Contract processing
Contract mortgage processing for brokers and loan officers.
Contract mortgage processing means an outside company processes your loans instead of a processor on your payroll. Hancock Processing is a contract mortgage processing company for loan officers and brokerages. You keep the borrower relationship and the loan decisions. We handle the processing work through closing, and you choose how much of the file you hand off.
It's $0 to you. Our fee is paid by the borrower at closing through title, and we get paid only if the loan closes, just like you. You work with one dedicated processor who works inside your LOS, and every package includes a post-close audit.
Contract processing is one form of third-party mortgage processing. For the background on that model, read what a third-party mortgage loan processor is and why more brokers are outsourcing.
How contract processing works with Hancock Processing
- Reach out. Use the contact form or call (833) 932-2623. Our partner guide explains what working with us looks like.
- Get one dedicated processor. You get one processor, not a round robin of whoever is available. If the fit isn't right, you can switch processors.
- We work in your LOS. Your processor works inside the system you already use, such as Arive or LendingPad. There's no new portal to learn.
- Send your files. What you send depends on your package. On our Standard package, for example, you send the application, the contract, and the signed initial disclosures and supporting documents.
- We process. Depending on the package, we disclose, gather documents, order title, appraisal and homeowners insurance, submit, and clear conditions. On the Preferred and Elite packages, initial disclosures go out within 24 hours of receipt.
- Close and audit. We work the file to closing. Every package includes a post-close audit.
Contract processing vs. an in-house processor
Both can work. The difference is mostly in how you pay and who does the hiring and training.
| Compared | In-house processor | Contract processing with Hancock Processing |
|---|---|---|
| How it's paid | Salary or wages from you, whether loans close or not | $0 to you. The fee is borrower-paid at closing through title |
| When a loan doesn't close | You've still paid for the work | We don't get paid |
| When volume changes | The same salary in busy months and slow months | A fee only on loans that close, and $0 to you either way |
| Hiring and training | Yours to recruit, train and manage | Nothing to recruit or train on your end |
| Systems | Works in your LOS | Works in your LOS; no new portal |
| Quality check after closing | Depends on your own process | Post-close audit on every package |
A quick way to decide
Contract processing is usually worth a look if:
- You're a solo or new LO and don't have the volume to keep a processor busy every month.
- Your volume moves up and down, and a fixed salary is hard to carry in slow months.
- You're spending selling time on conditions, title and appraisal orders.
- You're growing and want processing help before you're ready to hire.
An in-house processor may suit you better if you want someone on your own staff who handles tasks beyond loan processing.
Who we work with
We work with loan officers, mortgage brokers and branch managers, including:
- Solo and new LOs who want processing help without adding payroll.
- Small brokerages (1 to 10 LOs) that want each LO's files handled by a dedicated processor.
- Growing brokerages that need overflow processing.
Hancock Processing was founded by Tyler Hancock, a former loan officer. Our team includes 100+ US-based processors.
Packages and pricing
Each package is a flat fee per closed loan, borrower-paid at closing through title. That's $0 to you, and no fee if the loan doesn't close. Pick the package that matches how much of the file you want to keep.
| Package | Fee per closed loan | You handle | We handle |
|---|---|---|---|
| Standard (Submission to Close) | $995 | Application, contract, sending and retrieving signed initial disclosures and supporting documents | Order title, appraisal and homeowners insurance, submit, clear conditions, close |
| Preferred (Disclosures to Close) | $1,195 | Application, purchase contract, lock | Import to lender, register, disclose within 24 hours, get documents, order title, appraisal and homeowners insurance, submit, clear conditions, close |
| Elite (LOA/Processor Hybrid) | $1,495 | 1003, credit report and a quick review of it, issuing the prequal, choose lender, product and rate, and lock | Verify the 1003 with your client, gather income and assets, calculate income, run AUS, help with prequal and preapproval, TBD submission (if needed), disclose, process to funding. One processor per file. |
| Streamline (Streamlines and IRRRLs) | $695 | Application, signed disclosures and documents | Order title and homeowners insurance, submit to underwriting, clear conditions, close, post-close audit |
Every package includes a post-close audit. See full details on our processing packages page.
Loan programs we process
- Conventional loan processing
- FHA, VA and USDA loan processing
- VA IRRRL and FHA Streamline processing
- Non-QM loan processing
- DSCR loan processing
- Business purpose loan processing
- New build loan processing
Where we work
Hancock Processing is doing business in 45 states plus DC. We don't currently serve Alaska, Hawaii, Indiana, New York or South Dakota. Find your state in our state guides.
Frequently asked questions
Can a contract processing company work alongside our existing operations team?
Yes. Choose the package that matches the work your team keeps. If your team already handles disclosures, the Standard package picks up at submission. If you want us to take disclosures too, the Preferred package starts there. Because we work inside your LOS, the file stays in your system the whole time.
Can we outsource end-to-end mortgage loan processing?
Our Elite package covers the most ground. We verify the 1003 with your client, gather income and assets, calculate income, run AUS, help with prequal and preapproval, handle TBD submission (if needed), disclose and process to funding. You take the application, pull and review credit, issue the prequal, choose the lender, product and rate, and lock.
How much does it cost to outsource FHA loan processing?
It's $0 to you. Our fee is borrower-paid at closing through title, and there's no fee if the loan doesn't close. An ordinary FHA file uses one of our general service packages: Standard ($995), Preferred ($1,195) or Elite ($1,495), depending on how much of the file you hand off. FHA Streamlines use our separate Streamline offering at $695. See our processing packages.
What does "$0 to you" mean?
You, the loan officer or broker, don't pay us. The processing fee is paid by the borrower at closing through title, so the borrower does pay it.
Will I work with the same processor on every file?
Yes. You get one dedicated processor, with no round robin. If the fit isn't right, you can switch processors.
Do we need to learn a new system?
No. We work inside your LOS, such as Arive or LendingPad. There's no new portal.
Talk to us about contract mortgage processing
Tell us about your pipeline and we'll walk you through how contract processing would work for your files. Contact us or call (833) 932-2623.
Hancock Processing LLC · NMLS 2191187