What’s the role of a licensed mortgage loan processor?

Posted by peoplesprocessing on November 6th, 2019

A Licensed Mortgage Loan Processor is a business or someone whose primary function is to make sure that all loans that are been sent in from the loan officers are accurately and timely packaged. It is predominantly an administrative role.

The Licensed mortgage loan processor usually participates in every step of the process of application process: from the pre-approval stage down to the closing phase of the application.

Contract processing role of licensed mortgage loan processor

The role of contract processing is one of the primary, oldest, and enterprising service lines of licensed mortgage loan processor.

Basically, Mortgage loan processors usually:

• Obtain, organize and assess all the pieces of information (such as Paystubs, W2-s, Bank Statements, Divorce Decree, Mortgage Statements, Pension Statement, Escrow Documents, Child Support and so on) that is required for the approval of the loan and make proper decisions concerning the application.
• They also input the information obtained into the IT systems of the lender.
• They also confirm the information through the documents that was submitted by the applicant.

Their job function also involves third party checks with employers, accountants, credit bureaus so as to verify the financial background of the borrower as well as their ability to pay back.

Nature of the appraisal services done by the licensed mortgage loan processing companies.

An appraisal is the art or rather the process of forming an opinion of value. Most licensed mortgage loan processors offer a full suite of products for residential, commercial as well as specialized outsourced appraisal services for real estates in addition to the banking industry.

In the real estate industry, an appraisal of a property is used to establish the market of a property.They are used by mortgage lenders to ensure that the value of the property is sufficient to support the loan been requested for.Typically, in some cases, the property may be needed to have more value than the loan amount being requested for, but this depends on the criteria of the lender.

Naturally, the valuation services of the licensed mortgage loan processor consists of a full modern approach to the valuation of residential properties, bringing together the state-of-the-art intelligent valuation technologies, trending data for the local market, analytics, as well as knowledge and expertise.

Licensed mortgage loan processing companies and their responsibilities towards loan compliance.

The Licensed Mortgage loan processor is solely in charge in making sure that your submitted application is in compliance with all the internal policies as well as all the external regulations.  Also there is high probability that, they have the discretion within their own capacity to overlook any compliance requirements.

This particular service is done to prevent preemptive errors that could become costly if they are not noticed and addressed early enough.`

With the increasing rate of developments in the mortgage industry, lenders, investors and servicers face challenges that are related compliance and quality. Therefore it is quite obvious that there would be increased regulations from state and federal agencies before things become stable.

People processing (www.peoplesprocessing.com), is a subsidiary of Direct Mortgage Corporation, a mortgage banker which is licensed to operate in multiple states of the United States of America and it conducts wholesale as well as correspondent business. Peoples processing provides the entire package of mortgage loan processor and many more services.