Do you have a desire to become a mortage professional but don't know how to get started? Are you are new loan officer or a processor who is having trouble understanding mortgage lending concepts? If so, don't dismay! We've all been there. Rest assured, it will get easier in time. Meanwhile, here are a few basics you can focus on to get you through.
LOAN OFFICERS - 1) Learn what questions need to be asked and answered to analyze your borrower's needs. A prequalification worksheet is helpful in conducting an initial interview. 2) Learn how to do basic calculations for monthly payment, debt ratio, and loan-to-value. 3) Review the rules of regulatory compliance. It is essential that you know how to properly take an application AND make the proper disclosures to your borrower. Your borrower should be fully aware of their loan terms as well as the costs involved in obtaining a home loan. 4)Learn the advantages and disadvantages of basic loan programs (ie., fixed rate, adjustable rate, and balloon loan programs).
PROCESSORS - Thorough knowledge of regulatory compliance is a must for you. You will also need to know basic calculations and have a ready reference for loan programs. Additionally, it will be helpful to 1) Understand the loan flow from application to closing. This will make it far easier to resolve issues that develop through the various loan stages. 2) Clarify your role and responsibilities. 3)Learn how to read a credit report. With this knowledge, you can easily determine the documentation required to address credit report items. 4) Become proficient in your office's processing software (ie., Calyx Point, Genesis, etc.)
----------------------------------------------------------- INDUSTRY NEWS (November 2004)
Many states including California, Nevada, Florida, Michigan, and Illinois have been identified as mortgage fraud hot spots by the FBI. There have been 151 new fraud cases filed since August. ---------------------------------------------------------- QUESTION OF THE MONTH
Q. I have a borrower who has several erroneous entries on his credit report. What should I do if I want to submit the loan before the 30-day credit investigation process is complete?
A. That's a great question. There are a few things you can do: 1) get a credit explanation letter from the borrower and include it in the file with all of the supporting documentation. 2) If you need the corrections done to qualify for a particular loan program, you may be able to send the supporting documentation to credit bureau and receive an updated report within 72 hours. Check your lender's website for their credit report update options and procedures. -------------------------------------------------------
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