We have always closed and funded any loans we have sold to investors. In order to offer government program loans, we are taking the role of broker and the loans will be underwritten, closed and funded by the investor. We will take the application and produce early disclosures in our name (which the investor will then redisclose in their name)and collect additional information and communicate with the applicant and investor. Since these loans will not be on our books at all, I am trying to figure out what documentation we need to keep. I know this is a common practice and I am looking for what others are doing. What documents do you keep for these loans and what type of review would you do of these loans? Thank you for any help.

produce early disclosures in our name (which the investor will then redisclose in their name)

That is not how brokered loans work.

Since the broker world is new to us, could you expand on how a typical broker relationship works? This is the way the company we are working through does it. Thank you

You are asking a complex question.

1. You have to take each regulation (Reg. Z, RESPA, Regulation B, HMDA, etc.) and dissect all of the areas that address disclosures and other regulatory requirements when a broker may be involved in a transaction and how your specific arrangement is structured and its impact on those requirements.

2. You have to ensure that you have your processes very well documented to ensure that you "earn" any fees to be received to not run afoul of Section 8.

3. Only listen to your own experts and your own legal counsel and never trust the lender.

Also what your state laws allows you to disclose as a Broker vs what the lender must disclose.