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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  1. State Licensing Requirements
  2. 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
  3. Doc Prep
    • Initial Disclosures
    • Changes in Terms / Circumstances
    • Initial Closing Disclosures
    • Closing Disclosures
    • Closing Documents
  4. 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
  5. 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
  6. Investor Approval
    • Estimated Timeframe: 2 to 4 weeks (investor dependent)
      • Net worth requirements
      • Experience Requirements
      • VA Sponsorships
  7. Coverage Requirements
    • Errors & Omissions (min. $300,000)
    • Fidelity Bond (min. $300,000 coverage)
  8. MERS
  9. Uniform Collateral Data Portal (UCDP)
  10. 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