Mortgage Loan Origination Activities
The origination workflow
- Inquiry and pre-qualification: no verified underwriting; a pre-approval is documented but still conditional.
- Application: collect the six TRID pieces, pull credit with permissible purpose, and issue the Loan Estimate within three business days.
- Intent to proceed: no fees may be collected beyond a bona fide credit report fee before the borrower signals intent.
- Processing and appraisal: order title, appraisal, flood determination, and verifications. Valuation independence rules prohibit coercing or improperly influencing appraisers.
- Underwriting: issue conditional approval, clear conditions, and document any changed circumstances.
- Closing: deliver the Closing Disclosure at least three business days before consummation, fund, and record.
Worked example
An application is taken Monday. The Loan Estimate goes out Wednesday, within three business days. The borrower signs intent to proceed Thursday. The Closing Disclosure is delivered the following Monday for a Friday closing. Tuesday, Wednesday, and Thursday supply the required three-business-day window, so Friday consummation is permitted.
Traps that cost marks
The CD clock runs from receipt, not from the date you send it. A revised CD is required for APR changes beyond tolerance, changed loan terms, or a prepayment penalty. Do not order the appraisal before intent to proceed without a proper exception. Do not let a real estate agent select the appraiser. Do not treat a rate lock as a substitute for the Loan Estimate.