How does an emerging mortgage banker order closing documents and handle post-closing?
How does an emerging mortgage banker order closing documents and handle post-closing?
This is one of the more common questions I hear from those transitioning from broker to banker. In today’s short video, I will break down and explain three different ways that you can order closing documents.
I will also explain how third-party fulfillment providers can be leveraged to assist in the post-closing process to help expedite loan purchase.
Now, if you have not yet done so, remember to take advantage of our complimentary 30-minute strategy call where we analyze your situation and discuss whether a banker transition process is right for you!
During this call, we will provide practical expertise and understanding of the process from mortgage licensing, investor approval and relations, warehouse bank selection, third party fulfilment providers, E&O and Surety bond companies, origination strategies, coaching, consulting, and more!
SeanS@BrokerToBankerConsulting.com
Call/Text: (714) 844-7146
As a starting point, the ability to draw your own closing documents and schedule the closing independently can be a game changer especially in a purchase money market. However, one of the biggest concerns I hear is that you don’t have the staff to handle that, but because there are solutions for these concerns so don’t get overwhelmed!
Also, don’t fall into the trap of having the end investor approve your loan, deliver the closing documents, and also be the warehouse line. This takes away from the closing autonomy you have created and restricts your ability to obtain the best pricing with a variety of investors.
First off and as mentioned above, the end investor purchasing your loan may offer closing document support options for its non-delegated correspondents. Now, this does not customarily include post-closing assistance.
Just to clarify, the term non-delegated correspondent means that you are responsible for funding and delivery of the loan package to the approving lender, but you are not responsible for underwriting and approving the loan since that is handled upfront by the investor who purchases the loan from you.
Additionally, you could employ a dedicated closer within your company or assigned to your team. This provides you with the most hands-on involvement and allows a dedicated team member to be involved in both the closing and post-closing of a loan file. This will require additional human resources to fill the position.
Now, yet another alternative to ordering closing documents is to be able to outsource the closing and post-closing aspect to a third-party fulfillment provider who can order and deliver closing documents, request the wire from the warehouse bank, and coordinate loan funding.
They can also assist with post-closing document request such as final title policy, deed of trust, and more.
It is also important to note that you can list this charge on your disclosures, so it becomes part of the borrower’s settlement charges.
You may also have a closer on your team work in conjunction with a third party fulfillment provider.
In summary, there are a variety of ways you can choose to coordinate loan closing documents as well as handle your post-closing responsibilities. Understand the strengths of your organization and determine what way will provide the most efficient and compliant solution.
Now, wouldn’t it be nice if there was a blueprint available that would walk you through the steps on how to climb the mortgage banker ladder!
Well, that is where we step in to help with our practical expertise and understanding of the process from mortgage licensing, investor approval, warehouse bank selection, third party fulfilment providers, E&O and Surety bond companies, origination strategies, coaching, consulting, and more!
You can simply use our online scheduler to select a convenient consultation time and let us show you the Path to Prosperity!
Sean A. Stephens, Esq., CMB®
Broker to Banker Consulting, LLC
SeanS@BrokerToBankerConsulting.com
Call/Text: (714) 844-7146
Toll Free: (866) 989-0564 Ext. 419
Sean A. Stephens, Esq., CMB®
Legal Disclaimer: The information provided on this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this site are for general informational purposes only. No representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, or availability to this information. Use of, and access to, this Blog or any of the links or resources contained within the site do not create an attorney-client relationship. Sean A. Stephens, Esq. is an attorney licensed under the State Bar of California #332960. Broker to Banker Consulting, LLC is not a law firm and does not provide legal services.
