Compare Mortgage Loan Processing Services

Independent mortgage brokers need to compare mortgage loan processing services before they decide which loan processing company to contract with. Not all broker shops have the same needs. It’s important for them to find a contract processing service that is flexible in how they work with the brokers and their loan officers.

A good processing service lets a mortgage broker and loan officer "Work smarter, not harder", giving them the freedom to focus on growing their business. Beware of contract processors or mortgage loan processing services that have lists of things that they “won’t do”. A sample of a good way to split responsibilities would be:

Broker or Loan Officer Responsibilities:

* Take a complete application

* Order and analyze credit

* Identify the lender and program

Mortgage Loan Processing Service Responsibilities:

* Prepare and send disclosures according to broker’s instructions

* Run AUS findings or coordinate manual lender pre-approval

* Collect borrower signatures and documentation if needed

* Order appraisal and title

* Order any verification and 3rd Party documentation needed

* Order any required pay-off

* Quality control, identify and resolve any documentation issues prior to underwriting

* Submit file to lender

* Clear closing conditions

* Coordinate closing

* Clear funding conditions

* Track and verify funding

The loan officer or broker should be able to outsource most of the paperwork, however, problems arise when the mortgage broker is not kept updated. You want an open channel of communication, visibility, and control. Make sure the mortgage processing service has excellent updating and reporting technology.

Also, a competent mortgage processing service that can work without constant input from the broker is vital. Look for skills and experience that can solve issues independently. The processing company should be able to close more mortgage loans, in less time and with less day to day managment than in-house alternatives.

Looking for outsourcing mortgage processing informatin and other resources?

Look for the simplest fee structure possible. How many different fees are there for different loan types and how are charges for overnight fees and verification handled? Are there extra charges for basic services like sending disclosures, printing packages or running AUS findings?

Normally the processing fee is a separate third party item on the GFE and HUD-1. The fees are paid upon closing, so the broker does not need to increase their YSP or points to cover the cost of processing. This is a good selling point for any loan processing service provider. It also makes it easier for brokers to compete since the processing fees are not listed as income to the broker or loan officer.

The independent mortgage broker should always be treated like the client, with respect and transparency. Mortgage loan processing services are in business to support the independent brokers, not the other way around. Insist on this standard when selecting your contract processing solution.