The mortgage industry is poised for a potential uptick in production due to a long-awaited reduction in interest rates. This presents a valuable opportunity for mortgage professionals to help clients, especially those burdened with student loans, to secure favorable mortgage terms. To fully capitalize on this, it’s crucial for loan originators to focus on three key areas: the impact of credit report changes after September 30, 2024, the benefits still available for federal student loans, and knowing the differences between federal and private loans. An example of a self-service student loan analysis tool that can be used for FREE can be found in this article.
MLO's, Collaborate
with Your Clients and a HUD Counselor using HomePrep!
What is HomePrep?
HomePrep is a professional service designed to help Mortgage Loan Originators (MLOs) support clients who are not yet mortgage-ready due to credit issues, student loan debt, need for down payment assistance, budgeting help and other qualifying obstacles. Through a streamlined partnership with a certified HUD housing counselor, HomePrep connects these clients to tailored pre-mortgage readiness services—giving MLOs a reliable, trackable path to help more borrowers become eligible for home financing.
The best part? Once a client is mortgage-ready, the MLO is notified, ensuring they don’t miss out on a future loan opportunity.
Two Ways MLO's and Their Clients Connect With a HUD Counselor for HomePrep Services
- Through Indisoft’s RxOffice Platform
MLOs can securely submit a client’s application by exporting a 3.4 XML or 1003 file into RXOffice, Indisoft’s encrypted online portal. This system directly connects with the HUD-certified housing counselor managing HomePrep cases, enabling:
- Secure upload and tracking of client documents
- Real-time communication between the MLO and counselor
- Visibility into the client’s status and progress
- Access to documents such as Action Plans, credit updates, and estimated mortgage-ready timelines
The RXOffice platform is one of the few tools that allows MLOs to track and manage pre-mortgage clients separately from their active pipeline—an essential feature for maintaining clarity and compliance.
2. By Email Submission
MLOs may also connect clients by emailing HUD-certified counselor Andrew Mason directly. Please include:
- A brief summary of why the client is currently unable to qualify for a mortgage
- The MLO’s assessment of what support the client needs
- The client’s name, phone number, and email address
HUD Counselor Explains HomePrep Services
Andrew Mason is a HUD-certified counselor with the National Foundation for Debt Management (dba Consumer Credit and Budget Counseling) and serves as the primary contact for all HomePrep clients.
In this video, Andrew Mason explains the 7 services provided through HomePrep and provides ongoing support and coordination to prepare clients for successful mortgage approval.
MLO's and their clients can connect to Andrew Mason through Indisoft's RxOffice or email Andrew Mason directly.
The 7 Most Common Services Clients Rely on Before Getting a Mortgage
MLO and Client Costs, MLO Document to HUD Counselor
Loan Originator cost to use Indisoft RxOffice for HomePrep clients
- Yearly fee of $250.
- $15/per client.
Client Cost directly to HUD Counselor at NFDM.org
- $99 fee for HomePrep Services (paid by client)
- $99 credit back to client at the completion of HomePrep!
SDS Student Loan Repayment Plan cost
- Client only pays if they proceed with a repayment plan.
- Standard: $60* for prefill, document preparation tools and ability to chat with expert in student loans.
- Premium: $160 cost and includes help from Student Loan Counselor.
Loan Originator to provide Memo of Understanding that notes credit to client for using HomePrep Services
Whether using Indisoft RxOffice or direct to HUD Counselor, MOU must be provided.
- The MLO and client sign a Memorandum of Understanding (MOU) confirming that the MLO will apply a credit of $0 to $300 toward the client’s closing costs—provided the client returns to the referring MLO for their mortgage. This credit amount is set by you, the MLO.
Support Your Clients’ Path to Homeownership - DIY Tools or HUD Counseling Options
Pick Your Path: 1) MLO Do It Yourself (DIY) Solutions or 2) Refer Client for HomePrep Services to HUD Counselor
The Best Resources For MLOs Assembled
MLO DIY Solutions
"How To" resources for MLOs that want to learn how to use tools that can expand education of challenges and how your client can overcome them.
Some services are FREE but some are at a cost to the MLO or your client.
Costs are noted on services Home, MLO DIY Solutions and HomePrep for MLOs pages.
HomePrep for MLOs
MLOs refer challenged clients to HUD counselors to correct issues. When the client is "mortgage ready", the MLO is notified!
There is a cost to use HomePrep for the MLO. Some services also have a cost for your client or the MLO.
For more about HomePrep for MLO's, click here.
Other Resources
Articles, mortgage trade groups, mortgage advocacy, tips from industry professionals and more!
For more Resources, go here!
Disclaimer : Pamela Marron, licensed loan originator NMLS# 246438 and developer of Clients2homeowners.com, receives no compensation for any services shown on this website. This website was made for mortgage loan originators to assist clients who have challenges getting a mortgage.
