All borrowers are invited to register and login to the online portal, My Loan Zone. This site allows borrowers to access loan disclosures, electronically sign documents, and directly upload and review documentation required to process their loan applications. In order to access these features, borrowers must pass an ID verification test after registering for the site using two factor authentication and agree to receive disclosures electronically. If a borrower, does not opt in to receiving disclosures electronically, disclosures and notices are delivered via postal mail. Regardless of whether or not a borrower opts in to receiving disclosures electronically, all borrower-required documents must be uploaded to complete the loan application. Loan originators are able to assist borrowers in uploading the required documents using their own dedicated portals (PFloans for mortgage brokers).
Once all of the borrower-required documents have been uploaded, the “facially complete” loan application is placed in the underwriting queue. The additional documentation and information not provided directly by the borrower (e.g., title documentation and appraisal report) are not required to be uploaded (although can be) before an underwriting evaluation may begin but are required before final credit approval may be issued.
If the facially complete application package is determined to be incomplete (either borrower-required items are missing or additional information is required), a “Notice of Incompleteness” is issued to request the additional information from the borrower. It also informs them of additional items and services that are pending but not provided directly by the borrower (such as title documentation or a property appraisal report). These outstanding items, which are necessary to issue a credit decision, are taken directly from the underwriting condition log which is determined by the underwriter and entered into PFnet for the loan application number during the underwriting process.
A Notice of Incompleteness is triggered automatically whenever a new condition has been added or if the borrower has not submitted all documentation necessary to consider their application facially complete. The notice is placed in a queue to be generated at the end of the day to encompass all conditions in one notice and to avoid sending multiple notices in one day. Each time a new condition is added to a loan, an email is sent to the loan originator to inform her/him of the request so that they may provide the borrower with assistance in uploading conditions if necessary. Additionally, if the borrower has registered on My Loan Zone, she/he will receive an email instructing them that new required items have been added to the condition log.
When all borrower-required items have been uploaded and accepted by the underwriter, a Conditional Approval Letter is issued, informing the borrower what required items remain outstanding (such as title documentation or a property appraisal report). Once all outstanding items have been received and the underwriter has released the loan for closing, a Final Credit Approval Letter is issued. (If both a Conditional Approval Letter and Final Credit Approval Letter are triggered to be issued on the same day, the Conditional Approval Letter is cancelled and only the Final Credit Approval Letter is issued.)
Both the disclosure for How to Complete Your Application and the Notice of Incompleteness request that borrowers submit the required documentation within 25 days. However, at their discretion, loan originators may continue to actively process a loan as long as they perceive the opportunity for the loan to close exists. Provident Funding shall not take action to cancel a loan application until it has either received confirmation from the loan originator or has made an effort to confirm with the loan originator that a loan application should be cancelled (withdrawn, denied, closed for incompleteness, or approved but not accepted). If a loan application is denied, a Denial Letter is issued; or if it is withdrawn, closed for incompleteness, or approved but not accepted, a Notice of Action Taken is issued.