New brokers should get to know these consummate professionals. If you’re new to the ranks of the nation’s 25,000+mortgage brokers, odds are you’re still familiarizing yourself...
New brokers should get to know these consummate professionals.
If you’re new to the ranks of the nation’s 25,000+ mortgage brokers, odds are you’re still familiarizing yourself with some of the norms, processes, and terminology.
No judgement — this is a highly complex industry!
There is one particular professional you should probably get to know sooner rather than later, though. That’s the mortgage loan processor.
By working to understand their role, expectations, and communication styles — and then sharing yours — you’ll be well on your way to smoother transactions and better client outcomes.
What You Need to Know About Mortgage Loan Processors
Brokers entering the industry often ask, “What is a mortgage loan processor, and how do they fit into my workflow?”
Let’s review some of their core responsibilities, how they can help you succeed, and a few best practices for optimal results.
What is a Mortgage Loan Processor? Their Core Responsibilities
First things first: What is a mortgage loan processor?
A mortgage loan processor is a professional who works to verify the information and documents provided by borrowers, validate that loan files meet minimum underwriting guidelines, and double-check all materials before submission to underwriting.
Note: Keep in mind that understanding the role yourself isn’t quite enough. If a client asks, “what is a mortgage loan processor?” you’ll need to be able to explain clearly and confidently.
Here’s a sample script you can use:
What is a mortgage loan processor? Think of them as a pit crew. They’re not driving the car (that’s me, the mortgage broker) or calling the race at the finish line (that’s the underwriter), but are tending to every moving part — documents, deadlines, compliance checks — to ensure everything arrives safely and smoothly without delays or crashes.”
How Loan Processors Help Mortgage Brokers Succeed
The answer to “what is a mortgage loan processor?” doesn’t come down to just the tasks they complete on a day-to-day basis. Top mortgage brokers also have clarity into how loan processors can help them excel.
A great loan processor is the key to complete, organized, and fully prepared files. This can mean smoother, faster closings, which can lead to happier clients and more referrals. Working with a top-notch loan processor can also cut down on stress and last-minute emergencies, as they’ll be organized, experienced, and cool under pressure.
Best Practices for Working with Loan Processors
So, how do mortgage brokers effectively collaborate with loan processors?
To start, it helps to submit complete, clean initial files whenever possible. This will cut down on the amount of back-and-forth your loan processor might need to initiate.
When issues do arise, it’s important to champion stellar communication. Try your best to be available while the loan processor is at work and aim to provide quick, comprehensive responses.
You should also try to trust the loan processor’s knowledge of guidelines and file requirements. Remember: they’re experienced in this particular phase of the loan process.
What Mortgage Loan Processors Need to Know About Mortgage Brokers
We’ve answered the question, “What is a mortgage loan processor?” as well as built some understanding around key responsibilities, value propositions, and best practices for working together.
Now you can work to communicate some about your role, too. After all, mutual understanding can go a long way!
Core Responsibilities
Clarify that you plan to stick to your bread and butter: sourcing and working directly with clients, structuring the right loan products, setting borrower expectations, and managing relationships.
Clear boundaries around responsibilities free up the loan processor to do what they do best: organize and verify.
How Mortgage Brokers Help Loan Processors Succeed
You can also share a bit about your proposed steps toward mutual success.
That likely includes setting realistic timelines, gathering initial documents, clearly communicating borrower circumstances upfront, and acting as a bridge between the borrower and loan processor when any clarification is needed.
Best Practices for Working with Mortgage Brokers
Finally, to make the most of your relationship, provide a few gentle asks of the loan processor.
For example, kindly request that the loan processor be proactive in communicating needs and issues, offer suggestions to improve file quality without overstepping, and ultimately respect your relationship with the client.
How to Work Effectively with Mortgage Loan Processors
When working with a loan processor, some mortgage brokers may come across a few common issues.
These typically include:
- Submitting incomplete or inaccurate files
- Failing to align expectations on timelines
- Contributing to breakdowns in communication
To avoid these issues consider adding standardized checklists to your workflows, determining communication preferences (emails, calls, messaging platforms) early, setting up regular check-ins, and creating clear point-of-contact protocols.
If an issue does arise, work through it early and constructively. Then, celebrate shared wins as they come up, too!
Finding a dedicated (and proactive!) loan processing team can help you avoid these issues and provide your clients with the best service possible.
Wrapping Up: Understanding Mortgage Processors
If you're committed to strengthening your mortgage broker/loan processor relationship, it starts with a clear understanding of what a mortgage loan processor does, why their work is so crucial, and how you can facilitate an effective working relationship.
Delivering a stellar borrower experience in mortgage lending is a true team effort. So, mortgage brokers and loan processors who respect, support, and communicate effectively with each other create better outcomes for everyone, especially borrowers.
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