The documents which we receive will not be in order. In the stacking process all the documents will be stacked as per the client checklist.
The single file contains several number of documents that must be placed in exact order before submitting to the lender.
These files are used by the lenderâ€™s underwriter to review the documents in the order which is unique to the company, firm on individuals investor for a loan to be underwriten, first the document should be stacked in correct order. The stacking order helps the underwriter to complete the file at the earliest. Then the underwriter can easily locate the loan document whichever he wants to use for underwriting the loan or can take the loan decision by reviewing the documents.
The stacking order process is the base for the mortgage process/cycle. These stacked order files are used in Underwriting, HUD-1 Settlement Statement review process, Closing, Post Closing process etc,
Also we have Conventional & Non-Conventional loans which are not secured by the government.The Stacking format may vary from lender to lender in the market.
Once the documents are stacked they need to be indexed (re-named) so that it makes the underwriterâ€™s job easy.