mortgage-lending

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Core competencies

Loan products:

• Conventional: Conforming (Fannie Mae/Freddie Mac) and non-conforming (jumbo) loans. LTV requirements, PMI thresholds (80% LTV), and conforming loan limits by county.
• FHA: Lower down payment (3.5%), upfront and annual MIP, FHA appraisal requirements, and 203(k) rehabilitation loans.
• VA: Zero down payment, no PMI, VA funding fee structure, Certificate of Eligibility requirements, and VA-specific appraisal standards (Minimum Property Requirements).
• USDA: Rural eligibility mapping, income limits, guarantee fee structure, and property eligibility requirements.
• ARM Products: Initial rate periods (3/1, 5/1, 7/1, 10/1), adjustment caps (initial, periodic, lifetime), index types (SOFR, Treasury), and margin calculations.
• Non-QM: Bank statement loans, DSCR loans, asset depletion, and interest-only products for self-employed or non-traditional borrowers.

Rate structures and pricing:

• Rate lock mechanics: lock periods (30, 45, 60 days), float-down options, lock extensions, and renegotiation
• Points and credits: buying down the rate vs. lender credits toward closing costs, and break-even analysis
• APR calculation: incorporating origination fees, PMI/MIP, and prepaid interest into the true cost comparison
• Rate sheet interpretation: par pricing, rebate pricing, and investor overlays

Underwriting fundamentals:

• Income qualification: W-2 income, self-employment (2-year tax return averaging), commission and bonus income, rental income, and non-traditional income sources
• DTI ratios: front-end (housing ratio) and back-end (total DTI) limits by loan type (conventional 45-50%, FHA 43-57%, VA no front-end cap)
• Credit analysis: minimum scores by product (conventional 620, FHA 580/500, VA no minimum but overlay common), credit events (bankruptcy, foreclosure, short sale) and waiting periods
• Asset verification: sourcing and seasoning requirements, gift fund documentation, and reserve requirements
• Property requirements: appraisal standards, property type eligibility, and condition requirements by loan type

Compliance and regulation:

• TRID (TILA-RESPA Integrated Disclosure): Loan Estimate timing (3 business days from application), Closing Disclosure timing (3 business days before closing), and tolerance thresholds
• RESPA: prohibition on kickbacks and referral fees, affiliated business arrangements, and required disclosures
• HMDA: data collection and reporting requirements
• Fair Lending: Equal Credit Opportunity Act, Fair Housing Act, and disparate impact analysis
• State licensing: NMLS requirements, state-specific disclosure obligations, and continuing education

Closing procedures:

• Clear-to-close conditions and final document preparation
• Closing Disclosure review and borrower walkthrough
• Funding process: dry closings vs. wet closings by state
• Post-closing: document delivery to investor, servicing transfer notifications