Processing & Underwriting Services

Superior Financial Solutions has a number of ways to get your credit union on the path to successful mortgage lending. No employees are necessary and your credit union collects a fee just for taking the application and collecting all supporting loan documentation (pay stubs, bank statements, etc.). The professionals at Superior Financial Solutions will then process the mortgage loan, order all pertinent appraisals, credit reports and flood certifications, prepare the closing documents, and underwrite the loan to ensure it meets secondary market guidelines. We can then sell and service the mortgage loans, saving you the hassle and overhead!

Mortgage Loan Workflow

  1. Partner originator enters application in OpenClose and pulls the credit report.
  2. Partner originator submits file to processing.
  3. Partner originator emails the processor requesting the file to be run through DU (or runs DO themselves).
  4. Partner originator is responsible for accuracy of information entered into OpenClose. This includes correct loan term, interest rate, all applicable Loan Level Price Adjustments (LLPAs), and closing costs. (“Junk In, Junk Out” means the validity of your findings is measured by the accuracy of the data entered in OpenClose.)
  5. Processor obtains DU finding and notifies originator that the findings are available to view in the e-doc manager in OpenClose.
  6. Partner originator reviews the DU findings and verifies valid “Approve Eligible” results/approval conditions.
  7. Partner originator will prepare and mail initial loan disclosures within 3 business days of application date to borrower. Once the borrower has received disclosures (LE), the originator will then document manner “intent to proceed” was received (in person, via phone, e-mail, regular mail, or courier service).
  8. Partner originator will set up loan closing with title agent and notify SFS loan closer and processor, once intent to proceed is given, based on purchase contract expiration, rate lock expiration, etc.
  9. Partner originator may then lock the interest rate with the borrower using OpenClose’s Price Lock screen. Remember this rate lock is between your member and your credit union. Must be received by 5:00 p.m. EST for that day’s pricing.
  10. Secondary market will Approve or Deny rate lock request in OpenClose.
  11. Once rate lock is approved, a new LE can be generated showing the rate locked.
  12. Partner originator will scan/upload required documentation directly to loan within OpenClose.
    1. Completed loan application signed by borrowers AND loan officer/originator
    2. Two current pay stubs for each borrower as defined below:
        Requirements — Paystubs and W–2s
        The paystub must be dated no earlier than 30 days prior to the initial loan application date and it must include all year-todate earnings. Additionally, the paystub must include sufficient information to appropriately calculate income; otherwise, additional documentation must be obtained. Paystubs must comply with B1-1-03, Allowable Age of Credit Documents and Federal Income Tax Returns. Documents must be computer-generated or typed by the borrower’s employer(s), although paystubs that the borrower downloads from the Internet are also acceptable. Documents must clearly identify the employer’s name and source of information. The documents must clearly identify the borrower as the employee. The information must be complete and legible. The original source of the information must be a third party, such as the borrower’s human resources department, personnel office, payroll department, company’s payroll vendor, or supervisor.
    1. Current year W-2 for each borrower ( or 1099-R, 1099-SSA as applicable):
        IRS W-2 forms must cover the most recent one- or two-year period, based on the documentation requirements for the particular income type. The W-2 forms must clearly identify the borrower as the employee. ”Most recent” W-2 is defined as the W-2 for the calendar year prior to the current calendar year. Alternative documentation, such as an IRS Wage and Income (W-2) Transcript, a written Request for Verification of Employment (Form 1005 or Form 1005(S)) (see below) or the final year-to-date paystub, may be used as long as adequate information is provided.
    1. Two current months account statements to include:
        Verification of Deposits and Assets
        The originator can use any of the following types of documentation to verify that a borrower has sufficient funds for closing, down payment, and/or financial reserves:
        Request for Verification of Deposit (Form 1006 or Form 1006(S)). The information must be requested directly from the depository institution, and the complete, signed, and dated document must be sent directly from the depository institution.
        Copies of bank statements or investment portfolio statements. The statements must cover the most recent full two-month period of account activity (or, if account information is reported on a quarterly basis, the most recent quarter). The statements must:
        – clearly identify the borrower as the account holder,
        – include the account number,
        – include the time period covered by the statement,
        – include all deposits and withdrawal transactions (for depository accounts),
        – include all purchase and sale transactions (for financial portfolio accounts), and
        – include the ending account balance.
        Purchase transactions
        If funds from a large deposit are needed to complete the purchase transaction (that is, are used for the down payment, closing costs, or financial reserves), the originator must document that those funds are from an acceptable source. Occasionally, a borrower may not have all of the documentation required to confirm the source of a deposit. In those instances, the originator must use reasonable judgment based on the available documentation as well as the borrower’s debt-to-income ratio and overall income and credit profile. Examples of acceptable documentation include the borrower’s written explanation, proof of ownership of an asset that was sold, or a copy of a wedding invitation to support receipt of gift funds. The originator must place in the loan file written documentation of the rationale for using the funds.
    1. Completed and signed 4506-T and SSA-89 forms
    2. Name and phone number of homeowner’s insurance agent
    3. Signed borrower authorization
    4. Letter of explanation for all credit inquiries not appearing as trade lines on credit report
  1. If scan capabilities are not available, a fax copy is acceptable. Originator must notify the processor via e-mail that documents are being faxed. Faxed loan files must be sent to (419) 222-2945 or uploaded to OpenClose.
  2. Partner originator will monitor rate commitments to ensure loans close and fund prior to lock expiration date.
  3. Partner originator can collect appraisal deposit and forward proof to processor; it can only be collected after LE waiting period has been met based on manner it was delivered and intent to proceed given.
  4. Partner originator will e-mail Appraisal Coordinator, Nancy Frueh (nfrueh@superiorcu.com), when appraisal is ready to be ordered with instructions.
  5. Appraisal Coordinator will forward an appraisal order form to appraiser and notify both the partner originator and processor which appraisal company has been assigned the order.
  6. Appraiser directly e-mails the appraisal to the Appraisal Coordinator and partner originator.
  7. Appraisal Coordinator submits appraisal to Uniform Collateral Data Portal (UCDP) for validation certificate with Fannie and Freddie then uploads appraisal and UCDP certificate to OpenClose.
  8. Partner originator is responsible for providing copy of appraisal to borrower within three days of receipt.
  9. Partner originator is responsible for ensuring appraisal invoice is paid; proof of payment may be uploaded to OpenClose.
  10. Title agent will forward copy of title commitment to originator and to processor along with payoffs, proration of taxes, and any other information needed for loan closing/preparation of Closing Disclosure (CD). Processor will then upload to OpenClose.
  11. Partner originator will upload any additional documentation requested by Superior Financial Solutions that may be required to obtain PMI approval, if applicable, and to clear all investor conditions.
  12. Processor will complete processing file by obtaining updated insurance declaration page and verbal verification of employment for each borrower.
  13. Processor will submit loan file for Underwriting/Pre-funding Review by Superior Financial Solutions.
  14. Processor will prepare Closing Disclosure (a minimum of 7 days prior to scheduled closing date) and work with title agent and partner originator until all parties have given approval
  15. Processor will provide copy of the CD to all borrowers, or originator can deliver if preferred
  16. Title agent will notify loan closer, processor and originator of confirmed closing information.
  17. Title agent and loan closer will work to verify all figures on Closing Disclosure for actual closing.
  18. Loan closer will forward closing documents to title agent via encrypted file.
  19. Loan closer will forward closing instructions and net funding sheet to originator.
  20. Originator will fund title agent based on finalized closing instructions on disbursement date noted.
  21. Superior Financial Solutions will ACH or wire funds to originator to purchase loan based on net funding sheet.
  22. Loan closer will overnight assignment and Allonge to partner originator for signatures.
  23. Partner originator is responsible for getting original assignment to the title agent for recording.
  24. Partner originator will overnight ORIGINAL Allonge and COPY of assignment to Superior Financial Solutions within 24 hours of closing.
  25. Title agent will return signed closing package, including original note, within 24 hours of closing, to Superior Financial Solutions.
  26. Title agent will record original mortgage/deed of trust along with any appropriate riders and original assignments.
  27. Title agent will overnight the recorded documents to post-closing at Superior Financial Solutions.

 

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