Looking for a smarter, more affordable way to learn the mortgage business? Starting a career as a mortgage loan originator (MLO) comes with a steep learning curve. You need to understand loan products, guidelines, compliance rules, and how to build relationships with clients—all while trying to grow your business. For many new MLOs, training is either too expensive, too overwhelming, or simply not provided by their company. That often leaves them struggling to learn on their …
When a Borrower Doesn’t Qualify for Conventional Financing—Think Twice Before Defaulting to Non-QM! It’s tempting to label a loan as investment purpose when a borrower doesn’t meet conventional guidelines—even when they plan to occupy the home as a primary residence. Well, that loophole just slammed shut! California’s AB 3108 just changed the game. The gig is up! According to A.J. Dhaliwal and Sherwin F. Root of Sheppard, Mullin, Richter & Hampton, LLP, the party is …
Check out our new membership subscription option for any loan originator who is ready to learn how to earn more money and become a mortgage expert in under a year. This material will set up a mortgage originator for life. This plan is offered at a price everyone can afford. The recommendations made in this course are not taught in any other training program. The best value in mortgage training now includes AML and Cyber …
The mortgage origination field can seem quite appealing, offering the potential for high earnings, autonomy, and the satisfaction of assisting others with their home financing. However, this allure often leads to unrealistic expectations and, ultimately, disillusionment and failure. True success in the mortgage industry requires setting realistic goals and taking full ownership of your career. Many companies tend to over-promise and under-deliver, advertising top-tier rates, extensive support, and lucrative compensation plans to attract newly licensed …
I have been receiving many inquiries about what it takes to start a mortgage broker business and how to get started. I recently spoke to a gentleman who thought he wanted to start his own business, but after our lengthy conversation, he came to the conclusion “I just want to originate.” How much time and money did a conversation possibly save him? In 1994, I became an originator. I was being recruited by a local …
For the past 20 years, I have been teaching real estate classes. Initially, I began teaching as a way to build and maintain professional relationships and gain referrals. Unlike sponsoring open houses or arranging casual coffee meet-ups, I found that educating was a more effective and respectable approach. The courses I taught were not just general marketing or time management workshops. They were state-approved continuing education (CE) courses, allowing agents and brokers to earn credits …
The definition of insanity: doing the same things over and over and expecting different results. Welcome to the mortgage business! Mortgage company owners and recruiters often entice new Mortgage Loan Originators (MLOs) into the industry with the allure of minimal entry requirements. However, this approach frequently leads to a puzzling outcome: these new entrants struggle to succeed. The critical question arises: where is the emphasis on truly understanding the mortgage business? Beyond the basics of …
In the fast-paced world of mortgage lending, a crucial yet often overlooked issue is always lurking between companies and those mortgage loan originators they employ; the misclassification of mortgage loan originators. Often labeled as independent contractors, many of these financial professionals find themselves in a precarious position, unable to meet the stringent criteria that truly define independent work. This mislabeling is not just a minor error in terminology, but a significant concern that raises questions …
I usually write about mortgage or real estate professionals, but since I teach Anti-Money Laundering classes, I thought it would be helpful for all small businesses to know what’s coming. On September 18, 2023 the Financial Crimes Enforcement Network (FinCEN) published the final rules for the new Corporate Transparency Act (CTA). These rules become effective January 1, 2024 and in typical government practice, there is a Small Entity Compliance Guide. This new law is related …
In a startling turn of events, two major players in the mortgage and real estate industry have been dealt a hefty blow with fines totaling a staggering $1.95 million. The penalties come as a result of their failure to comply with the Real Estate Settlement Procedures Act (RESPA), a federal law designed to safeguard consumers in real estate transactions. The mortgage company, known for its prominence in the market, and the real estate agency, a …
Do you know how money is actually laundered through real estate transactions? Do you know your Anti-Money Laundering (AML) Training Requirements? Between 2015 and 2020, at least $2.3 billion was laundered through US real estate, with estimates by Washington, D.C. think tank Global Financial Integrity (GFI), putting the number much higher. The real estate sector is now coming under increased scrutiny from government regulators and enforcement agencies for its compliance with anti-money laundering and reporting …
Ready to embark on a rewarding career as a mortgage loan originator? Look no further! We’re thrilled to announce our latest offering: the comprehensive 20-Hour Safe Pre-Licensing Education Program Our newest course was written by and taught by veteran mortgage loan originator Debra Killian. It’s packed with valuable insights, industry knowledge, and expert guidance and is designed to equip you with the essential skills needed to thrive in the mortgage industry. We believe that high-quality …
In the last 3 weeks, I spent 7 hours in front of 125 real estate agents! A captive audience. Curious how I got there? If you’ve read this far, this is not a brag post. It’s an opportunity for you to get in front of your target audience and with someone else driving them into your seats! It’s to make you realize, you have to be different from your competitors to get different results than …
Join Jeanne Kelly Credit Coach and Debra Killian on Credit Over Coffee as they discuss getting into the mortgage industry and Debra’s E-Course, Mortgage Origination Practices. 2023 will be a challenging year for most mortgage companies and originators. Everyone wants purchase business. This podcast will change the way you you invest time and money. Learn why knowledge will become essential for 2023 and beyond. Debra Killian (866) 256-3766 deb@cloes.online cloes.online
On October 13, 2022 the Federal Department of Labor published findings in Vol. 87, No. 197 of the Federal Register. The W-2/1099 controversary hits many businesses. As stated in previous posts, there is no special 1099 consideration for mortgage loan originators. Regardless of which state you work in or which type of employer your work for, Mortgage Loan Originators are required to have their income reported on IRS Form W-2. There are many companies that …
How does a mortgage company meet the statutory requirement for Anti-Money Laundering education? The question comes up because many companies do not comply with the annual education requirement for all employees. In our opinion the law and regulations on AML training is purposely not specific because the term education is defined by the outcome and not the input. More simply put if you understand the requirements of the law you are educated. To be sure …
The overlap between federal and state laws and regulations becomes very apparent once there is an examination and/or an enforcement action. With COVID dominating our work environment over the past two years, not many audits or exams were scheduled by state regulators. That is all about to change. They are way behind and will begin the process of catching up sooner than you may be ready for. In many cases where mortgage companies get caught …
Mortgage Processing Fundamentals is an on-demand, video recorded program which presents the base of knowledge needed to succeed at residential mortgage processing. The course is written and presented by a 25-year seasoned loan originator who has processed her own loans. The fundamentals are universal and can be applied to any processing position. While processors perform some or all the included functions, the course provides an overview of all the necessary responsibilities and tasks to move …
With the new URLA behind us…along comes the next major change in residential lending. Fannie Mae and Freddie Mac (aka the GSEs) have provided an update on the new URAR. Yes, the Uniform Residential Appraisal Report is undergoing some major changes. Here are just a few highlights: Input was gathered from 107 stakeholders across the industry in designing the new form. The key benefits of the new form are: Dynamic output with commentary placed within each …
With rates going up, refinance volume quickly heading south and originators looking for the next shiny thing, we are bound to see movement in the industry. That means mergers, buyouts and some companies closing. Migrating originators can be a tricky challenge for the next employer. There are two issues that may surface; who owns the customer and how were the originators compensated? I’ll save the former for another time. Last week I received a call …