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.
The reason why packaging is so valuable and what makes it tough to learn is that it requires you to have a basic understanding of the mortgage process. But once you understand that process, it’s much easier to comprehend the theory of packaging.
Instead of just memorizing what document goes in which pile (or package), try to understand WHY it goes there.
So let's get started.
There are three parties to every mortgage transaction: the escrow company, the title company, and the lender (also known as the bank).
Let's get to know who the three parties are and what role each plays 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 metaphorical police who 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 thing applies to the borrower and bank - the bank agreed to only charge the borrower ‘x’ fees and escrow makes sure of that. In essence, escrow is the neutral third party tasked with making sure everyone behaves. Their role is to keep records of what is going on between the borrower, the lender, and title company.
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 which 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 in which the property resides.
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 money to 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.
Now you know the three parties 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 comprises the act of "packaging".
Truly understanding everyone's role in the process will make it easier to remember which documents are distributed to each party.
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 that the lender get the original note.
So before you can understand why a certain document goes back to its respective party, you should have a good understanding of what all the documents are.
Learn how to package today with my Loan Signing System Course Bundle by clicking the link below!
About the Author
Mark Wills is the course instructor of the top rated Loan Signing System agent training course. He has been an active professional loan signing agent for nearly 15 years and owns a loan signing service that does thousands of signings a year.