Mortgage Underwriting

We offer mortgage underwriting support for Correspondent Clients. Mortgage underwriting is a critical step in the loan approval process where a lender assesses a borrower's eligibility, creditworthiness, and the risk associated with a mortgage application. Here's an elaborate overview of the steps involved in our mortgage underwriting:

  • Loan Application and Initial Review:
    • Receipt of Application: The process begins with the receipt of a complete mortgage loan application from the borrower. This application typically includes details about the borrower's financial history, income, assets, liabilities, and property information.
    • Initial Screening: Our Underwriters conduct an initial screening to ensure that the application is complete and meets basic eligibility criteria. This may involve checking for essential documents, verifying income sources, and confirming the accuracy of the information provided.
  • Document Verification:
    • Gathering Documentation: The underwriter with Processing Team’s support collects and reviews documentation provided by the borrower, such as pay stubs, tax returns, bank statements, employment verification, and property appraisals.
    • Verification of Information: The underwriter verifies the accuracy of the information provided by the borrower. This includes confirming employment details, income sources, outstanding debts, and other financial information.
  • Credit Check:
    • Credit Report Review: The underwriter obtains the borrower's credit report and assesses their credit history. This includes examining credit scores, outstanding debts, payment history, and any derogatory marks.
    • Credit Risk Evaluation: The underwriter evaluates the borrower's credit risk based on the credit report and considers how it may impact the loan terms.
  • Risk Assessment:
    • Analysis of Risk Factors: The underwriter assesses various risk factors, including the borrower's debt-to-income ratio, loan-to-value ratio, employment stability, and overall financial health.
    • Underwriting Guidelines: The underwriter applies the Investor’s underwriting guidelines and policies to determine if the loan meets acceptable risk levels.
  • Decision Making:
    • Conditional Approval or Denial: Based on the comprehensive analysis, the underwriter makes a decision. The loan may be conditionally approved with specific requirements, or denied.
    • Conditional Approval Conditions: If the loan receives conditional approval, the borrower must satisfy certain conditions before final approval and closing. These conditions could involve providing additional documentation or addressing specific issues.
  • Final Approval and Closing:
    • Satisfaction of Conditions: The borrower fulfills any outstanding conditions outlined during the conditional approval stage with the help of Processing.
    • Final Approval: Once all conditions are met, the loan receives final approval, and the underwriter issues a clear-to-close, indicating that the loan is ready for closing.
    • Closing Process: The closing process involves finalizing the loan documents, signing the mortgage note, and completing any remaining paperwork. The borrower receives the funds, and the property officially changes hands.
  • Quality Control and Post-Closing Review:
    • Quality Control Checks: Underwriting QC will conduct quality control reviews to ensure underwriting accuracy and adherence to internal policies.
    • Post-Closing Review: After closing, Underwriting QC will perform a post-closing review to confirm that all documents are accurate and complete.