Mortgage Loan Officer Training

Job demands require that mortgage loan officer training remain an important part of the educational process in America. Even through tough times in the real estate industry, financial services continued to need experts to help sort through the swamp of property transaction foreclosures. In addition, commercial loan officer training will be toughened and the requirements more stringent in order to avoid another crisis in the future. Credit appeared to be too easily dispensed and applicants not screened well enough in the past. The fault may have been in company policies or perhaps in the training these employees received. "I therefore, the prisoner of the Lord, beseech you that you walk worthy of the vocation wherewith ye are called." (Ephesians 4:1)

Credit officials are mainly employed by banks, credit unions and savings corporations. To be considered for a position handling credit issues, the candidate must possess at least a Bachelors degree in finance or economics. These financial institutions also often look for an applicant who has had prior sales experience. Credit officials are often paid by commission, doing well when the credit rates are low. There are a number of online companies offering training for potential credit officers. If a bank employee already has a foot in the door with stellar work performance, than completing commercial officer training classes may be enough to be considered for employment as a credit official.

The differences between a commercial financial official and a mortgage financial official are fuzzy. Both deal with providing money for real estate purposes. The commercial officer deals with providing credit to businesses for land, existing buildings or new properties. The mortgage officer works with individuals or families to provide financial assistance to buy existing houses, land or new residential dwellings. The business credit official appears to have a more difficult job because commerce ventures are more difficult to dissect financially than an individual or family.

Each of these financial officer positions requires education that is both analogous and dissimilar to one another. Mortgage loan officer training will include a number of topics that are comparable with their business credit counterparts. Things such as mortgage rates, mortgage amortization, interest rates, avoiding discrimination and types of financial assistance are all run along the same learning track as the business assistance officer training. Both training tracks will include how to prospect for potential borrowers and methods to tie a sale up. Both courses will include an understanding of governmental regulations that apply to loan commerce.

However, there will be differences. The residential mortgage loan officer training will not cover risk management assessment in nearly as much detail as the commercial loan officer training entails. Those responsible for preparing credit offers to commerce must know the ins and out of different types of business organizations. For instance, there are partnerships, incorporated businesses or limited companies. Each one of these types of businesses can have very murky financial accountability records. Attempting to trace the path back to a bottom line may prove to be a daunting task. While most credit institutions have legal help to make sense of it all, the final responsibility falls back to the one recommending the credit agreement and the committee that often takes the business assistance officer's gut feelings as a tipping point for approval.

While balloon payment mortgages are sometimes chosen by potential residential mortgage holders, it is the staple of most business loans. Commercial loan officer training classes must provide expertise in the area of balloon loan details. This type of financial assistance typically amortizes financial help over 30 years, but the entire credit balance is due in ten years. A loan such as that is called a 10/30 transaction. Often, a business will then attempt to renegotiate a new loan based on loan rates at that time. Risks are inherently more prevalent in this type of business transaction.

Marketing is a very large part of a credit officer's job description. This is the reason so many financial institutions want credit officers who have had experience in outside sales. Part of both mortgage loan officer training and commercial loan officer training will include methods for prospecting new clients for credit transactions. Mortgage officers will spend a great amount of their work week visiting various real estate brokers, shoring up relationships and building bridges to agents that will recommend home buyers to their financial institution and more specifically to them personally. Much of credit officials' work is spent wirelessly connected with their offices while on the road making new friends for future profit.

Commercial credit officers will also be visiting potential clients. But rather than going through an intermediary such as real estate brokers to get to mortgage clients, business credit officers will visit business owners and both CEOs and CFOs . The purpose of these visits will be to investigate new business ventures that might require additional enterprise capital. Commercial loan officer training will touch on topics foreign to the home mortgage business. These include effective ways to gain the attention of high powered executives, and understanding the culture of corporate America, as well as knowing the needs and concerns of the small business owner.

The projected job growth rate for credit officers is eleven percent by the year 2016. The most successful applicants for these positions will be college graduates with business type of majors. However, college graduates who have taken mortgage loan officer training classes as an adjunct study from an accredited educational institution can break into this career. The median average income for credit officers is slightly above the $50,000 range. This highly competitive career might be for you.

Mortgage Broker Training

Licensed agents undergo mortgage broker training to manage or own real estate firms. After completing 60 hours in a pre-licensing course and passing the state exam, new agents are anxious to start working under a licensed broker. Novices learn the ropes of selling real property under the oversight of a seasoned professional who can help steer them towards a lucrative career. Brokers have the experience and the expertise to mentor less experienced agents and provide a professional branch office from which newly licensed agents can list and sell homes. Agents generally share commissions with brokers in exchange for the opportunity to build a credible name and reputation under the brokerage's shingle.

The broker/agent relationship is one of mentorship, similar to the Apostle Paul's relationship with Timothy. In order to become brokers, agents must diligently apply themselves to learn the laws and the lingo of real estate. "Study to shew thyself approved unto God, a workman that needeth not to be ashamed, rightly dividing the word of truth" (II Timothy 2:15). After building up a clientele of buyers and sellers and a fairly substantial listing of marketable properties, agents may choose to become associate brokers employed under the same firm, or venture out and establish a new brokerage. But before broker wannabes can pass out business cards, they must enroll in mortgage broker sales training to pass the state exam and qualify for licensing.

Brokers are actually mortgage matchmakers, brokering or negotiating the best real estate financing options between homeowner hopefuls and banks and lending institutions that are eager to finance. While home buyers with less than perfect credit may find it difficult to pre-qualify for loans through some banks and lending institutions, brokers shop around for lenders who can offer the best terms for borderline borrowers. With access to lenders across the nation, brokers' employ superior salesmanship to secure financing, even if it means going out of state. Mortgage broker sales training prepares novices to become master negotiators, tenaciously tackling the toughest lending issues with grace and aplomb. A novice agent can benefit from a mentoring relationship between senior agents who have built successful careers over the years to become multimillion dollar producers.

Most new agents will quickly find that becoming a broker is not an automatic process. Years of studying housing markets; finding and listing properties; and negotiating between buyers, sellers, and lending institutions to clinch the sale all play a major role in the life of a broker. In addition to hiring, mentoring, and managing new agents, brokers carry the responsibility and liability of the sale. Even if an agent lists and sells the property, it is the broker's name that goes on the contract and it is the brokerage that must stand behind the transaction, long after closing. Qualifying sellers can also be a laborious process, especially in uncertain economic times when lenders are more reluctant to take a gamble. As the U.S. housing market is under fire, brokers are on the front lines trying to manage brokerages, help agents stay afloat, and move slow selling properties in the midst of a near recession. However, in spite of a housing slump, a combination of effective mortgage broker sales training and persistence can pay off for agents who are willing to work hard.

Mortgage broker training equips novices with skills necessary to effectively negotiate transactions and bargain with lenders; but in order to bargain, agents must be familiar with financing laws. Knowledge of financing procedures, interest rates, and amortization schedules are also part of a brokerage's arsenal. In addition to financing, mortgage broker sales training includes conducting competitive market analyses and estimating a home's comparative value. Seasoned agents utilize professional sales techniques such as gaining the confidence of key players in the decision-making process and refraining from taking side when couples are at odds. Extensive brokerage training will include preparing sales contracts and leases, guiding buyers and sellers through the purchase process, and acting as fiduciary for sellers.

In addition to mortgage financing procedures, real estate and contract law, and marketing and advertising, mortgage broker sales training provides agents with people skills. Selling real estate involves intimately working with families and finances. Agents must represent the interests of both buyers and sellers, while remaining neutral, yet professional. Real estate transactions can take months to close and months of showing and re-showing houses to reluctant home shoppers. Difficult buyers and sellers require agents with the patience of Job and the heart of Saint Paul. Agents who lack patience and people skills will never succeed as brokers or excel at selling real estate.

Agents interested in enrolling in mortgage broker training should check out neighborhood brokerages first. Selling properties in familiar surroundings puts agents at an advantage since they will be more knowledgable about schools, shopping and the local housing market. Neighborhood brokerages can advise agents about training and available courses; and some may offer in house programs or sponsor employees seeking further education. Local and online real estate schools also offer mortgage broker training courses to help established agents pass state exams. Community colleges and vocational schools may be a prime source for continuing education courses and training to meet licensing requirements. Students can expect to pay several hundred dollars for courses, but the cost is well worth the potential earnings that can be realized.

In spite of housing market slumps, real estate is still a lucrative market. The Internet has opened opportunities for U.S. brokers and agents to sell to globally, particularly to foreign investors and immigrants relocating to the States. Marketing to international buyers via well designed websites and targeted traffic ensures today's brokers an ample share of domestic and offshore clients. Significant revenue potential exists in foreign markets which may serve to boost earnings in the future, making a career as a broker an attractive option.





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