Scope: Mortgage loan processing consists of the management and administration of consumer loans secured by residential mortgages and other loans saved by mortgages. Such processing must fulfill legal requirements according to the type of loan, such as conventional, subprime, Veterans Administration and FHA loans in the US. Mortgage loan processors assist mortgage brokers and bank lending officers by ordering appraisals and title insurance policies, ordering payoff instructions from incumbent lenders, ordering subordination agreements if necessary, verifying that the documentation is completely filled in and consistent with the underlying disclosure records, prepare loan packages for lender review and clear title objections, prepare closing records for computations and disclosures and assembling and providing records management for closed deals.
Technical Requirements: Loan origination and administration requires training and process management in all elements of funding loans under applicable banking, consumer protection, usury, security interest and securities laws.
Benefits: Outsourced loan processing offers many potential benefits. Human resources, workflow processing, data processing, transaction processing and documentation management are all outsourced. This results in a smaller real-estate footprint, lower costs of human resources administration, less training of employees, shorter cycles to closings and happier borrowers. In periods of high demand, the mortgage broker or bank lending officer can close more mortgage loans with fewer resources, generating greater and quicker deployment of investment funds and earning of broker’s commissions. In periods of low demand, operational costs may be reduced by fee-for-service pricing methods.