Part III (of 3): 1003 - Making Sense of the Package.
Written by:
Angelina Johnson,
NAMP Volunteer Writer
Part III (of 3):1003 - Making sense of the package.
At first glance, a poorly packaged loan missing some of the information may end up being scrutinized more. When an underwriter is not able to make heads and tails of a loan the first time he sees it, the chances of getting a clean approval lowers. We also have to remember that the loan will later be sold in the secondary market in which the file maybe underwritten again.
By experience, most of the non-performing loans encountered problems during initial underwriting. As a loan processor, it is our job to process loans as though we are underwriting it. Plug holes that may be questionned using Letter of Explanations (L.O.E.) or other means. A strong file minimizes unnecessary wasted time and maximizes profitability so package your loan right the first time. If you need to wait a few days to back things up, then do so. If unavoidable due to time constraint, then make sure to indicate an item is ' to follow'.
________________________
About the Writer. As one of NAMP's volunteer writers, Angelina Johnson is currently a NAMP member in good standing and has applied for her CMLP certification with NAMP. Feel free to email Angelina at: angelina@mortgageprocessor.org. Or, if you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.
Angelina Johnson,
NAMP Volunteer Writer
Part III (of 3):1003 - Making sense of the package.
At first glance, a poorly packaged loan missing some of the information may end up being scrutinized more. When an underwriter is not able to make heads and tails of a loan the first time he sees it, the chances of getting a clean approval lowers. We also have to remember that the loan will later be sold in the secondary market in which the file maybe underwritten again.
By experience, most of the non-performing loans encountered problems during initial underwriting. As a loan processor, it is our job to process loans as though we are underwriting it. Plug holes that may be questionned using Letter of Explanations (L.O.E.) or other means. A strong file minimizes unnecessary wasted time and maximizes profitability so package your loan right the first time. If you need to wait a few days to back things up, then do so. If unavoidable due to time constraint, then make sure to indicate an item is ' to follow'.
________________________
About the Writer. As one of NAMP's volunteer writers, Angelina Johnson is currently a NAMP member in good standing and has applied for her CMLP certification with NAMP. Feel free to email Angelina at: angelina@mortgageprocessor.org. Or, if you would like to become a volunteer writer for NAMP, please email us at: blog@mortgageprocessor.org.
posted by Editor in Chief at 10:49 AM
0 Comments:
Post a Comment
<< Home