Role Of Mortgage Processor

Role Of Mortgage Processor During The Mortgage Process

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this article, we will cover and discuss the role of mortgage processor during the mortgage process. The mortgage processor plays one of the most important roles during the mortgage process. It is because of the mortgage processor that a home mortgage has no stress and closes on time. The mortgage processor is the person who quarterbacks the borrower’s file to get it to the finish line. It is the role of the mortgage processor to make sure the paperwork and documents submitted by the loan officer are complete.

The Importance of Submitting A Complete File To the Mortgage Underwriter

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The mortgage processor realizes that underwriters will kick back a file if the file has documents that are not legible and/or has missing pages. One of the main reasons for delays in the mortgage process and delays in closings is due to underwriters kicking back the file back to processing due to incomplete documents. A good experienced seasoned mortgage processor will not submit a file to underwriting without a complete clean package with no missing documents.

The Importance of Reviewing Mortgage Documents Being Complete With No Missing Pages

An experienced veteran mortgage processor will make sure all pages are legible and fully complete and will label each document to make the underwriter’s job as easy and smooth as possible. Mortgage underwriters know and recognized great processors and normally underwrite their files first.

The mortgage processor will take the file from the time the file is submitted, oversea the underwriting process, gather conditions after the conditional loan approval, submit the file for a clear to close, oversea the closing docs, coordinate the closing with the title company, make sure the mortgage docs gets sent to the title company, make sure the wire gets sent out, and oversea the home closing to make sure everything runs smoothly. Click here to qualify for a home with low credit score

Documents Required For Mortgage Processors To Start The Mortgage Approval Process

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 paycheck stubs
  • 60 days bank statements
  • letters of explanations
  • other basic documents in order for him to qualify and pre-approved homebuyers for mortgage

Key To Making Sure All Mortgage Docs Are Legible and Complete With No Missing Pages

Other paperwork and/or documents that may be required depends on the borrower’s credit profile. Borrowers who had prior bankruptcies, foreclosure, deed in lieu of foreclosure, short sale, divorce, or other extenuating circumstances need to provide proper documentation.

Letters of explanation (LOX) will be asked frequently. However, at Gustan Cho Associates, the loan officer will assist borrowers when writing letters of explanation. Letter of explanations only needs to be one or two sentences and nothing too long. The loan officer should not be submitting a borrower’s file to processing until they have collected all of the documents and have thoroughly reviewed the loan application, documents, credit report, and other paperwork.

Preparing Borrower’s File And Getting It Ready For Processing And Underwriting

The mortgage processor will thorough review the documents that has been submitted. The processor will check the documents has no missing pages and are complete and are legible. If there are missing pages and/or are not legible, the processor will notify the borrower. The processor will create a file that is organized, labeled, and easy for the mortgage underwriter to analyze and process so the outcome will be a conditional loan approval with as little conditions as possible.

Making Sure There Are No Credit Disputes Or Other Things That Will Delay Mortgage Process

Experienced seasoned processors will also double-check the borrower’s credit report and make sure there are no credit disputes on non-medical collections and/or other derogatory credit tradelines. Experienced processors will kick back the file to the loan officer if they see the loan officer if the application is not complete and/or if there are missing documents. In this article, we will cover and discuss the Role Of Mortgage Processor During the Mortgage Process. Qualify for a mortgage loan process without delay

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. The automated underwriting system (AUS) is a sophisticated highly technologically advanced computer system. Loan officers will enter the borrowers completed 1003 mortgage loan applications and credit reports. Within seconds the automated underwriting system will render an automated decision.

The Importance of a Solid Pre-Approval Letter

Loan Officers should issue a pre-approval letter until they get an approve/eligible per automated underwriting system. Every lender has their own system for issuing a pre-approval. All pre-approvals at Gustan Cho Associates Mortgage Group are fully qualified and have an approve/eligible per automated underwriting system (AUS). Loan Officers need to be extra cautious when issuing pre-approval letter on VA and FHA manual underwriting files. Files that are very tricky should be underwriting first and then issued a pre-approval letter.

TBD Property Underwriting Pre-Approval

TBD PROPERTY UNDERWRITING APPROVAL are files that has been underwritten first and issued pre-approvals by a mortgage underwriter. There is no reason why a pre-approved borrower should stress during the mortgage process and the file should not close if the loan officer has properly qualified the borrower prior to issuing the pre-approval.

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

The loan officer should interview borrowers and make sure there are no judgments, tax liens, or other public records they are aware of but is not on their credit report. All lenders will run a national third-party public records search.

Important Documents That Are Gathered And Reviewed By Mortgage Processors

Loan officers will request documents and paperwork that is necessary to start the mortgage approval process. 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. The mortgage processor will 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

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. Click here to get approval for conditional loan

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 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

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

Role Of Mortgage Processor: Prepping Mortgage Application Prior To Submitting To Underwriting

Role Of Mortgage Processor

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.

What Is A Conditional Loan Approval?

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 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. If a mortgage processor is being super picky, she is doing a great job. I rather have a mortgage processor be super nit-picky than a mortgage underwriter. Click here to qualify for a home with low credit score

FAQs: Role Of Mortgage Processor During The Mortgage Process

1. What is the role of a mortgage processor? The mortgage processor is responsible for ensuring that all paperwork and documents submitted by the loan officer are complete, organized, and ready for underwriting. They oversee the borrower’s file from submission to closing, ensuring everything runs smoothly and efficiently.

2. Why is submitting a complete file to the mortgage underwriter important? Submitting a complete file is crucial because underwriters will reject files with incomplete or illegible documents. This can cause delays in the mortgage process and in closing. A good mortgage processor ensures all documents are in order before submission.

3. What documents are required for mortgage processors to start the approval process? Typically, the required documents include two years of tax returns, two years of W-2s, recent paycheck stubs, 60 days of bank statements, and letters of explanation. Additional documents may be needed based on the borrower’s credit profile.

4. How does a mortgage processor ensure documents are complete and legible? An experienced mortgage processor will thoroughly review all submitted documents to ensure they are complete and legible. They will also label each document to make it easier for the underwriter to process the file.

5. What happens if pages in the documents are missing or illegible? If pages are missing or illegible, the mortgage processor will notify the borrower to provide the necessary documents. They ensure the file is complete before it is submitted to the underwriter.

6. What is the role of the mortgage processor during the underwriting process? The mortgage processor oversees the underwriting process, gathers any additional conditions after conditional loan approval, submits the file for a clear to close, coordinates the closing with the title company, and ensures that the mortgage documents and funds are sent out promptly.

7. What is conditional loan approval? Conditional approval is when the mortgage application is approved with specific conditions that must be met before final approval. A competent mortgage processor aims to minimize the number of conditions by ensuring the initial submission is as complete as possible.

8. How do mortgage processors handle issues like credit disputes or derogatory credit tradelines? Experienced mortgage processors will check the borrower’s credit report for any disputes or derogatory items. If such issues are found, they will return the file to the loan officer for resolution before resubmitting it to the underwriter.

9. What is the importance of a solid pre-approval letter? A solid pre-approval letter, often generated after an automated underwriting system (AUS) approval, ensures that the borrower will likely qualify for the loan. This reduces stress and uncertainty during the mortgage process and helps avoid closing delays.

10. What are the final steps handled by the mortgage processor before closing? The mortgage processor prepares the Closing Disclosure, coordinates with the title company, ensures all necessary documents are sent out, and oversees the closing process to ensure everything runs smoothly.

11. How does a mortgage processor contribute to a timely and stress-free closing? By meticulously organizing and reviewing all documents, addressing any issues promptly, and coordinating effectively with all parties involved, the mortgage processor ensures that the process progresses smoothly and closes on time.

These frequently asked questions offer a thorough summary of a mortgage processor’s crucial tasks and obligations, emphasizing their vital contribution to facilitating a seamless and effective mortgage procedure.

If you have any questions about the Role Of Mortgage Processor During The Mortgage Processor or you need to qualify for loans with a lender with no overlays, please contact us at 800-900-8569. Text us for a faster response. Or email us at The team at Gustan Cho Associates is available 7 days a week, on evenings, weekends, and holidays.

This blog about the Role Of Mortgage Processor During The Mortgage Processor was updated on May 21st, 2024.

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  1. Hi,

    I have been reading quite a few of your articles about loans and am helping someone with your expertise could give me some direction on who to request an FHA loan from.

    I have pretty low FICO scores from all 3 bureaus, but pretty strong payment history since 2019. I do have one late payment on a card in August of this year when the auto pay I had set up didn’t go through until the next billing cycle. I did make an immediate payment as soon as I caught it and paid the balance off in whole. In fact, the three low limit credit cards I have are all paid off with no balance, although I think the credit bureaus have not fully updated yet. I have a car loan with perfect payment history and a small personal loan meant to build credit that also has a perfect payment history.

    I have one medical collection in dispute. I have one unpaid charge off from 2017 that is abt $1400. The other closed and/or charged off accounts are all from 2017 and have been paid in full. However, they definitely still hurt my credit. I had a serious medical illness in 2017 and had serious financial hardships. As I said, however, I did work to pay them off.

    I have an IRS debt that is current and has payments made on it. No tax lien.

    I have solid employment history and gross around $6200 a month with my IRS payment, loan payment, and car payment. I have verification of four years of perfect rental payment history.

    My Fico scores are around 587, 604, and 574. I just paid off a 24 month installment account with perfect payment history that automatically closed out upon last payment; it shows on my report as a closed account with perfect history but dropped my credit huge points when it closed.

    Any guidance you could give would be appreciated. I have every document ready to provide a lender, from my bank statements from the last two months to W2s, rental verification doc, and IRS paperwork.

    I also have a down payment ready to go and wish to find a home immediately. Any help would be so much appreciated!


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