Thursday, March 23, 2023

The Contract Processors Team Players

When I started this 3rd party processing company back in 1996 - I had a thermo fax machine, one monitor, one computer, one copy machine and myself.  I would go through the want ads in the Sunday paper and fax my resume and company flier to all the loan processor wanted ads. This was before the Internet took off and lender's required 2-3 "copy packages" for each loan.  I would find the nearest Transbox and ship off the packages to the lenders for morning delivery.  Emails were not used.  Lender's did not have websites.  Correspondence would typically come over the fax machine.  Email and websites have definitely changed how we do business.

My company was a small company - It was company I started from home so I could raise my daughters. My oldest born in 1996 and my youngest born in 1998 (she now works for me).  Once my kids were out of high school and in college the industry took off like crazy and I was working 16 hour days - 7 days a week and I was turning down new business.

I decided to expand my company by bringing on other processors. Processors that were fully licensed to be a 3rd party processor.  They had to have the real estate license and their NMLS endorsement.. I have been very blessed to have the opportunity to have the below team players working with me and my small company.  

Tuesday, March 14, 2023

Loan Processor vs Loan Officer


What is the difference between a loan officer (LO) and loan processor (LP)?  As a contract processor working with hundreds of different loan officers I believe I have become the expert on this subject...

Processors work behind the scenes.  They review the documents provided by the LO and borrowers.  They put together a package to the lender/underwriter for loan approval based on the type of loan the borrower is applying for. Processors will brainstorm with the LO if needed to develop the best plan for the borrowers. Processors should have a strong knowledge of Fannie, Freddie, VA, FHA, and USDA guidelines.  In addition - they should know and/or learn quickly exactly what each investor needs to ensure the loan is approved quickly.  The processor works with all parties (escrow, borrowers, lender, and loan officer) to gather all information/documentation needed to get the loan to closing.  Once the loan is closed/funded - the processor must know compliance requirements to ensure all the documents and information is in the closed file.

Loan officers are the face of the company.  They are the go-getters. They are the sales people.  Without loan officers there would not be a company or a job for processors.  A loan officer meets with propective borrowers and gathers information to see if there is a loan that will fit their needs.  A good LO will know the market, the types of loans available, and is a problem solver. After the LO meets with the borrowers and evaluates their documents and needs and determines there is a prospective loan he will then send the information to the processor.  The processor should be able to take the information and run with it.  It is critical that the LO be detailed and complete the application before transferring the file to the processor.  This will ensure the loan is done without any unnecessary hiccups.

Contract processors are the LO's best friend. We are experts on getting the job done.  One thing that is important to note is that we don't get paid unless the LO does.  We have a vested interest in making sure each loan closes cleanly, quickly and with the best customer service availalbe.  

Thursday, March 2, 2023

Why Should Brokers Use Contract Loan Processors?

Today's mortgage industry is very different than it was 12 months ago. The amount of loans have drastically decreased and loan officers have to spend more time marketing and talking to prospective clients.  Loan officers should not have to spend their precious time worrying about chasing down conditions for a loan approval.  Once the loan is received by the loan officer - they should be able to hand it off to the loan processor and go back out and get more business.  This is a win-win for everyone.

Many mortgage companies have had to let go of their in-house processing team because of lower production.  In-house processing is a cost to the mortgage company and loan officer.  Guess what?? Contract Processing is a NO COST to the mortgage company or loan officer.  Contract Processing companies are fully licensed just like the broker and loan officer.  We have our state license and our NMLS license.  Because we are licensed we can charge the borrower directly at closing. Another thing to take into consideration - if the loan does not close - the loan officer has not lost a red penny.  Contract Processors are paid on RESULTS just like them.  We work harder to ensure a closing because our income depends on it!

My team of contract processors have been in the mortgage industry for many years and have had experience in all types of loans.  We have closed in excess of 10,000 loans since 1996!

We have faster turn times.  

Better Customer Satisfaction. 

We are EXPERTS in the field.

We save loan officers a ton of money.

We are contractors/self employed which means we are not 9-5 employees.

In conclusion  - it's just silly for loan officers not to use contract processing - We make it happen at no risk to them.  

"Behind Every Successful Loan Officer is a Great Processor!"

Monday, February 27, 2023

Eleven years and 26 days later....


It's been a while since I thought about blogging and glancing at the last date of my last blog made me laugh, February 1, 2012.  It's been a pretty busy 11 years.  Here is what has happened....

I expanded my company as I could not keep up with the high volume.  Today I have 7 Full time processors.  It's just  not me anymore....

I started with about 5-10 brokers that I processed for.  Today our client list of brokers is over 200.

We were voted Top 10 Best Contract Loan Processors in 2020 by United Wholesale Mortgage.

My youngest daughter graduated college in 2020 and is now a top loan processor and purchased her first home.

My husband and I took a month long trip to the Mediterranean. We visited Italy, Greece, Croatia, Malta, Monte Carlo, and a few other countries.

It's been a great ride this past 11 years - really the past 27 years.  The mortgage industry has changed considerably and my team of processors and I have been there every step of the way.  We are the best of the best.  

Rates have increased drastically since the middle of 2022 and the industry has slowed down considerably.  Many companies have closed - lenders and processors.  We are still here - we are not going anywhere.

Even though I have not blogged for Eleven years and 26 days doesn't mean we have not been working our mortgage tails off...  

Wednesday, February 1, 2012

Post It Queen

I am a Post It Queen.. I have a post it for almost everything - My hot pink long lined version post it- are my short term goals.. My yellow average square post its are my - got to do it tomorrow reminders - usually you can find these around my computer screen to remind me in the morning. The yellow lined 3x3 post its are weekly accomplishments, my yellow 6 inch lined post it are my login and passwords for misc. (non-sensitive) websites, my neon green post its are found in my loan processing packets to remind me of something I need to know before I submit or close the loan, and my blue post its are the ones that my daughters and sometimes their friends post on my cabinets above my desk to tell me they love me... There's a post it for everything, isn't there?

A loan processor must be able to multi-task... I may be in the middle of one file - get a call about another file - and receive an email about yet another file - All tasks are important - All tasks must be remembered and they must be completed... This makes post its very handy... Looking at my desk right this moment - there are 15 post its about. When I finish a task - I make a note of it - in my ledger and throw the post away and sometimes - I'll just put the post it in the back of my file - you can never be too cautious when it comes to the mortgage industry....

Post its make my job so much easier and I get really happy when I see so many post its stuck around my desk - Why? It means I'm busy... and that's a good thing - for this contract processor...

Wednesday, January 25, 2012

Fannie And Freddie Increasing Guarantee Fees

The mortgage rates have been incredibly low lately - I'm wondering if this is going to change next week....

Fannie Mae and Freddie Mac are increasing their Agency "G-Fee" next month and no one knows by how much.... The Agency "G-Fee" is a fee that FNMA and FHLMC charge the lender to do business... And the lender of course will filter it down to the borrower...

I have five (5) loans that are scheduled to close by January 31.... And I am concerned... Lenders are busy.... Borrowers are busy.. Escrow companies are extremely busy and loan documents may not be signed on time... Conditions may not be reviewed in time - There are a number of things that can go wrong and it's a possibility that I may have to extend a lock or two... Now here my concern...

Each lender is handling their lock extension differently... A couple of my lenders - nothing is different - business as usual - a couple of others are charging their normal extension PLUS a another hit.... It's a very strange end of the month...

So here's hoping that the increase is so microscopic that it won't affect a thing....