Mortgage loan processor: definition
The mortgage loan processor is the link between you, your loan officer and your underwriter. And he or she is arguably the most important member of the team.
Many processors take your application so you don’t have to fill out forms
Processors pull all the pieces together – they may order open escrow, appraisals and inspections, pull credit reports, verify your income and document your assets
Processors submit your application package and follow up on requests from the underwriter
Of course, every lender has its own process and its own rules for processors.
Verify your new rate (Apr 22nd, 2018)
Mortgage loan processor roles
The National Association of Mortgage Processors says, “The primary function of the Loan Processor is to ensure the timely and accurate packaging of all loans originated by loan officers.” So it’s mostly an administrative role.
How do I know that I’ll be approved for a mortgage?
Mortgage loan processors typically:
Collect and collate all the information needed to approve a loan and make informed decisions concerning an application
Input that information into the lender’s IT systems
Verify information through documents you supply
Make third-party checks with credit bureaus, employers, accountants and so on
Order an appraisal of the home
Obtain title insurance and flood insurance (if needed)
Ensure the compliance of your case with regulatory requirements and internal policies
Order the final loan documents
Ensure the loan stays on track to close on time
Schedule appointment for closing
You can usually expect a mortgage loan processor to be involved throughout the application process: from pre-approval to closing.
Working with your loan processor
Some lenders see loan processing as an entirely “back-office” function. You may never even meet your processor and your only contact may be your loan officer.
However, other lenders encourage direct contact between processors and applicants. So what should you expect if you get a call or email from yours?
Mortgage closing: What happens at your signing?
What you should hope for is someone who’s an expert administrator with a focus on moving your mortgage application through the system in a timely way. In this sense, your processor’s goals overlap perfectly with yours.
Seeing it from your processor’s point of view
However, you risk coming into conflict over the minutiae of your case. You can’t understand why she’s so insistent on receiving January’s bank statement and last month’s pay stub (you know they’re somewhere) so urgently. And she can’t understand why you don’t just get on and send them.
The fact is, your processor is responsible for ensuring your application complies with a whole raft of external regulations and internal policies. And it’s highly unlikely she personally will have the discretion to overlook any compliance requirements.
Advantages of a good relationship
Having said that, a processor often has some workarounds. He might suggest an alternative that might get you out of a hole. For instance, it can be difficult proving that you’re receiving alimony if you don’t deposit it separately or keep copies of the checks. And who wants to have to ask their ex for canceled checks?
A processor may find a way around this, ordering copies of the actual deposits from your bank. So you need him on your side. The last thing you want is to be deliberately unhelpful or gratuitously rude.
In fact, building a good working relationship with her can help you. You want her to see you as a person rather than a case number each time she picks up your file. Even the most objective professionals work harder for those they like.
Self-help for mortgage applicants
Of course, the easiest way to get your mortgage loan processor to like you is to cause him as few headaches as possible. You can do that by supplying all the documents he needs upfront and anticipating any queries that might arise from them.
How to rush your mortgage to the closing table
No matter what sort of mortgage you’re applying for, your lender will want to satisfy itself over six areas of your life. It will need documents to support claims you make about your:
Identity — Photo ID, social security number, past residential addresses
Employment history and income stability
Credit and debt management ability
Expenses, payments and account balances
Assets, including cash, retirement and investment accounts
The source of funds for your down payment, if purchasing
Your lender will get your credit reports and scores itself. But you’ll be expected to supply it with the paperwork it needs to verify the other information.
You can do yourself a big favor by pulling together all the documents you’re going to need before you make your application for either a mortgage or pre-approval. It’s one less thing to worry about later when you’ll be under pressure. And it will give you a chance to get copies of anything that’s been lost in your filing system.
The documentation required for today’s best mortgage rates
The extent to which lenders will crawl over your personal finances can feel intrusive. And their tick-box systems can feel overly rigid and bureaucratic. But remember:
You’re asking to borrow a huge amount of money so it’s only reasonable they’ll want to know all about you
They may not be asking for themselves. They often have to comply with third-party rules from regulators or loan guarantors, such as Fannie Mae, Freddie Mac, the VA, the FHA and so on
Their main objective is to make sure you can comfortably afford payments on your new mortgage and won’t get into financial trouble later
Your best way to navigate through this stressful time is with Zen-like calm. Taking out your irritation, resentment or frustration on your mortgage loan processor is unlikely to help.