Mortgage loan processing

What is Mortgage Processing Services?

Mortgage loan processing is the process of collecting and preparing all the materials needed to secure a loan for a borrower. The process entails examining and verifying all the information contained in the loan application. It also involves reviewing the property title report and appraisal report which gives a first-hand account of the condition of the property. Once the documents clear processor requirements, they are passed on to the underwriter for a final consideration followed by underwriting the loan. Most lenders and credit unions outsource Mortgage loan processing services to partners.

Outsource Mortgage Processing Support Services

In a highly competitive mortgage landscape, reduced turnaround times can keep your mortgage business a step ahead of your competitors. However, with the kicking in of new set of mortgage rules originating loans have become tougher than ever. For instance, the new rules now require mortgage companies to verify and document a borrower’s financial ability as thoroughly as possible to rule out any remotest possibility of default. This coupled with other government regulations, have made mortgage loan processing even more tedious and delicate.

Equip BPO Services is an experienced third-party mortgage loan processing company that leverages a well-defined mortgage processing and advanced technology to help lenders and brokers expedite loan closure cycles and seize distinct competitive advantage. We have standardized and automated Mortgage loan processing back office processes to help lenders reduce operations costs, improve accuracy and speed up time to market. Additionally, we provide access to cross-skilled staff to help lenders stretch their operations and handle up to 50% more volumes in peak times.

We Offer End-To-End Mortgage Processing Support Services

Review Document Compliance

Meeting document compliance is mandatory for meeting growing requirements of proof for regulatory compliance. To ensure this, lenders’ today need a more inclusive approach to document compliance. Good document compliance can help them pass the test of regulatory analysis, identify competing regulations, institute tight operational process controls, have better control over data quality and help them to develop better operational strategies.

As a reputed mortgage processing company, EMA receives documents and review document compliance—the first stage in Mortgage loan processing. For example, Form 1003 is used to record the financial information of potential borrowers when they apply for a conventional mortgage. We review this form and all other documents such as W2s, pay stubs, GFE, TIL, Form 1008, borrower's authorization etc., to ensure that all the information necessary for processing the application is provided. After the review process is over, we generate the Loan Estimate (LE) to the consumer within 3 business days after having received the application.

Fraud Analysis

As a premium mortgage underwriting support services company, we leave no stone unturned to identify fraud. Our team of mortgage experts have the experience and acumen to spot missing or mala fide information. This obviates the need for the underwriter to send customer files back for completed information and thereby enables you speed up the underwriting process. Our fraud analysis encompasses all aspects of the customer file review process including running third-party reports. This ensures the underwriter has to focus only on decision-making.

Appraisal Ordering and Review

We take charge of title ordering and dispatch verified property information to the appraiser to boost the turnaround times of the appraisal process. Once the appraisal is over we carefully review the appraisal report to ensure that the process has been completed in a fair and error-free manner. With the appraisal process, we also provide you with the back-office support for insurance orders as well. We help you determine if the property that is being financed is good enough to be the collateral. All this makes it easier for your underwriter to take an accurate decision.

Our document review process is very meticulous and intensive. We carry it out to ensure that you are always in a position to provide evidence of the activities and data required by the rule.

  • Tax Returns
  • Copies of recent Pay Stubs
  • Copies of W-2 forms for past 2 years
  • 1099 forms, Form 1003 etc
  • Bank statement copy
  • Renting history
  • Gift letters; Stocks and Bonds
  • Work visa or green card
  • Profit and Loss statement for self employed
  • K-1's for all partnerships and S-Corporations for the last two years

Credit Check

It falls upon the lender to investigate all major indications of derogatory credit of an applicant. The objective is to determine whether the information provided by the applicant is accurate, and whether the explanation provided to justify an exception is acceptable. Lenders should exercise more caution when evaluating the reports of applicants with non-traditional credit histories. By outsourcing mortgage loan processing services to us you get all the back-office support needed to assist lenders execute credit check for both traditional and non-traditional loans in a flawless manner.

We conduct a complete credit check of prospective borrowers to ascertain their credit worthiness. This includes pre-screening of credentials, obtaining and checking credit reports, credit history, FHA authorizations, Social Security status and more. We also check for existing loans with MERS, payment defaults, tax returns and transcripts, etc

  • Bank Statements
  • FICO score statements
  • Details of all current debts with copies of the last three-monthly statements

Review 3rd Party Documents

As per new regulations, lenders need to do everything at their end to reduce risk with 3rd party entities. These 3rd party may include appraisers, mortgage brokers, correspondents, or other business or individual. As an experienced mortgage loan processing company, Equip BPO Services has great expertise in reviewing 3rd party application information with real-time license checks. We review third party documents like Appraisal, Title, HOI, 4506T (Tax Transcripts) etc. as loan application references and details of the property to authorized appraisers. We also check payment receipts for appropriate appraisal fees and check property titles. On completion of the review we provide you a detailed report with a clear focus on contradictory information, incompatible findings and data that cannot be validated. The report will help you identify potential noteworthy issues that you need to be aware of in order to be compliant with regulations. So, by outsourcing mortgage processing 3rd party document review requirement to us you get the peace of mind needed to focus on the core aspects of your business.

  • Appraisal report
  • Title reports
  • Homeowners insurance
  • Form 4506-T
  • Letter explaining any gaps in employment in the past 2 years
  • Divorce decree/child support document
  • Copies of Insurance assets (Flood, Title, Homeowners etc)

Verification

Lenders need to verify key background data as part of regulatory compliance. Conducting verification on current employment status, likelihood of employment to continue, income and previous employment details need to be done with great care as any wrong or unvalidated information can lead to serious compliance violation. Equip BPO Services has an established process to verify and cross-verify borrower detail till the correct picture emerges.

  • VoE (Verification of Employment)
  • VoD (Verification of Deposit)
  • VoM (Verification of Mortgage)
  • Verification of property sale history
  • Verification of appraiser signature and registration
  • Verification of property location

We conduct verification checks against all information provided by the prospective borrowers. This includes verification of disclosures for accuracy, VoE (Verification of Employment), VoD (Verification of Deposit), VoM (Verification of Mortgage), verification of property sale history, location maps, the appraiser's signature and license, registration, etc. Trust your verification requirements to an expert mortgage processing company, to ensure flawless outcomes.

VA and FHA case numbers

The buyer applying for an FHA or VA loan are assigned an FHA or VA case number. Lenders need to fill a form to obtain the number. We help you order the number online by filling the form on your behalf. As incomplete requests may lead to a delay in generating the number, we execute this task meticulously to ensure there is no delay whatsoever.

  • Online form filling for generating FHA or VA case number

Loan Estimate Preparation

The new TRID rules replaces the Good Faith Estimate (GFE) and initial Truth-in-Lending Disclosure with a three-page Loan Estimate. We help bankers and lenders and brokers with preparation of Loan Estimate with due importance to accuracy of disclosures. We prepare Loan Estimates with due care to ensure borrowers have a clear understanding of the important aspects such as costs, and risks of the mortgage loan. We also ensure the estimate is provided to loan applicants within three (3) business days after they submit a mortgage loan application. For correct loan estimate preparation outsource mortgage processing services to us.

Collect Supporting Documents

We assist lenders in collecting supporting documents such as bank statements, mortgage statements, pension statements, escrow documents, divorce decrees and child support documents, etc. We also order homeowner's insurance and the flood certificate for the property. After collecting all the documents, we file them in an orderly way for easy access and archival.

Loan Submission & Condition Clearing

This is the final stage of mortgage processing in which we submit your application to an underwriter for crosschecking your eligibility and validating the documents submitted. If the underwriter feels there are conditions to clear such as explanation of late payments or employment gaps, we help you speed up the condition clearing process. The process of condition clearing is fraught with delays, with the most common ones being errors on the loan applicants credit report or the need to get few additional credit supplements. These can take any time between days to weeks thus leading to a delay in a clear to close. In such scenarios, we take all the necessary steps to expedite condition clearing.

Equip BPO Services as Processing company, We Offer The Following Benefits

By outsourcing mortgage loan process to us, you get the following advantages:

  • 20+ highly trained mortgage processors working fulltime
  • 99% accuracy in reviewing all information in the loan file (credit report, VOE, VOD, property appraisal etc.)
  • Expert group to deal with regulatory requirements
  • Standardized and automated back office support for mortgage processing
  • Up to 30% reduction in TAT, leveraging 24/7 work environment
  • Up to 40% reduction in per employee operational cost
  • Flexibility to scale work up to 50% during peak times
  • Seamless communication and highly transparent operations
  • 100% data confidentiality and privacy
  • Flexible staffing model

Have any Question?

We're here to help. Send us an email or call us at +1 9517770599. Please feel free to contact our expert.

Contact Us