Is mortgage processing excellence a thing of the past? It doesn’t have to be!
by Evan Vanderwey on 23/07/10 at 1:35 pm
This week my team submitted a loan and the underwriter gave us a “clear to fund” on the first try! This has not happened in my office since 2007.
Face it, the loan processing business is tougher than it used to be. But it doesn’t have to frustrate clients. Two thoughts before I begin:
1. This post is as much for me as it is for all of us (processors, clients, underwriters, etc.).
2. This is something that I know my team agrees with and strives for every day. I am writing this as a result of my team making me believe that mortgage lending can be fun again. They are truly committed professionals. I am indebted to them. Thanks Kandice, Karen and Kim!!
How to achieve mortgage processing excellence:
We are always striving to simplify and improve how we manage the loan files that we decide to take. We are committed not only to this, but also to this industry long term. Without this commitment, mortgage processing excellence will never happen.
The process starts with understanding what a well-qualified loan is. The lines have been drawn in new places these past few years, so we are recommitting to this standard in 2010. We endeavor to serve the mortgage lending needs of Michigan residents for decades to come. We readily take good applications and we also help those whose qualifications are marginal to become well qualified. This has been our commitment for over a decade.
The next step is preparing the customer to meet with us. The more data we have ahead of time the more valuable the appointment is for the client.
When we determine that we should take a mortgage application and the client agrees, we start the following process:
Stage I.
We set up the file.
(Application is filled out and our preliminary list of information is requested and gathered, appraisal and title work are ordered, a complete list of remaining items needed is given to the customer, disclosures are sent to the customer for signatures.)
Stage II.
We are waiting for the appraisal.
(During this time we are receiving and reviewing items that were requested from the customer; customers who follow through on the entire list make life easier on them and us. We will pester customers here if we need to. 
)
Stage III.
The appraisal is received.
(We read the report and determine if it is acceptable for the loan terms; necessary calls are made to the customer, realtors, other interested parties; report is emailed to customer.)
Stage IV.
We finish processing the file.
(Final items are requested from the customer, and corrections and alterations are made to the appraisal, title work, insurance dec pages, as needed. In a perfect world most of this is done by the time the appraisal is received.)
Stage V.
The file is ready to submit for (final) underwriting.
(Upload file securely to underwriter as required; call is made for confirmation of receipt of file by underwriting.)
Stage VI.
The loan file has been submitted for underwriting.
(Here we are waiting for an answer from underwriting – one to three days depending on loan volumes affected by rates and other market conditions. During this time we are preparing for closing documents as we are able.)
Stage VII.
The underwriter’s conditions are received.
(Generally, this is the same day we gather and submit the paperwork or clarification that is required by the underwriter. This can be a bit frustrating as underwriters are under much greater pressure to make their files perfect, but we are generally able to handle them easily, mostly because we took a good file and had a lot of information up front.)
Stage VIII.
We’re clear to fund.
(All conditions are cleared, closing documents are prepared, and closing time/date/location are confirmed. A pre-closing review meeting is set with the customer to go through the closing documents prior to the closing.)
**Important Note**
We want to allow the earlier stages to constantly learn from and be informed by the later stages. For example, if we are given a “new” condition from underwriters consistently in stage VII, then we want to add that to the analysis and list in stage I. Customer feedback is also evaluated regularly, and changes are made to the appropriate stage as needed.
Processing one loan is a very simple thing to do – the above process can be understood easily and it is easy to follow. The challenge is to keep track of 40 to 50 details on 40 to 50 files. 50 x 50 = 2500 details! That is a lot to keep track of.
But it is very do-able. In fact, my team is doing it very well right now. Yet we can always get better!
Excellence is the Key
The key to increasing our closing success and customer satisfaction is an excellent process and excellence in the process.
Our daily focus is to quickly move files from one stage to the next all the while keeping the customer well informed of what is happening and what their role is.
Our success will be enhanced as we increase the level of excellence each time a file is touched at every stage.
So my main point today is this:
When we have a task to do we need to focus on that task and do it completely.
Everything we do up front does not have to be done later and saves time.
When we save time we have more time to use for customer communication.
I appreciate my team a great deal. I would not do this business without one and I would not enjoy it as much without THIS one. And I know that you will appreciate them as you work with us.
We ask that you evaluate us often and help us improve because our aim is to give World-Class Customer Service to you and to those to whom you introduce us.
Thank you for your business!
