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.
When to Use MLO DIY Solutions, HomePrep, Costs and What's Included
When to use MLO DIY Solutions
•1 or 2 DIY services for client needed.
•Short term remedy.
•MLO will need to know how to refer or use services. Some services are subscription based like CreditXpert and Down Payment Connect.
•If there is cost, this is noted on service page.
1. How MLO starts referral to HomePrep...
•MLO is too busy or prefers professional get client mortgage ready.
•MLO does HomePrep demo and signs up, refers clients. MLO pays $100/yr. through invoice.
•MLO completes Memo of Understanding. Provides credit of $0-$300 towards clients' clos. costs if client returns to MLO for mortgage.
2. HUD Counselor will...
•review MLO needs for client.
•provide Action Plan with est. time client will be mortgage-ready. •communicate with client and MLO 1-2 times/mo.
•receive $99 to HomePrep but will provide $99 credit if HomePrep completed.
•stay in touch with referral partner on client progress.
3. Client is ready! MLO notified!
•HUD counselor final step: run client through FHLMC AUS w/soft credit for approval. Confirms approval & no unknown credit.
•MLO notified client is mortgage ready.
•Client is reminded that referring MLO will provide credit of $0-$300 towards clients' clos. costs.
•MLO lets referring partner know client is ready to purchase a home!
Student Debt Solutions (SDS) for Clients
The SDS platform allows clients with government student loans to see all eligible repayment plans they may be eligible for including income driven plans that can make home affordability an option! Clients use this platform for FREE and only pay a cost if they need SDS to assist to implement a desired plan! Even forgiveness and cancellation plans are still available.
Deafault resolution and private loan options are also available. MLO's can refer clients to SDS and HUD counselors also use SDS!
- Service is FREE unless client needs SDS help to implement plan.
- Client Pd Standard Plan: $60 and includes:
- Required Forms
- Instructions
- Automation Tools
- Expert Chat Service
- Client Pd Premium Plan: $160 and includes:
- All of the Above
- Live Counseling Session
Down Payment Connect for MLO's
Down Payment Connect is used by both MLO's and HUD counselors for down payment asssitance (DPA) needs is all 50 states! Clients are paired with DPA they are qualified for based off of filters that can provide eligible programs such as community 2nd mortgages, vombined 1st and 2nd mortgages, grants and much more available for retail, wholesale and correspondent lenders.
Whetehr you are an individual MLO that wants to use this powerful tool to make a DPA niche for yourself, or an MLO that sends your client to HomePrep to get mortgage-ready... Down Payment Connect is by far the best tool to have in your toolbox!
MLO Pd Down Payment Connect Subscription:
- $39/mo or $390/yr ($32.50/mo) and includes:
- Personalized DPA search page for lead generation
- Directory of available DPA programs in subscribed states
- Access to detailed program guidelines
- Eligibility Lookup Tool matches clients with programs
- Program Comparison tool in Eligibility Lookup results
- Ability to keep your own notes at top of each DPA guideline
- Control which programs display for clients
- Unlimited consumer traffic to search page
- Unlimited, exclusive leads
- Generate consumer traffic reports
- Ability to display personal branding image
- Marketing resources
- Social media training
- Display NMLS ID, Branch address and real estate license number
HomePrep for MLO's and Referred Clients
The HomePrep platform connects MLO's and their clients to HUD counselors who get clients mortgage-ready and then notify the MLO when the client is ready! Let experienced HUD counselors assist clients who need specific services to correct issues before they are ready to get a mortgage!
The cost to the MLO is $100/yr to use the HomePrep platform. Clients pay $99 to the HomePrep HUD counselor for individual help... but get this refunded when they conclude work done to get them mortgage ready!
- MLO Pd HomePrep Costs:
- $100/yr to use HomePrep portal through Indisoft
- Memo of Understanding credit of $0-$300 towards clients closing costs if they come back to referring MLO for mortgage.
- Client Pd HomePrep Cost and Credit:
- $99/per client enrolled in HomePrep.
- Once client completes work in Homeprep, they receive $99 credit back.
- Included:
1.Student Loan Repayment Plans & Default Resolution using HUD Counselor and Student Debt Solutions (Client Pd Costs apply)
2.Credit: Short and Long Term
3.Workup w/HUD counselor using Down Payment Connect
4.Home Budgeting
5.Homebuyer Education
6.Freddie Mac AUS submission with soft credit allowed specifically for HUD counselors
7.Six months post-mortgage HUD counseling follow-up
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 but some are at a cost to the MLO or your client.
Costs are noted on services Home, MLO DIY Solutions and HomePrep for MLOs pages.
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.
