Packaging loan documents is hands down the best way to differentiate yourself from other loan signing agents and get the highest paying repeat loan signings.
Packaging is technically the escrow officer’s job. So if you can do something that takes a task off the escrow officer’s plate, it will separate you from every other signing agent out there.
This video and blog is an introduction to my step-by-step tutorial on how to package loan documents.
What makes packaging so valuable, and what makes it tough to learn is you to have a basic understanding of the mortgage process. But once you understand that process, it’s much easier to understand the theory of packaging.
Instead of just memorizing what document goes in which pile (or package), try to understand ‘why’ it goes where.
So let's get started.
There are three parties to every mortgage transaction. The escrow company, the title company and the lender or also known as the bank.
Let's get to know who the 3 parties are and their roles in the mortgage process.
Let’s start with the escrow company
An escrow company is a licensed neutral third party that distributes legal documents and funds on behalf of a buyer and seller. Or more simply they are the middle man. They are the police to make sure that the seller, lender, and borrower all follow through on their agreed upon terms. The seller doesn't get any less they what they agreed upon and buyer doesn't pay any more than what they agree upon. Same goes between borrower and bank. The bank agreed to only charge the borrower ‘x’ fees and escrow makes sure of that. Escrow is the neutral third party to make sure everyone behaves. There role is to keep track of what is going on between the borrower and the lender and title company. Escrow keeps records of what is going on between on all the parties.
Next, there’s the title company
The title company makes sure that a piece of real estate is legitimate, then issues title insurance for that property that protects both the lender and the owner from lawsuits as a result of title disputes. Their main responsibilities in a mortgage transaction is to accurately record liens, lien holders and ownership to the property in the transaction. Title’s role is to be in charge of anything that is being recorded against the property. Lastly, their job is to make sure all the liens, ownership and lien holders are recorded with the county the property resides in.
Last, but not least, there’s the lender
The lender is the bank that is lending the money. The lender has the biggest role in the process since with out them lending the money the borrower, there would be no need for a title or escrow company. This is the reason why the majority of the documents in your loan signings are lender documents.
So now you know the three parties are that are associated with every transaction.
So here’s the key: each of those parties wants the paperwork from the loan signing back in a specific way. In some cases they want the original, and in other cases they want a copy. So taking the loan documents you had signed and preparing it for each of those three parties is what packaging is.
Truly Understanding everyone's role in the process will make it easier on who to give what to.
For instance, if the lender is lending the money, and the note is what the borrower signs to ensure the lender gets paid back. It should make sense the lender get the original note.
So before you can understand why a certain document goes back to their respective party you should have a good understanding of what all the documents are.
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About the Author
Mark has been an active professional loan signing agent for nearly 15 years. He owns a loan signing service that does thousands of signings a year. He is the course instructor of the top rated Loan Signing System agent training course.