The Mortgage Originator Success Kit: The Quick Way to a Six-Figure Income

by Darrin J. Seppinni

Overview

Sometimes opportunity finds you--are you ready?

The mortgage business is not only booming, but it's one of the few industries that doesn't require a college degree to make lots of money. In fact, as a mortgage originator , the only limit to income potential is your own effort and ability. But how can you break into this lucrative business? The Mortgage Originator Success Kit is a one-of-a-kind resource dedicated to helping you make the leap into an exciting career in the mortgage business. This comprehensive resource gets you started with expert advice on virtually every aspect of the business.

Mortgage pro Darrin Seppinni thoroughly explains the basics of the mortgage business in simple, clear language that is perfect for beginners. He walks you step-by-step through the loan process, including

• Helping clients fill out a loan application
• Understanding calculations and formulas that go into every mortgage
• A review of the specifics of credit, property qualification, and government loans
• Tips on customer service and vital sales techniques
• Instruction on laws and ethics of the business

Plus, each chapter ends in a handy quiz that helps you retain and apply the concepts and tactics you learn.

Seppinni also shows you how to avoid common mistakes and covers all the bases to get you on the right track. Plus, he shares the secrets of his success with professional tips and techniques that can take you to a six-figure income in no time. Even if you don't know anything about real estate finance, this simple guide provides all the inside advice you need to make a bundle, with step-by-step guidance on every vital topic, concept, and tactic.

With full coverage of licensing and education requirements for every state and sample legal loan documents and forms, The Mortgage Originator Success Kit is a complete and comprehensive resource for anyone who wants to break into this growing field. There has never been a better time to get into the mortgage business--and there's never been a better book to help you do it.

Product Details

ISBN-13:	9780071502207
Publisher:	McGraw Hill LLC
Publication date:	01/06/2006
Sold by:	Barnes & Noble
Format:	eBook
Pages:	400
File size:	78 MB
Note:	This product may take a few minutes to download.

About the Author

Darrin J. Seppinni has 24+ years experience in the mortgage industry, during which time he has owned several mortgage broker companies, an escrow company, and a mortgage bank licensed in 36 states; Just Seconds, Inc. He personally developed the entire infrastructure for Just Seconds, Inc., to include all marketing and website development, and grew the company into one of the most widely recognized wholesale bank for second mortgages. Throughout the years he has hired, trained, and counseled countless loan originators, mortgage brokers, and leading professionals in the mortgage industry. He is highly regarded as an expert and visionary in this lucrative industry.

Read an Excerpt

The Mortgage Originator Success Kit

---

By Darrin J. Seppinni

The McGraw-Hill Companies, Inc.

Copyright © 2006Darrin J. Seppinni
All rights reserved.
ISBN: 978-0-07-150220-7

---

Excerpt

CHAPTER 1

INTRODUCTION TO THE MORTGAGE BUSINESS

The greatest thing a man can do in this world is to make the most possible out of the stuff that has been given him. This is success, and there is no other.

—Orison Swett Marden

Before we launch into the basics of the business, it's helpful to be familiar with, essentially, who's who and what's what.

WHO'S WHO

Account Executive

A person who represents a specific banker or wholesale lender. This individual has detailed information, including guidelines and rates on the loan programs the lender offers. The account executive is the contact person for the mortgage loan originator or broker. Account executives are responsible for initiating and maintaining relationships with local mortgage brokers, Realtors, builders, and other business partners as a referral source for the origination of home loans.

Appraiser

An individual who provides an opinion of the property's fair market value based on specific market data. A person who conducts routine appraisals of residential, industrial, and commercial properties.

Borrower (Mortgagor)

A person who applies for and receives funds in the form of a loan and is obligated to repay the loan in full under the terms of the loan.

Builder or Developer

A person or company that is actively involved in the building of homes for sale. A developer prepares raw land so that it can be built upon.

Credit Reporting Agency

An agency that compiles, maintains, and provides credit and other personal information to creditors. This information includes bill-paying habits, credit account references, balances, and place of employment. There are three major credit bureaus that provide nationwide coverage of consumer credit information in the United States: Equifax, Experian, and TransUnion.

Escrow

A procedure in which a third party acts as an intermediary for both the buyer and the seller, carrying out both parties' requests and assuming responsibility for handling all the paperwork and distribution of funds.

Lender

The institution or individual (in the case of a private lender) who provides the funds when a mortgage loan is made. Lenders typically have warehouse lines (lines of credit) to fund loans before they are sold to the secondary source. Brokers typically do not have warehouse lines and therefore cannot fund loans.

Loan Originator

A person who, for a commission or fee, takes the borrower's application and finds the best loan program to fit the borrower's needs.

Loan Servicer

A company that works with the customer after the loan closes to provide customer service by collecting mortgage payments and to provide an escrow account if necessary. If an escrow account is established, the servicer pays the property taxes and insurance payments.

Mortgage Banker

A direct mortgage lender who originates and funds loans in his or her own name for resale in the secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae).

Mortgage Broker

Also known as a broker. A person or company that arranges mortgage loans through a mortgage banker or lender (also known as a wholesale banker or lender). The broker establishes a relationship with this banker or lender and acts as the intermediary between the borrower and the banker or lender. Typically, the broker has a relationship with more than one banker or lender, allowing the broker to shop the loan in order to find the best rate and term available to suit the borrower's needs. The broker does not fund loans (or lend money).

Mortgage Insurance Company

A company that insures the lender for higher-risk loans. These insurance policies protect the lender by paying the costs of foreclosing on a house if the borrower stops paying the loan. Mortgage insurance (MI) is typically required for conventional loans with a down payment of less than 20% of the sale price. To avoid MI, a second mortgage at a higher interest rate can be obtained.

Processor

A person working with the loan originator who gathers information provided by the originator, applicable to the loan file, and submits the loan for a decision to the lender. The processor gathers information needed to meet all the conditions requested by the lender in order to fund the loan.

Realtor

A person licensed to negotiate and transact the sale of real estate on behalf of either the borrower or the seller, and in some cases can represent both parties.

Real Estate Agent

A person who is licensed to negotiate and transact the sale of real estate property. This person can represent either the seller or the buyer or both.

Real Estate Broker

A person who supervises agents with less experience to effectively run a real estate office. Brokers have high levels of knowledge and experience in the areas of advanced real estate practice, law, finance, appraisal, economics, property management, escrow, and/or real estate office administration. Many brokers own the firms they work in; others work with national real estate franchises.

Surveyor

A person or company that measures the boundaries of a parcel of land, including any improvements. The surveyor prepares a report known as a survey. Most lenders require a survey of the property in a purchase transaction.

Settlement Company

Also known as the settlement agent. A company that acts as the go- between in coordinating the closing between the buyer, seller, and lender. The settlement company usually is an escrow company or a settlement attorney, depending on the state where the property is located. The settlement company serves as the meeting place between the related parties of the mortgage where the mortgage documents are executed and the property ownership is transferred to the buyer on a purchase transaction. The settlement company collects all money in the transaction and disburses the money to the proper parties.

Settlement Attorney

A lawyer or attorney who specializes in real estate. Settlement attorneys are not required in every state. They will perform the same duties as an escrow or settlement agent.

Title Company

The company that provides a title policy and title exam. The title company is also responsible for the recording of the deed and all other legal documents. Title companies specialize in doing title searches and insuring title to property.

Underwriter

An individual who works for the lender and reviews the loan file for the purpose of making a decision on the loan. The underwriter is responsible for reviewing a loan application and determining whether to make a loan based on credit, income, debt, appraised value of the house, and other factors. An underwriter is responsible for evaluating the loan to determine the risk involved for the lender. Many loans are also underwritten via automated systems such as Freddie Mac LP (Loan Prospector) and Fannie Mae DU (Desktop Underwriter).

Wholesale Lender

A lender that typically works only with mortgage brokers. Wholesale lenders accept completed loan packages and underwrite them. They offer mortgage brokers discounted pricing in return for the up-front work done
(Continues...)

---

Excerpted from The Mortgage Originator Success Kit by Darrin J. Seppinni. Copyright © 2006 by Darrin J. Seppinni. Excerpted by permission of The McGraw-Hill Companies, Inc..
All rights reserved. No part of this excerpt may be reproduced or reprinted without permission in writing from the publisher.
Excerpts are provided by Dial-A-Book Inc. solely for the personal use of visitors to this web site.

---

Table of Contents

Contents

Acknowledgments          

Introduction          

PART ONE Mortgage Fundamentals          

Chapter 1 Introduction to the Mortgage Business          

Chapter 2 Mortgage Basics          

Chapter 3 Mortgage Loan Types          

Chapter 4 Program Guidelines          

Chapter 5 Mortgage Finance          

Chapter 6 Borrower Qualification          

Chapter 7 Property Qualification          

Chapter 8 Taking the Loan Application to Closing the Loan          

Chapter 9 Laws and Ethics          

Chapter 10 Customer Service          

Chapter 11 Legal Documents and Forms          

Quiz Answers          

PART TWO Educational and Licensing Requirements for the Loan Originator          

Introduction          

Educational and Licensing Requirements for the Loan Originator, Alabama to
Wyoming          

Mortgage Terminology          

Don't Quit          

Index