Does a mortgage underwriter review file then asks for stipulations, then ensures all stips are met?

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In other words, once all stips that are asked for are met, the loan is funded?

  1. Reply
    Common Sense
    February 14, 2011 at 1:12 pm

    Not necessarily. There’s more to it. The loan funds only once every detail is confirmed.

  2. Reply
    February 14, 2011 at 1:18 pm

    The conditions are usually set by someone who does that specifically. One job I had in the past was to review the application the originator entered, fix the mistakes and set the conditions. Then I passed it to a processor who would communicate them to the borrower. Unless something was off, the underwriter didn’t even see most loans. There are conditions associated with the borrower, the physical property and the title. Our processors review everything except the appraisal. There’s a team who does just appraisals. If the docs don’t meet the guidelines, the processor gives it to an underwriter. Once all the documentation is in order, the file goes to a closer who prepares closing docs. There are some lenders who have one person do the whole thing, but most big lenders are very departmentalized and many of their loans are never seen by an underwriter. “Desktop Underwriting” decisions most loans. Only the ones that need a human eye go to an underwriter.

    So the answer to your question is, “Sort of.”

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