In this section, we’ll break down the Mortgage Cycle and see where you and your customers fit into the process. We’ll also discuss where in the mortgage time line each process is located. From there, we’ll take a closer look at the key players and their roles in the mortgage process.
At the end of this section, you will be able to:
• Identify the 8 stages of the Mortgage Cycle
• Identify the key players and their roles in the Mortgage Cycle Throughout this book:
• “Borrowers” refers to both multiple borrowers or a single borrower
The 8 Stages of the Mortgage Cycle
- ORIGINATION – The lender helps the borrowers complete the loan application.
- PROCESSING – The lender documents the loan file.
- UNDERWRITING – The lender evaluates the loan file.
- CLOSING – The borrowers sign loan documents; the sellers transfer the title.
- WAREHOUSING – The lender may temporarily warehouse closed loans.
- DELIVERY – The lender packages and sends the loan to an investor.
- SECONDARY MARKET – Lenders and investors buy and sell mortgages.
- LOAN SERVICING – Third parties collect the borrowers’ monthly mortgage payments.
