Mortgage originators submit loan applications and search for potential borrowers. They need a high school diploma and formal credit training, and some finance companies require a college degree. They must understand credit management and laws in some countries require licensing or certification. They must be able to explain interest calculations and payment structures. In-house trainers run credit training classes, and mortgage originators undergo on-the-job training. Many countries have regulations in place that control the sale and marketing of certain types of home loan products, and certification classes are required to sell these products.
Credit officers responsible for submitting consumer loan applications and actively searching for potential borrowers are called mortgage originators. Becoming a mortgage originator requires at least a high school diploma, and some finance companies require lenders to obtain some type of college degree. Lenders need to have a good understanding of credit management and underwriting, so anyone wishing to become a mortgage originator must first receive formal credit training. Also, laws in some countries require lenders to pass a licensing or certification class.
A mortgage originator must be able to explain how interest calculations and payment structures are organized into long-term loan products. Consequently, some finance companies require that anyone wishing to become a mortgage originator have a college degree in finance, accounting or a related field. There are university courses in some countries specifically designed to train people for a career in mortgage lending.
Finance companies often employ in-house trainers who run credit training classes for newly hired mortgage makers. These classes focus on teaching new lenders how to use financial equations such as the Debt-to-Income ratio (DTI) to determine whether potential borrowers can afford to borrow. Many countries have national consumer credit bureaus that collect information about consumers’ past borrowing habits and payment histories. Anyone who wants to become a mortgage originator must attend training classes in which credit reports are explained. In addition to formal classes, mortgage originators typically undergo on-the-job training, which often involves applying for loans under the direction of an established lender.
In some countries, mortgage lenders have been registered with a local or national government agency. The registration process usually involves the mortgage lender passing a test after which successful applicants or their employers must pay a licensing or certification fee. In many cases, mortgage lenders need to take continuing education classes at regular intervals. These classes test a lender’s knowledge of new lending laws and widely available mortgage products. Lenders who do not complete classes will lose their mortgage lending licenses.
Many nations have regulations in place that control the sale and marketing of certain types of home loan products, such as reverse mortgages and other types of negative amortization loans. Anyone wishing to become a mortgage originator must attend certification classes before being able to apply to sell these products. As the demand for unconventional products is often lower than standard home loans, some finance companies only allow experienced loan officers to sell these products so that newly hired lenders do not need to obtain this certification.
Protect your devices with Threat Protection by NordVPN
