Amen Matthew!  We have two young ladies at my firm who do the processing and they are outstanding!  While there are certain fees over my career which I've seen that are ridiculous, I always hated the term 'Junk Fees'.  More times than not, there is a reason for them, a valid and earned one.

Your "right arm" is not junk!  If she makes you look good, she's well worth her processing fee! 

Good Points!!

Hey Matt,

I agree 1000%. A good processor and save a deal, a poor processor can kill one.

Sean Allen

Jason,  Very true.  The only one time I saw a fee on a HUD From a title company that drove me crazy was an E-mail charge for $60...I thought that was a bit much

Susie, You are right she makes me look great..

Sean, I have seen that to.. I have worked for companies that hired the worst processors.. and some how they had an attitude..Thank you for your comment

Matt, In my opinion the processor is a gate keeper, and you know what they say about the gate keepers. Just like Sean said a poor processor can defiantly kill a deal. Question for you... Why is it that in this industry so many feel that we (meaning all the hands that go into the equation of the purchase & sale of someones largest investment ) are not worthy of earning a just income?

Matt,

When I started in the Business, I worked for a company in Boca Raton, abd I had to Process, my own files, and then I went to my old company and after 5 years there, they decided times were slow, so lets layoff the one Processor who did all of the work, after that I quit and Joined my new Company where they Gladly took my Processor, just to have me work there.. So this girl is just Awesome!! She is honest and very precise.. Your right they are worth their weight in gold :0)

Tom Weiss

Just one of those signs that when you're in this industry and starting out on your own that you need to look hard at all the requirements to open and run your business.

I had someone ask me about being their Real Estate Broker... I told them that I would have to have them pay my E&O up front... why? because I don't practice listing and selling .... I am licensed though... if I am going to do the work, I'm going to get the insurance for it!

Matt, interesting post.  As a Realtor, I see processing fees on apps all the time.  Even after many years in the business, I had no idea that a processing fee actually goes to a specific processor.  I guess it's sort of like a Transaction Coordination fee in our business.  I appreciate the explanation and will be able to explain this better to my clients.  Thank you!

Donna, You are right about the Gate Keeper.   I really can't answer your question.. So many people want something for nothing I guess

Tom, My processor really is.  I am just glad that I was trained to process my files.  I just don't have the time do it anymore

David,  I just hope she gets it.  I told her in this market I really think more and more Mortgage Investors are going to require it

Irina,  I can't speak for every Mortgage Company but the ones I have worked with the money goes to a specific person or to a group of Processors within the company.  Thank you for your comment

Ann, You are so right.. Thank you for the comment

And if you are new as a loan originator, a good processor can teach you quite a bit.   Plus they let you focus on what you do best - originating!

Kate, I did not even think of that but you are soooo Right.

You should print this out and the next time some one picks this fee apart - simply had it to them...you certainly get what you pay for uh?  thanks for sharing

Thesa,  Thank you... :-) I agree you get what you pay for in life..

Very good point Matt!! I think an LOs success hinges on their processor. Unfortunately, I had to learn this the hard way. Find a good one and pay them well, give them bonuses, really take care of them.

Agreed!  I bristle when someone calls my processor or underwriter "junk,"  almost come out of my chair.  They work hard, and get paid well as a result. 

MATT: My wife is a processor and used to process for me. The last thing I would ever take for granted is a good processor and believe me, she is heads above the rest. The thing I hate is how processors are treated like second class citizens when they do an equal amount of the work for a smaller portion of the money.

Tom, You are right...Sometimes you don't know what you have untill you learn the hard way.

Rich,  I would to.. A good Processor is so hard to find and if you are lucky enough to find one.. Hold on they are worth anything

Jeff, I am very lucky to have a very sharp processor.  It really surprises me how many L/O's, Mortgage Brokers, and AE's Think they have it tougher than a processor.. 

I have left other companies for greener pastures for this very issue. Back end support can make or break you!!

Tom, You speak the Gospel...With out a good back end you are not worth much at all.

I hate processing fees..even my own ...when we did our mortgage..my guy always waived those fees. Yes it does pay to have a good processor who takes the bull by the horns.

Yep, a good processor is hard to come by.   I started out processing my own loans and I'm glad I did.   In my opinion, even if you do use a dedicated processor, in house or outsourced, you should always be the best processor you know.  

Neal,  I know you just hate fee's all Together..:-)  People need to get paid and my friend don't be believe you did not pay for the processing fee.  The processor got paid on your file and if you did not pay for it directly than it came from the loan proceeds.  So yes you did pay for it..:-)  I know you have a great rate on your home loan now.  So I cannot go back in time and tell you what the rate would have been if you paid for it directly.

Seth, So true they are so hard to find that you really cherish them once you find one.

Shouldn't we also charge a secretary fee, a guy who passes out the mail fee and such?  The processing fee should be included in your origination fee.  I only use lenders that have that kind of structure in the fees.

I also use a transaction coodinator but would never pass that on to my buyers or sellers.  Its' the cost of doing business.

Gene, First off I don't charge an Origination Fee, Application Fee, Credit Report Fee, so before you write a comment you should know all the facts.  A processor gets paid either from the company direct or from the client direct.  Either way a processor is extrememly important part of a clients file.  With out that person you would not be getting your commission check because most likely you would not be closing on time.

Matthew- I have met and dealt with some bad processors in my time. I am glad you found a good one and same with Tom. That will make me feel much better when referring business to you guys. BTW if you need another appraiser ever, I do know a good one. Katerina

Katerina, Thank you.  As you know a good processor is hard to find. 

I just found this post and it is nice to see some processor appreciation! A good processor will scrub that file before submission and address any issues before it gets to the underwriter. I have worked in many large shops prior to contracting and I have caught things to address that actually saved the brokers deal. And I cant even count how many times I had to get on the phone with borrowers to save deals because the loan officers did not know how to explain things. Especially when they were at the closing table. 

a processor is not just a paper pusher, they are the eyes and ears of the file and actually should be checking the files for any funny stuff to protect the broker as well!

Melissa, I agree with you a processor is not just a paper pusher.  A true professional Processor is worth his/her weight in gold.

When I hear the phrase junk fee, I immediately correct the speaker. These fees are per loan offset charges. they help keep the interest rate down. Otherwise the interest rate will be used not only to cover the cost of the money, but also the cost of overhead.

You can shop whoever has lower over head, or you can pay the per loan fees with higer intereest rates.  Sometimes that makes sense for a borrower.

Junk fees are legitimate expenses, most of the time. Some brokers charged excessively, but I suspect they are finding it is difficult to charge excessive fees any more.

Richard

Richard, I always tell people that the cost of money is not free.  Yes they have a rate but also people who places these loans together don't work for free. 

I think the objection occurs because many Realtors and Clients do not know what work is involved in the process and therefore do not understand what each of the various fees are for. These "other" type fees then get classified as "Junk Fees" which isn't a fair conclusion.

Stewart, You really are on target. So many people really don't know what the fee's are.  Now some can get crazy but...