Checklist for the Emerging Mortgage Banker
There are several reasons to consider transitioning from a mortgage brokerage firm to a mortgage lender. These reasons could include more operational control, improved pricing, or better loan officer recruitment and retention.
Whatever your reason may be, the list below should serve as a starting point of items to consider and act on as you begin your journey as an emerging mortgage banker, along with estimated timeframes and links to additional resources.
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- State Licensing Requirements
- Estimated Timeframe: 4-8 weeks
- Loan Origination System (LOS)
- Estimated Timeframe: Varies, minimum 6 months
- Does your LOS support NDC or do you need an upgrade?
- Auto-assign MIN #
- Included pricing
- Does your LOS support NDC or do you need an upgrade?
- Estimated Timeframe: Varies, minimum 6 months
- Doc Prep
- Initial Disclosures
- Changes in Terms / Circumstances
- Initial Closing Disclosures
- Closing Disclosures
- Closing Documents
- Hiring Considerations
- Estimated Timeframe: 8 to 12 weeks
- Processor for disclosures, balancing with title, and warehouse wire requests
- Lock desk for managing secondary marketing
- Post-closing for trailing docs and conditions
- Compliance for quality control
- Accounting for reconciliation
- Estimated Timeframe: 8 to 12 weeks
- Warehouse Line
- Estimated Timeframe: 4 to 6 weeks
- Understanding your warehouse line
- Calculating the correct line size
- Ask about our Warehouse Line Sizing Model
- Considerations: pricing, financial requirements, and ease of use
- Estimated Timeframe: 4 to 6 weeks
- Investor Approval
- Estimated Timeframe: 2 to 4 weeks (investor dependent)
- Net worth requirements
- Experience Requirements
- VA Sponsorships
- Estimated Timeframe: 2 to 4 weeks (investor dependent)
- Coverage Requirements
- Errors & Omissions (min. $300,000)
- Fidelity Bond (min. $300,000 coverage)
- MERS
- Estimated Timeframe: 8 to 12 weeks
- Uniform Collateral Data Portal (UCDP)
- Estimated Timeframe: 1 to 2 weeks
- FHA-Approved Lender
- HUD Website
- Register as an approved lender to pull case numbers
- If not approved, can still run files through broker channel
Additional Resources
- Pricing Model
- Warehouse Sizing Model
- Net Funding Sheet
- Reconciliation Calculator