There are hundreds of career options in the mortgage financing industry. If you’re interested in starting a home mortgage business or working in the mortgage industry, keep reading for an introduction on how to become a mortgage professional and areas of the mortgage banking process that need people.
Because the mortgage lending industry makes, sells and then services so many mortgages, ranging from business real estate to residential, the market is busy, complex and very interrelated. However, that intricate network also means there a number of job opportunities available in each different sector.
Originations is where a mortgage becomes a mortgage. The sales team of the mortgage industry consist of the loan officers and mortgage brokers. Loan officers work for a particular lending institution while mortgage brokers act as agents for a variety of mortgage lenders and work to match the borrower with the right lender and loan.
This section of the mortgage process is where the applicant’s documents are collected and verified, including the appraisal, income records, credit history and more.
An underwriter evaluates the loan documentation and makes the final decision to approve or deny the loan. During this evaluation, the underwriter uses a formula to analyze the loan to see if it represents an acceptable risk and also if the loan meets the requirements necessary to sell that loan on the open market.
The closer, often the same person as the originator, completes the loan process by delivering the deed, signing the note and disbursing the funds.
Warehousing is how most mortgage bankers actually fund their loans at closing time. Typically, a mortgage banker will borrow funds short-term from a warehouse bank and use their other permanent mortgage loans as collateral. Then, the loans are sold to a secondary investor and the original mortgage banker can repay the first loan.
Secondary mortgage marketing is the sale of closed home mortgage loans to secondary investors. Someone working in secondary mortgage marketing will develop and price various loan programs, manage the risk associated with funding mortgages, and then actually sell the loan packages.
The last, but not least, field of mortgage services is loan administration. This includes providing ongoing customer service, collecting and recording monthly payments, and also remitting those payments to secondary investors.
There are jobs in every sector of the mortgage industry, from the front lines to the back boardrooms.