 |
SureStep: An Introduction
One of the significant challenges in the conversion process from broker to banker is the need for experienced back-office staff. This generally represents additional fixed cost as underwriters, funders, closers and shippers are hired and limiting flexibility to adjust easily to volume changes in the marketplace. Many brokers seeking to become bankers do not have staff with the back office experience to finalize processing, underwrite, document, settle and close the loan or the post-closing functionality, including the transfer of servicing, trailing documents, HMDA reporting and trust accounting. Now, with SureStepTM, there is no need to hire staff and the costs become variable, controlled and flexible. SureStepTM combines WarehouseOne's traditional warehouse line with processing, underwriting and closing services through its fulfillment center, called LoanPro Partners, along with access to web-based vendor services that are integrated with its processing software and Sterling Eagle's mortgage purchase conduit. LoanPro functions as an extension of the mortgage bankers back office, processing, underwriting and closing loans in the mortgage banker's name. While LoanPro provides services from point-of-sale through post closing, bankers may choose to have their loan officers complete some of the initial processing just as they may have done when functioning as brokers. Others choose to take full advantage of LoanPro's functionality from point-of-sale. The vendor services integrated into the program include a full suite of services including flood, title, documents, AVMs, BPOs, appraisals, settlement services and more, all of which may be ordered through the web. More importantly, WarehouseOne makes a bundled services package available to provide a GMP (guaranteed mortgage package) product that may save the mortgage banker or customer several hundred dollars per loan in services cost.
1) an underwriting warranty that indemnifies bankers using LoanPro from the repurchase obligation associated with their investor purchase and sale agreements for processing and underwriting errors; 2) higher warehouse line leverage-to-net worth ratios permitting the banker to grow larger more quickly than traditional warehouse programs typically permit; 3) better secondary market services and execution through the sale of loans to Sterling Eagle Mortgage Investment Company as a correspondent; 4) a back-office infrastructure that is variable in cost versus the fixed overhead associated with hiring underwriters and additional processors, funders and closers; 5) access to special product and service programs offered only through SureStep such as a bundled mortgage services package for refinance loans that is available at a significant discount to market ala carte prices; and 6) access to technology that permits bankers to originate more loans, producing higher quality packages, more quickly at a lower cost. To participate in SureStep™, a broker must establish and maintain licensing as a lender or banker in the jurisdictions is which their loans will be originated, become an approved correspondent with one or more eligible secondary market investors and maintain a net worth that satisfies those licensing and other requirements of the investors for which the banker has received correspondent approval status. Access to the Internet, some basic computer skills and a pipeline of loan prospects or applicants are the only other requirements. SureStep™is web-based and includes a front-end decision tool that helps loan officers pre-qualify and identify product for their customers. To select product, price and to process loans, loan officers gather enough data to constitute a 1003 application and either export a DU 3.0-3.2 file from their existing LOS (loan origination software) and upload the file through WarehouseOne’s web site or enter borrower information right online. All of the information regarding the loan’s status as it progresses through processing, underwriting and closing is available right over the web in detail. All of the processes are received electronically or are imaged and available for viewing over the web or transmission through email, generating a 100% electronic package. LoanPro’s processing and underwriting systems are integrated with WarehouseOne’s front end and warehouse lending system, with vendor services and with Sterling Eagle to capture and communicate information electronically. This same front-end tool may be offered in the future to banker clients to communicate product and pricing data to their loan officers through private-label web sites. SureStep™can be used with retail, wholesale and third-party origination channels. For more information visit the SureStep™Banker or WarehouseOne websites. WarehouseOne may also be contacted at 609-671-0600. |
SureStepTM was created to provide brokers with an easy, low risk solution to address the challenges of operating as a broker in the current mortgage market. More specifically, SureStepTm addresses i) HUD's proposed changes to RESPA that could require additional disclosures and the concept of bundled services or guaranteed mortgage package cost, ii) the desire many brokers have to provide customers with increased levels of service and faster turn-around time, iii) the constantly changing regulatory environment at the regional, state and federal levels and iv) hiring/firing staff in an ever changing rate and volume environment, while preserving or increasing revenue.
Benefits to the mortgage bank participants in the SureStep TM program are significant and include: