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There are abundant opportunities for individuals interested
in pursuing a career in the mortgage finance industry.
Here a complete list of available career options in the mortgage
industry is provided so that you can educate yourself about
the mortgage lending process and determine where your skills
and interests would best fit.
Loan Origination – Loan Originators
(loan officers and brokers)
When a mortgage application is created it is called loan
origination. Loan originators act as the sales force in the
real estate finance industry. A mortgage transaction always
consists of two essential parties, the borrower and the lender.
This transaction can be successfully completed only when the
requirements of both these parties are met with and satisfied.
This is where the mortgage
broker comes into picture. The mortgage broker
ensures that both the parties to the mortgage transaction
are satisfied. Additionally, the broker also ensures that
the ‘third party’ involved is satisfied. The third
party is the broker who has satisfied both the borrower and
the lender and has earned his or her commission. The activities
of a mortgage brokering consists of acquiring, assisting in
acquiring or seeking to acquire a mortgage loan for a borrower
from a mortgage lender, in return for commission or in anticipation
of commission.
The brokers are essentially agents for a number of lending
institutions. Their main function is to match the borrower
with the loan program that fits the requirement of the borrower.
The loan officer works directly with the lending institutions.
This person is the one who is contacted by the broker on behalf
of the borrower. Whether a loan officer or a broker, the loan
originator initiates the origination process by locating borrowers
and making loan applications.
The lender
is any person, group of persons or institution such as chartered
banks, trust companies, credit unions, insurance companies,
government, private individuals, etc. who make mortgage funds
available to borrowers.
Over and above mortgage brokers, nowadays a number of financial
lending institutions have their mortgage representatives.
The job of mortgage representatives is to develop leads from
their contacts within the community. They are well-connected
and well aware of all the recent findings and trends in the
mortgage industry. Mortgage representatives often visit the
clients at their homes or office if the clients are unable
to visit the branch of the financial institution they are
representing.
Mortgage Processing – Mortgage Processor
Mortgage processing involves the collection of all the pertinent
documents and verifications that are required to support the
information that has been provided on the loan application.
The function of the Mortgage Processor is to obtain all the
necessary documents and follow a series of steps to ensure
that all the information provided on the loan application
is accurate.
Underwriting – Underwriters
The evaluation of the documents that are obtained by the
processor is called underwriting. Underwriter is the person
who is entrusted with the responsibility of analyzing whether
the loan represents an acceptable risk to the lender. There
are a number of factors that are investigated by the underwriter
before determining whether the loan should be passed or not.
Home Inspection - Inspector
The property or mechanical inspector is essentially a qualified
home inspector who will evaluate the property and provide
a written report on the interior and exterior structure, including
plumbing, electrical work, insulation, heating and cooling
systems, and so on.
Mortgage Servicing / Loan Administration
– Mortgage Servicer
Mortgage servicing or loan administration is the process
of collection, recordation and remittance of the installment
payments of principal, interest or other amounts placed in
escrow pursuant to a mortgage loan. A mortgage servicer is
any person or institution who receives, or causes to be received
or transferred for another, installment mortgage payments
to investors as well as maintenance of escrows.
Related Mortgage Career Topics:
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