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You can do this in the employ of a loan servicer or broaden your business -- after checking with state licensing laws -- to include financial guidance or counseling services for troubled borrowers. Another option is to seek full financial-planning certification to help clients with basic budgeting and financial strategies.
How it works
Servicers typically attempt to qualify borrowers into a cascading series of programs. They start with HAMP, which requires short-term trial payments then permanent loan modification. If borrowers fail to keep up with the trial payments and the loan gets increasingly delinquent, the next step is HAFA, which involves a possible short sale.
Each program has several milestones that require re-evaluating borrower qualifications. By understanding the process and managing it from beginning to end, brokers can guide borrowers down the best path.
Often, borrowers who know they have HAMP and HAFA incentives coming will gladly pay the fees necessary to brokers who can ensure smooth workouts. Brokers accustomed to dealing with complex loan programs and qualification matrixes should have no problem working through the details of any of the programs.
Mortgage brokers can create a niche by entering the world of distressed loans. Many brokers will find past clients in need and can market to their past-customer lists. As with other loan products, you must understand the requirements, guide borrowers patiently, gather and manage documents, and relay submissions to servicers.
Joe Dombrowski, an executive consultant with Fiserv, is a seasoned executive with 24 years' experience in the mortgage-servicing industry. With his broad background in servicing and systems management, Dombrowski consults with financial organizations to identify ways to generate real savings and enhanced productivity using streamlined business processes and appropriate technologies.
Contact Dombrowski at firstname.lastname@example.org or by calling (574) 229-2306.
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