Loan Origination Activities - Part 2 (Free Tutorial)

Описание: Welcome to the twentieth episode of the National Mortgage Exam Tutorials & Practice Tests videos. The series will be following the sequence of topics as presented in the NMLS test content outline at https://bit.ly/NMLSoutline.

You can purchase The SAFE Mortgage Loan Originator National Exam Study Guide at https://amazon.com/author/patriciaoco.... It is available in kindle and paperback versions. There are hundreds of questions and two practice exams.

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Mortgage Loan Origination Activities – Part 2 Video #20
Loan Inquiry Process

• Accuracy (Tolerances)
o Violation scenarios – Loan origination fees increases, interest rate increases
o Zero tolerance –– items the borrower cannot shop for - loan origination, interest rate, appraisal credit report, real estate transfer fees (deed tax), upfront fees (FHA, VA, USDA)
o 10% cumulative tolerance – items the lender chooses or identifies – govt. recording fees, title insurance if selected or recommended by lender (happens with foreclosures sometimes)

• Disclosure Timing – TRID Business day is every day but Sunday & federal holidays
o Know Before You Owe Mortgage rule – New Loan Estimate and Closing Disclosures
o Notification of action taken – ECOA notice – 30 days after application for positive and negative results – 90 days if applicant didn’t respond to counter
o Early disclosures – 3 business days after receiving application –
 Loan Estimate
 Special Information Booklet – explains closing costs
 Mortgage Servicing Disclosure Statements
 List of 10 HUD-approved Housing counseling agencies – Reverse and High Cost (HOEPA)
o Affiliated business arrangements – at the time of referral – mortgage and real estate under same umbrella

• Loan Estimate Timing
o Initial loan estimate – 3 business days
o Revised loan estimate –
 Delivered 3 business days after new info and
 4 business days before loan consumption
 Must be at least 1 business day between final loan estimate and final closing disclosure
o Expiration of loan estimate settlement charges – on the top of the form – usually 10 business days – (10 days to accept offer)
o Tolerance corrections – 3 business days

• Closing Disclosure
o Borrower receives 3 business days before loan consumption
o 3 things trigger a new closing Disclosure and additional 3-day waiting period
 Change in APR by more than 1/8%
 Prepayment penalty added
 Change in loan product

Qualification: Processing and Underwriting

• Borrower Analysis
o Assets – put card in video for video #19
• Minimum 2 months bank/brokerage statements as check for “seasoned” funds. (Don’t want an undisclosed “gift” deposited a week before closing to be used for closing costs.)

o Liabilities
 Revolving charge accounts – use 5% of balance if no minimum payment
 Installment debt (student loans, automobile loans, and home equity loans) with 10 or more payments remaining
 Auto lease ALWAYS
 Non-investment property mortgages – full PITI
 Alimony and child support payments that continue for 10 months beyond application date

o Income
• Calculation of Gross Income
 Annual income divided by 12
 Weekly income x 52 divided by 12
 Hourly rate x weekly hours x 52 divided by 12

• Employment Income
• 2 years of W-2s.
• 30 days previous paystubs.
• Self-employment income.
• 2 years personal tax returns.
• 2 years business tax returns.
• Profit and Loss Statement (year-to-date report).
• Balance Sheet (snapshot-in-time).

• Retirement Income
• Social Security benefits statement.
• Pension award letter from company.
• Document other income with 1099s.

• These must continue for 3 years past application date to be considered as income
• Alimony and child support income.
• A copy of the divorce decree or separation agreement.
• 12 months canceled checks of alimony or child support received.

• Investment property income.
• A copy of the rental agreement. Will use 75% of rent.

• Other Income
• 2 years documentation of commission, bonus or dividends income.
• 2 years documentation of stocks and dividends paid.
• 2 years of automobile income that was paid in excess of expenses.
• Disability benefits with a remaining term of at least 3 years.
• Unemployment benefits that are documented, have been received for the past 2 years and are likely to continue.