Looking for answers to common questions about loan processing? We’ve placed the answers to a few of the ones that we get more often right here for your review. If you have another question, just let us know.
1. How do I become a loan processor?
Begin by learning about the various roles a loan processor plays. This will enable you to determine which position resonates with you and fits your lifestyle. Your research will help you to determine which position(s) you are already qualified for or aspire to have. You can gain more insight on the responsibilities at various levels on loan processing by visiting our website’s career section. You’ll find the skills and characteristics that are common to have on various mortgage loan processing jobs. For salary information and current job openings, you can visit websites like Salary.com or Monster.com. Be sure to check both federal and state licensing requirements to make sure you’re in compliance.
2. How will I know if I am choosing an ethical mortgage company to work for?
First and foremost, rely on your instincts. You will intuitively know when something you saw or heard is not quite right for you. Secondly, you can visit your official state website and search the Disciplinary Action Reports (DAR) to gain insight on whether or not your employers business practices have come under fire in the past. And finally, ask around! Your peers are often the best source of information about mortgage lenders, bankers or brokers in your area.
3. How can I determine what the mortgage industry licensing requirements are for my job?
This is typically covered during the new hire process if you plan to work for a company. If you plan to be independent, start your research on your official state website to connect with the mortgage lending or finance division. You can also visit the NMLS Resource Center to learn about the Nationwide Mortgage Licensing System & Registry (NMLS). There you’ll find great tips and tools for the entire industry.
4. What is the difference between an in-house mortgage loan processor and a contract mortgage loan processor?
An in-house processor is someone who works within the company typically processing loans exclusively for a particular lender, mortgage broker or banker. As an employee of the company, they may be assigned a group of loan officers that they work with on a consistent basis. They are usually compensated with an hourly wage or a salary. This compensation is often supplemented by bonuses that are tied to the achievement of production goals.
A contract loan processor is considered to be an independent contractor (aka self-employed). Although they work closely with a lender, broker or banker, they also have the freedom to enter into contracts with others. A successful contract processing company could very easily have relationships with 20 companies that originate loans. A contract processor is usually compensated on a per file basis with the details spelled out via the terms of an annual contract. Many contract processors are required to be licensed as an originator or a mortgage broker to meet industry guidelines for the states that they conduct business in. Contract processors will also need access to the same business equipment and software that an in-house process does. Make sure to budget for the purchase, maintenance and repair of these items if you plan to go solo.
5. How do I choose the best lender for my borrower’s loan?
The real key to choosing the best loan is getting to know your borrower. They aren’t always upfront about what they really want or need. Sometimes, they just don’t know what’s possible. Having an understanding of what they are trying to achieve and what their circumstances have been during the preceding 12 months is essential. You may elect to use a loan search engine that gives you results based on the data you input into its system. You can also explore what options are available with your 2-3 best lenders that you are currently approved to do business with. When you narrow down your choices, be sure that the loan you pick matches your borrower’s income, credit and property profile.
For more information, visit our website at http://www.CompleteMortgageProcessing.com
Copyright ©2011 Stephanie Graham / Complete Mortgage Processing. All rights reserved
This content may not be used without the express written permission of its creator.
