Loan Creation & Servicing Guide PDF

Last Step - servicing (FMC) Freedom Mortgage Company LOAN CREATION ONLY!!! Primary Market - origin of loans, process of application Secondary Market - mortgages are bought and sold from the primary market, it consists of investors both public and private business decision - if asked why tr...

Last Step - servicing (FMC) Freedom Mortgage Company LOAN CREATION ONLY!!! Primary Market - origin of loans, process of application Secondary Market - mortgages are bought and sold from the primary market, it consists of investors both public and private business decision - if asked why transferred to the company, tell them it's not just them mortgage servicing rights - this is what we just bought mortgage banking - origination of sale and services, wholesale, retail, retail lending - directly send money, financial services institution such as FMC - lends money to the consumer whole sale lending - have the access to variety of lenders correspondent lending - make most of their lending decisions and fund loans with their credit lines sales course - copy the account number of the customer (ask for the term) - system of records as long as no records transfer to sales - no existing loan, only services are required when there is a record steps for loan 1. mortgage creation - application a. conventional loan b. FHA loan c. Jumbo loan - the most common type of non-conforming loan d. USDA - rural areas LOAN APPLICATION - FOR EVERYONE, uniform residetial (1003) 6 critical pieces of information A - Address of subject property- address of the property to buy, the price, other details L - Loan amount requested - how much is needed from the borrower I - Income - the borrower's income E - Estimated appraised value - property cost after development ex. 1m after years the price of the property is higher - appraisal will go up N - Names of borrowers - subjected to borrow funds S - Social Security Number - just ask for the last 4 digits of the SSN (especially if CX likes to change names from time-to-time with agents), it is part of the authentication - main verification is the last, and last name of the customer 3rd party from the certified appraisers to know how much the value is raised we do have 3rd party to transfer for the appraisers DO NOT PROVIDE ANY INFORMATION FROM THE CALLER IF THE LAON IS NOT VERIFIED! 2. processing - information is proceed and first disclosures are generated after submission of application the estimated time is 3 days for the estimation costs documents to be recieved - (not servicing agents will send) 3. underwriting loan package is reviewed for eligibility and possible fraud - check if loan aligns with the guidelines; the underwriter searches for any possible fraud or red flags debt to income ratio - how much you owe to the loaner, estimation of how much can you pay TRID - to provide disclosure loans to our CX, required by law, series of guidelines 4. Closing - find disclosure is prepared and CX signs security instrument initial closing - underwriting approval and the estimate of the borrower's mortgage information final closing - overall terms, fees, and costs of the loan after closing, leave 1 month for new loaners (ex. if loan started October, then first due is December 1st) dues - first date of each month if they cannot pay for a month, then they are delinquent for credit bereau borrower's have 15 days GRACE PERIOD - so, 16th each month...late fees will apply on the 17th...cut off time 10:00PM EST (so if the borrower paid beyond 10pm then records will show that they paid on the second day) if they CX is 120 days delinquent, then agent start the foreclosure process send thru mail or email - if the CX lost data/information