About those es­sen­tial loan pro­ces­sors

Home - Santa Fe Real Estate Guide - - MORTGAGEMATTERS - JIM GAY

While some in­ex­pe­ri­enced loan of­fi­cers may dis­agree, those of us who have been in the mort­gage-loan busi­ness for­ever know that the most im­por­tant ally a bor­rower has in the loan-ap­proval process is the loan pro­ces­sor. When ap­ply­ing for a home loan, make friends with the pro­ces­sor. It will pay div­i­dends.

The loan of­fi­cer is of­ten away from the of­fice so­lic­it­ing new clients and while just a phone call away, it might oc­cur to you to just ring up the un­der­writer, the last word in loan ap­proval... or not. Well, you can’t. The ac­tual un­der­writer for your loan will not talk di­rectly with you. What do you do when your loan of­fi­cer is un­avail­able and you can’t talk with the un­der­writer? You call the pro­ces­sor, who knows all there is to know about your loan: what you need to com­plete, the pa­per­work re­quire­ments, where you are in the process, and when you can ex­pect to close.

Pa­per­work doc­u­men­ta­tion has def­i­nitely in­creased in the mort­gage world. In fact, that is a big fat un­der­state­ment! Ev­ery bor­rower faces more dis­clo­sure than you ever thought you knew about your- self. Even ver­i­fi­ca­tions that seem to­tally un­nec­es­sary are be­ing re­quired. A good pro­ces­sor will help you by ex­plain­ing why the ex­tra pa­per­work is re­quired and will strive to rea­son with the un­der­writer, some­times re­sult­ing in a mod­i­fi­ca­tion of re­quired doc­u­men­ta­tion.

Be aware that with the Truth in Lend­ing Act, lenders are now re­quir­ing more dis­clo­sures and ver­i­fi­ca­tions than. Re­quire­ments that seem like a per­sonal im­po­si­tion come from the top, from fed­eral law. The Dodd Frank Bill was put in place to ad­dress con­cerns that re­sulted from loan de­faults as far back as 2008. The think­ing is that fully doc­u­mented loans pro­tect against fu­ture de­fault.

Fan­nie Mae con­tin­u­ally changes its un­der­writ­ing guide­lines. When yet an­other change comes down, who do you think has to learn the de­tails and in­cor­po­rate ev­ery one into their sys­tem? Your loan pro­ces­sor. These peo­ple are the glue in a mort­gage com­pany or bank. They are re­spon­si­ble for most of the in­ter­ac­tion with un­der­writ­ers. Be­sides work­ing with un­der­writ­ers, they must deal with bor­row­ers, who can be­come con­fused and frustrated. More of­ten than not, it is the pro­ces­sor who calms nerves, an­swers ques­tions, and holds hands.

Most mort­gage com­pa­nies re­quire the loan of­fi­cer to lock the in­ter­est rate for the loan, in­ter­pret the loan ap­pli­ca­tion, and ac­cu­mu­late all ini­tial pa­per­work from the bor­rower. On top of this in­ter­ac­tion with each bor­rower, the loan of­fi­cer is also re­spon­si­ble for at­tract­ing new busi­ness.

If you want to know the sta­tus of your loan, call your pro­ces­sor. A po­lite call to your pro­ces­sor will al­ways get you fur­ther down the road to­ward clos­ing. “Pro­ces­sors are fa­cil­i­ta­tors in the loan process,” said Shane Cro­nen­weth from Sotheby’s In­ter­na­tional Realty. “They are es­sen­tial to the process of clos­ing the pur­chase of a home in a timely man­ner.” Shane has been a bro­ker in Santa Fe for many years and knows the lend­ing process.

The head pro­ces­sor at our busi­ness, The Mort­gage Place, is Tammy Branch, who has been­work­ing with un­der­writ­ers for over 20 years. I had a client who sent flow­ers to Tammy just to show how ap­pre­ci­ated her in­tel­li­gence, time and at­ten­tion were dur­ing the ap­proval process. Pro­ces­sors rock! They are the unsung he­roes of the mort­gage loan busi­ness. Be nice to them! Their jobs are hard, but with ev­ery cour­te­ous, co­op­er­a­tive client they cel­e­brate the suc­cess­ful day their client goes from bor­rower to home­owner.

Jim Gay was a real-es­tate bro­ker for 20 years and has been a fi­nan­cial con­sul­tant to For­tune 500 com­pa­nies. He is cur­rently a bro­ker/owner ofThe Mort­gage Place (986-9080) and can be reached at [email protected] jim­gay­home­m­o­rt­gage.com.

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