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MTG7318

Course
MTG7318
Course Title
Conventional Loan Processing

Description

Acquire the skills necessary to become a mortgage loan processor. Learn the basic terms and forms used while processing mortgage loans, such as regulatory disclosures, credit reports, basic loan calculations and various verification forms. A basic knowledge of mortgage math is recommended.

Objectives

Student will be able to

  • Collect and compile all necessary loan documentation from the borrower
  • Complete various verification forms
  • Submit completed loan file to underwriting

Content

1. The Mortgage Cycle

  • Eight Steps of the Mortgage Cycle
  • Key Players in the Mortgage Industry

2.  Preparation

  • Regulatory Compliance Acts
  • Loan Types & Programs

3.  Taking the Loan Application

  • Type of Mortgage & Terms of Loan
  • Property Information & Purpose of Loan
  • Borrower Information
  • Employment Information
  • Monthly Income & Combined Housing Expense Information
  • Assets & Liabilities
  • Details of Transaction
  • Declarations
  • Acknowledgement & Agreement
  • Information for Government Monitoring Purposes.

4.  Processing the Loan

  • Documenting the Loan File
  • The Three Cs of Underwriting

5.  The Credit Report

  • Types of Credit Report & Credit
  • The Credit Report – A Closer Look
  • Credit Report Checkpoints
  • Credit Report Exercise

6.  Capacity Part-1 Income

  • Source of Income
  • Income Documentation Chart
  • Calculating Monthly Income
  • Income Checkpoints
  • Calculating Income Exercise

7.  Capacity Part – II Assets

  • Asset Verification
  • Asset Documentation chart
  • Assets Checkpoints
  • Assets Exercise

8.  Collateral

  • Sales Contract Overview
  • Sales Contract Checkpoints
  • Appraisal Overview

9.  Uniform Underwriting & Transmittal Summary

  • Qualifying Ratios
  • Loan to Value Ratios (LTV)
  • Completing the 1008

10.  Private Mortgage Insurance

  • Advantages for Borrowers
  • Advantages for Lenders
  • Myths of MI
  • Calculating the Premium
  • Calculating Premiums Examples

11.  Brief Review & Final Exam

 

Prerequisites

  • N/A

Method of Instruction

  • Textbook, Lecture, Discussion, Examinations

Evaluation

  • Final Exam.  Student must make grade of 80% or better to qualify for the Certificate of Completion 
  • Meet Attendance Requirements