Aritas Mortgage Solutions

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


Aritas Mortgage Solutions

September 27, 2023
A loan processor's hand working on files


A loan processor's hand working on files

Let’s say you’re at the airport entering the security check.

You’ve been frisked, your boarding pass has been stamped and you’ve boarded the aircraft, but the takeoff has been delayed by an hour. Soon you realize that your flight was delayed because the ground staff were also operating as the in-flight crew as the airline was short staffed!

You may have reached your destination, but delay ruined your experience with the airline. As a mortgage broker, you might find yourself collecting and verifying documents. Though you might get the work done well on your own, is it really the most efficient way to operate?

Delegating labor-intensive yet essential tasks like collecting and verifying information, documentation and loan shipping can improve efficiency. An impactful solution to ease your workload would be to work with a loan processor who can take care of your paperwork while you focus on building client relationships. But what does a loan processor do and how do they contribute to making mortgage processing smoother? This blog will explore answers to this question in detail.

Who is a Mortgage Loan Processor?

A mortgage loan processor is the unsung hero of the mortgage industry who efficiently navigates all the paperwork, documentation and coordination that follows a client’s initial application for a home loan. Typically, a loan processor steps in after the mortgage broker has secured a client’s application.

However, as a broker if you also step into the shoes of a loan processor from time to time, you know what happens next. You spend a considerable amount of time transforming a collection of documents and information into a well-organized, error-free loan file, ready for the underwriter’s scrutiny.

An effective way to reduce your workload and free your time is by delegating these tasks to dedicated loan processors. They can help you reduce loan approval time, improve documentation accuracy and boost client satisfaction. You could choose to hire a loan processor or outsource processing to a third-party processor like Aritas Mortgage Solutions.

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.

Loan Processor vs Loan Underwriter: What Brokers Need to Understand

Loan processors and underwriters interact in the handoff of the loan file. The processor compiles a thorough and structured loan file, which is then handed over to the underwriter for evaluation. This handoff is a crucial moment in the mortgage process, as the quality and completeness of the loan file greatly impacts the underwriter’s ability to make informed decisions.

An effective partnership between mortgage brokers, loan processors and underwriters can enhance overall efficiency. If your loan processor has accurately documented the information gathered, your battle is already half won.

Finding the Right Outsourcing Partner to Process Loans

Outsourcing loan processing to an experienced partner like Aritas can help you reduce direct and indirect costs by up to 40%. Backed with 15 years of industry experience, we can empower your mortgage business with our expertise and our ability to deliver tailored solutions. Here are five advantages of working with us.

  • Affordable, tailored solutions
  • Quick turnaround time
  • People-first approach
  • Robust quality control
  • Data security

If you’re curious to learn how this works, try our processing services for a month. Evaluate your operational costs and assess our services while we do the heavy lifting for you. This offer is available for a limited period only, click here to share your requirements and start your complimentary trial.

Share this on


Subscribe now for weekly updates

Related Posts

Ready to Save on Processing Costs & Scale Your Mortgage Business?

Mortgage Processing: The Efficient, Effective, & Economical Way

Thank you for subscribing to our blog. Look out for a weekly round-up of all recently published blogs delivered straight to your inbox!

Thank you for entering your details. Click here to download the case study, it has not automatically begun.

Thank you for reaching out to us. Someone from the team will be in touch with you within 24 hours.

In the meantime, follow us on LinkedIn for the latest updates and developments! 

Warm regards, 

Team Aritas Mortgage Solutions 

Thank you for your interest in Aritas Mortgage Solutions. Someone from our team will be in touch within 48 hours.

In the meantime, why not explore our solutions to learn more about what we bring to the table.