Mortgage closing times are a critical factor in the residential real estate business. Home buyers choose mortgage companies that improve their chances to get the deal done, and house sellers are likely to accept offers from buyers that can close the transaction sooner rather than later. And although loan officers want to help these close their deal fast, ultimately, the loan processing readiness of the mortgage lender is what'll make the difference between quickly approved loans and a three month's wait.
The time from application to loan approval can be shortened when loan officers work with lenders that offer in-house underwriting. If the mortgage branch services company has received the direct endorsement designation by the federal Housing Administration, FHA, the approval time will be even shorter.
When a member of a lender's network submits a loan for approval, it is the lender's underwriter interest to process the loan quickly. The underwriter is employed by the mortgage lender, and the lender wants to nurture its branch members. When an independent loan officer or mortgage broker submits an application to a large bank, the bank's underwriter processes all loans the same. Mortgage originators that are not part of a banker's network have no lever with its loan processing team.
Normally, once the lender has processed the application, FHA related loans are sent to the Federal Housing Administration for final approval. If the lender has the direct endorsement designation, the in-house underwriter can grant FHA approval without further time delays. Mortgage lenders that don't have this designation, have to send the loan application to the FHA for approval. The administration’s turn around time depends on their applications' queue, sometimes short and sometimes long.
In short, a mortgage branch gains a competitive edge when it works with lender's that have motivated underwriters ready to give FHA approval in-house. Rather than loan’s processed, the success of a mortgage branch depends on the volume of approved loans. A branch that builds its reputation in its capacity to approve loans quickly has a long lasting word of mouth referral network.
At Cross Country Mortgage we know that closing times are critical for the success of a branch. This is why we support our branch partners by training the loan processing team and underwriters to quickly process loans. We are offering mortgage branch opportunities to seasoned loan officers that want to open a branch. If you are looking to open a mortgage branch, visit our website to learn more.
As the Mortgage Branch Leader we want to partner with seasoned mortgage professionals who want to open a mortgage branch. Out mortgage branch opportunities are a better alternative to the net branch opportunities out there. As a branch partner, and contrary to a mortgage net branch, working with a direct agent, full eagle lender, you’ll get competitive pricing, full product portfolio, and other benefits. Best of all, we are team oriented company that recognizes that your success is a requirement for the sustainability of our business. Please visit our website to learn more