Main Responsibilities and Required Skills for a Loan Closer
A Loan Closer is a professional who plays a crucial role in the mortgage lending process. They are responsible for finalizing loan transactions and ensuring all necessary documentation is accurate and complete. Loan Closers work closely with loan officers, underwriters, and borrowers to ensure a smooth and efficient closing process. In this blog post, we will describe the primary responsibilities and the most in-demand hard and soft skills for Loan Closers.
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Main Responsibilities of a Loan Closer
The following list describes the typical responsibilities of a Loan Closer:
Administer
Administer the issuance of Domestic Letters of Credit.
Answer
Answer closing questions for internal and external parties.
Answer phones to assist internal and external customers.
Answer to Audited loan packages to ensure compliance with Bank and regulatory guidelines.
Assemble
Assemble, prepare and verify closing documents for secondary loans, home loans, and commercial loans.
Assist in
Assist in resolving any purchase suspense issues required before investor lock expiration.
Assist Manager with projects including loan portfolio reporting and loan system improvements.
Assist the post-closing department to obtain any outstanding documentation, as needed.
Assist with post closing deficiencies.
Balance
Balance funding with title and requests wire funds for disbursement of the loan.
Balance funding worksheet prior to release of funds.
Based
Based on business needs overtime may be required.
Book
Book and fund new loans and related activities in loan accounting system.
Calculate
Calculate and confirms loan funding requirements with closing agent.
Calculate and disburse funds to pay off existing liens or mortgages.
Calculate closing figures.
Calculate loan figures, including fees, escrow payments, and prorated taxes.
Calculate tax escrows and ensure ample amounts are collected for next due date.
Check
Check settlement statement from attorney prior to closing and make any relevant changes.
Clear
Clear conditions of loan commitments, clear loans for closing and document approved exceptions.
Collaborate with
Collaborate with internal teams to ensure a seamless transition from underwriting to closing.
Collaborate with underwriters to resolve any outstanding loan conditions.
Collect
Collect of due diligence items including and not limited to flood, CIP / KYC, insurance and UBO.
Communicate
Communicate with applicable parties regarding loan closing and loan delivery.
Communicate with borrowers to explain closing documents and address any concerns.
Communicate with customers, attorneys, appraisers and lending staff.
Complete
Complete and verify Uniform Closing Dataset (UCD) for loan delivery.
Complete annual required compliance training.
Complete funding review within the required turn time.
Complete HMDA reporting worksheet.
Complete loan package for funding.
Complete post-closing review of loans closed and ensures all outstanding items are received.
Conduct
Conduct quality control audits to ensure accuracy and compliance.
Confirm
Confirm closings and inform the appropriate internal personnel.
Confirm loan closing, prepare loan documents and request funding and loan disbursements.
Confirm a title search was properly executed and that the title is in good order.
Coordinate
Coordinate all aspects of the closing process and ensures that all terms of the sale are met.
Coordinate and assist to resolve issues that affect all parties involved.
Coordinate and schedule closings with customers, attorneys and / or Bank personnel.
Coordinate funding and disbursement of loan proceeds.
Coordinate loan disbursements in an accurate and timely manner.
Coordinate loan funding with the accounting department and the closing attorney.
Coordinate / schedule closings with customers, attorneys and / or Bank personnel.
Coordinate the delivery of loan documents to the appropriate parties.
Coordinate with insurance agents to obtain proof of hazard insurance.
Coordinate with Loan Advisors and Legal Department for efficient and timely loan closings.
Coordinate with loan officers and processors to ensure timely closings.
Coordinate with the settlement agent or attorney to facilitate the closing process.
Coordinate with title companies and attorneys to schedule closings.
Correct
Correct inaccuracies in documentation as necessary.
Create
Create closing documents and monitor required waiting periods.
Develop
Develop, design, and follow inter-departmental controls and risk reducing processes.
Develop strong relationships with investors.
Discern
Discern and resolve issues that may emerge during the loan closing process.
Ensure
Ensure all closing conditions are met per program requirements.
Ensure all fees and costs are accurately calculated and are in compliance with company policy.
Ensure closed loan packages are delivered by deadline.
Ensure compliance with all federal, state, and local regulations.
Ensure compliance with TCF Lending Policy and procedures.
Ensure correct lien position on all collateral.
Ensure delivery of wire requests within set time frames.
Ensure documentation accurately reflects the intentions of the credit approval.
Ensure follow up on document exceptions and clears in a timely manner.
Ensure Know Your Customer "KYC” requirements have been met prior to closing a transaction.
Ensure proper method of delivery of disbursements to members, title companies and wire transfers.
Ensure that all documents needed for the investor are included in the closing file.
Ensure that all financial statement and insurance ticklers are properly set up.
Ensure that all loans are closed in a timely manner and that documentation is valid and accurate.
Ensure that closing packages are accurately and efficiently generated for all mortgage products.
Ensure that disclosures are in compliance with state and federal regulations / requirements.
Ensure timely preparation and mailing of loan correspondence.
Evaluate
Evaluate first look purchase rate, top suspense conditions.
Facilitate
Facilitate funding the product upon fulfillment of closing instructions.
Facilitate teamwork and continuity.
Facilitate the signing of loan documents by all parties involved.
Finalize
Finalize Final Closing Disclosure and issue Post Consummation Closing Disclosure if required.
Follow
Follow policy and procedures of Fannie Mae and Freddie Mac.
Follow-up
Follow-up on complete packages from law firms.
Follow-up with title company for receipt of closed loan files.
Identify
Identify customer needs and explains services clearly.
Inform
Inform internal and external parties of loan's status as required.
Issue
Issue initial closing disclosures / re-disclosures to client.
Keep
Keep current on all product and industry regulations and changes.
Maintain
Maintain accuracy and customer satisfaction as the singular priority.
Maintain a high level of attention to detail and accuracy throughout the closing process.
Maintain confidentiality and security of borrower's personal and financial information.
Maintain open lines of communication with all parties to obtain loan status information.
Maintain professional and technical knowledge of all regulations related to closing procedures.
Maintain superior level of customer service with customers, bank employees and department members.
Maintain the loan closing checklists to facilitate the closing process.
Make
Make document corrections as required for purchase of the loan.
Manage
Manage and perform multiple tasks accurately in a fast-paced and challenging environment.
Monitor
Monitor and clear loan exceptions.
Mortgage
Mortgage Closers assemble, prepare and review critical closing documents for mortgage loans.
Obtain
Obtain and review final loan approval prior to closing.
Obtain property tax information and verify accuracy with Title Company, and / or tax collector.
Order
Order and review title commitments and surveys.
Perform
Perform a pre-closing quality review of loan files prior to releasing the closing package.
Perform responsibilities in accordance with all applicable federal and state regulations.
Perform verbal re-verification of employment for loans closing, as needed.
Prepare
Prepare and issue the closing disclosure (CD) , including initial, final and corrective.
Prepare and review files for docs.
Prepare and send closing documents.
Prepare and submit loan funding packages to investors or secondary market agencies.
Prepare and submit periodic departmental, team, and metric reports.
Prepare and submit required reports to regulatory agencies.
Prepare closing documents accurately and issue to closing attorneys and / or title companies.
Prepare closing documents completely and accurately.
Prepare Closing packages using Encompass system.
Prepare closing statements and other required financial disclosures.
Prepare files for shipping, properly collated and in order with all documentation secured.
Prepare files for shipping same day of release of funds.
Prepare legal, regulatory and custom closing documentation if applicable within established.
Prepare loan closing documents to send to the escrow company completing the closing.
Prepare loan closing packages.
Prepare loan documents for closing.
Prepare Prelim closing disclosure.
Prepare and provide the initial CD to the customer.
Prepare the CD and approve final disbursements to the Title Companies.
Prepare / verify loan documents and mortgage to be executed by the borrower in order to fund.
Prepare wire breakdown and place wire order.
Print and send closing documents to the closing agent.
Provide
Provide an accurate review to ensure compliance with Federal, State, Investor and company policies.
Provide and Sign-Off Outstanding Funding Conditions.
Provide approval of all settlement charges prior to closing.
Provide daily status to manager on all unfunded loans.
Provide excellent customer service throughout the closing process.
Provide funding authorization to Title / Escrow Agents.
Provide guidance to less experienced closers.
Provide support to internal and external customers.
Provide training to Loan Closer I and Loan Closer II.
Receive
Receive assistance from manager with difficult questions and situations.
Receive assistance from more experienced closers or manager with difficult questions and situations.
Recommend
Recommend and drives process improvements.
Remain
Remain current on all pending and proposed regulatory changes affecting compliance.
Report
Report status of loans in process and closed loans in a timely manner.
Request
Request fees from settlement agent.
Resolve
Resolve any post-closing issues or discrepancies.
Resolve discrepancies and post-closing closer.
Respond to
Respond to audit requests.
Retrieve
Retrieve correct principal reduction check and correct system entry if required.
Review
Review all closing details to ensure compliance with state and federal regulations.
Review all files assigned the earlier of same day for rushes or 24 hours of being assigned.
Review all LE's & CD's for correspondent loans if applicable.
Review and approves the loan closing instructions and coordinate with title company.
Review and prepare credit and legal documentation packages for delivery.
Review and Prepare Loan Documents.
Review and prepares disclosures, including Loan Estimate and Closing Disclosure.
Review and update LOS with final data.
Review Cash to close, request wires.
Review closing conditions and work with parties involved to resolve any outstanding issues.
Review Closing Disclosure and required funding documents for accuracy.
Review closing documents for accuracy and compare the documents to commitment and loan summaries.
Review critical funding documents to ensure compliance with loan program requirements.
Review data input to assure loan document information is accurate for signing.
Review final closing documents and clear to fund.
Review loan documents for accuracy and completeness.
Review outstanding funding conditions in a timely manner to make scheduled funding.
Review Power of Attorneys.
Review Power of Attorneys (POA).
Review / prepare residential loan closing packages to ensure completeness of information.
Review signed closing packages for accuracy.
Review title, survey, and all other property certifications for exceptions and compliance.
Run
Run compliance checks for RESPA, TILA, HOEPA and QM compliance.
Run compliance test for correspondent loans if applicable.
Schedule
Schedule loans for closing and prepare loan closing worksheets for funding.
Schedule notary appointments for mortgage execution.
Screen
Screen and / or protect documents for loan requirements.
Stay updated on
Stay up to date on industry regulations and changes.
Stay up to date with changing regulations and compliance requirements.
Troubleshoot
Troubleshoot and resolve complex issues and escalations with minimal supervision.
Update
Update and maintain accurate loan files and documentation.
Upload
Upload and complete system entries with Final Closing Disclosure.
Validate
Validate the accuracy of loan fees, interest rates, and loan terms.
Verify
Verify all closing conditions are met.
Verify all data for accuracy.
Verify borrower's identification and validate their financial information.
Verify lock information for accuracy.
Verify property information for accuracy.
Verify receipt of key documents required to issue funding control numbers (FCN).
Verify that the required accurate closing documentation is in file.
Work with
Work collaboratively with sales & other key stakeholder to correct any post closing issues.
Work monthly deficiency reports.
Work on a more independent basis with minimal supervision.
Work on an independent basis with little supervision.
Work with SWAP department to finalize the coordination of loans containing SWAP features.
Most In-demand Hard Skills
The following list describes the most required technical skills of a Loan Closer:
Proficiency in loan closing software and systems.
Knowledge of mortgage lending regulations and compliance standards.
Familiarity with loan documents and legal terminology.
Strong understanding of title insurance and escrow processes.
Ability to analyze financial statements and credit reports.
Knowledge of loan origination systems (LOS) and document management systems (DMS).
Expertise in calculating loan figures and interest rates.
Proficiency in Microsoft Office Suite (Word, Excel, Outlook).
Understanding of loan pricing and investor guidelines.
Ability to interpret and explain complex loan terms and conditions.
Knowledge of appraisal and valuation processes.
Strong organizational and time management skills.
Attention to detail and accuracy in reviewing loan documents.
Proficient in using electronic signature software and tools.
Ability to handle multiple tasks and prioritize work effectively.
Knowledge of post-closing procedures and requirements.
Understanding of the secondary mortgage market.
Proficient in using online resources for research and verification.
Familiarity with e-closing platforms and technologies.
Knowledge of state-specific mortgage regulations and requirements.
Most In-demand Soft Skills
The following list describes the most required soft skills of a Loan Closer:
Excellent communication and interpersonal skills.
Strong customer service orientation.
Ability to work well under pressure and meet deadlines.
Attention to detail and accuracy.
Problem-solving and critical thinking skills.
Strong organizational and multitasking abilities.
Adaptability and flexibility in a fast-paced environment.
Teamwork and collaboration skills.
Professionalism and integrity in handling sensitive information.
Strong work ethic and commitment to delivering exceptional service.
Conclusion
In conclusion, a Loan Closer plays a vital role in finalizing mortgage loan transactions. Their responsibilities range from reviewing loan documents and coordinating closings to ensuring compliance with regulations and providing excellent customer service. The most in-demand hard skills for Loan Closers include proficiency in loan closing software, knowledge of mortgage lending regulations, and familiarity with loan documents. Additionally, Loan Closers should possess essential soft skills such as communication, problem-solving, and teamwork abilities to excel in their role. By acquiring these skills and staying up to date with industry trends, Loan Closers can contribute to a smooth and efficient loan closing process.
