A home loan estimate is full of moving parts controlled by the applicant, the service provider, and the lending institution. Let's not forget that the Consumer Financial Protection Bureau (CFPB) also plays a big role. While it's impossible to cover every detail that goes into creating a loan estimate, it's important for every loan officer to grasp the gravity and importance of this document. Here's a refresher guide to loan estimates that will make it all click for you!
The mortgage industry is a bit like a game of hot potato. Most newly originated mortgages are quickly sold by lenders on the secondary mortgage market. Running parallel to the primary mortgage market, this secondary marketplace allows investors and lenders to buy and sell home loans and servicing rights. Lenders embrace it because it allows them to bulk up loan revenue.
The difference between mortgage investment corporations and private lenders comes down to bulk loan investments versus single loan investments. When choosing a corporation, the result is a diversified investment with guaranteed dividends. In this article, we'll cover why there's opportunity in numbers with mortgage lending for those seeking innovation during uncertain financial times.
Changes to the rules governing mortgage brokers and non-institutional lenders in British Columbia made headlines this week. One notable pending change is the $500,000 maximum penalty for individuals and businesses that violate the rules, which will come into force in late 2023.
Loan officers can drop the ball when they don't use mortgage quality control software. As everyone in the industry knows, loan originators must comply with nearly a dozen mortgage or real estate industry rules and regulations that are dictated by federal agencies. Quality control is an integral part of error-free loan origination. In addition to protecting a lending institution from liability, quality control helps to ensure a positive client experience. The process of mortgage quality control involves: