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Pros Processing’s intended use is for mortgage loan originators who process their own files. Or for mortgage brokers who have in house processing but do not have a separately licensed 3rd party processing company.
Originator Compensation rules prevent a mortgage originator from being paid by both the borrower and the lender. An originator can charge a processing fee on a lender paid transaction if they use a 3rd party processing company.
A Contract Processor is a Mortgage Processor that’s been contracted to process individual loan files. Upon the completion of a successful loan transaction, the closing agent (escrow/title) will submit payment due on the Pros Processing invoice.
Once payment is received by Pros Processing a commission of 70% of the invoice amount will be sent to the Contract Processor.
For the processor to receive payment they must certify that the following Loan Processor Duties have been completed:
Collect data from clients such as their assets, paystubs, insurance, property taxes and mortgage statements
Research and correct mistakes in loan application
Reviewing file documentation for missing or erroneous information
Run Initial Automated Underwriting System (AUS) for decisioning
Creating Letters of Explanations to fill in the gaps in the client’s paperwork
Assist Loan Officer with verifying the information listed on the loan application.
In the event that the closing agent (escrow/title) fails to pay the Pros Processing invoice the contract processor is responsible for following up with closing agent for payment. Pros Processing is not responsible if a closing agent fails to pay the invoice.
Contract Processor will comply with all applicable Federal, State and Local laws as they pertain to required disclosures and timing of such disclosures including, but not limited to, disclosures required by the Dodd Frank Wall Street Reform and Consumer Protection Act, Real Estate Settlement Procedures Act, Equal Credit Opportunity Act, Truth-in-Lending Act, Fair Housing Act, Fair Credit Reporting Act, Federal Consumer Credit Protection Act, National Flood Insurance Act, Gramm, Leach, Bliley Act, and any and all applicable Predatory Lending Laws.
Contract Processor shall indemnify and hold Pros Processing and its shareholders, directors, officers, agents, employees, successors, and assigns harmless. Shall reimburse the same with respect to, any and all loss, damage, liability, costs, and expenses, including reasonable attorneys’ fees, from any cause whatsoever, incurred by reason of or arising out of or in connection with (a) any breach of any representation or warranty. Processor’s obligation to indemnify Pros Processing under this Agreement shall arise upon (a) Pros Processing incurring a Loss. Pros Processing reserves the right to hold or deduct from pending and/or future checks until all losses and reimbursements have been recovered.