Honolulu Mortgage Stars

If it is your first time to apply for a mortgage loan, the one thing that you should know is that you can seek the help of a mortgage processor. However, these professionals have new state requirements to fulfil, which is what we will try to discover here. 

A Quick Look at the Job of a Mortgage Processor 

Basically, it is the job of a mortgage processor to process mortgage loan applications. Part of the job involves gathering and verifying materials associated with a mortgage application. Once the initial paperwork is processed, they are sent to an underwriter for evaluation who determines whether the applicant is a good candidate for a mortgage or not. 

Depending on the experience and network of business contacts that a mortgage processor has, he or she can work for a bank, a mortgage broker, a lender and other financial institutions offering mortgage loans. The compensation of a mortgage processor also depends on the length of experience and level of work handled. 

Now, if you are applying for a mortgage loan, the mortgage processor will review your application. Your credit score will be determined by running a credit check, and the supporting documents required to file a loan will also be put together. After the verification process and background checking, it will be determined whether your loan application will be approved or not. 

If you hire a mortgage processor to work for you, he or she will let you know about the additional requirements needed. The mortgage processor may also forward your application to a loan officer – after which your eligibility for a mortgage loan will be determined. 

How Contract Mortgage Processors Comply with State Requirements On the other hand, if you are a mortgage processor who is working on a contractual basis in the United States, you might need to comply with the requirement filed as the SAFE Mortgage License Act that you need to be licensed by July 2010. 

This new law affects those who do not yet have their Mortgage Loan Originator (MLO) licenses – which are actually quite costly to get. If you are looking for options to obtain a license in the state where you process loans, here are the three options that you can choose from:

1. Become a W-2 employee of just one mortgage company and process mortgage loans for them exclusively. Although this is not a desirable option for mortgage processors who work in multiple states, but it is an inexpensive route to take for new contract mortgage processors.

2. Obtain an MLO license in each state that you want to process loans in. After obtaining the MLO license, you can have your primary customer sponsor the mortgage loan originator licenses – where a few requirements need to be fulfilled. 

3. Obtain a mortgage license and MLO in each state that you will be working in. Your last – and probably the best option out of the three – is to obtain a mortgage license and MLO license in each state that you plan to work in. Despite the costs involved, the potential work that you will get might outdo the expenses. 

There is absolutely no match to the fact that you did your part in complying with the law by getting an MLO license. So take your pick from these three options, depending on the budget that you have and the career path that you wish to take in the future.