Let me put it this way, if you were buying a house that is new construction, would you prefer to buy one that had plans drawn up by an architect, or ones that the builder pulled off the internet for free?
With the dawn of automated underwriting, whether it be DO, DU, LP or a lender's propriatary system, many mortgage brokers and lenders developed the theory that a good mortgage processor wasn't an intrinsic part of the loan process anymore. Loans fit into nice little cubby holes, where they either fit the program or they didn't. The automated systems approves the loan and spits out a nice, neat checklist. The perception is follow the checklist and anyone can process loans. How hard can it be to gather items on a list? Many mortgage brokers who had full time processors and underwriters on staff down sized significantly. Originators picked up a lot of the processing work directly, and companies saved money but not having to employ full time processors or underwriters on staff.
So what has changed? We still use automated underwriting systems. Those systems still spit out a list, isn't it just as easy as ever? With the recent virtual elimination of the subprime market, drastic reduction of limited documentation products available, there is a huge need for a return to the old school arts of process and underwriting. Before, if a deal was tough to document, it could be flipped into a limited doc, or even no doc program, with a pricing hit and closed. There were so many loan programs available, why kill yourself to make a tough deal work, originators could either sell the no doc rate, or drop the deal all together in favor of closing an easier deal. Not so easy anymore, there probably isn't a no doc deal to flip it over to anymore. There definitely are not enough loans on the table anymore to just give up a client because the loan is going to be too tough, or too much work! This is where a good mortgage processor can come to the recue!!!!
Good mortgage processors, know loan programs. They know how to document tougher deals, they know what lenders are looking for to document income, assets etc. They know how to use automated underwriting systems correctly to get accurate findings the first time. They are good at tracking down documents an originator may not have the time or experience to locate. A good processor is able to paint a clear, documented picture for an underwriter, which can enable you to get a refer or manual underwrite to work on a case that would have been declined if the picture wasn't so clear. They can also offer you options as far as lenders and loan programs that may work for your tough deals. In addition lenders love working with good processors. Turning a well documented file into a lender puts an undewriter in a lot more pleasant state of mind than a file that takes them a long time to work through, that has a long list of stips right off the bat. Which manual file do you thing an underwriter is more likey to sign off on????
Even better, with a good processor you can work tough deals without spending so much time on it that you loose out on other profitable deals. You can maximize your time, while still not giving up a single deal. A good processor is an expert at what they do, which allows originators to spend way more time doing what they are good at!!
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