What is the importance of a stacking order in mortgage documentation?

The importance of a stacking order in mortgage documentation primarily revolves around having paperwork filed in a specific order for easy access and auditing. This systematic organization allows all parties involved in the mortgage process—such as loan processors, underwriters, and auditors—to quickly locate and review necessary documents. By following a designated stacking order, it reduces the likelihood of errors and omissions and streamlines the workflow, ultimately leading to a more efficient processing of the loan.

When documentation is arranged in an orderly framework, it not only aids in the smooth operation during the mortgage application process but also becomes invaluable during audits. Auditors often need to verify compliance with regulations and underwriter policies, and an organized document stack enhances their ability to perform thorough and accurate assessments.