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Guiding the Applicant
The loan officer guides the applicant through the process of obtaining a mortgage loan. Officers may pre-qualify loan applicants by obtaining information to determine eligibility. They also will explain the various types of mortgage loans and help applicants choose the right one for their situation. Loan officers walk the applicant through the application process and review the completed application for accuracy.
Loan officers known as loan underwriters verify the information on the completed application. They may check with employers to verify employment history or contact landlords to verify residency and rent payment history. In many cases, the underwriter will need to ask for additional information from the applicant.
Mortgage loan officers also perform a sales function. They solicit new loan business via direct mail or the telephone. They may contact existing homeowners in an attempt to persuade them to refinance their mortgage loan. Loan officers who
solicit business typically work on a commission basis, or a base salary plus commission. Another common method used by loan officers to attain business is to form a partnership with local realtors who are willing to refer their clients.
Some loan officers specialize in the collection of delinquent mortgage accounts. They attempt to work with the borrower to develop an alternative payment plan until the borrower's financial situation improves. If the borrower still defaults on the loan, the officer may initiate foreclosure proceedings.
Keeping Abreast of the Market
An important duty of a loan officer is to keep abreast of the home market. The real estate market changes continuously, so the loan officer needs to keep up through attending training classes and from self-education. Classes may be provided by the officer's employer and are also available online at websites like MortgageKnowledge.com. Examples of available classes include "The New Good Faith Estimate for 2010" and "Advanced Processor Workshop."