The mortgage industry is poised for a potential uptick in production due to a long-awaited reduction in interest rates. This presents a valuable opportunity for mortgage professionals to help clients, especially those burdened with student loans, to secure favorable mortgage terms. To fully capitalize on this, it’s crucial for loan originators to focus on three key areas: the impact of credit report changes after September 30, 2024, the benefits still available for federal student loans, and knowing the differences between federal and private loans. An example of a self-service student loan analysis tool that can be used for FREE can be found in this article.
MLO's, Collaborate
with Your Clients and a HUD Counselor using HomePrep!
Most MLOs would rather refer clients to professionals that can help their client overcome obstacles preventing them from getting a mortgage. The problem is, MLO's don’t know where to direct these clients.
The solution? HUD-approved housing and certified credit counselors. These professionals work closely with clients, guiding them through renting, buying, and staying in their homes.
Enter HomePrep. This innovative online platform seamlessly connects MLOs and their clients to trusted HUD counselors who specialize in resolving mortgage roadblocks. The best part? Once a client is mortgage-ready, the MLO is notified, ensuring they don’t miss out on a future loan opportunity.
The Dilemma
Why Most Loan Originators Don’t Help Clients Who Need Assistance
Mortgage loan originators (MLOs) are in the business of closing loans—not fixing credit, resolving financial challenges, or guiding clients through complex homeownership hurdles. While many MLOs want to help, they often don’t because:
🔹 Lack of Time – MLOs work on commission, meaning their income depends on closing loans. Spending hours helping clients who aren’t mortgage-ready takes time away from qualified borrowers.
🔹 Limited Resources – Most MLOs don’t have a go-to solution for clients with poor credit, high debt, or homeownership inexperience. Without a clear next step, they simply move on.
🔹 No Follow-Up System – Even if an MLO refers a client to outside help, there’s no guarantee they’ll ever hear back when that client becomes mortgage-ready—leading to missed opportunities.

This is where HomePrep changes the game. It seamlessly connects MLOs and their clients to trusted HUD-approved counselors and credit experts who help clients overcome obstacles. Best of all, MLOs receive automatic updates when a client is ready to buy, ensuring they don’t lose potential business.
With HomePrep, MLOs can help more clients—without sacrificing your pipeline.
2 Paths of Services for MLOs and Their Clients
Path 1: MLO DIY (Do It Yourself) Solutions
Path 2: Refer Client to HomePrep with HUD Counselor
2.b., 4 and 7 not available on MLO DIY Solutions
| 7 Most Common Client Needs | Path 1: MLO DIY Solutions | Path 2: Refer Client to HomePrep with HUD Counselor |
|---|---|---|
| 1. Student Loan Repayment Plans & Default Resolution | Student Loan Repayment Plans & Default Resolution using Student Debt Solutions | Student Loan Repayment Plans & Default Resolution using HUD Counselor and Student Debt Solutions |
| 2. a.Credit Help: Short Term (0 to 6 mos) NOT CREDIT REPAIR | Credit: Short Term using: a. CreditXpert b. Score Navigator c. Meridian Link d. Short-sale credit correction through FNMA AUS | Credit: Short Term workup w/HUD counselor using: a. CreditXpert b. Score Navigator c. Meridian Link |
| 2. b.Credit Help: Long Term (7 mos to 5 yrs) NOT CREDIT REPAIR | Not Available | Credit: Long Term workup w/HUD counselor a. Debt Management (versus Debt Settlement) |
| 3. Down Payment Assistance (through Downpaymentresource.com) | Downpaymentresource.com using: a. Down Payment Connect | Workup w/HUD counselor using: a. Down Payment Connect |
| 4. Home Budgeting | Not Available | HUD Counselor does this. |
| 5. Homebuyer Education Class (HBE) | MLO’s can refer to HBE | (HBE) provided by HUD counselors |
| 6. Freddie Mac Automated Underwriting System (AUS) Submission w/soft credit | Freddie Mac & Fannie Mae AUS Submission w/soft credit only if MLO’s who have this through Credit Reporting Agency. | Freddie Mac AUS Submission w/soft credit allowed for HUD counselors |
| 7. Post-Mortgage Follow-Up by HUD Counselor for 6 mo’s | Not Available | Only in HomePrep: Post-Mortgage Follow-Up with HUD Counselor for up to 6 mo’s |
The Best Resources For MLOs Assembled
MLO DIY Solutions
"How To" resources for MLOs that want to learn how to use tools that can expand education of challenges and how your client can overcome them.
Some services are FREE and some are at a cost to your client.
For more about MLO DIY Solutions, go here.
HomePrep for MLOs
MLOs refer challenged clients to HUD counselors to correct issues. When the client is "mortgage ready", the MLO is notified!
There is a cost to use HomePrep for the MLO. Some services have a cost for your client.
Other Resources
Articles, mortgage trade groups, mortgage advocacy, tips from industry professionals and more!
For more Resources, go here!
Disclaimer : Pamela Marron, licensed loan originator NMLS# 246438 and developer of Clients2homeowners.com, receives no compensation for any services shown on this website. This website was made for mortgage loan originators to assist clients who have challenges getting a mortgage.
Pam Marron, NMLS# 246438
Innovative Mortgage Services, Inc. NMLS# 250769
Equal Housing Lender