The mortgage lending industry makes, sells, and services mortgages secured by residential, multifamily and commercial real
estate. The mortgage lending process is a complex series of interrelated activities. Consequently, the mortgage industry offers
you a number of different job opportunities. To help you better identify the best match for your interests and abilities,
let’s first review the various activities associated with mortgage lending.
Origination is the creation of mortgages. Loan officers initiate the origination process by locating borrowers and making loan applications.
The application records information about the borrower and the property to be mortgaged. Mortgage banking is regulated by
numerous federal laws and enforcement agencies, and over 45 state laws or licensing boards. Individuals interested in becoming
a loan officer should check with their state for specific education and experience requirements. (Loan Production Track)
Secondary marketing is the sale of existing loans to investors, and management of the risk associated with mortgages. Normally the sale is arranged
simultaneously with the origination of loans. Commitments are used to secure the future sale of loans and protect against
interest rate changes that may occur between the dates of origination and sale. Processing is the collection of documentation
and verifications to support information provided on the loan application. An appraisal is ordered to confirm the value of
the mortgaged property and a credit report is obtained to disclose the borrower’s credit history. (Mortgage Banking Overview
Track)
Underwriting is the evaluation of loan documentation to approve or deny the loan. In the evaluation process, the underwriter considers
specific requirements to be met to ensure a quality loan that is salable in the secondary mortgage market. Closing is the
signing and recording of loan documentation, plus the disbursement of loan funds. (Mortgage Banking Overview Track)
Warehousing is the financing of loans from closing until sale to an investor. Short-term, revolving lines of credit are the most typical
form of financing used by mortgage bankers.
(Mortgage Banking Overview Track)
Shipping and delivery is the packaging of closed loan files for delivery to an investor. This consummates the loan sale and all activities associated
with “loan production.” (Mortgage Banking Overview track)
Loan administration (servicing) is the collection, recordation and remittance of monthly mortgage payments to investors. Servicing also includes the maintenance
of escrows to protect the property securing each loan. (Mortgage Loan Administration Track)
Mortgage lenders generally hire individuals with:
- Excellent communication and interpersonal skills (your bilingual abilities give you an advantage in helping more people)
- College degree or equivalent (recommended, but not required)
- Demonstrated competency in personal computer, typing, and clerical skills
- When hiring loan officers, lenders look for individuals with the above mentioned skills as well as:
- Previous sales experience
- Ability to work flexible hours (including nights and weekends)
How can I get more information?
General information about career opportunities in mortgage lending is available from the U.S. Department of Labor at: www.bls.gov/oco/ocos133.htm. A general discussion of career opportunities for loan originators is available at www.bls.gov/oco/ocos018.htm.
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