Mortgage brokers
and loan officers rely on loan processors to process and fund their loans. Since the mortgage industry has taken a big fall in the recent years, it is no longer beneficial for most mortgage brokers who are closing one or two loans a month to have a loan processor working from their office. Therefore, their alternate solution is hiring Contract loan processors. Contract loan processors work out of their own office, which means the mortgage broker would no longer have to spend money on extra office space. Most contract loan processors charge a flat rate per file. The average contract processor charges between $400.00 to $700.00 per closed file. That means the broker saves more money by not paying the processor a salary or hourly wage. They also save even more money by not paying for health benefits, sick leave, office supplies etc. The money that the brokers save by hiring a contract loan processor can be used on advertising to generate more leads. You can see why hiring a contract loan processor would be a wiser choice for any mortgage broker.
Contract loan processors are responsible for submitting the file to the lender, ordering and filling out necessary paperwork, locking the rate, verifying and reviewing paperwork to make sure nothing is missing from the file, working on the conditions, monitoring the file with the lenders to ensure a smooth and accurate closing, updating the loan status with the mortgage broker on a daily basis and funding the loan. In other words, contract loan processors make life easier for the mortgage brokers and loan officers because they do pretty much most of the work.
Finding the right contract loan processor however, can be a difficult task because no two processors work the same way. Some processors are just way more experienced, aggressive and work driven than others. Choosing the right contract loan processing company can make a big difference in the amount of files you will close on a monthly basis. Contract loan processors can be found online by doing a simple google search.
