Equal Housing Lender
Are You A Fixer or Referrer of Client Problems? Home Prep is Being Developed to Help Both Types of Loan Originators.
By Pamela Marron, Loan Originator, NMLS#246438 • Sep 01, 2022
Home Prep is Being Developed to Help Both Types of Loan Originators.
Loan originators deal with issues that prevent a client from proceeding with a mortgage in different ways. Some attempt to resolve the problems themselves, but the vast majority prefer to refer these clients to an outside resource. Some even refer to other loan originators who are known to handle client challenges. 
As a "fixer" loan originator, how many times have you started to help clients overcome hurdles preventing them from getting a mortgage… and then get slowed down when the current loan business increases and decreases your time available to assist? As a "referrer", how many of you have tried to help clients and then had a bad experience instead… and prefer to refer "those clients" to another loan originator or service that can help?
Home Prep is a pilot portal that will connect clients with issues preventing a mortgage with a HUD housing or credit counselor who can help. Assistance will be available for five common problem areas noted below. A sixth area will provide direction and videos for loan originators to check details for unique problems experienced today. The objective is to have clients truly "mortgage ready" before they even start looking for a home.
Five Common Issues
Credit: Short-term help
- MLO can provide a client credit report with authorization. Includes building credit if none or less than 3 scores, increasing credit scores to min. 640 middle score, correcting short-term credit issues such as resolving/deleting disputes, short-term payment plan for miscellaneous negative credit.
- Credit: Long-term help: can include payment plan for paying off debt, possibly filing for bankruptcy or doing foreclosure or short sale. 6 months up to 5 years of credit help. No Debt Management. Not Credit Repair.
- Student Loan Refinance: Student loan consolidation that may be income based and refinancing of negative student loan debt.
- Down Payment Assistance (DPA): Using the comprehensive part of Downpaymentresource.com called Down Payment Connect, loan originators and HUD counselors can match clients with DPA programs they are eligible for.
- Budgeting for Home Purchase: review the budget and set up a home savings plan. This can be coupled with evaluating the client for DPA funds available.
This step is just for Loan Originators to use:
- Pre-Purchase Help Just for Loan Originators: Final vetting of the client to be Mortgage Ready
- The working objective is to have availability to run loans with a hard credit through both the Fannie Mae and Freddie Mac automated underwriting systems (AUS).
The goal is to have all clients run through both AUS for approval before the client is released as Mortgage Ready. If there is no approval, the client may need a manual underwrite.
✓ Issues are often first seen in the Fannie Mae AUS system but can also appear in the Freddie Mac AUS. Clearing clients here helps ensure that issues don't surface while applying for a mortgage.
✓ As a part of Home Prep, pilot loan originators are working on videos showing how to use the Fannie Mae dropdown of past derogatory events if credit in the AUS reports a negative event incorrectly.
- For clients who have had a bankruptcy with a property included in their past, retrieve a verification of mortgage for the mortgage that was included in bankruptcy where the payment history of the mortgage is suppressed and unable to be seen after the bankruptcy discharge date unless the debt was re-affirmed.
- When government loans of any type (mortgage, student loans, etc.) exist that may have been in default, pull CAIVRS UPFRONT to check that there are no deficiencies to be resolved.
- When a veteran has had a past short sale, foreclosure, deed in lieu, or modification due to deployment, check on Certificate of Eligibility. If there is no eligibility, check with VA on Bonus Entitlement.
- Work to show loan originators effective ways to use down payment assistance through DownPaymentResource.com, and utilize Down Payment Connect, which provides comprehensive detail on all down payment assistance available nationally, how to use it, and how to promote the availability of DPA to clients. More to come on this greatly needed resource. Additionally, videos of how to use DPA and unique options available now, such as Freddie Mac Borrow Smart, stacking multiple programs, and avenues available just for mortgage brokers, will be explained.
This asset will be presented to HUD housing counselors to show them what additional mortgage broker products are also available.
We are looking for up to 10 licensed mortgage loan originators to be part of this pilot. You can be new or experienced. Call Pam Marron at 727-534-3445, email pam.m.marron@gmail.com or use the form below to be considered for the pilot.
Stay tuned.
Pilot Program Inquiry
Writer Pamela Marron is a licensed Loan Originator NMLS #246438 in Florida who works for Innovative Mortgage Services, NMLS #250769 in Lutz, Fl. Articles written are strictly her opinion and are published to help loan originators, real estate professionals and mortgage clients. This is not used to solicit for business.
Pam Marron | NMLS# 246438
Tara Jerse | NMLS# 2105127
Innovative Mortgage Services, Inc. | NMLS# 250769
Equal Housing Lender
Down Payment Connect is already being used by MLOs and Realtors. Now it's available to HUD Counselors through HomePrep! Down payment assistance is quickly rising to the top need for clients wishing to purchase a home. Down Payment Connect , the back-end data provider for the parent Downpaymentresource.com , houses every down payment assistance program in the US and provides extremely detailed information laid out in a consistent format for each DPA program in their system. Throughout the last two years, Downpaymentresource.com administrators have worked with MLO’s and the HomePrep developers to add nearly all wholesale down payment assistance programs to their platform and they didn't stop there! Extensive filters that allow for selection of specific client needs such as type (ie. SFR, manufactured homes, condos, multi-family, ADU’s), uses like renovation, above AMI income levels, non-1st time homebuyers are just a few of the filters you will find along with stand alone 2nd mortgages, combined 1st and 2nd mortgages and grants. DownpaymentResource.com is also in many MLS systems across the US and provides limited directory information and a free landing page for realtors to promote that they use DPA. Both MLO’s and realtors can subscribe to Down Payment Connect to get more of the extensive directory and back-end tools. Now, through HomePrep, HUD counselors can also use the Down Payment Connect system to filter trhough DPA programs that clients are qualified for, and can even provide wholesale programs when working with an independent loan originator (often called a mortgage broker)! Through HomePrep, HUD counselors are now able to provide MLO’s and clients with the DPA programs that they have found the client is eligible for.
If you have FFEL Student Loans, Take Action Before April 30th!
Three great tools that mortgage loan originators (MLO) can use to assist clients who need help with credit, down payment assistance and student loan repayment services have been used, fine-tuned and are already in use with individual MLO’s. These tools combined with the Freddie Mac HomeCoach automated system along with budgeting help and Homebuyer Education are all integrated in the HomePrep online platform that connects MLO’s with clients who have challenges to HUD counselors that get them mortgage ready.
Pam Marron, NMLS# 246438
Innovative Mortgage Services, Inc. NMLS# 250769
