IMPORTANT: Credit help IS NOT credit repair!

1. Short-term credit issues: 0-6 months to remedy. Building credit, improving credit scores to a minimum 640, and resolution of short-term credit issues.
2. Long-term credit issues: 7 months to 5 years to remedy. Debt management, bankruptcy, resolution of long-term credit issues.
3. Student Loan Refinancing
4. Pre-Purchase Check-Up: includes running client through Fannie Mae Desktop and/or Freddie Mac Loan Product Advisor, pulling verification of mortgage when the past mortgage was included in a bankruptcy, running CAIVRS for past government loan clearance, providing clear VA Certificate of Eligibility (COE) for veterans that had past short sale or foreclosure due to required move for deployment and checking for Bonus Entitlement if VA COE has no eligibility.
5. Down Payment Assistance (DPA): for clients who meet DPA requirements for any eligible programs they may be eligible for including wholesale DPA.
6. Budgeting for Home Purchase

Prospective homebuyers can expect to pay an average of $750 for services needed, and participating MLOs will be asked to provide a credit commensurate with the client's cost towards mortgage closing costs. The logic of the credit coming from an MLO is that instead of usurping time needed to assist clients who can’t get a mortgage today, the client is referred to a trained HUD counselor that will assist the client to handle issues and also provide an anticipated date of completion for “mortgage readiness”.

The MLO will be able to check on client progress through the pilot portal and communicate on progress with the client, and a referring realtor if there is one. The client will get the credit towards closing costs from the referring MLO who provides the Memorandum of Understanding if they return to that MLO for their mortgage.

A few things have been learned along the way.

• A keen selection of agencies and organizations that can assist with the 6 specific areas of need is being vetted now. Not all HUD housing counseling agencies (HCA) have the same or all services. Some specialize in specific areas (ie. not all agencies provide long-term credit help or student loan refinancing). Therefore, we’ve started with larger HUD intermediary agencies that can service the entire U.S., including regional HUD agencies.

• There needs to be an educational component for MLOs to understand what HUD Housing Counseling Agencies (HCA) can do to assist clients upfront and a goal to get clients thoroughly “mortgage ready” before the client starts looking at homes. There also needs to be a breaking down of barriers between MLOs and HUD HCAs and an understanding of what each industry does that can help the other. Past distrusts, particularly from the housing crisis, must be overcome.

• MLOs will need to provide a detailed summary of why the client cannot proceed with a mortgage upon entry into the Home Prep portal with an indication of services in priority that the MLO believes is needed. On the HCA side, quick onboarding and an anticipated “mortgage ready date” will keep MLOs engaged with the pilot concept.

• Realtors have conveyed a strong interest in this concept, proven with questions about pilot articles that have been published. MLOs, pay attention to this. This is your path to work with new clients who have issues and connect with more realtors!

Finally, 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.