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Processing a Loan

This guide explains the loan processing workflow in ReversePilot, including document collection, data verification, and preparing applications for underwriting.

Overview

Loan processing involves:

  • Collecting and verifying required documents
  • Completing data entry
  • Ordering third-party services
  • Verifying borrower and property information
  • Preparing the application for underwriting

Processing Workflow

Step 1: Receive Application

When a loan is submitted for processing:

  1. Loan status changes to "Processing"
  2. Processor is assigned (if applicable)
  3. Application appears in processor's work queue
  4. Review initial application for completeness

Step 2: Document Collection

Collect all required documents:

Borrower Documents

  • Identification: Driver's license, passport, or other government-issued ID
  • Social Security Card: Copy of SSN card
  • Income Documentation:
  • Social Security award letters
  • Pension statements
  • Retirement account statements
  • Bank statements
  • Asset Documentation:
  • Bank statements (2-3 months)
  • Investment account statements
  • Property ownership documents

Property Documents

  • Appraisal Report: Complete FHA or conventional appraisal
  • Title Report: Preliminary title report
  • Flood Certificate: Flood zone determination
  • Property Tax Statements: Current year property tax information
  • Homeowners Insurance: Current insurance policy

Loan Documents

  • Credit Authorization: Signed credit authorization forms
  • Disclosures: Initial disclosures (TIL, GFE, etc.)
  • Counseling Certificate: HECM counseling certificate (if applicable)

Step 3: Data Verification

Verify all entered information:

Borrower Information

  • Verify names match identification documents
  • Confirm SSN matches Social Security card
  • Verify addresses match documentation
  • Check dates of birth

Property Information

  • Verify property address is complete and accurate
  • Confirm appraised value matches appraisal report
  • Verify property type and occupancy
  • Check property charges match title report

Financial Information

  • Verify income amounts match documentation
  • Confirm asset values match statements
  • Check liabilities match credit report
  • Verify all debts are accounted for

Step 4: Order Third-Party Services

Order required services:

Credit Reports

  • Verify credit reports are ordered
  • Review credit report data
  • Note any credit issues
  • Ensure all borrowers have credit reports

Flood Certificate

  • Order flood certificate if not already obtained
  • Review flood zone determination
  • Note any flood insurance requirements

Title Services

  • Order title report
  • Review title issues
  • Verify property ownership
  • Check for liens and encumbrances

Appraisal

  • Verify appraisal is ordered (if not already done)
  • Review appraisal report
  • Confirm appraised value
  • Check for property condition issues

Step 5: Complete Data Entry

Enter any missing information:

Complete Borrower Information

  • Add any missing personal information
  • Complete demographic information (HMDA)
  • Add alternate contact if missing
  • Enter license information if applicable

Complete Property Information

  • Enter complete property details
  • Add appraisal information
  • Enter all property charges
  • Complete property tax information

Complete Financial Information

  • Enter all income sources
  • List all assets
  • Enter all liabilities
  • Verify calculations

Step 6: Review and Quality Check

Before submitting to underwriting:

Completeness Check

  • [ ] All required documents collected
  • [ ] All data entered and verified
  • [ ] All third-party services ordered
  • [ ] Credit reports received and reviewed
  • [ ] Calculations verified
  • [ ] Fees entered and verified

Accuracy Check

  • [ ] All information matches documentation
  • [ ] Names and addresses are correct
  • [ ] Financial information is accurate
  • [ ] Property information is correct
  • [ ] Calculations are accurate

Compliance Check

  • [ ] HMDA data complete
  • [ ] Disclosures generated and sent
  • [ ] Counseling certificate obtained (if required)
  • [ ] All required signatures obtained

Step 7: Submit to Underwriting

Once processing is complete:

  1. Change loan status to "Submitted to Underwriting"
  2. Add processing notes
  3. Highlight any special circumstances
  4. Notify underwriter (if applicable)

Document Management

Uploading Documents

  1. Navigate to the appropriate section
  2. Click "Upload Document" or "Add Document"
  3. Select the file
  4. Enter document description
  5. Save

Document Organization

  • Organize documents by type
  • Use clear, descriptive names
  • Ensure documents are legible
  • Keep documents in appropriate sections

Document Verification

  • Verify documents are complete
  • Check that documents are current
  • Ensure documents match entered data
  • Note any discrepancies

Communication

With Loan Officers

  • Request missing information
  • Clarify discrepancies
  • Provide status updates
  • Coordinate document collection

With Borrowers

  • Request additional documents
  • Clarify information
  • Provide status updates
  • Coordinate appointments

With Third-Party Vendors

  • Order services
  • Track service completion
  • Review service results
  • Resolve issues

Common Processing Tasks

Adding Missing Information

  • Complete incomplete sections
  • Add missing borrower information
  • Enter missing property details
  • Complete financial information

Correcting Errors

  • Fix data entry errors
  • Update incorrect information
  • Correct calculation errors
  • Resolve discrepancies

Handling Issues

  • Document property issues
  • Note credit issues
  • Record title issues
  • Address compliance concerns

Status Management

Status Transitions

  • Processing: Application being processed
  • Submitted to Underwriting: Ready for underwriter review
  • Returned: Returned for additional information

Status Notes

Add notes when changing status:

  • Processing completion summary
  • Special circumstances
  • Outstanding items
  • Instructions for underwriter

Best Practices

  1. Be Thorough: Complete all required tasks
  2. Be Accurate: Verify all information
  3. Be Organized: Keep documents organized
  4. Be Timely: Process within expected timeframes
  5. Be Communicative: Keep stakeholders informed

Troubleshooting

Missing Documents

  • Contact loan officer or borrower
  • Request documents promptly
  • Document requests in notes
  • Follow up on outstanding items

Data Discrepancies

  • Verify against source documents
  • Contact loan officer for clarification
  • Document resolutions
  • Update system with correct information

Service Delays

  • Follow up with vendors
  • Document delays
  • Communicate with stakeholders
  • Escalate if necessary

Next Steps

After processing:

For questions about processing, contact your administrator or refer to the Support Documentation.