A Loan Closer’s Nightmare

By Jean Oneal, Business Analyst, DocuTech Corporation

As a loan closer I was used to facing daily challenges that I relied on others to help out with. There are a handful of different variables that affect each and every day. One thing I do know is the value of available resources to get my job done. These resources are critical in making sure I complete my job. As I was contemplating different challenges, my mind came across 5 items I found critical as a loan closer.

(1) No Re-entry of Data

I’ve just received a rush loan closing.  The borrowers will be at the closing table in an hour.  I have to get the Closing Documents to the closing agent as soon as possible.  I’m sitting at my computer entering all the loan information in the Loan Origination System as quickly as possible.  I’ve finally added the last closing condition and I’m ready to import the loan to my document preparation system.  As the loan opens in my Document Preparation System I notice very little of the data I entered has imported.  Now I have to go through all the screens on my Document Preparation System and re-enter all this loan information again.  If  it’s in my loan origination system it should import to my document preparation system.  I wish I could find a document preparation system that would not make me do this. When I have a deadline, it’s nice to not have to deal with re-entering this data and have the ability to move on to the next task.

(2) Maintains Initial Disclosure Amounts

I’ve got several loans I need to get out today.  Here comes the Shipping Manager with one of my loans.  She says it doesn’t meet the new RESPA Guidelines and I need to figure out how to fix it so the Investor will purchase it. As I compare the closing documents with the initial disclosure documents I notice the loan officer has changed fees and added new fees that were not initially disclosed to the Borrower.  Now I have to figure out how much money needs to be refunded to the borrower and how to explain this to the loan officer so I can get the money back from the Broker.  There has to be a better way to do this.  An issue like this should be caught before the documents are sent to the closing table.  Why couldn’t a warning have flashed on my screen letting me know the initial fees did not match the closing fees?

(3) Document Maintenance

I have one more task to add to my To Do List this month.  My manager says it’s my turn to help update our documents with the latest changes.  The new RESPA changes are about to start.  That means I have to work on the calculations for all the different categories on the new documents.  I also have to make sure all the fees are printing in the correct spaces as well.  I’m good with math but I’m not a mathematician!  I bet there have been a lot of changes on the Investor level as well.   What about the State Regulations.  Have they made a lot changes as well.  On top this I still have closings I need to get out.  Looks like I’ll be putting in a lot of late nights this month.  We need someone who can do this for us on a regular basis.  What if I can’t figure out how to do all these calculations?  Is there someone out there who can help me?

(4) Compliance  

I have the luck of the draw today.  Look at this loan.  I’ve never heard of this loan program before.  It just happens to be locked with our most difficult Investor as well.  I need to go to the Investor Website and see if I can figure out how this program works.   On top of this loan being locked with a new program it just has to be an FHA Loan.  There are now FHA Guidelines I haven’t figured out yet.    Oh no!  The loan officer just called and said they’ve moved the closing up and they need the documents in two hours.  I’ll never get this figured out before closing.  I wonder if I could swap this loan for one from the closer behind me.   No, I can’t do that.  She’ll hate me for it.  I need help!  I wish I could just pick up the phone and call someone who could explain all this to me.

(5) Pred Check/High Cost Check available

Can my day get any worse?  I did a favor for a loan officer and closed this loan in a super rush.  Now I find out it’s a high cost loan and the investor won’t buy it until it’s been fixed.  I’ve got to figure out how much money needs to be refunded to the borrower.  Then I need to redo the Truth in Lending, Closing Statement and other documents and send them to the borrower with a friendly letter explaining why they have to sign these again.  I’ve also got to explain to the loan officer why this wasn’t caught before closing and ask him to send back the money that needs to be refunded.  I know he’s going to argue about the amount of money he’s losing.  It would really make my job easier if there was a way to find out if a loan is a high cost loan before the loan documents are signed by borrower?   

Summary

There are answers to these questions. For years DocuTech has focused on these daily challenges to make the loan closers life a bit easier.. As a Mortgage Technology Top 50 Service Provider our mission is simple; make any worries about documents and compliance go away and provide you with the best customer service experience in the industry. Thanks for letting us be involved in your business. We have the staff that understands  those needs!  With that said, if you are using us for your compliance documents, wouldn’t it be great if you could have confidence in your document company to handle issues like these?