MLOs, Be Aware of These Points!

• If your client doesn’t know what their current payment is, have them use SDS to find out and check on other plans available to them to compare.

• Payment Plan implementation takes 30-60 days to complete. Don’t let clients write a contract before getting plan in place!

• Help kKeep Student Loan Clients Out of Default! Default can result in higher payment, may be longer forgiveness wait (if available) and client wait timeframe of 6-9 mo’s to get new mortgage while student loan credit improves with on-time payment arrangement. 

• Make sure clients set up new repayment plan and recertify income ASAP! Client should make sure they’ve arranged for additional forbearance while this is being processed! 

• IMPORTANT: current student loans and payment history ARE NOT showing up on many credit reports yet! Run client’s loan through FNMA/FHLMC AUS and review Findings direction before giving pre-approval!

• If you are an MLO that needs help with a client that has student loans, please contact Pam Marron at 727-534-3445 or email pam.m.marron@gmail.com. We are looking into various credit problems that have come up with student loans and want to see these clients through while resolving their issue. Because this is a recent concern, there is a need to see what AUS credit shows and what AUS findings occur. By allowing help, you are assisting mortgage professionals who want to get in front of any problems for clients with student loans to make their process smoother for all of us!