Mortgage Training: Answers to Common Questions

Copyright © 2007. Complete Mortgage Processing Answers from the Mortgage Trainer We get questions submitted to our “Ask the Mortgage Trainer” database daily. Answers to some of those questions have been listed below: Question: What does it take to be successful working from home as a loan officer or processor? Is the Loan Processor In-A-Box training information enough? Answer: It is very possible to have success working from home as a loan officer or processor after using the Loan Processor In-A-Box® training system. The level of success that an individual has working from home depends on the skills they possessed prior to becoming home-based. The quality of the resources available thereafter are also important. In addition to industry experience, there are many other factors that contribute to the success or failure of a home-based mortgage professional. Having discipline, project management skills, efficient equipment and access to technology are all essential. We have written a few newsletters surrounding this topic as well. You can access them at: www.completemortgageprocessing.com/newsletter.html Question: How much does a loan processor earn? Answer: The salary for a processor will vary based on the processor’s level (i.e., processing assistant, processor, senior loan processor, processing manager, etc.). An entry level processor in the Bay area will typically see a salary range of $29,000 to $46,000 depending on their experience and the employer. You can search other areas by visiting www.salary.com. Copyright © 2007. Complete Mortgage Processing Question: Will I require a mortgage license to be a processor in New York? Should I get errors and omissions insurance? Answer: Some states require contract processors to be licensed and others do not. At this time, it is not a requirement in NY. However, we understand that there is pending legislation regarding it. Once the legislation is passed, contract processors will have to go through a registration process similar to that of a loan officer or loan broker. Having E&O insurance is a wise choice just as a general business protection. However, the originator is ultimately responsible for the transaction with their customer from beginning to end. Question: My loan approval states that “the representative credit score must be 687”. That’s something that seems like it’s out of my control. What can I do? Answer: The lender typically locks in the credit score at the time of approval. If the loan is closing soon there should be no worry. If your loan is a new construction deal or other type of file that may experience delays, there is a possibility of a credit score change. With the latter example, you’ll want to prepare your borrower by informing them of things that could have an adverse affect on the credit score (i.e., creating higher debt with new or existing accounts) . Contact your lender representative or review their guidelines via their website to see if it is customary for them to update the credit prior to close. Question: Why does it take 60 days to close a loan? Answer: The short answer is “it doesn’t”. If a loan takes 60 days to close it is typically due to delays that were very likely avoidable. Here are a few examples: • The loan was started before the borrower could provide the necessary documentation. The file sat until the borrower could get them. • The lender’s volume has exceeded capacity. Files are sitting while they get additional staff or better technology to handle it • The loan was structured the wrong way and had to be submitted to another lender the correct way • The loan officer or processor is inexperienced with this type of deal. Consequently, delays are happening as they struggle with getting help and support.