Yep, with the month end wrap up of one of the busiest months of the year, I bet every ops team out there had that one file…The one file that needed a C of C right at the end. Do you have a process where YOU (as the LO) actually sign off on the CD, or does it just go out to the client after you’ve requested it? Whom ever your “Lender” is, wholesale, retail, it doesn’t matter, there should be a compliance process in the loan where the person whom’s NMLS number is on the file, is the one that “signs off” on the generated CD prior to being sent to the client. That way every aspect of the loan is verified. You would think LO’s would go over the disclosures with the client. But some, just notify the client to sign the disclosures rather than detail the transaction and check every thing. (probably a good idea to do this prior to the client reading it) 🙂
If I was to make a check list of things that would be a best practice on a loan, as an LO, right about the time I “turn in” the last of the last condition so my file is CTC, I would double check a list. A list that would look like this;
Things to check on a loan prior to closing disclosure being sent out;
- Lock confirmation (best to do within 24 hours of initial lock by the way)
- Check 1003 declaration questions, employment, and all aspects of 1003
- Make sure client isn’t quiting their job. LOL. – Good idea to foreshadow a call to HR when the “verbal” is done.
- Make sure the client didn’t open or inquire on any new credit. – Again good idea to foreshadow during the process, however at the end again verify with them that ops has a process to double check they didn’t open any new credit throughout the underwriting process.
- DETAILS of Transaction – Obviously the cash to close, and remember all the way to the end some things can in fact change. That cash to close should be + or – about 250-500 dollars accurate to the penny. (especially if it’s locked).
- Go back over all the benefits of a loan, describing the 1st payment being out another 30 days (everyone loves this – mortgage interest is paid in arrears)! Go over every aspect, new home, saved payment, skipped payment, consolidated debt total difference etc. That way you will have “less” instances where someone cancels or rescinds a loan.
While these are just basics, the whole aspect of it all is part of the “nature of our beast” being in the mortgage industry. #Createabestpractice #Checkyourlocks #WhackedOutWednesday