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Loan Administration as the name suggests is
the process of completely administering the loan approval and
loan payment procedure. In other words, this involves the administration
of loans from origination to maturity of the loan. Generally,
the Mortgage Lender or Banker would assume the responsibility
of Loan Administration.
The Loan Administration department handles the following
tasks:
- Fully study the loan application and all supporting
documents
- Analyze the documents to ensure that they are in
compliance with all rules and regulations. Review these documents
for completeness and accuracy.
- Understand title reports, interest rates, and all
compliance issues
- Perform the final review before the Lender enters
into a legal contract with the Buyer
- Interact with the Seller and Buyer to resolve any
issues pertaining to payment
- Issue all contracts, commitments, and loan terms
to the Buyer
- Monitor all loan transactions and monthly payments
- Maintain records of all the documentation along with
records of monthly payments, the amount of payment, and date
when received
- The Loan Administrator in some cases also takes the
responsibility of paying the Buyer's real estate taxes as
well as insurance premiums.
Most Mortgage Bankers offer Loan Administration Services.
Some offer it as part of their lending process, while some
may even charge an extra fee for this additional service.
It is highly recommended that as a Buyer, you select a Lender
who provides these services. Hiring a qualified professional
to administer your mortgage loans is also a good practice
to follow.
To ensure that you do not overpay or agree to unnecessary
terms before and during the mortgage loan process, you must
engage a Loan Administrator. Besides, the administrator would
also make sure that all your payments are made on time, which
is extremely crucial.
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