Stacking Order

File Flow

Welcome to Watermark Capital Dana Point

File flow is an important component of a smooth transaction. In addition, compliance is of equal importance in getting files to close easier and with less conditions, I wanted to clarifysome policy on Roles and Responsibilities as it relates to both topics. For more specifics on successful conversions, sales tips and anticipating loan challenges, please refer to our File Flow

Tips document. The following document is about our process here at Watermark Capital Dana

Point.

Customer File Flow defines our roles and responsibilities

 

 

  1. Items highlighted in Green refer to specific Files or Forms
  2. Items highlighted in yellow require special attention

 

 

Reverse Loan Specialist (YOU):

 

  • Identify customer
  • Create customer proposal
  • Present proposal and customer options
  • Help them select the desired program
  • Educate them on the process and expectations
  • Research of Value: This includes utilizing web based tools such as Zillow, Title Company partner’s websites. Speaking with an appraiser is best.
  • Provide them Counseling Agency List
  • Please make sure to have the customer sign the Counseling Certificate with the date that they received counseling.
  • A date shown after the application date or the ordering of services is out of compliance.
  • •Submit Application Worksheet and Copy of Counseling Certificate
  • Email or fax to
  • Be as complete as possible with all pertinent information
  • Remember that operations will order Title, Appraisal and FHA Case #. We have a national relationship with title. Please utilize this benefit as it greatly assists in the flow of information in a timely manner.
  • Notify customer that a corporate agent’s name will appear on the application documents (this is another compliance must). Presently this changes based upon your current licensing held.
  • Follow up with Customer to answer any questions regarding application package and assist getting it returned to operations
  • Be available to answer and assist customer with questions regarding RATE, FEES, Program Type or Guidelines. It is very important that you are available as the trust with the customer came from YOU!
  • Be available during the closing of the loan to answer any last minute questions or issues.

Operations Team:

  • Can work with you on assistance in finding appraisers in out of state markets.
  • Accepts the Application Worksheet and Copy of Counseling Certificate
  • Works with Reverse Loan Specialist (YOU) on any outstanding information on the
  • Application Worksheet and Investor Program Selection
  • Generates the application package and all applicable state disclosures for the
  • investor selected.
  • Sends the application package to the customer
  • Orders FHA Case Number, Title and Appraisal
  • Submits files to investor
  • Works on collection of conditions for approval and closing. Operations cannot assist in answering customer’s questions with respect to rates or fees. These items can affect your commission and therefore all questions will be routed to the originating Reverse Loan Specialist.
  • Assists customer with setting up closing
  • Assists customer and Reverse Loan Specialist with closing issues or questions

Important Tips for successful conversions:

Always ask for the customer’s commitment. Working with Seniors is based upon trust.
Getting a verbal commitment can reduce or eliminate shopping and overcoming obstacles along the way.


Develop your script. We will share lots of ways to present information. You will come across large amounts of data through internet research. Simplify all this information into a collective plan and develop your comfortable script. This will help you as you overcome objections or
have to make a quick presentation to a potential you just met.


Remember your role. Our processors own the file at application. However, that doesn’t mean that operations can overcome issues with rate and fees. A processor did not build the trust with the original prospect. Your involvement must be only a phone call away. Note, this process does allow you to spend more time on obtaining your next prospect.


Always investigate property values and property types. Low Value and Primary Residence issues are the biggest issues to a successful close. Your ability to ask questions upfront and provide documentation that proves primary residence can save weeks of underwriting turn times. Remember, in issues of occupancy the most compelling document is the customer’s tax returns. What address is on them and where are they sent.


Check out our Roadblocks to a Successful Close list! Determining major issues upfront will save you and your prospect a great deal of time and heartache!

Roadblocks To A Successful Close

The following is a list of 10 Critical Items that can create roadblocks to a successful close. As part of your sales process, it is imperative that you integrate the following questions into your prospect discussions. When your prospect has made a commitment to move forward you should know the answers to the following 10 questions.

  1. Does your prospect currently occupy the property that will be used to  secure the loan? (Occupancy is typically defined as 6 months of the year)
  2. Does your prospect’s Drivers License show the address of the property? (If not get a copy of a utility bill or bank statement with the borrowers name and address of service.)
  3. Is/are all prospects currently on title? ( Pulling a property profile will help answer this question as well as questions about the Trust)
  4. Is the property a manufactured or modular home? (If Yes, be aware of specific guidelines for these types of properties; age, location and proper certifications)
  5. Have your prospects applied for an FHA HECM (Reverse Mortgage) in the past? Has it been declined or cancelled? ( If Yes we need to get the FHA case number transferred to Watermark Capital or What was the reason for their decline?)
  6. Is their property in a flood zone? (If Yes flood insurance is required)
  7. Do they currently have insurance on the property? (If No, insurance needs to  be ordered)
  8. Are there any IRS, State or Local tax liens or judgments on the property?
  9. Does the property need any repairs? (major items can either cause issues with the appraisal or require cost to cure which may utilize the amount of monies available)
  10. Is the property listed in a trust? (is the trust revocable?)

•

Loan Submission Requirements

  1. Complete 1003 (everything filled out in its entirety)

  2. Fannie Mae 3.2

  3. All STIPS i.e.,

    1. W2’s (2 years worth) or 2 years personal and/or business tax returns (if applicable)

    2. Pay stubs (1 month)

    3. 2 years 1040’s if S/E

    4. Asset information (last 2 months all pages)

    5. Insurance declaration page

    6. Mortgage statement

    7. Copy of borrower(s) drivers license and social security card

  4. GFE (max $595 processing, $595 admin) (Max 1% origination for FHA)

  5. Borrowers authorization

  6. Watermark loan submission form filled out detailing the parameters of the loan, lender, product, doc type, rate, rebate

  7. DU/LP findings (if applicable)

  8. Evidence of appraisal being ordered w/paid COD in subject line

    1. All appraisals will be COD only

    2. All appraisals will be sent by the appraiser to  This email address is being protected from spambots. You need JavaScript enabled to view it.

  9. Executed purchase contract (if applicable)

  10. Contact information of closing agent for purchase

  11. Credit report on borrower/co-borrower

  12. For FHA include an individual credit report on the non borrowing spouse (do not run a joint credit report, this will interfere with running an AUS)

    1. Community property states are (AZ, CA, ID, LA, NV, NM, TX, WA, WI)

  13. LOE on anything unique about the file

  14. Condo HOA information (if applicable)

If the loan being submitted is incomplete, the file will be sent back to the LO until it is done correctly.

 

These procedures are place to close more loans in a timely manner and assure the loan is actually sold.

 

Loans will not be locked or considered in processing until these items are in place

 

Once these items have been received by the processor your loan is now in working status and the processor will do the following:

  1. Order title and escrow

  2. Submit file to lender

  3. Email LO disclosures to be forwarded to borrower

  4. Lock Loan (See locking procedures)

    1. Once a loan has been locked it will not be locked with another lender due to pricing improvements

  5. Order VOD, VOE, VOM, etc.

  6. Work on all conditions per lender request

  7. Review doc order and fees with LO

  8. Processors DO NOT shop your loans!

 

HUD Approved Housing Counseling Agencies

The following is a list of available HUD Approved Housing Counseling Agencies for your Reverse Mortgage
Transaction.
As a responsible lender provide this list to you in direct compliance with HUD’s most
current mortgagee letter. Should you have further questions on the process of independent third party
counseling please do not hesitate to discuss them with your Reverse Mortgage Specialist. We are available to
make sure you understand the process and most importantly your options.

  1. Smart Money Housing -- 800-403-3807
  2. Clearpoint Credit Counseling Solutions
  3. Find State Specific HUD approved agencies
  4. National Foundation for Credit Counseling (NFCC) – 1-866-698-6322
  5. Money Management International (MMI) – 1-877-908-2227
  6. Consumer Credit Counseling Service of Atlanta - (CCCS of Atlanta) – 1-800-251-2227
  7. AARP –1-800-209-8085
  8. National Council on Aging (NCOA) - 800-510-0301

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