Written By: Tanisha Daniels
The post-closing audit is usually associated with an underwriting function, but it has been my experience as a post-closing Underwriter that many of the issues that arise from failed audits can be caught at the loan processing level.
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Let me explain why.
Once all the PTD conditions are received and are stacked for final sign-off by the Underwriter, this should be where the loan processor does a “doc-check” to ensure that the entire file is literally cleared to close and be sold. Let’s remember that we work in an industry plagued with disciplines rooted in taking shortcuts so it has to be a conscious effort of the Loan Processor to nearly obsess over the details.
Here are three goals I believe will help continue to distinguish yourself as a successful Loan Processor.
GOAL #1: COMPLETE THE LOAN APPLICATION IN ITS ENTIRETY
This is the primary statement of facts that nearly all post-closing audits begin with. It is used to reconcile every part of the borrower’s capacity to qualify and meet the obligations of the loan agreement. You may be surprised to know that until the loan obligation is fully satisfied, the loan application can be used to audit any point in time claim an investor may have against the lender. It is that important.
Achieve this goal by making sure that all the areas are completed in their entirety. If you have tax returns and see that the qualifying borrower has dependents – include them on the 1003. Make sure that you include the complete employment address of the qualifying borrower – use the main number for the employer’s worksite if the borrower doesn’t have a direct desk telephone number. And finally, include the complete banking information for the borrower which includes the institution name and the complete account number.
GOAL #2: STACK THE FILE APPROPRIATELY
Each lender has their own preference and you should follow their list to the letter. Include a copy of the stacking checklist in each file and use it to reconcile your file. Initial each section to notate that it has been addressed. If you’re using a paperless system, make sure that the appropriate documents are attached and labeled correctly – bookmark each document within your PDF file to ensure that each it can be found immediately.
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GOAL #3: UPDATE THE SYSTEM WITH CLOSING NOTES
The same way you close out your loan file – you should close out the loan notes and recap the file to ensure that all the necessary data is included. Things like: Appraiser name and/or license number; GFE Change of Circumstance date and Manager name if re-disclosure approval is given verbally; PTF VOE date – anything that is critical to “connecting the dots” of the file integrity should be included in the closing notes.
Simple loan processing benchmarks of success for each closed file before it reaches the investor.
We must remain aware of the fact that the stakes in the mortgage industry are getting higher. We’re performing in a highly regulated environment and no lender wants to receive a repurchase demand for what would amount to poor quality control. In a world where social media and consumer enforcement weigh consumer satisfaction – there is no “blame game” when you work for a lender who fails a post-closing audit.
Remember, in loan processing the level of success you achieve is directly related to the disciplines to your pipeline methodology and attention to detail.
Be intentional on your success. It’s highly contagious and will spread to other areas of your life.
About The Author
Tanisha Daniels - As an NAMP® staff writer, Tanisha Daniels is a lead instructor for Loan Processor University (www.LoanProcessorTraining.org) as well as has over 10+ years mortgage experience. She has used her baseline experience in loan processing to contribute to progressive and successful roles supporting Retail, Wholesale, and Correspondent clients. She has worked as a frontline and post-closing Underwriter, Account Executive, and Loan Modification Processor. She currently works as a contract Loan Processor for 2 small independent licensed Retail MLO’s. If you're interested in becoming a writer for NAMP®, please email us at: contact@mortgageprocessor.org.
