This is a single-family/residential course.
Simply stated, loan processing is the gathering of documents that verify information provided on the loan application. This verified information allows the underwriter or automated underwriting system (AUS) to perform an accurate risk assessment. The submission of a file to underwriting may be handled electronically via a loan origination system (LOS) or by the packaging of hard copies of documents in a loan file. Either way, the final submission of a complete, fully documented loan package is the culmination of the processing function, which highlights the skill and experience of the processor.
File Review and Submission will address the primary tasks of the processor when preparing a file for assignment to underwriting. It begins by discussing what to look for when reviewing the loan file to be certain it is ready for submission to underwriting. This includes looking at the credit characteristics of the loan, the borrower’s income and employment, and confirming sources of funds. The course then covers how to recognize typical compensating factors and how they may lower the risk of the loan.
Next, the course examines conditions. Prior-to-closing conditions and at-closing conditions are described as is the processor’s need to be familiar with the steps for generating an adverse action letter when credit is denied. The course will then examine the loan documents that need to be submitted to underwriting, focusing on the verified loan application and the transmittal summary.
Finally, at the end of the course, the course will look at the definition and impact of a “change of circumstance” on a file in processing or underwriting.
Reviewing the Loan Package
Loan File Documents
Change of Circumstance
Seat time approximately one (1) hour.