How to Utilize Processor Support in Your Mortgage Broker Shop

If you’re thinking about opening a mortgage broker shop, it’s important to think about how a loan processor can help your business. Not only does a processor take time-consuming tasks off your plate, but they help ensure the loan process goes smoothly so you can focus on what you do best – bringing more business in the door.

Loan processors will work directly with many parties, such as real estate agents, lenders, and title companies, to create a smooth process that gets the loan approved faster. Along the way, they will help gather the necessary paperwork needed for your loan to close.

A processor is often the backbone of a great independent mortgage broker operation. And you can hire a processor in whatever capacity you need– if the workload requires someone full-time or if it’s only on a contractual basis. Let’s dive into their key responsibilities.

What are the main responsibilities of a loan processor?  

1. Gather documents from borrowers

While many wholesale lenders provide e-sign technology, gathering all essential documents from borrowers is a time-consuming task for everyone. This is where your loan processor really shines. They’ll be able to work directly with the lender’s underwriters to gather the proper documents from your borrower, giving you the ability to focus on other prospective borrowers and generate new business.

For example, processors can reach out to borrowers to collect items such as employment and/or bank account verifications. They can even gather the proper documentation needed if your borrower has a history of late payments or collections filed on their credit reports. You can rely on your processor to communicate between the borrower and underwriter to ensure all paperwork is ready for closing.

2. Review financial documents

A loan processor will be your second set of eyes on loan files to make sure all essential documents are included, accurate and legible. They’ll take a look at everything from income documents to bank statements and will double-check things such as the debt-to-income ratio, pay stub dates, and more to confirm there are no missing items or errors.

3. Order title work and appraisals

A processor will work directly with title companies to gather all information on the property your client is purchasing. In addition, they will handle the appraisal, including gathering payments from your clients and working with the appraisal company directly to ensure it gets done as quickly as possible.

4. Increase efficiency and speed

In today’s market, speed is everything. A loan processor will help keep your team on track and ensure all deadlines are met without overlooking any of the nitty-gritty details of the loan.

5. Coordinate the closing of the loan

After an underwriter has cleared the loan to close, a loan processor can partner with an escrow or closing agent to get everything signed, sealed, and delivered. They’ll be able to schedule the closing time and help you and your borrowers take that final step across the finish line and into their dream home.  

Loan processors are truly an integral part of an independent mortgage broker shop is a success. Whether you’re in the process of setting up or looking to open your own broker shop, or considering what you’ll need in order to do so in the future, take the time to find a processor rock star who can take on this important role to help your business thrive.

Are you interested in jumping into the mortgage industry? Whether you’re looking to become an independent mortgage broker, loan officer or processor, taking the first step is easier than you might think.