From time to time, we get a request to revamp a processing division that seems to be plagued with problems. However, upon closer inspection, we discover that while there may be a few processing deficiencies, the problem is far bigger than processing. We’re then forced to relay the harsh reality that a processing patch will have little or no effect on the chaos and financial hemorrhaging that’s going on.
If your office doesn’t have a clear-cut loan flow and a system of accountability, it’s quite easy for an issue to mask itself as a processing problem. How can you determine where the problem lies? Let’s take a look at a few issues that often reveal a processing problem. If you really do have a processing problem, you’ll experience a few of these issues:
Category 1:
• Delays due to appraisal and title orders that are incomplete or wrong • Closing delays due to payoffs, verifications, and histories that were not requested promptly • Approvals that come back with more conditions rather than a sign-off • Packages that have to be re-routed to another underwriting center • Problems finding employer and mortgage company contact info • Lender complaints regarding adherence to loan flow guidelines • Title issues that are not recognized until pointed out by an underwriter • Repeated requests from the Title co for standard closing requirements • Loan officer status reports not made until requested
Now let’s look at a few other situations that are sometimes called processing problems but really go beyond the scope of processing. If the problem lies elsewhere, you’ll see an abundance of these issues:
Category 2:
• 1003’s missing critical and/or accurate data • Full documentation files submitted with no documentation • Loans submitted for a program that the credit/income profile doesn’t qualify for • Contact with borrower reveals unrealistic expectations for turnaround time • Contact with borrower reveals that the borrower has no idea what the loan program and terms are • Serious problems are identified during processing (excessive debt, undisclosed liabilities, insufficient income, etc.) • Loans are submitted with issues that cannot be resolved or removed within 30 days. • Customer complaints regarding customer service, lack of contact, or inaccurate information • Lenders and vendors are unresponsive or uncooperative • File documents are often co-mingled with another • Experiencing problems using the lender’s automated preliminary approval system • Commission lost due to incorrect pricing • Fee sheets incorrect
Curious about why some situations that the processor handles are not considered processing problems? Well, here’s a tip to make it clear. Pick any one of the items in Category 2. Now, think about the earliest point at which this issue could be addressed or avoided. Get the picture?
Whether you need to revamp your processing division or the entire office all together, the Loan Processor In-A-Box workbook series gives reliable solutions. You’ll find more information at www.completemortgageprocessing.com/workbooks.html.
INDUSTRY NEWS AND EVENTS
May 2, 2006 MAMB 2006 Tradeshow Hilton Jackson Jackson, MS May 3, 2006 WNYAMB 2nd Annual Regional Mortgage Conference May 3, 2006 KAMB Annual Convention and Trade Show Overland Park Convention Center
May 4, 2006 SCMBA Annual Convention and Trade Show Embassy Suites North Charleston, SC - AAMB 2006 Annual Convention Phoenix Civic Plaza - 2006 NMAMB Conference and Vendor Marketplace - Albuquerque Marriott Albuquerque, NM CAMB SVC 7th Annual Trade Expo Wyndham Hotel San Jose, CA
May 8, 2006 Texas Mortgage Broker Spring Break Networking J.W. Marriott Hotel Houston, TX
May 12, 2006 FAMB Northwest Chapter 10th Annual Trade Show Pensacola Civic Center Pensacola, FL
May 14, 2006 PAMB 6th Annual MAC Conference - Pittsburgh Sheraton Station Square
May 16, 2006 CAMB IEC 2006 Spring Break Networking Party Doubltree Hotel Ontario Airport Ontario, CA
May 18, 2006 FAMB Broward Chapter Annual Trade Show Broward County Convention Center
Annual HAMB State Conference Hilton Hawaiian Village Resort & Spa
CAMB SOLAC Third Annual Loan Originators Expo Long Beach Convention Center, Long Beach, CA May 22, 2006 GAMB 2006 Annual Spring Break Networking Renaissance Waverly Hotel Atlanta, GA
May 23, 2006 Massachusetts Mortgage Association 2006 New England Mortgage Showcase
==================================================== HAPPY MOTHERS DAY TO ALL OF OUR HARDWORKING, DEDICATED MOMS! ====================================================
QUESTION OF THE MONTH
A. Everyday we seem to receive flyers via e-mail, regular mail, or fax from a lender who claims to have the latest and greatest. What type of things do I need to consider when trying deciding where to send my loans?
Q. It’s great that you’re asking this question now rather than finding out the hard way that things aren’t always what they seem. There are a few things you’ll want to find out directly from lenders or peers:
1. What type of deal does this lender do well and quickly? Often times the same lender that does your single-family purchase with ease will drag out your jumbo high-rise condo for an eternity because they rarely underwrite them. 2. What is the average turn-around time? 3. Does this loan program have asset or ownership seasoning requirements? 4. What are the program guidelines (credit score, max LTV, mortgage history)? 5. How committed are they to providing excellent customer service? Can you get assistance when you need it? Are your calls returned promptly? Are they fairly consistent? 6. Is the program flyer for a new program where they’re still working out the kinks or their signature product? If so, don’t use it for a file with a tight deadline. Stick to what you know for that deal.
These are just a few points to consider. The more questions you ask up front, the fewer headaches you’ll experience down the road.
Why not Ask the Mortgage Trainer for the answer? We’re taking your questions and answering them on a series of live teleseminars. Get your questions in today by visiting this link:
www.completemortgageprocessing.com/askus.html
Then stay tuned for an e-mail announcing the event. ___________________________________________________________
Check out The Complete Mortgage Network's Top 40 Downloads of Articles, Tip Sheets, and Mortgage Forms.
www.completemortgageprocessing.com/new.html ___________________________________________________________ TELL US WHAT YOU THINK
