Anatomy of the Mortgage File

by  Isabella Janovick, Marketing Manager, Anacomp Inc.  

There are three basic parts that make up a loan file which are the Loan Number, Sections and Documents. Within the Sections there is a further division of 8 different tabs. The tabs hold the various documents such as Mortgage Documents, Trailing Documents and Imaged Documents.

Loan Number
A loan number is assigned to every loan file.  This number is used to reference and track the file for the life of the loan, or until it is sold to a second mortgage company, where it is assigned a new loan number. The loan number can consist of a string of numbers or a combination of numeric and alpha characters.  They average anywhere from six to ten characters. This number is one of the most important pieces of information on a loan, distinguishing it from other loans.

Sections
Each loan is divided into sections for various reasons, one of the most important being structure and unity of the file. Sections also help users find a page or a document without having to search through the entire loan file. Sections are also used to divide documents within a file.  They range anywhere from eight to sixteen sections. Some mortgage companies may have the same section types but different naming conventions, and the document types in the sections could vary. Example: the “APPLICATION/CREDIT” section for Lender 2 is one section, but for Lender 1 the same document types are in two sections called “APPLICATION” and “CREDIT BORROWER”.

Examples of Sections
-          Closing Documents
-          Legal Documents/Disclosures
-          Title/Demands/Payoffs
-          Insurance
-          Underwriting Approval
-          Application/Credit
-          Income
-          Appraisal 

Mortgage Documents
Within the sections are the actual documents that make up the loan. There are many different documents that make up a typical loan file, some more critical than others, but each document is important. When a loan file is sent for imaging, some of the more critical documents like the Note and the Deed of Trust are copied; the originals are stored in vaults. Each document can range from 1 to 25 pages and play a critical role in the processing of a loan. The average loan file consists of 250 pages and about 40 to 50 different document types.

Trailing Documents 
These documents are part of a loan file sent in several days or weeks after the base loan file has been imaged. This could be caused from one or more of the following reasons:

1. The documents were not available when the loan file was sent in for imaging, for example, recorded documents.
2. The documents are original documents that have additional information that the imaged copy does not have.
3. The document is a final version of the previous copy sent for imaging.
   
   

Imaged Documents
There are several advantages to having all documents converted into images. 

1. Images can be viewed by multiple users.
2. Image can be transferred to other mortgage companies or business partners.
3. Copies of documents can be printed from any user station that has access to the images.
4. Images can be used for workflows and auditing.
5. Images can be transferred onto various media in different image formats.
6. Images can be used to extract data.

                        •       Loan amounts
                        •       Signatures 
                        •       Most loan data captured on the documents

With the compliancy rules becoming stricter, and more documents are needed to fund a loan, lenders are looking for more automated solutions for their loan process. Anacomp’s Valise for Mortgage product can service your loan process from start to finish and meet all compliancy issues saving the lender time, money and efficiency.