You’ve got to be kidding? There’s more?

So here is information on what happens once the loan is submitted to a wholesale lender, or has had the processing completed on the retail side.

Lender/Wholesale Responsibilities:

When the loan package is completed it is sent to the Lender. The Lender’s function includes:

• Data Entry (Wholesale only – would already be in system in Retail)
  - Enter data from loan file into computer; send out early disclosures (which include an estimated list of fees) and run a “backup” credit report


• Underwriting
  - Review loan package for creditworthiness


• Lock (this function can happen any time before Docs)
  - Confirm the rate and price the loan will be locked with (which means the lender will guarantee that rate/price if the loan funds in the allotted time period).


• Docs
  - Legal documents that the borrower will sign for the loan are drawn
  - Documents are then sent to Escrow or some type of signing agent who handles the signing of Documents


• Funding
  - Review loan package to ensure all conditions are signed off, documents are signed correctly and in order, and authorize funding.
  - Utilize a Warehouse Bank to fund the money (like a credit card), borrow money from the Warehouse bank, putting up a “haircut” of the money up front, typically one to five percent of the loan amount.
  - Warehouse bank then sends a wire to the Title Company who disburses the money per the instructions given.