Mortgage Lending

Mortgage Lending

This course will enable you to understand mortgage finance and enrich your knowledge about various related products and services. The course is focused on the needs of professionals wishing to acquire knowledge of mortgage finance in order to enable them to provide technological solutions to banking Industry.

The course focuses on global mortgage finance scenario with focus on USA and European Markets.
The intensive program is designed to give you a thorough and comprehensive understanding of mortgages and reverse mortgages.

The participants will learn about the mortgage finance Markets, FICO credit scoring systems, and recovery mechanisms. This intensive course uses a balance of lectures, workshops, case studies and discussions. The program emphasizes on active participation from delegates and includes exercises and case studies.

What will you learn?

When you complete this course, you will have total understanding of:

• Various terminologies used in mortgage markets.
• Various mortgage products
• How mortgages and reverse mortgages operate
•  Risks involved in mortgage markets

Course content:

• What are mortgages?
• Overview of US and European mortgage markets
• Players in US mortgage markets
  1. Federal Home Loan Mortgage Corporation
  2. Federal National Mortgage Association
  3. Government National Mortgage Association
• Players in European Mortgage Markets
• Channels of product distribution
• Mortgage Types (products)
• Loan porting
• Loan switching
• Different types of Fees
  1. Arrangement fees
  2. Service fees
  3. Booking fees
  4. Completion fees
  5. Exit free
  6. Legal fees
  7. Capitalization of fees
• Mortgage lending processes
  1. Pre-approval
  2. Application and documentation
     • Customer data
     • Property data
     • Credit Checking/Searches and Affordability to pay
     • Decision/Agreement in Principle
     • Quotation
     • Loan Tenure/Term
     • Valuation/Surveys and types of valuations
     • Title Search
     • Solicitors and Legal Conveyance
  3. Ratios (PITI, Expense Ratios, Coverage Ratios)
  4. Underwriting
  5. Closing, Offer Generation and Acceptance
  6. Drawdown
  7. Repayment/Early Repayment of Loan
  8. Escrow
• Mortgage life-cycle events
  1. Disbursements
  2. Servicing and management
  3. Diliquent accounts/non-performing accounts
  4. Collection and recovery
  5. Bankruptcy and loss mitigation
• Other exit routes
  1. MBS/CMO/Securitization
• Regulation in USA/Europe
  1. Equal Credit Opportunities Act
  2. Home Mortgage Disclosure Act
  3. Fair Housing Act
  4. Community Reinvestment Act
• Mortgage insurance