The Mortgage Department consists of Mortgage Specialists, Closing Coordinators and Closers. The Mortgage Specialists review and approve submissions by Mortgage Counselors for Credit Access, package the loan application, and work with the Mortgage Counselors to address any lender conditions. The Closing Coordinators work with Members and Mortgage Counselors to collect the documents needed to meet all lender conditions. The Closers are responsible for scheduling the loan closing once the file is cleared to close They will also review the Closing Disclosure to ensure accuracy of all closing figures.
The Mortgage Specialists ensure the participating lenders work within the program guidelines and only issue conditions allowed in the NACA agreements. This is a particularly significant function as lenders historically over condition low-to-moderate income borrowers, issue duplicate conditions and ask for the same document’s multiple times. This behavior is eliminated in the NACA process as each condition is reviewed buy the Mortgage Specialist. The mortgage specialist reviews and approves the information and documentation submitted to meet lender conditions before the information and documents are provided to the lender, virtually eliminating rejected conditions.
The primary functions of the NACA Mortgage Department begin once a NACA Qualified Member becomes property Identified i.e. has an executed Purchase and Sales contract.
1. NACA Credit Access
When a Purchase and Sales contract is executed, the Member will contact their Mortgage Counselor to prepare for the NACA Credit Access submission. Credit Access Submission consists of property documents and financial documents. Minimum Property documents include:
- Fully executed Purchase and Sales (P&S) contract
- All Addenda and Riders to the P&S Contract
- Property inspection (existing construction)
- Copy of the Earnest money check or evidence of electronic transfer
- Copy of the MLS listing
- All other property documents applicable to the purchase
Minimum Financial Documents:
- Updated pay stubs (1 month’s worth)
- Updated W2 if a new one has been issued since qualification
- Self Employed Members require updated bank statements with cash flow analysis
- Canceled rent checks or documented electronic transfers to landlord since qualification
- Updated Credit report
- Updated bank statements for all open accounts
- Updated credit card statements for open accounts
Once the property and financial documents are assembled by the Mortgage Counselor, they are submitted for Credit Access review to be completed by a NACA Mortgage Specialist. The review is completed within 24 business hours of submission. Once reviewed the submission is either approved, denied, or approved pending conditions. The Member must monitor their web file to see and address conditions immediately upon receipt. The expectation is that the Credit Access Approval process take less than ten days from being property identified.
2. Loan Application
Once Credit Access Approved, the MC will meet with the Member to take the 1003 loan application and submit it to the participating lender. Within five business days of application, the Settlement Agent assigned will submit the title work needed.
3. Lender Review
The lender underwriter will review the application and issue conditions within three business days (allow 5 for high volume periods).
4. Address Lender Conditions
It is time to again for the Member to monitor their web file to immediately address lender conditions. The Member can address the lender conditions using their NACA web file. When a Member needs assistance understanding or addressing lender conditions their point of contact is their Mortgage Counselor. Working with the Mortgage Counselor in a support role are the Closing Coordinators and NACA Mortgage Specialists. The NACA Mortgage Specialist that approved the NACA Credit Access is ultimately accountable for ensuring all lender conditions are appropriately met and cleared. They will review the conditions provided and approve them to go to the lender or deny them form going. This is a critical role as sending the wrong documents to the lender often results in getting additional conditions and delaying the Clear to Close from being issued.
5. All Conditions Addressed
Once all Conditions are addressed, the file is sent back to the lender for final underwriting review. Continue to monitor the web file for additional conditions and status updates.
6. Cleared to Close
When the file status is changed to Cleared to Close, the NACA Closer contacts the Member and settlement agent to schedule the closing. The Settlement Agent and lender collaborate to complete the final Closing Disclosure.
Since there must have been three business days for delivery and an additional three business day review period, an Initial Closing Disclosure (ICD) is issued earlier in the process. Once the delivery and review periods are complete, the loan can close the next business day. The closing can be scheduled 48 hours after the Clear to Close had been issued provided the ICD has been delivered. The closer will review the final Closing Disclosure to ensure the Member is not charged more than agreed. Once the closing is scheduled, the signing will happen at the NACA local office. Members should remember to update their address for their voter registration.