A loan processing company plays a bunch of vital roles for broker and lending organizations. It can be described as a self-governing company with a team of qualified loan officers, processors, underwriters and other real estate professionals. For a small business, owning a large team of employees remains a long-term, future goal. By outsourcing its tasks to an external loan processor, a small-scale business could utilize a large workforce without necessarily recruiting it. The future of the upcoming and new businesses is clearly outsourcing, because they are assured of lowering their operation costs. An outsourced loan processing company can be used maximally when a small mortgage company is getting many orders.
Speed and accuracy are some of the two traits that outsourced processors are known for. The quick speed with which loan files are closed is made possible by the fact that a good loan processing company has many competent workers in each phase. There are enough workers to capture and process loan application forms, to begin with. Forms may be received in paper or electronic forms. The initial phase is tedious since the loan officers have to read the application forms and contact each borrower personally so as to request copies of backup documents. Nowadays many loan applicants are knowledgeable enough to scan and submit their documentation online as long as they are assured of maximum internet privacy. As soon as the documents are received, a loan processing company must start the verification procedure.
Many lenders ask for copies of any documents that can prove the borrower's identity, sources of income and current financial status. Using an external processor may help when you get complicated loan applications. For instance, some applicants may be recovering from bankruptcy and so they may have poor credit scores. Finding lenders who might accept your bad credit customers is not an easy task. On the contrary, a loan processing company possesses some brilliant professionals who have handled such cases efficiently in the past. In the initial phase, all provided copies of documents are verified several times so as to pre-qualify a borrower. After this they are sent over to the underwriters. The role of the underwriters is to verify the customer files one more time and do automated computations to determine the creditworthiness of a borrower. Some borrowers are rejected instantly without a need to ask for more information.
Others are accepted and their files are forwarded to the lenders. The existence of property is also verified at this stage. A property appraiser is called upon by the loan processing company to estimate the true market value of the home being mortgaged. This lender has to make sure that the home they are about to fund is rightfully owned by the alleged seller. So the title search process is carried out to establish the property title chain. Over the years, properties change ownerships under varied circumstances. A title searching exercise sometimes reveals fraudulent activities that were committed many years back by former property owners. These errors may include forged signatures, fake heirs, unknown heirs, unpaid contractor liens, existing tax liens and sellers who are facing bankruptcy among other issues. A loan processing company can reveal this through its high quality title abstractors.
Article Directory: http://www.articletrunk.com
Mortgage Loan Processors helps mortgage brokers and bankers cut costs. There are many Commerical Mortgage Processing Services that cater to Mortgage Brokers and Lenders nationwide with a structured process to ensure success.
Please Rate this Article
Not yet Rated