Mortgage Loan Originator

Hands-on Training for Mortgage Professionals Objectives

This training is intended for the newly licensed MLO who want to have hands-on training. We will have a comprehensive overview of the intricate process of loan origination.  We will analyze and do hands-on activities:  loan origination, processing, underwriting, details of the Loan Estimate, and computations on complex scenarios.   On completion of the course, one will have a better understanding of general mortgage knowledge and mortgage loan origination activities.

Material Needed:

Mortgage Calculator (ex: HP-12C or Qualifier)

Instructor's Qualifications:

Mary Shoane, broker, is a 20-year veteran of both mortgage experiences in wholesale and retail sales as well as in real estate listing and selling. She was featured in an article in the San Jose Mercury about her journey as a trainer. She has written course materials and has trained at some of the major companies in Silicon Valley.

1. The Mortgage Lending Process

  • Role of the Mortgage Professional
  • Complete process from origination, underwriting, processing and close.
  • The loan approval process
  • Fannie Mae Updates

2. Completing the loan application

  • Analyze the 1008 and each section of the 1003
  • How to underwrite your loans
  • How to get a loan approval with compensating factors

Underwrite the loan package

  • Underwrite a sample scenario of the new 1008/1003
  • What to look for on the new MLDS: Traditional and Non-Traditional

Loan Estimate:

  • Helpful tips to disclosing fees
  • How to calculate Impound and Mortgage Insurance
  • Identifying items for APR computation

3. How to Read a Rate Sheet:

  • Basis Point Rate Sheet vs. Percentage Rate Sheet
  • Watch for the fine prints when adding on price adjustments

4. Computation:

  • Quick tips on estimating costs for refinance and purchase
  • How to determine a refinance with no cost and no point
  • How to Calculate APR
  • How to calculate pre-payment penalty and blended rate
  • How to calculate qualifying loan amount when factors are missing

5. Credit Reporting and Credit Scoring:

  • How to read a credit report
  • Uncover the mystery of credit scoring
  • Tips to improving credit scores
  • Frequently Asked Questions

Holding Title

  • Understand the tax implications of Community Property
  • How to determine Basis
  • What is step-up Basis?
  • Why is it that the manner in which you hold title is so important in your next refinance?

6. How to Satisfy PTD/PTF Conditions

  • Analyze PTD/PTF conditions
  • Understand what is needed to satisfy the conditions

7. How to read a Residential/Income Appraisal Report

  • Analyze a residential appraisal report
  • Analyze an Income Property Appraisal Report
  • Red flags that the underwriter would raise
  • How accurate is the report?
  • Key areas to look for when adjusting values.

8. Analyze Complex Scenarios using Computations

  • Compare different terms and rates and the recoup time on a refinance
  • Use future value as a sales tool for investors
  • Should you refinance or stay with the current loan
  • Compare renting vs. buying and its tax implications

Key Benefits

  • Train from a professional coach & trainer
  • Learn on-the-job tips
  • Informative and Interactive Activities