Mortgage Processing

Role Of A Mortgage Processor

Gustan Cho Associates

Prior to issuing a pre-approval, your mortgage loan originator will ask you to see documents such as two years tax returns, two year’s W-2s, recent pay check stubs, and 60 days bank statements and other basic documents in order for him to qualify you and pre-approve you for a mortgage loan.  Once you have selected a home to purchase and enter into a real estate purchase contract, your mortgage loan originator will ask you for a list of a dozen or more items which include two years tax returns, two years W-2s, most recent pay check stubs, 60 days of bank statements, investment accounts and other asset accounts, divorce decree if applicable, bankruptcy paperwork if applicable, foreclosure paperwork if applicable, child support paperwork if applicable, and other documents.  Once these documents are gathered, it gets assigned to a mortgage processor so she can process your mortgage loan application.  Mortgage processing is the gathering and packaging of all paperwork submitted by a mortgage loan applicant in a timely manner and make sure everything is in order and get it prepped up to be submitted to the underwriting department.

What Is The Role Of A Mortgage Processor?

The main role of a mortgage processor is to make sure that all documents submitted by mortgage loan originator on behalf of the mortgage loan applicant is as complete as possible and get the mortgage loan package submitted to a mortgage loan underwriter for a mortgage loan 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 that there are no pages missing and review the bank statements to make sure there are no overdrafts and there are sufficient funds for the down payment.  Mortgage lenders can deny a mortgage loan application if the mortgage loan applicant has had overdrafts in the past 60 days.  A mortgage loan processor that submits bank statements without reviewing it for overdrafts will most likely get a denial by the mortgage underwriter.  If the mortgage processor notices an overdraft or overdrafts in bank statements, she will notify the mortgage loan originator and the mortgage loan originator will deal with the overdraft issue with the mortgage loan applicant.

Gathering Mortgage Documents

The mortgage processor’s duties includes gathering all documentation and taking each mortgage application from the pre-approval stage through the closing stage.  The mortgage processor will itemize the conditions once the mortgage loan applicant gets a conditional approval and input the conditions into the system until she gets a clearance and clear to close.  The role of a mortgage processor is also to verify all documents submitted such as credit reports, appraisals, title, insurance, and other tasks related in getting the mortgage file to the closing table.  The role of a mortgage processor is also to prepare the HUD and get the final HUD approved by the end mortgage lender and/or investor and coordinate the preparation of the mortgage loan documents and make sure it gets to the title company in a timely manner.  The role of a mortgage processor is to be the liason 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

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

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Related> What do mortgage processors do?

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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