1. Debunking the Myths of Loan Processing 2. Great Savings during our Labor Day celebration 3. Question of the month 4. Mortgage industry events 5. Get listed
Processing myths are as rampant as urban legends. Like urban legends, processing myths are told as true and are plausible enough to be believed. Processing myths spread like urban legends from person to person and they are often no longer traceable to a single author or point of origin. It’s these processing myths that give loan processors a bad rap. Mortgage professionals who believe in these processing myths often deny processors the praise and acknowledgement they deserve for the critical role they play in the home loan process.
Let’s explore a few of the myths that are circulating in the industry as well as the real truth behind them:
Myth 1: “PROCESSING IS SO EASY ANYONE CAN DO IT”. Processing done right requires a very specific set of skills and abilities. During our contract processing years, we learned from experience that it is certainly not the job for just anybody. It requires attention to detail, analytical skills, computer proficiency, strong Internet research skills, optimism, and resourcefulness. Strong processors are also self-directed. If your processor is lacking in these areas you’re bound to experience some serious time lags.
Myth 2: “PROCESSORS ARE JUST GLORIFIED PAPER PUSHERS. ALL YOU REALLY NEED IS A RECEPTIONIST". If that’s all your processor is doing what a waste! You need a better loan flow system in place. And better training too. An efficient processor is one of the best resources a mortgage broker can have. A well trained processor knows enough about origination, underwriting, and closing that they improve the entire process. Additionally, they are versatile enough to offer solutions as challenges arise in these other areas.
Myth 3: “ONCE MY LOAN GOES TO PROCESSING, I'M HOME FREE". This myth (also known as dumping) causes huge file problems and inter-office conflicts. The originator has a responsibility to the borrower that doesn’t stop when the loan goes to processing. Getting complete, accurate information to expedite loan closing is still the originator’s function. With automated underwriting and online pipeline reports via the lender’s website, it’s far easier for everyone to know where the loan stands from the lender’s perspective. And isn’t that what really matters anyway?
Myth 4: “I CAN CLOSE MORE LOANS PROCESSING THEM BY MYSELF. BESIDES, IT'S THE ONLY WAY TO MAKE SURE IT'S DONE RIGHT!” If you’re only closing a couple of loans per month, you can certainly save yourself the expense of a processor. But if you intend to do some serious volume, you’ll need someone that handles processing functions whether you refer to them as a processor or not. You can originate 20 loans in the time it takes to process 1 loan. So if this myth is your philosophy, you may want to think about the revenue you’re losing by refusing to trust someone.
There are many, many more processing myths circulating that are without merit because they only tell a small part of the real story. When you hear them, ask yourself what really caused the situation to exist. Then decide for yourself. Even if you’ve had a bad experience with a loan processor in the past, we encourage you to try using one again. You’ve already heard the bad stuff so now seek out someone who has a great in-house or contract processor and find out what makes their relationship work. When you find them, take a moment to look for some of the not-so-obvious rewards that come from a solid processing relationship:
1.The freedom to vacation without worry because your processor is competent enough to get pending files to closing successfully 2.The capability of servicing a wider niche simply based on your processor’s expertise with a particular type of loan 3.The flexibility to accommodate unique or rush situations because your processor has resources to get the job done 4.The capacity to earn more revenue because you can focus more on production
So go ahead and take a break from the headache and stress of doing it all yourself. You deserve it. It’s easy to do when you allow yourself to look at an old remedy with a fresh pair of eyes.
People only see what they are prepared to see. – Ralph Waldo Emerson
*************************************************** Join us in celebrating Labor Day weekend
August 31- Sept 4, 2006 Lots of Freebies and Discounts!
Thursday’s $30 Mortgage Training Specials Friday’s Mortgage Fast Start Tools Saturday’s Processing Power Teleseminar Sunday’s Mortgage Success Secrets Monday’s Mortgage Mastery Training
Visit www.completemortgageprocessing.com --------------------------------------------------- QUESTION OF THE MONTH
Q. I’m totally frustrated because I keep getting files back with a mountain of conditions. My borrower is equally as frustrated because I need more documentation and it’s going to take longer to close. Any tips on minimizing this problem?
A. The easiest way we know to minimize the amount of conditions you get back from underwriting is to be well informed about the loan program parameters and underwriting guidelines before you send in the deal. This information is usually readily available online or via a fax on demand line. Using these tools and an automated underwriting system prior to underwriting will cut out the guesswork and the frustration. You can send in only what you know will be accepted. If there is something questionable, you can run it by the lender before the deal gets hung up in their pipeline.
++++++++++++++++++++++++++++++++++++++++++++++++++++ Get great training tips and tools every week from The Complete Mortgage Network. Take a test drive for just $5.95.
Sept. 8th CAMB 23rd Annual Convention Denver, CO Sept. 9th PAMP 11th Annual MAC Philadelphia, PA Sept. 13th NYAMB 18th Annual Conv. Melville, NY Sept. 14th WAMB Wholesale Mtg. Lenders Bellevue, WA Sept. 14th TAMB 2006 Annual Convention Austin, TX Sept. 18th Maryland Asso. of Realtors Ocean City, MD Sept. 18th VA Association of Realtors Hot Springs, VA Sept. 20th NEMBC 2006 Providence, RI Sept. 21st MAMB Annual Convention Minneapolis, MN Sept. 21st SCMBA Annual Trade Show Greenville, SC Sept. 26th IAAMB 2006 Annual Conv. Johnston, IA Sept. 27th MAMB Annual Trade Show St. Charles, MO Sept. 27th MMBA 2006 Annual Conv. Detroit, MI Sept. 28th SCCAOR Parkside Hall San Jose, CA ========================================= Attention Contract Processors: GET LISTED!
Send us your contact information for inclusion in our 2006-2007 Contract Processor directory for FREE!
Send an e-mail to processinghelp@aol.com with the following: Name: Company: Phone: Fax: Website url or e-mail address: Services offered: (100 words or less) ========================================== Missed reading a newsletter? Visit our Newsletter Archives to catch up:
-How to get the most from seminars and conventions -How to improve your team's performance -The key to giving great customer service -How to tell if you really have a processing problem -And more...
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If you have already purchased our Loan Processor In-A-Box® workbook or used our other training resources, we’d love to hear from you. Let us know what has helped and what you’d like to see more of. Leave a message at our Feedback line at 1 (800) 609-9006 x2128 or just click here to submit your comments online. You can also send us an e-mail to processinghelp@aol.com or fax us at (702) 543-5397.
