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Mortgage Processing Policy Manual

The Dodd-Frank Act provides authority to the CFPB to prevent financial harm to consumers and "to promote good practices that benefit them." One of the CFPB strategies to accomplish this goal is to supervise financial institutions to determine compliance with fair lending laws, including ECOA and HMDA. An efficient processing department is vital to regulatory compliance, data accuracy, and communications with consumers that are fair and informative.


Looking for a source to guide development of your company's processing department? The AllRegs Mortgage Processing Policy Manual is designed to aid mortgage brokers, lenders, and originators in the development of a highly effective processing operation. In today's lending environment a robust processing policy is integral to establishing effective mortgage operations, successful pipeline management, and maintaining compliance with federal consumer financial laws called for by the CFPB. This document reviews processing functions from file and disclosure preparation, communicating with all parties to the transaction, including service providers, and provides training protocols and best practices to effect process implementation.

Further, this document provides practical guidance for effectively processing mortgage loans. It also serves as a model to brokers/lenders seeking to establish an in-house loan processing function.

The following agencies, federal office, and entities require implementation of this policy manual:

  • Consumer Financial Protection Bureau
  • Fannie Mae
  • Freddie Mac
  • HUD
  • VA
  • Secondary Market Investors


The manual features the following benefits:

  • Complete Mortgage Processing Policy Manual, saving you development time and resources
  • Meet your regulatory or internal compliance requirements
  • Affordable one-time purchase fees

This manual:

  • Identifies a processor's role in mortgage origination
  • Reviews the regulatory requirements for proper disclosures
  • Highlights best practice and industry tips throughout the manual, including, but not limited to
    • effective treatment of loans;
    • communicating with all parties to the transaction; and
    • coordinating third party services
  • Correlates the importance of the loan application with supporting documentation
  • Establishes a Mortgage Processing policy that can be tailored to the needs of your organization

Optional Services

Maintenance: Receive regular and ongoing industry updates to keep your policy within regulatory requirements.

Publishing: Publish your manual, including your company procedures, in AllRegs Online to complete your policy manual solution.

Contact your account manager for information regarding these optional services!

Policy Manual
Mortgage Processing
Section Title Priority Action
1 General Information Mandatory Review Include the mission statement, point of view, or culture of your organization in this section, if applicable.
4.5 Pipeline Management Mandatory Review Review this section to include your institution’s specific pipeline management procedures or requirements.
5.5 Borrower ID and Eligibility Documentation Mandatory Review Validated against your institution’ procedures.
5.10 Purchase Agreement Mandatory Review Amend this section to include any specific purchase agreement procedures required by your institution.
5.13 Update the Internal Loan Origination System (LOS) Mandatory Review Review and update this section to include your internal procedures for updating the LOS for processing workflow, preparing disclosures, and generating third-party service requests.
6.1 Issuance of Initial Disclosures Mandatory Review Include specific duties required by processors as it relates to the disclosure process.
7 Automated Underwriting System (AUS) Submission Mandatory Review Review and modify this to include your internal procedures for AUS submission.
8 Communicate with All Parties Recommended Best Practice Edit this section to reflect your specific communication procedures with borrowers and other parties to the transaction.
9 Underwriting Submission Recommended Best Practice Revise this to include internal procedures for file submission to the Underwriting Department—whether internal or an investor’s.
10 Coordinate Third-Party Services Recommended Best Practice Modify sections applicable to ordering appraisals, flood certifications, and private mortgage insurance with your internal procedures.