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Contract Mortgage Processing
Can anyone tell me more about contract processing? I do not know how contract processing works and want to know how this concept will benefit my home buyer. I have been a real estate agent and managing broker for 25 years and have worked with dozens of loan officers over the years and never hear of such thing. Is it better for real estate agents to refer clients to mortgage brokers without contract processing? Do real estate agents connect with contract mortgage processors? Who pays for contract processing? Are contract mortgage processors competent and experienced? I think processing is the most important step throughout the mortgage process. Thank you in advance.
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2 Replies
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These are good questions.
Processing is very important to the process of getting to the finish line and is a service that is provided at a cost to the client in most cases even when working with a retail bank.
Here’s the difference between working with a contract processor and a processor for a bank or even a broker that keeps it in house so to speak. Banks and staff people in a internal capacity are on a salary as a base and then they may get a small bonus based on quality and volume of loans closed. If the processor isn’t receiving much or becomes satisfied with the money, they make they don’t have much incentive to work or make themselves available on evenings and weekends. Contract processors however only get paid if the loan closes. They get paid in a similar manner as you, so they are more committed to being engaged and available because of this. Of course, this blanket statement will always have an exception. Not everyone out there fits this statement but as a general rule this is what happens.
I hope this helps. I prefer working with contract processing. I’m also able to pick who I want to work with and build my own team. This isn’t available normally in the banking or internal processing options.
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Great information on contract processing, Mr. Burg.