Written By: NAMP® Op-Ed Ghost Writer
Underwriters and processors that work for non-delegated lenders must submit loan packages for review. Those packages are subsequently reviewed by the MI or investor underwriting team. These packages may also be reviewed by management, sales professionals, and auditors. As a result, it is important to put your best foot forward and present as clean and transparent a package as possible.
Prior to packaging the loan for submission, scrub the loan package for duplicates, errors, and discrepancies. Draft the final versions of the loan application and underwriting transmittal. Run a final AUS findings report with the most accurate LTV, debt ratios, and verified assets. Loan factors that affect debt ratio and LTV, such as income and housing expenses, should also be finalized prior to submission.
Waiting to submit a completed package, versus piece-mailing conditions, will result in faster turn times. In addition, you build up good will with the MI and investor sales and underwriting staff. This will allow you to obtain approval on request rush reviews when needed.
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If the loan requires a final inspection for repairs, and you can predict that the repairs will not negatively affect value, then the loan can be submitted. This is a time saving tactic when turn times are at their greatest during the peak season. However, underwriter or processor discretion should apply. For example: if the loan is new construction and the original appraisal does not show pictures of the complete home, the loan should not be submitted until the final inspection and photos are in.
Many vendors allow underwriters to submit packages online. There is an area where the pdf version of the completed loan file can be uploaded. When creating the pdf package, the originating lender should strive to adhere to a stacking order that makes sense. The MI or investor underwriter should not have to search through the package for documents that relate to one another.
If warranted, include a cover sheet explaining any irregular issues on the loan. This will direct the MI or investor underwriter to the documentation trail you are using to mitigate the risk on your loan scenario. If the income calculation is complicated and cannot be followed by using the income docs provided, be sure to include a write-up for this as well.
About The Author
All of NAMP® staff writers are veteran mortgage processing & underwriting instructors for Mortgage Underwriter University (www.MortgageUnderwriter.org). They have each conducted numerous mortgage processing & underwriting training classes and have worked in the mortgage banking industry for 25+ years. If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org
