Chapter 1
Federal Mortgage Laws and Consumer Protection Regulations
Course: Safe Mlo Prep
Subject: Safe Mlo Prep
Chapter: Mortgage Loan Origination Activities
OVERVIEW
Loan processing involves organizing, verifying, and submitting all required documentation to move a file from application through to the underwriter's desk. The processor plays a critical coordinating role — and the MLO must understand every step of the process to manage the borrower's experience and timeline effectively.
- The Loan Processor's Role
The processor is responsible for:
- Ordering the appraisal (after borrower's intent to proceed)
- Ordering the title search and title insurance
- Ordering verifications of employment (VOE)
- Collecting and reviewing all income, asset, and credit documentation
- Assembling the complete underwriting package
- Communicating with borrowers, real estate agents, and the underwriting team
- The Title Search
A title search examines public records to:
- Confirm the seller holds marketable title to the property
- Identify any existing liens, judgments, or encumbrances on the property
- Identify any easements, restrictions, or other title defects
- Confirm the legal description of the property matches the purchase agreement