A mortgage loan processor is the link between a borrower, loan officer and the underwriter in the context of a residential mortgage. And he or she is arguably the most important member of the team.
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.
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.
Advantages of a good relationship
For a loan officer, it is of immense help to have a good relationship with a mortgage processor. The processor is the person who often has some workarounds. He/She might suggest an alternative that might get you out of a hole and make the difference between a loan that closes and one that doesn’t. For instance, it can be difficult proving that your client is receiving alimony if she doesn’t deposit it separately or keep copies of the checks. And who wants to have to ask their ex for cancelled 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. As far as possible, it helps to respond to requests from processors in a timely manner – to show that you care about the work that he/she is doing for you.