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.
Mortgage Loan Originators,
get your Clients ready with
"Do It Yourself" solutions!
Mortgage loan originators (MLOs) frequently work with prospective homebuyers who encounter obstacles that delay or prevent mortgage approval. These challenges often include low credit scores, high student loan debt, high debt-to-income (DTI) ratios, insufficient down payment funds, or a lack of proper documentation. Rather than turning these clients away, MLOs can provide valuable guidance by equipping them with "Do It Yourself" (DIY) resources to help them resolve these issues.
This client-focused approach not only builds trust and loyalty but also expands the MLO’s pipeline of future borrowers, ensuring a steady flow of qualified applicants who are better prepared for homeownership.
Seven Common Services Most Needed for Pre-Mortgage Client Help
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 way to teach someone how to do it is to show them how it's done." - Unknown
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.
For more about HomePrep for MLO's, go
here.
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