What is the difference between a processor and a mortgage underwriter?

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Furthermore, what has changed to a date for a mortgage?

7 Comments
  1. Reply
    The One Who Rocks...
    January 28, 2011 at 9:57 pm

    IDK

  2. Reply
    noitall
    January 28, 2011 at 10:03 pm

    loan processor processes the loan application – they shop it to various mortgage companies (lenders) to find a deal that’s good for you and them (they get a commission). closing dates are set by agreement between the buyer and seller and can be delayed by the loan processing/escrow processes. if you’re worried about moving on a certain date, it’s best to have some flexibility built in so you are left in limbo. if moving out of a rental unit they can’t make you go until you’re ready and you’ll have to pay for the extra days you stay. if you’ve sold and have new people moving in, they’ll have to wait. don’t let anyone strong arm you.

  3. Reply
    Biggie @ Arbor Mortgage
    January 28, 2011 at 10:19 pm

    A loan processor orders all documents needed for the loan, like appraisal, employment verification, etc. An underwriter approves or declines a loan.

    A closing date to be changed is very common & it could be several reasons, like slow underwriting time, not having all needed documents etc.

  4. Reply
    RM
    January 28, 2011 at 11:00 pm

    Loan processor works for a mortgage broker. They send in items to the lender to get the loan approved and cleared to close.

    An underwriter evaluates the items sent in by the loan processor and decides if the borrowers are qualified for the loan. They add conditions to the file, which the loan processor must satisfy.

    Reasons to change a closing date:
    1. Scheduling conflict with the closing attorney or closing company
    2. Sellers and/or buyers can’t make it
    3. Loan processor sends in items which require the underwriting decision to be re-evaluated
    4. Closing company screws up the closing the first time, and borrowers have to come in a do it all over again
    5. Sooo many others…

  5. Reply
    mortgage underwriter
    January 28, 2011 at 11:01 pm

    The loan processor is the one that collects the documentation. The underwriter (me) approves, counter offers or declines the loan. They make the loan decision and adds tons of conditions (ask any loan officer).
    Any new or unexpected documentation can change a closing date due to delay.

  6. Reply
    Ed Atun
    January 28, 2011 at 11:31 pm

    The loan officer is the person who helped you fill out your loan application. She gets paid the big money. It is her job to make sure that your loan is being moved along quickly. THe processor is the one who sits in back and makes $ 28,000 a year. She sends out your employment verifications and gets the phone updates on your loan. She is the “worker bee”.
    In the old days, banks had loan committees of 5 people who met to approve all loans. Now it is just one person. We call her the underwriter. She looks at your loan and makes the final decision. YES or NO.
    A closing date gets delayed when you loan has been rejected by the underwriter but no one is honest enuf to tell you. They never tell the truth. If it gets delayed for more than 2 days, move your loan to a different company. Pay the seller some money to buy an extension./

  7. Reply
    Expert Realtor
    January 28, 2011 at 11:49 pm

    RM’s answer is the closest to being correct, except for the fact that mortgage processors only work for mortgage brokers.

    Mortgage underwriters DO NOT work for brokers at all…b/c the broker never approves loans, they SHOP loans with other lenders for funding and THEIR underwriters approve the loans.

    Places like Countrywide, Bank of America, these are direct lending banks…they are not brokers, so they also employ both mortgage processors as well as mortgage underwriters.

    A processor is usually your second contact other than the loan officer. Most companies will not permit you to speak to the underwriter, though this is rapidly changing.

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