BrokerVA
BrokerVA Team · October 29, 2026

Purchase Review and Investor Conditions: What Happens After You Close as a Correspondent

Purchase Review and Investor Conditions: What Happens After You Close as a Correspondent

Purchase review is the investor's check of a closed loan before it buys it. In a non-delegated shop it comes after closing and funding, so problems found there delay purchase and can cost money. Here is what one investor's published guide requires, what purchase conditions are, and how to prepare, with examples that vary by investor.

What Is a Purchase Review?

It is the investor's review of the closed loan file before it purchases the loan. Investor guides describe it consistently, even where the details differ. In A&D Mortgage's November 2025 delivery guide, the review has two parts: a due diligence provider reviews the credit package, and a document custodian reviews the collateral. The investor then reviews escrow and impounds, and a purchase advice is issued once the credit package and conditions are cleared, the collateral is cleared, and the unpaid principal balance has been provided.

Some investors also offer a review before closing. JMAC Lending described its non-delegated program as including pre-close purchase reviews to assure the loan will be purchased. And in a mini-correspondent arrangement, the loan is funded through the warehouse line and then shipped to the end investor for purchase review, per an older National Mortgage Professional explainer.

What Does the Investor Check?

Using A&D's guide as one example, the review looks at three areas.

The credit package. The guide lists a full package of imaged documents, including:

  • The Loan Estimate, the application, and the underwriting approval worksheet
  • The credit report, income and asset documents, appraisal, and title
  • Disclosures, TRID documents, any changes of circumstance, and the compliance report
  • The final signed closing package and evidence of MERS registration
  • Borrower identification, insurance, and tax documents

The collateral. The original Note with an original signature, the allonge, and, for lenders using a warehouse line, the bailee letter, delivered to the investor's custodian. A&D's guide says collateral delivery is due the business day after the credit package is submitted, but no later than five days after lock expiration.

The final closing package. Before releasing the purchase advice, A&D audits the signed final closing package, including the Note, the Mortgage, the signed Closing Disclosure, the final application, and the amortization schedule, along with the collateral and the MERS registration. The seller is asked to keep the final documents separate from the credit package.

What Are Purchase Conditions?

They are items the investor requires you to clear before it buys the loan. Terminology and timing differ by investor, so treat these as illustrations:

The pattern is the same: submit, review, clear conditions, purchase. The clock and the definitions are investor-specific, so use your own investor's guide.

What Happens After Purchase?

Several obligations continue. A&D's guide is one example:

  • Review the purchase advice right away. If something doesn't match your records, a post-purchase adjustment can be requested, and A&D says requests older than 90 days won't be considered.
  • Deliver trailing documents. The seller is responsible for providing the recorded security instrument, the title policy, and other required documents to the custodian after purchase, no later than 90 days after the purchase date, with monthly status reports provided. LendingPad's guide for non-delegated correspondents says you may also be required to return the recorded title policy and deed of trust to the investor. LendingPad is a software vendor.
  • Complete MERS steps. A&D requires MERS registration at least 24 hours before purchase and a transfer of rights within five calendar days of settlement.
  • Expect quality control and repurchase terms. A&D applies its own QC to sellers' loans and requires sellers to respond to findings. It also reserves the right to assess fees for undelivered documents after 90 days and to demand repurchase under the purchase agreement.

Why Do the Details Matter?

Because delays and defects have costs. Locks are one example: A&D's guide requires a complete closed loan package before lock expiration, says loans must close and disburse by the expiration date, and notes that a loan that doesn't may be subject to a relock at worst-case pricing. Warehouse funding is another. Our reading, not a finding, is that while a loan waits for purchase it ties up warehouse capital, since a warehouse line funds the loan until the investor buys it. A longer wait means longer carrying time.

Post-closing is also where lenders say problems hide. In National Mortgage Professional's piece on brokers who moved to non-delegated lending, one lender called post-closing "the most important part".

How Do You Prepare?

These steps are our recommendations, to be adapted to your investor.

  1. Build the credit package to the investor's list, and check it against the list before submitting.
  2. Separate the final closing documents from the credit package, if your investor asks for it.
  3. Confirm MERS registration well before purchase.
  4. Ship the collateral on time, and track delivery.
  5. Log every condition with an owner and a due date, and clear them in batches where the investor allows it.
  6. Review the purchase advice as soon as it arrives.
  7. Track trailing documents from the day of purchase, with a follow-up date for each. See Mortgage Trailing Documents Checklist.
  8. Keep files indexed and named consistently, so anything can be found for a review. See Loan File Naming and Indexing and Documentation Is the Control.

Where Does Support Fit?

This is the work BrokerVA's Post-Closing and Funding roles cover. Our Post-Closing Specialists review and organize closed loan files, split, index, rename, and upload documents within internal systems and lender portals, track trailing documents and post-closing requirements, prepare files for internal and investor audits, and handle investor conditions and MERS registration. Our Funding Specialists review finalized loan packages, prepare wire summaries, balance figures with title, submit documents to warehouse banks, and coordinate wires and funding authorization.

We don't make investor decisions, and we don't guarantee purchase. Accountability for the loan stays with you and your licensed people, and credit decisions stay with the investor. Ask your investor whether it has any requirements about third parties handling files. See What Does a Mortgage Post-Closing Specialist Do? and What Does a Mortgage Funding Specialist Do?.

Our goal is to lower your cost to originate. Every client gets a dedicated Coach for a 6-week implementation, who learns your processes, workflows, SOPs, and expectations, including your investor's delivery guide, then ongoing coaching and regular check-ins. We can't promise a specific saving, since it depends on your operation. On a call, we'll walk through your numbers and show you our cost calculator live. Pricing is customized to your volume and the roles you need. See how BrokerVA works.

Frequently Asked Questions

What is a purchase review in correspondent lending? The investor's review of a closed loan file, covering the credit package, the collateral, and the final closing package, before it purchases the loan.

What are purchase conditions? Items the investor requires you to clear before it buys the loan. Their definitions and timing vary by investor.

What happens after the investor purchases the loan? You review the purchase advice, deliver trailing documents such as the recorded security instrument and title policy, complete MERS steps, and respond to any quality control findings. One investor's guide sets a 90-day deadline for trailing documents.

Can support staff help with purchase review? Support can take on repeatable post-closing and funding work. Ask your investor whether it has requirements about third parties, and keep licensed decisions with your licensed people.

Sources

Want to see where support fits in your post-closing process? Book a call with BrokerVA and we'll walk through your numbers and show you our cost calculator.

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