5 Common Loan Processing Mistakes and How to Avoid Them

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As a mortgage loan processor, it is your responsibility to review the mortgage applications assigned to you, make sure borrowers have submitted the correct paperwork, and ensure that all the information in each application is accurate.

 

Loan processors serve an integral function in the mortgage industry — from verifying information to connecting the mortgage loan originator with the loan underwriter, you are one of the most important pieces of the puzzle.

 

Unfortunately, that means that even small errors can lead to big problems. If you are trying to grow in your career as a loan processor, here are five common mistakes and how to avoid them.

 

  1. Being Disorganized

When a borrower submits their materials to be processed, the processor has to ensure that the borrower has included all the necessary documents, including income information, employment verification, and bank statements. You are also responsible for verifying and organizing all of these documents before submitting them to the underwriter. Even one misplaced file can have serious consequences.

 

  1. Not Communicating Effectively

Whether you deal with the borrower directly or communicate through their loan originator, you need to be an effective communicator to succeed. If you are missing any documentation from the borrower, you must know how to communicate what you need them to submit.

 

It is also a good practice to be proactive in keeping everyone updated on the status of their loans. If you do not deal directly with the borrower, let the loan originator know so they can relay the information in a timely manner.

 

The better you can communicate your needs, the faster you can submit the loan applications assigned to you for approval and the happier the borrower and loan originator will be.

 

  1. Being Careless with Data Entry

Mortgage processor jobs require a lot of data entry, and as you know, even a small data entry error can have serious consequences for the borrowers and lenders. All mortgage processor jobs require a keen attention to detail that not everyone has and you will have difficulty becoming a successful mortgage processor without honing this skill.

 

  1. Not Using Mortgage Loan Originators to Your Advantage

You need to keep loan originators in the loop and make sure that they return the favor. The reason? When it comes to support, loan originators (LOs) can be your biggest asset if you want to speed up your processing. (Read more tips for closing a mortgage loan quickly here.)

 

If the borrower is taking a long time to submit the correct documents, the loan originator is spending more time working toward their commission. Try setting up a regular meeting with the LOs to discuss any problems that are slowing down the mortgage application process.

 

  1. Failing to Use the Best Tools for Mortgage Processor Jobs

A mortgage Loan Origination System, or LOS, takes the loan applications from start to finish. It securely stores all borrower, lender, and client documents; allows the loan originator to digitally submit applications to lenders; and acts as a communication portal between the broker, borrower, and lender. Using a system that is easy to navigate, has excellent customer service, and isn’t afraid to evolve and innovate is key. Technology should save you time, not cost you time.

 

Are you looking for a better, more efficient way to process your mortgage loan applications?

 

At wemlo, we wanted to do something about the slow processes and outdated systems that plague mortgage loan processing, so we built an all-in-one digital platform. Sign up for a demo today to see how we’re transforming the mortgage loan processing industry.

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