So you were a broker and want to get back in the business? I wanted to give you some brief information regarding changes that have occurred in the mortgage industry as we know it today. I wanted to specifically target the Mortgage Originator: your requirements and responsibilities.
A Mortgage Originator is responsible for not only originating the application but also with gathering required supporting documents, submitting the application to the Investor through its system and following the approval requirements fully. In today’s market mortgage brokers are governed closely as to allowable income, points, etc.
I want to address some changes in available programs first. Most noticeably in recent years is the lack of programs for self-employed borrowers with no income verification. We no longer have ‘lite’, ‘no doc’, or ‘no income verification’ loans. Every borrower must be able to prove his income and the proof provided is verified via a 4506T with the IRS prior to closing of the loan. Actually, all documentation is verified and nothing is taken on face value in today’s market.
Now, you have a great deal of state regulations and licensing requirements before you can become a Mortgage Originator than in the past. There are several layers of licensing requirements. For example, this company operates in 7 southeastern states. To be able to make a loan in every state in which we operate you must have a license for each state. These licenses are in addition to you first qualifying for a license with the Nationwide Mortgage Licensing System & Registry (NMLS). To facilitate passing the various exams pre-testing classes are available and certainly recommended.
There are cost associated with the pre-testing and each license, including the national license. It varies as to which companies provide financial assistance with the associated cost. Today it is not wise to consider a job as a mortgage broker if you do not relish competition and work continuously for rapid turnaround while being fully dedicated to the industry. We are professional Mortgage Originators, net-working diligently and staying above reproach with both our personal and business life. We can proudly boast we have no ‘rotten apples’ in our industry any longer.
I hope this information will prove valuable as you decide on a career in this industry.