FI's taking Apps for Mortgage Bankers

Posted By: LizzyP

FI's taking Apps for Mortgage Bankers - 07/17/14 04:13 PM

Our FI may be working with a Mortgage Banker to process Mortgage loans. My question is it acceptable to take the Application, Verification documents, pull credit and flood and hand off to Mortgage Broker. The Application will be taken by a licensed MLO. The Broker will receive a fee from the customer that is put into Escrow to pay back to the FI when the loan is funded. The FI will not close or fund the loan, this comes from the Mortgage Broker. What other risk is the FI looking at besides the Processing Fee?