Underwriting System for an automated approval.

  • Every lender has their own system in issuing a pre-approval
  • All pre-approvals at Gustan Cho Associates Mortgage Group are fully underwritten and issued by our mortgage underwriters
  • Loan Officers are not allowed to issue pre-approval letters

Only files that has been fully underwritten as a TBD PROPERTY UNDERWRITING APPROVAL is issued pre-approvals by a mortgage underwriter.

What Is Role Of Mortgage Processor During Home Buying Stage

What is Role Of Mortgage Processor During Home Buying Stage

Loan Officers are allowed to issue pre-qualification after reviewing the following:

  • Mortgage Loan Application¬†
  • Credit Report
  • Credit Scores

Borrowers financials such as the following:

  • two years tax returns
  • two years W-2s
  • most recent paycheck stubs
  • 60 days of bank statements
  • investment accounts
  • other asset accounts
  • divorce decree if applicable
  • bankruptcy paperwork if applicable
  • foreclosure paperwork if applicable
  • child support paperwork if applicable
  • other documents
  • Once these documents are gathered, it gets assigned to a mortgage processor
  • Role Of Mortgage Processor is to prep all documents in order and make sure there is no pages missing to submit to underwriting for a pre-approval
  • The role of mortgage processor and loan processing is the gathering and packaging of all paperwork submitted by borrowers in a timely manner

Role Of Mortgage Processor is to make sure everything is in order and get it prepped up to be submitted to the underwriting department for a conditional approval with as little conditions as possible.

What Is The Role Of Mortgage Processor After Conditional Loan Approval

What Is The Role Of Mortgage Processor After Conditional Loan Approval

The main role of mortgage processor is to make sure that all documents submitted by mortgage loan originator on behalf of borrowers is as complete as possible. The Role Of Mortgage Processor is to get the mortgage loan package submitted to a mortgage underwriter for a pre-approval.

  • The mortgage processor makes sure that all documents submitted is complete

For example, if the mortgage loan applicant submits 60 days of bank statements, the mortgage processor will review the following:

  • that there are no pages missing
  • review the bank statements to make sure there are no overdrafts
  • review there are sufficient funds for cash to close
  • Mortgage lenders can deny a mortgage application if borrowers had overdrafts in the past 60 days
  • A mortgage processor that submits bank statements without reviewing it for overdrafts will most likely get a denial by the mortgage underwriter
  • Role of mortgage processor is if they notice an overdraft or overdrafts in bank statements, they will notify the mortgage loan originator

The mortgage loan originator will deal with the overdraft issue with borrowers.

Gathering Mortgage Documents

What is Gathering Mortgage Documents

The role of mortgage processor includes gathering all documentation and taking each mortgage application from the pre-qualification through the closing stage.

  • The mortgage processor will itemize the conditions once borrowers get a conditional approval
  • Input the conditions into the system until clearance and clear to close

The role of mortgage processor is also to verify all documents submitted such as the following:

  • credit reports
  • appraisals
  • title
  • insurance
  • other tasks related to getting the mortgage file to the closing table

The Closing Disclosure

What is this The Closing Disclosure

The role of mortgage processor is also to prepare the Closing Disclosure (CD):

  • Get the final CD approved by the end mortgage lender and/or investor
  • Coordinate the preparation of the mortgage loan documents
  • Make sure it gets to the title company in a timely manner
  • The role of mortgage processor is to be the quarterback between the title company and end lender and/or investor and make sure that the mortgage loan closes

Prepping Mortgage Application Prior To Submitting To Underwriting

How to prepare a mortgage application well before being insured

The mortgage processor, also known as the mortgage loan processor, is an extremely important person who has one of the most important roles in the mortgage approval process.

  • A sloppy, incompetent, or inexperienced mortgage processor is the reason why mortgage loans do not close on time
  • If the loan application is not processed correctly the first time around and gets submitted to the mortgage underwriter, the underwriter will kick it back and the process starts all over again
  • A professional competent mortgage processor’s main goal is not to get any conditions back after submitting it to underwriting
  • Conditional approval is a mortgage approval with conditions that need to be provided in order for a clear to close
  • A good professional mortgage processor should get back no more than 5 conditions on conditional approval by the underwriter
  • I have seen 30 or more conditions come back sometimes with conditional approval from a mortgage loan underwriter
  • Some mortgage processors will not submit a mortgage application package to the underwriter until they have received every single line item that is required

Some mortgage processors will not submit a mortgage application package to underwriting even if there is a missing blank page on bank statements.

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