Here’s What a Loan Processor Can Do for Your Mortgage Business

Which Tasks Can be Outsourced to a Third-Party Loan Processor?

Outsourcing mortgage broker support has become increasingly popular in the competitive landscape of the mortgage industry. A reliable outsourcing partner can empower you with a dedicated team of expert loan processors who seamlessly handle a multitude of tasks so you can focus on strengthening client relationships and sourcing new business.

Mortgage loan processors are essentially the engine that powers a mortgage broker’s business. They work in tandem with you from the moment a client submits their loan application to the final underwriting and closing stages.

Let’s take a closer look at the different responsibilities a loan processor can take on your behalf:

1. Gathering Financial Documents

Loan processors can ensure that the application process starts on a solid foundation by gathering crucial financial documents, including pay stubs, tax returns, bank statements and employment verification. It saves you time and reduces the back and forth.

2. Analyzing Credit Reports

Loan processors meticulously review credit reports, identifying any red flags or discrepancies that may impact a borrower’s creditworthiness. They assess factors such as credit scores, payment history and outstanding debts.

This analysis helps brokers by providing a comprehensive understanding of a borrower’s credit profile and helps address credit-related issues early in the process, potentially avoiding surprises during underwriting.

3. Verifying Application Information

When you work with an experienced outsourcing organization, their team of skilled loan processors are likely to be well-versed in the documentation requirements for loans backed by FHA, VA and USDA. These loans often require specific documents such as certificates of eligibility and appraisal reports.

4. Ordering Appraisals and Title Work

Loan processors often collaborate with title companies or escrow services on behalf of brokers to order property appraisals and initiate title searches. This comprehensive approach simplifies the process for you and minimizes the risk of delays as all required information about the property is obtained and accurately documented in time.

5. Keeping Track of Deadlines

Loan processors proactively track critical deadlines throughout the mortgage process, including making an offer, home appraisal, completing mortgage underwriting and finalizing the loan. This prevents potential delays or missed opportunities while improving borrower satisfaction as you’re in a position to provide clients with a clear timeline for their loan application.

Improving borrower satisfaction can help you gain more customers. Here are eight ways to improve borrower satisfaction.

6. Collaborating with Underwriters

A good loan processor works closely with loan underwriters, providing them with well-organized loan files and assisting in addressing any issues or questions that may arise. This collaboration streamlines the underwriting process, enhances communication between brokers and underwriters and increases the chances of a smoother loan approval process.