Introduction

The Importance of Training for New Loan Officers.  Contents of this book and how this training increases the Loan Officer's chances of Realizing Success in their New Job and Career.

1.  Basic Stuff Your Should Know

Tools of the Trade, Using the Financial Calculator, Composition of most Mortgage Companies, Dress for Success. Know Your Loan Products, Loan Officer's Responsibility, The Flow of a Loan, Setting up your Workstation, How to Qualify Your Customers, Stay in Touch with Your Customers, Staying on Top of Your Pipeline, and Getting Organized.

2.  Common Lending Terms

Over 100 commonly used Terms in the Mortgage Lending Business.  Definitions and examples that demonstrate the proper use of those terms.

3.  Qualifying Your Borrowers

What Conforming Lenders look for when Underwriting and Qualifying submitted loan files. In-depth discussion on Credit, Capacity, Collateral, Cash, and Character of Borrowers.  Covers and includes a Customer Pre-Qual Worksheet.

4.  Loan Underwriting

Manual and Automated Underwriting is discussed with emphasis on the distinctive features of Direct Underwriting (Fannie Mae's DU and Freddie Mac's LP).  The features of Layers of Risk and Primary and Contributory Risk Factors are fully discussed.  The Economic Stimulus Act of 2008 and Jumbo-Conforming loans.

5.  Qualifying Documents

Required documents regarding Employment and Income, Cash, Credit, Residence, and Liabilities when completing the Loan Application (1003).  Loan Verifications are covered. Qualifying Self-Employed borrowers is fully covered.

6.  Subject Property Concerns:

Those aspects of the subject property that could be a concern and possibly a "loan killer" are presented and what to do when those features of the home are discovered.

7.  Mortgage Loans

Types of Loans: Conforming, Jumbo-Conforming, Non-Conforming, and B/C Sub-prime loans. Loan Transactions: Purchase Loans, Refinance Loans - Rate/Term and Cash-Out, Streamline Refinance loans, 30-year versus 15-year fixed rate loans, Second Mortgages, Home Equity Line-of-Credit. Loan Products: Fixed Rate, Balloons, ARM loans with in-depth discussion on ARM loan terms and Qualifying borrowers on ARM loans.

9.  Uniform Residential Loan Application

All Sections of the cuurent 2007 Uniform Residential Loan Application are fully covered regarding What information is needed for each and Why that information is important.  What to look for when completing each section of the 1003, and suggestions are given as to what to ask and say to the customers when completing each section of the 1003.  All 5 - 8 pages of the new 1003 are fully discussed.

10.  Mortgage Loan Disclosures

A complete Set of Disclosures is presented and the importance of each Loan Disclosure is discussed.  Suggestions are provided of what to say when presenting each Disclosure.  Includes Tax Form 4506 and the Privacy Protection Notice.

11. The Good Faith Estimate

All line items on the Good Faith Estimate are discussed with special emphasis on Interest Adjustment, PMI, and Calculating Reserves for Hazard Insurance and Property Taxes.

12. The Truth-In-Lending Statement

All Features of the Truth-In-Lending Statement are covered, with emphasis on How to Manually Calculate the APR of a Loan and How to Explain it to the Customer so they understand it as well. 

13. The Transmittal Summary

Important features provided by a Property Profile or MetroScan, on the subject property, is discussed and what to look for when reviewing this report.

15. Out of Town Customers

How to properly package a Loan Application for those Customers who are located Out of Town or State - that can increase the response rate of these types of loan customers.

16. Reading The Credit Report

How to read a customer's Credit Report.  What to look for in assessing the customer's Credit Worthiness - as it relates to the targeted lender.

17. Reading The Rate Sheet

How to properly read a lender's Rate Sheet.  What to look for: Rates, Points, Rebates, and Fee and Program Adjustments, Rate Lock Periods, and Lender Fees.

18. Title Insurance

Discusses the different types of Appraisals.  What areas to review on the Appraisal Report and why - when the Appraisal is received.  Discusses the different approaches Appraisers may use in assessing the value of the subject property.

20. The Purchase And Sales Agreement

Discusses the important points and what to look for in reviewing a Completed and Fully Signed Real Estate Purchase and Sales Agreement.

21. Processing Your Loans

Loan Processing steps that the Loan Officer needs to complete in properly processing a mortgage loan.  Reviews the Document Needs based on the customer's Credit, Income, and Collateral of the subject property. Locking the Rate, Importance of the Comments Sheet, Satisfying Prior-To-Doc and Prior-To-Funding Conditions.  Shopping the Loan, Submitting a Loan to a Lender, Preparing a Shadow File, Compensating Factors, and Scheduling the Closing of the loan.  And , the importance of Attending Your Loan Closings.

22. The Remarks Page

What to include and how to prepare a Cover Letter when submitting a loan file - to the Loan Processor and/or Targeted Lender.

23. Loan File Stacking Order

Importance of the Loan Stacking Order is discussed and an example of a Loan Stacking Order is presented.

25. Putting It All Together

Summaries subjects previously discussed and lists the various steps, in the processing of a Loan, into Phases with Sub-steps listed for all Loan Phases (like a Flowchart). The Loan Officer can printout this Flowchart and check-off each step that is completed in processing their loans. Discusses the Golden Rules of Conduct in a mortgage loan office.

26. Marketing Your Services

Different approaches to Marketing the Loan Officer's Services are discussed: Farming Lists, Posters and Flyers, Real Estate Agents, Newspaper Advertising, Local Chamber of Commerce, The Internet, For Sale By Owners. Special emphasis on Closing and Asking for the Sale.

27. Closing Thoughts

Final Thoughts on How to Be Successful as a Loan Officer.

Index:

A Loan Application

Here the Loan Officer is given the opportunity to complete a Loan Application (as an exercise) by applying all that has been learned.  In this exercise the Loan Officer is asked to complete a GFE, TIL, and Qualifying Analysis Worksheet on the Customer.  Completed loan documents are provided within the Exhibits Section.