RC_LP_P_200.5 File Review and Submission

Simply stated, loan processing is the gathering of documents that verify information provided on the loan application. This verified information allows the underwriter or automated underwriting system (AUS) to perform an accurate risk assessment. The submission of a file to underwriting may be handled electronically, via a loan origination system (LOS), or by the packaging of hard copies of documents in a loan file. Either way, the final submission of a complete, fully documented loan package is the culmination of the processing function, which highlights the skill and experience of the processor.

File Review and Submission addresses the processor's primary tasks when preparing a file for assignment to underwriting. The course begins by discussing what processors look for when reviewing the loan file to be certain it is ready for submission to underwriting. The course then describes how to recognize typical compensating factors and how they may lower the risk of the loan. Next, the course examines prior-to-closing conditions, at-closing conditions, and the steps for generating an adverse action letter when credit is denied.The course goes on to describe the loan documents that need to be submitted to underwriting, focusing on the verified loan application and the transmittal summary. At the end of the course, the definition and impact of a "change of circumstance" are addressed.

This is a single-family/residential course.