Loan Processing

Your loan application is turned over to the processing department of the mortgage lender. The processing department is responsible for getting the loan ready for submission to the underwriting department for final approval. This procedure is called processing the mortgage.

The first thing a processor does is set-up the loan. The set-up process consists of the following:

1. Registering the application. Every mortgage lender has a way of keeping track of all mortgage applications which are brought in by loan officers.
2. Sending the disclosures. The processor must send the Truth-In-Lending Disclosure within three business days of loan application for all purchase transactions. Typically most other required disclosures are signed at loan application:
   1. The Program Disclosure, which describes the mortgage program.
   2. The Transfer of Servicing Disclosure, which describes the mortgage lender's policies and track record concerning selling the servicing rights of the mortgages the lender originates.
   3. The Good Faith Estimate of Settlement Costs, which discloses the estimated closing costs.