This week on “What Does My Client’s ____ Do?” we uncover the mystery of the Appraisal Desk and Disclosure Desk. (*Dun dun duuunnnn…* -- insert dramatic music here.) Nah, on second thought, this is a blog from a mortgage company, so we’ll dispense with the dramatics.
But we are excited, as always, to help bring even more clarity to the mortgage process for you and your clients. In this series we’ve already covered the responsibilities and services of a Processor and an Underwriter. This week, we’re checking two boxes by detailing the same for both the Appraisal Desk and the Disclosure Desk.
The appraisal is one of the most important factors during the mortgage process, as it usually influences the ultimate value a mortgage lender places on a home. Basically, the Appraisal Desk is a department responsible for ordering and reviewing appraisals and the final home inspection.
The biggest benefit of having an Appraisal Desk is that they provide an extra set of eyes for the appraisal, which ultimately makes for a better customer experience. Also, the Appraisal Desk helps save our old friend, the Processor, time by sourcing and reviewing those appraisals. Otherwise, the Processor would have to do it themselves.
The Appraisal Desk reviews appraisals as soon as they are received., and they usually review a file between the application origination and the final processing of the mortgage loan. Reviews can take up to 48 hours, however appraisals for specific loans like FHA or VA loans go directly to underwriting.
Also, there are typically two to three instances in which the Appraisal Desk will touch a file: the initial order, the review and before final inspection. Once the review is complete, the file is passed back to the Processor and prepared for final underwriting. If there are any issues with the appraisal, the appraisal department goes back to the Appraiser for revisions or further commentary regarding issues noted within the report during review.
In the end, one of the biggest reasons for the Appraisal Desk is to ensure all appraisals for a Guardian Mortgage loan are compliant with regulations.
Loan disclosures are the required documents and information that make every detail and term of a loan known to the borrower. In other words, they are the documentation disclosing and maintaining full transparency between the lender and borrower. And, like the Appraisal Desk, there’s a department that handles disclosure logistics. You guessed it: the Disclosure Desk.
The biggest benefit of the Disclosure Desk is it takes away the worry and hassle from the Mortgage Loan Originator to make sure a loan is disclosed and re-disclosed in a timely manner. Timeliness is crucial to the process, as a loan can’t close until it’s been disclosed with all of the required fees and forms.
A loan is usually disclosed within a few days of the initial application, which is the first time the Disclosure Desk will touch an application file. It’s possible the Disclosure Desk will review the file two or three more times if there are any required re-disclosures, which happens when the terms of the loan have changed, and subsequently the file needs to be disclosed again to the borrower.
While the time it takes to actually disclose is only about twenty or thirty minutes, it is required that a loan be disclosed within three days of an application. All re-disclosures must also happen within three days from when there is a change in the terms.
Once the Disclosure Desk has done their part, the file is sent on to the Processor. And, if for any reason a loan cannot be disclosed, the loan needs to be recommended for denial, or withdrawn if the borrower does not wish to move forward.
In a nutshell, the Disclosure Desk ensures that all loans are disclosed within three days. And, much like the Appraisal Desk, they’re also tasked with staying compliant with all regulations.
There you have it. Now you know what your client’s Appraisal Desk and Disclosure Desk are responsible for. And, while it might not have been as exciting as your favorite mystery drama, we certainly hope it was informative, and helps you and your clients better understand the often complicated mortgage process.
If you or your clients ever have any questions about the process, you can always reach out to a Guardian Mortgage Loan Originator for help.