I’ve already lined the mortgage underwriter’s function, so let’s check out what mortgage mortgage processors do too.
After you converse to a mortgage dealer or mortgage officer and agree to maneuver ahead with a mortgage software, a processor might attain out to assemble required paperwork.
This particular person is answerable for prepping and organizing your mortgage file and getting it over to the underwriting division for approval.
Apart from that, they’ll additionally reply questions, present standing updates, and information you thru the mortgage course of from begin to end.
In that sense, they play an integral function in getting your mortgage funded whereas performing as a liaison between you and all events to the mortgage.
Mortgage Processors Are the Workhorse Behind Your Mortgage
A mortgage processor’s predominant operate is to help mortgage brokers and mortgage officers from software to fundingThey compile and overview necessary paperwork from the borrower like pay stubs and financial institution statementsAnd look out for any purple flags alongside the way in which that might create points or headachesThey additionally talk with all events to the mortgage from begin to end to make sure every part goes easily
Mortgage processors, also referred to as mortgage coordinators, are essential figures within the dwelling mortgage course of, and infrequently fairly educated about mortgages as effectively.
They’re the mortgage officer’s right-hand man/lady that assists with mortgage prep and all of the day-to-day stuff that occurs from mortgage origination to mortgage funding.
This consists of gathering paperwork from the borrower, figuring out mortgage eligibility, reviewing mortgage information, submitting paperwork to the underwriter, answering questions, and speaking with all events alongside the way in which.
They don’t simply seize the mortgage file from the salesperson and submit it; they go over every part like debt-to-income ratios, financial institution statements, and employment historical past to make sure the file will truly be authorized.
Merely put, their function within the mortgage approval course of is a important one, as errors made by the mortgage originator might be caught and corrected earlier than the file lands within the unforgiving arms of an underwriter.
And as soon as it will get to the underwriter’s desk, there’s usually no going again.
Assuming the mortgage is authorized, the processor will even obtain a listing of prior-to-document situations (PTDs) that should be met earlier than the borrower can signal mortgage paperwork and fund their mortgage.
It’s the processor’s job to work with the mortgage originator, title and escrow corporations, and varied others to get all the mandatory paperwork to satisfy these situations.
And with so many individuals concerned within the mortgage course of, issues can get very sophisticated very quickly in any respect.
The excellent news is that they deal with quite a few mortgage information every month and have doubtless seen all of it. This implies other than pushing paper from level A to level B, they’ll resolve issues and put out fires.
You Might Spend Extra Time Working with the Processor Than Anybody Else
It’s frequent to speak extra with the processor than with the mortgage officerOnce you submit your mortgage software they could be your predominant level of contactSince LOs/brokers predominant focus is to spend extra time promoting and discovering new prospectsThe excellent news is mortgage processors are sometimes very educated and hardworking people
Whereas the mortgage officer or dealer could also be the one that “obtained you the mortgage” to start with, it’s the processor that may doubtless take over when you’ve been “offered” on which firm to work with.
That offered half is fairly necessary as a result of mortgage processors aren’t supposed to supply or negotiate mortgage charges or focus on the phrases of your mortgage.
Their function is to help the mortgage originator, whose job it’s to promote you on the speed/product.
Nevertheless, some processors are literally extra educated than their gross sales colleagues as a result of they deal with extra quantity and should have a few years of mortgage expertise beneath their belt.
And whereas it would sound odd, you would wind up spending extra time on the cellphone with the mortgage processor than the mortgage officer.
In any case, the LO will wish to get again to discovering further purchasers, whereas the processor shall be centered on getting your mortgage closed.
However it’s primarily a group effort, with everybody working collectively to get you to the end line with as few hiccups as potential.
In a nutshell, the mortgage originator hustles to usher in new debtors and the mortgage processor hustles to get the loans funded, whereas each might irritate the underwriter within the course of. : )
Mortgage Processor Job Description
A person who prepares and manages the house mortgage from begin to finishActs as an assistant to the originating mortgage officer or mortgage brokerSends out disclosures, collects paperwork from the borrower, critiques paperwork, and facilitates mortgage submissionCreates checklists and sends verification requests to the borrower for wanted itemsMay order the house appraisal, credit score report, HOA paperwork, and acquire insurance coverage informationCommunicates with the mortgage officer, underwriter, and borrower to make sure situations are fulfilled as soon as the mortgage is approvedActs as a liaison between all events, together with third-party escrow/title/insurance coverage companiesMakes positive all duties are accomplished and all deadlines met all through the mortgage course of
Mortgage Processor vs. Account Supervisor
If the mortgage is obtained through the wholesale channel (from a mortgage dealer), there are primarily two mortgage processors working collectively on a single file.
One who works on behalf of the mortgage dealer, mentioned above. And one who works on the wholesale financial institution/lender, usually known as an Account Supervisor (AM).
This AM assists an Account Government (AE), who is basically the salesperson on the wholesale aspect of issues.
Like a mortgage processor, the AM will request and overview paperwork from the dealer and varied third get together distributors to make sure the mortgage closes in a well timed style.
The AM additionally acts as a liaison, however between the AE and underwriter. And what they convey with the AE may be handed alongside to the dealer.
Mortgage Processor FAQ
Do mortgage processors have to be licensed?
Some impartial processors may want licenses, however these working for licensed mortgage lenders or beneath the path of licensed mortgage originators could also be exempt. This may fluctuate from firm to firm and by state.
Do mortgage processors make fee?
They definitely can and infrequently do. It relies upon how they arrange their pay construction with their employer. They could receives a commission per mortgage file funded or a base wage AND a bonus for a sure quantity of funded loans every month.
How a lot do mortgage processors make per mortgage?
Once more, it relies on the corporate and maybe on what their base wage is. If their base is low or nil, they’ll most likely make much more per mortgage through fee. The draw back is they’re then working a performance-based job.
Do mortgage processors work weekends?
The job may require work on the weekend if a specific lender or dealer is busy, or has busy durations. Nevertheless, many processors simply work Monday by way of Friday like most different bankers.
Do mortgage processors work at home?
They’ll work remotely or from dwelling relying on the preferences of their lender or dealer. Or in the event that they’re impartial they’ll run their very own dwelling workplace and work with a number of brokers/banks.
What are mortgage processing charges?
These are very actual charges for the mortgage processor’s arduous work. As I discussed, mortgage processors may do extra of the work as soon as the saleswoman (or man) will get you within the door. This charge might be anyplace from $200 to $700 or extra.
Some might check with it as a junk charge however provided that it’s charged on prime of a hefty origination charge. Typically the latter consists of the processor’s work and isn’t a separate line merchandise.
(photograph: kozumel)
