Houses Are Selling Like HotCakes - Really They Are!

 

Houses are still selling like HOTCAKES!  The secret is that the home needs to be listed by a seasoned realtor who knows the market and the area.  The homes that have been sitting on the markets for weeks or months are not being marketed correctly.....

The competion is fierce on good listings.  My mom's home was listed on Tuesday and there are already a bunch of offers over list price.  All offers will be reviewed on Monday.

It can be frustrating when making an offer on a home and your offer gets turned down.  

The best way to get an offer accepted is to get a full credit approval by your broker/lender.

A credit approval is getting approved for everything pending a home.  This means that  you will need to provide your loan officer the following;

Last 2 years W-2s

Most recent 30 days worth of pay stubs

Copies of your most recent 2 months bank statements  (all pages)

If you own rental property or a business  - Send your most recent personal AND business federal tax returns (all schedules and attachments)

Current copies of your current mortgage, insurance, and tax statements (HOA statement if applicable) if you are keeping any properties.

Credit report will need to be pulled.

Another thing that can put you at the top of the list is a Dear Seller letter.  Tell them about yourself and why you want to purchase this home.  Become a person to them and not just a number.

If you are in California or Florida - I can help you.  I have GREAT loan officers that I work with and I can refer the best of the best (in my humble opinion) and I or one from my processing team can take care of you.

You can reach me at Kelly@thecontractprocessors.com

If you are a loan officer looking for the best contract loan processor - I can help you too!

I'm just an email away.

Let The Processor Do Their Job - Best Results!!

I often say that loan processors and loan officers each have their special gifts.  A loan processor is a detail person with the ability to do 100 things at once and close the loan on time or sooner..  A loan officer is an outgoing educator that brings in clients who need a home loan. A loan officer is a guru on rates and the best product for their clients.

Often times the loan officer will start a file before it is sent to processing in hopes of expediting the loan quicker to the finish line.  I have learned this rarely works.  The processor needs to review the documents and submit a complete as possible file to underwriting as our goal is to close fast and with less fuss. The less times an underwriter touches the file - the faster the file goes through.

This month  - I have Cleared to Close 6 files so far - 4 files where I took the reins from the first day and my CTC came in less than 2 weeks..  Two files where the loan officer held the file a little too closely and our closing took much longer as I was unable to communicate with the borrower or review documents in a timely manner.  

When a loan officer babysits their files it prevents them from originating and bringing in new business.  This is what they do best!

When I start working with a new loan officer it can take time for them to trust that I am good at what I do and that I will make their job easier and more lucurative.

I would love to have a conversation with any loan officer that needs outstanding processing for California and/or Florida.  Call me, Kelly today 714-331-8492 or email me at Kelly@thecontractprocessors.com

There is a HUGE difference when working with a processor with over 30+ years experience.  

UWM PA+ - A 3rd Party Processor's Thoughts

When I heard that UWM was now offering processing - I was livid.  I have been a preferred processor with UWM for several years. I have taken their courses every quarter, recommended clients to UWM, and have been UWM's biggest cheerleader with a big RAW RAW RAW....

Thankfully I took the time and called a couple of the account executives I work with there and they explained how it worked..  I truly believe that using their processing service would be a huge disadvantage to the borrowers and loan officer and here is why....

There will be several "processors" touching the files - no relationship.

The "processor" would not have the experience as a full time processor as this is a new program with UWM.

If the loan officer uploaded questionable documents - the "processor" cannot unsee anything - this can cause a lot of unnecessary paperwork.

The processing fee is applied to the loan price adjustment - meaning the $895 charge will be a hit to the pricing of the loan.. Which can affect QM from passing...  (3rd party processing does not affect QM)

Most full time processors are very familiar with UWM and how they work.  We know how to get the CD out at the initial underwrite.  We know how to do the Ultimate Loan Submission.  We know how each department works and their strengths and their weaknesses...

I highly recommend using a real processor to process your loans.  It is more cost effective and the service cannot be beat..

Another Reason To HATE SunWest Mortgage

 

Last week the California Mortgage Expo was in town. For weeks leading up to the Expo, SunWest was on a mission to get us (brokers) to their class.  The class was titled "Divorce Your Processor: The Rise of the A.I.  

Their emails were like this:  "Learn how to divorce your processor and then invest that time and money you save into doubling your business.  The technology is here today. A productive Originator should spend 100% of his time marketing, sourcing, and havesting new relationships. Unfortunately, Orginators burn 80% of their time on unproductive work - babysitting their loan or they spend a lot of money hiring "processors" to do the babysitting..." 

The fact that SunWest put processors in quotes really got my goat.  

SunWest started making calls to the future Expo attendees - they called me TWICE.  I asked them if the knew who they were calling.... 

SunWest has always been a horrible company to work with. They are so awful that my processing company would charge more to process their files.  I as the owner refused to work with them for many reasons.  They would lose uploaded documents all the time..  You could not reach an underwriter. The customer service is in India.. (that alone bugs me - we need to keep our jobs here - but that's a different blog). Their site was NOT user friendly.  I can only imagine a loan officer trying to navigate their site and on top of that use the AI service... Supposedly the AI is now empathetic.....  Oh my gosh!

Working with a 3rd party processor has a lot of benefits and we get the job done.  Something artificial intelligence cannot do.  

Loan Officers DO NOT PAY for our services.

Contract Processors review documents BEFORE uploading and have the philosophy that less is best to avoid any potential challenges.  

We know lenders and how they work and the best way to close loans quickly.

We develop relationships with our borrowers to ensure them we are on task.  Answer any questions they might have. Hold their hand if needed.

We are pushy  - We work on behalf of our client the loan officer and we will push to get the file thru to the finish line.  

We don't get paid  unless the loan officer to gets paid - We have our time invested as well.

We work how the loan officer wants us to work  - we develop the best streamline to accommodate the loan officer's needs.

#RantOver - email me today so I can prove to you AI will never outshine a real life processor.

Kelly@thecontractprocessors.com  - Serving California and Florida

Why Should Loan Officers use Contract Processors

Loan officers may choose to use Contract Loan Processors for a variety of reasons, including:

1. Time-saving: Contract Loan Processors can handle much of the loan processing work, which saves the loan officer a significant amount of time.

2. Cost-saving: Contract Loan Processors may be able to offer loan officers competitive rates for their services, which can help reduce the overall cost of the loan processing.

3. Expertise: Contract Loan Processors have experience in loan processing and can provide expert guidance to loan officers, especially in navigating complex loan requirements and regulations.

4. Increased Efficiency: Contract Loan Processors can help increase the efficiency of the loan processing process, which can help loan officers close loans faster and more efficiently.

5. Focus on Core Business: By outsourcing loan processing tasks to Contract Loan Processors, loan officers can focus on their core business activities, such as finding new clients and developing business relationships.

Contract Loan Processors can help loan officers save time and money, increase efficiency, and provide expert guidance, enabling them to focus on their core business activities.

How a broker can get started with 3rd party processing

 

I receive many calls and emails from potential loan officers that would like to take the smart leap into working with a 3rd party loan processing company.  There are several questions that are asked and answered.  Here are the top frequently asked questions.

1.  What are your fees?                                        

2.  What are your turn times?   Within 24 hours or less.

3.  Do I work with one processor or several?  We try to have each loan officer work with 1 processor.

4. What do you need from me?

Completed application via 3.4 or POINT (PCF)

Lender information - AE contact information, Comp plan information, logins for lender and credit

Program information along with rate and impounds?

Current income, assets, mortgage statements (all properties owned), Insurance statements (all properties owned), HOA statements (all properties owned)

Current credit report.

Escrow/title information

Purchase contract (if applicable)

5.  What does the processor do?

Create the initial disclosures based on the information provided by the LO

Pre-underwrite the file to ensure the file will go as intended.

Follow up with all items needed for a complete file

Work with borrowers, LO, underwriting, and title/escrow.

Handle submission, approval, and closing conditions.

Order appraisal ONLY with written authorization from LO and borrower.

Once loan if funded - file will be audited for compliance and sent to broker

6. What won't the processors do?

Lock a loan

Discuss rate and pricing with borrowers

Create file from scratch and find a lender/home for the borrower (you would be surprised on how many LOs want us to do this)

If you are a loan officer in the state of California or Florida - We can help you.  Contact Kelly today! Kelly@thecontractprocessors.com

Contract Processors Are BETTER!!!!

Contract Processors typically have many more years experience than in house processors.  We work with all types of loan officers, lenders, and borrowers.  We are literally experts at what we do.  We can close over 200 loans a month as our team has many years experience and we don't get paid unless the broker gets paid.  It's a Win - Win.

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.  

Contract Processors Get Results!!!

 

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.  

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!"

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...