The loan officer training courses do not take up much time but they are also a great way to boost your resume when it comes time to look for more lucrative work for yourself as well. Just being able to handle mortgage contracts in this economy is not going to be enough to give you that extra edge for the job you seek. As more and more home owners are losing their jobs or having to take pay cuts it is becoming harder and harder for them to manage to keep up with their existing mortgages. With loan modification training in addition to your mortgage lending training you would be able to do more for a company than a general loan officer would be able to do. Many loan officer training courses are even available on line to make them more readily available to the consumer. In addition many mortgage marketing training courses have the loan modification training courses as a part of the program.
 
With this extra training you would be able to help people in a myriad of ways: you can help the family who’s income has decreased by half to lower their monthly mortgage payment; you could help the man who just changed jobs skip a payment and avoid late fees and penalties; you could help the family who just needs to use some of the equity in their home to refinance the loan and be able to add on the extra room they need. The possibilities of having the proper mortgage marketing training are endless. Don’t waste another minute, get out there and make the best of the field you are in by getting this training today!

If you are planning to get a Self loan modification processing done all by yourself, then think again. It is never a great idea to do all these things by your-self. The process is very cumbersome and there can be lots of confusion coming your way if you try your hand at it without any basic knowledge. So what do you do? Just leave it to the experts. Loan modification officers would be well aware of the processes involved in this and get it done for you.

A typical self loan modification processing system involves lots of interaction with financial institutions. And as a result you may be required to run around different professionals to get your job done. However, in taking the help of a loan modification officer, this headache can be evaded. You may as well ask what advantage a loan modification officer brings to table. Firstly, these officers are made to undergo strict loan modification training, loan officer training and loan offer training to get the right knowledge. If not for a loan modification officer, you would have had to prepare many convincing reports all by yourself and get them approved. This wouldn’t be easy either.
 
An officer who would have undergone a near perfect loan modification training, mortgage marketing training and loan offer training would certainly know more about winning the cases related to this. So why would you bother doing it all by your-self? Just take the help of a professional who has undergone loan officer training and trust him or her to get the case in your favor. You will later realize the difference it made to your financial future. He or she will certainly help you prepare a very convincing report that will make your entire loan modification process that much easier. Once these reports are ready, it shouldn’t be difficult to approach the financial institutions and get their approvals fast.
 
In opting for an officer who has undergone mortgage marketing training, loan officer training and loan modification training you can be rest assured your case is in right hands. He or she will help you in a number of ways. You are sure to get lots of information pertaining to interest rates, foreclosure charges and so on. The officer will take into consideration many things before arriving at a result. FHA loans, Adjustable Rate loans are some of the areas they will pay heed to. A mortgage marketing training would teach an officer to be, how to serve his or her clients to the best of their interests. These officers will take extra precautions and will always listen to what you have to say and will help you take a decision. Just imagine, what would have been the scenario if you had not opted for an officer. With the thought of conserving little amounts of money, you would have to undergo lots of hardships.

Here are some common questions that people ask pertaining to loan modification. Your mortgage marketing training should take care of these common questions and appropriate responses.

One of the most common questions that we face from consumers is, “What is the success rate of your company with loan modification applications?” People would like to know how successful you were because they don’t want their financial future to be experimented in the inexperienced hands. This is a highly legitimate concern for which every officer in loan modification training should have a genuine response.

We can also see a number of loan modification consumers wanting to know whether you have been successful with mortgage applications that are similar to their condition. They ask for reports of similar loan modification application that you have been successful. This is a clear indication that they are not ready to take any chances and aggravate the situation. It is best to do your homework before approaching your loan modification customer. You must remember that each case is unique and you will not be able to convince your customers with a single general report that you produced five years ago. Give them specific examples from your portfolio that will win their trust.

The next important concern loan modification consumers have is that whether their condition really qualifies for loan modification and that you are not playing up to find a new customer. Remember when they approach you they have reached a desperate situation and they are at the verge of bankruptcy or foreclosure. They are looking for your help to save themselves from foreclosure. They would like to hear the truth whether they really qualify for loan modification and that you are not just taking chances with their financial future. So carefully analyze their mortgage and present a clear report that will help them to make their decision to allow you to represent them. It is better not to mislead your customers because it will ruin your reputation. You cannot be a successful loan officer with poor reputation.

What people today are expecting are honest and straightforward dealings. By giving them what they want, you can find your way to success. You will have to also remember that your success in this career is nothing but the success of your customers.

In an ideal mortgage marketing training, your client’s best interest is your goal. Always be a good listener and advise subjectively, not objectively as rapport is of foremost importance. Sympathize and empathize. They do not need any more embarrassment or blame calling at this point. An efficient communication forms the foundation brick of loan modification training. Advice from a knowledgeable friend is what these distressed people are in dire need of. If you offer them timely and expert advice, they are likely to come to you again or refer you other clients. Follow up is very vital as there are many reliable officers that could take the deal from you. Remember that these people are in a financial tight spot and would like to seek professional advice.

It is important that you are able to protect your clients from phony sites and money swindling traps. This can be avoided by picking out the reputed establishments to process your loan modification. Follow up of your previous clients is crucial here as they can provide you with this valuable experience based information. These referrals will provide your future clients with leads to a better mortgage plan and improved services.  One of the difficulties arising in loan modification is the hardship letter. Your loan officer training should constitute an effective rapport building where the client is made comfortable to discuss the crunch they face and assist in drafting a favorable hardship letter. This is the essential key to get a modification in effect from the lender.

Loan modification training has an important aspect which most loan modifiers tend to overlook because of the time and resources they are required to put in. That is being thoroughly aware and informed. Companies with a good reputation of transparency and fair trade deserve to be processing your loan modifications. This, as I mentioned, can be found out through follow up of satisfied clients.

To start, your marketing plan should incorporate learning about the latest market trends. Your subsequent steps in your marketing plan will depend on your understanding of the current loan modification and mortgage market.  It is important to always look for the bright spot in this current financial crisis.  Loan Modifications and streamline refinances are the current bright spot in our market and there is money to be made.  While the market is hot, it would not be a bad idea to look for formal loan modification training programs. There are number of books and other online resources available at your disposal including here on our blog.

When you try to draw up your marketing plan, as a first step you should try to categorize your target customers using your own parameters and this categorization will help you devise customized approach to each group. One of the major mistakes made by loan officers today is taking a general or random marketing. We may not be able to get the desired conversions using random or general marketing strategies. Do not let yourself become a victim of the same mistake many loan officers have made. It will cost you a great deal of time and money on the long run. A proper marketing plan will give you the necessary tools to come up with a highly successful marketing campaign.

Drawing up your marketing plan is one of the most crucial stages of your business and your entire business should be built on this marketing plan. Therefore, never rush through this process, get all the help you can and acquire as much knowledge as possible regarding this field. Your marketing plan should not just stop with finding your loan modification clients; it should also take care of identifying the right sources of referrals.

As part of your marketing plan you should give due attention to branding including launching of a website and having all the marketing collaterals in place. Do not wait until you meet your first client to start preparing for these. Finding or meeting clients is just one portion of your marketing but before that, a lot needs to be done behind the scenes. Equip yourself with all the necessary resources and above all with adequate knowledge about the latest loan modification trends and news. Your marketing plan should also leave room for constant updation of your knowledgebase. In other words, your loan modification training is an ongoing process and it has to continue as long as you would like to stick to this business.

There are many misconceptions concerning loan modifications and a lot of inexperienced people providing misinformation. The first thing any client should know is that they can try to modify their own loan. Loan modification processing companies are still considered a luxury. However, just as you can represent yourself in a court of law, if the trial is of a serious nature it is best to have a professional represent your interests. By utilizing a 3rd party you are accessing their expertise in loan modification and relying on their objectivity in what can be an emotional negotiation. But, how does a modification work and what are the steps?

A loan modification is a private negotiation between the client/borrower and the lender. Title and escrow are never involved. However, the steps are very similar to a refinance. First, you need to find out if a client qualifies for a loan modification. There is no such modification as a ’stated’ modification. The client is going to have to provide full financial details of their personal situation and, if self-employed, their business’ financials, as well. When selling a loan modification you should be looking for someone who not only has a ‘bad’ loan but is also in a bad situation. Just because a client has a rate above 7% does not necessarily make them a great candidate of a modification. However, if the same client has a loss of income, medical hardship or their rate is adjusting to 10% in a month then they become an excellent candidate. The hardship, whether financial, medical or personal, is the difference between a qualified modification candidate and someone who is just unhappy with their loan.

Once we identify a good candidate for a loan modification, we first gather the borrower/client’s financial and prep to submit a loan modification package to the lender. With loan mods, there are no ’stated’ programs. Also, instead of using a debt-to-income ratio coming in traditional financing, we use a personal profit & loss statement to show both the financial hardship and to have the lender see that if they were to modify the loan that it would take the client from a poor situation to one they can better handle.

The first document sent to the lender is the authorization form. This form notifies the lender that we are working on behalf of the client. After the authorization is acknowledge, we are ready to submit our package. Each and every package that an attorney-backed company sends will be accompanied with a demand letter. This letter is demanding action on the file within 60 days. Included in the package: Mortgage statement, insurance declarations page, 30 days pay stubs, W2s, full tax returns, bank statements, other supporting financial documentation. Once again, there are no ’stated’ mods. Last but certainly not least is the hardship letter. This is the borrower’s one chance to address the lender and tell their side of the story. It is important for the client to pour out their heart so that whoever is reading it can feel the emotional pain to coincide with the hard facts that we are providing.

Once the package is received and uploaded into their internal system, it will go to initial review (Level 1). Level 1 is generally a front line employee in an underwriting department. They are looking for major red flags that would immediately disqualify the client for a modification. Low fixed rates or substantial monthly surplus/deficit are two of the reasons who disqualification. If you are using a quality processing company, you should never have a modification denied at this stage. Most companies would catch a major red flag prior to submission. Generally, those who don’t know what they are doing get a level 1 denial. Ultimately it is a waste of everyone’s time, most importantly the borrower.

After Level 1 review the file moves to Level 2. Level 2 is generally someone who has the authority to sign-off on a modification. This is sometimes a management or supervisor level position. The level 2 reviewer is now ‘underwriting’ the file. They are going over financials and supporting documentation to ensure that they match up with the borrower’s and processing company’s statements. Often, they will come back to the processing company asking for clarification or additional information. This step is the longest of all the steps as the lender wants to ensure that if they give a modification to the borrower that the borrower will in fact be able to handle the new terms and that the lender is not giving up too much ground on the modification. After the review process is over, it is time to be assigned to a negotiator.

Finally, the negotiations. When the level 2 reviewer assigns the file to a negotiator, the client has in fact been approved for a modification. Now, we are to find out the terms to be set. Once it is with a negotiator it can take some time before an offer will come. The negotiation is the third level and the end of the process. Many negotiators will take the review from level two and crunch the numbers to find a reasonable solution that protects the lender but also helps the borrower. If there is an investor on the loan, the negotiator will also go to the investor for a sign off on final terms so that an offer can be made.

When the negotiator decides on the offer, the offer will be sent directly to the client. It is a very exciting time for the client but the processing company needs to review the offer to make sure it makes sense for all parties. It is possible to go back and re-negotiate a new offer. However, most times the client is very please with the offer and decide to sign and return. This may also be because the offer is based off their particular financial situation and is built to fit their budget. Once the offer is signed and return, the modification is complete.

However, there are instances that the borrower is not happy with the terms. Most companies will try to renegotiate but this will drag out the process and/or make the first offer null and void. Most times, the offer is the ‘first and final’ offer.

These are the basic steps of how a modification works. There are, of course, many different ways to approach a modification. Some believe in the litigation route and others believe in the hardship route. Both have their pluses and minuses. In the end, both will have to provide a compelling argument and a full and complete package to procure a modification for their clients.

More Loan Modification Training coming soon!

The first being the Adjustable Rate Mortgages that are recasting. There are 1.75 million home owners coming due on their mortgage form now until the end of 2010. Most of these home owners were sub-prime or stated to begin with; now with nationwide value issues most are upside down and or many also having late(s) in the last year as well due to the nature and life style of the typical sub-prime borrower. If you target for TRUE recast date (the actually date the ARM will expire) and then go back 45-60 days as well as forward 45-60 days from the current date (today) you will have pretty good success. The only thing that makes the difference is the script in which you use.

The second database that I would recommend is prescreened credit data from the bureau. With this file you can target by current late(s), loan amount, fico and the recent status of credit card payments. Most Loan Mod specialists will target people that are 30-60 days late currently and this is a very accurate file to get that from. Keep in mind that on both of these databases you will see a little higher disconnected ratio than a standard a paper list. The obvious is that they are not all paying the bills…. some are foreclosing or short selling so phones do get cut off here and there. The good side of these lists is that both databases in this case are extremely accurate after the disconnected ratios.

You can have some good success calling the database and mailing to it can be hit or miss depending on your piece. I prefer letters over post cards unless you’re double mailing the same list. Post cards are more for name recognition and if you keep hitting them they will call you if your post card is catchy.

There are a few other databases that can work for this if you can find the right source…..the first being aged internet refinance leads or mod leads. Try and get them anywhere from 1 week to 2 months old can be a good list to target because many of the folks inquiring in the last few months do not qualify for a loan. That makes a good marketing list for loan mods. The other would be the dreaded triggers that are about 7 to 30 days old. This is also a very good list of people in the market for a loan that probably do not qualify for a refi. These are all good options for mod agents to market themselves to.

With all the options of targeting your audience out there you can decide what may best work for you. From seeing the results every day I would absolutely say that the ARMs recasting is my favorite to work. Especially if you come from a broker back ground and you are still doing loans as well as mods. You get one list and get loans as well as mods off the same list depending on the client and if you network yourself correctly you should even get some short sales out of it. I mean hey ….these sub-prime ARMs are all going to need to do something. Lets help them out guys and gals!

Think about this for a second……We are all taking more applications now than we have in the last couple years but for most it’s the qualifying the prospects that is the issue. I talk to so many Loan Officers and Brokers a like that just throw that stuff away…….WHY WOULD YOU DO THAT? Your trash is another man’s treasure and actually its a treasure to you but most just don’t know it yet.

Here is what I would be doing if I was a full time LO….

Do which ever marketing I like best and then really really WORK THE LEADS! Work the potential Refi to the bone until there is absolutely no deal there. On all the turn down leads we have all got to start helping these people. There are other ways that may require any Loan Officer to get out and network to help the homeowners in other financial ways….

I would try building relationships with other professionals in other lines of financial services….

First- credit repair companies–I know most of them pay you a commission for the repair job and then they send you the borrower back for the loan after things are fixed. You not only go the extra mile for your client but you also make a little money on the side form the CR company. This helps you help a client that needs it and that gives you the chance to put them in your client base for later as well as earn referrals through them.

Another example would be to learn loan modification. 9 out of 10 applications taken DO NOT qualify for a loan, so in my mind you should try and modify their loan with their current lender and make a small commission for HELPING your client. Again this was a turn down before and it could be turned into revenue and maybe even a future deal and more than likely a referral or two for another modification. (you would not believe how much home owners talk about not being able to refinance with each other) If you go the extra mile on either of these two ways or even debt settlement or something like that you will be helping home owners the same way, FINANCIALLY, and still be making money as well as building your client base for future. Some of these companies are set up differently so finding the right one for you can be difficult. I have done extensive research on this and if you would like information you can email me off the board for the names of the companies I would suggest using.

Sorry to go off on a rant but i see so many people complain about turn downs and lenders not lending to hardly anyone, but really they should be trying to figure out how to try and help these clients out. There is a lot of money to be made rehabbing or modifying loans as well as credit repair and settlement. START DIVERSIFYING IF YOU WANT TO LIVE AS WELL AS YOU MIGHT HAVE IN YEARS PAST IN THE INDUSTRY! Especially considering some of the people you all run into can’t even modify because they are too far upside down. Another GREAT way to build Realtor referrals for short sales. You simply can’t loose if you build yourself a network of industry professionals to send your turn down and bail out deals to. Net working has never been easier with over 95% of all home owners in need of some sort of financial service. You area already taking the time to talk to them to find out about the refi…if you turn over just half your turn downs you not only cover part of your over head but you also build your clients for later. We know lenders will lend again at some point. he who has the biggest over all client base will be the one who makes the most money when this happens.

I’m in hopes this message gets at least one person motivated again, all the negativity does get overwhelming after a while and there truly is a ton of money to still me made in financial services. Lets get on it!

If you don’t want to do it yourself because it takes too much time find yourself a trustworthy mail house. As you search the internet you see many print houses or mail houses advertise all kinds of different color envelopes with sizes and tricky printing, etc…. The thing to most think about when looking for your piece is…

1) what’s my budget? (try to find yourself the best way to reach the MOST targeted audience for your budget)

2) How saturated is your state or the audience you are mailing? (this will make a huge difference in how you hit them) If you are mailing to a small town state like WI or AL you may want to use a nice color piece letter with a picture. Color envelope is helpful but really a standard #10 black and white will do since these folks are hit as ofter and they will open almost every mail piece. This will give them that sense of comfort they are used to.

You can do the same thing in bigger cities but since they get hit harder I like to use unique packaging and cheaper print (black and white) so that you can reach a few more people with you budget. If they open it they will read it usually. The bigger cities are hit more often nationally by many industries so keep that in mind when picking out your envelope. It has to either look very official or be a difference size or color than most mail, (my favorite is official looking ones as in these times people want security in any financial move they do.

3) If you choose to do post cards there are two things to think about….
Pros and Cons

Pros.
-They see your face and read your message right away
-they are much cheaper than direct printed mail
-great for converting renters to buyers
-since they are cheaper you can hit almost 40-50% more people in one drop or you can drop multiple times to the same list to get name recognition

Cons.
-they look cheaper to some consumers that frown on them
-They are not as personal
-they get much lower response on refinance drops (they do good on purchase campaigns though)
-its hard to get a good point across to them with such a small amount of room to print on

IN CONCLUSION: If you are going to mail you get your list and then find an affordable way of mailing to them. Think about the homeowner and what they would open first of all and then make the content something readable. It can’t be boring, make it pop. If you have never mailed before try to find an honest mail house that can print and mail for you. They normally get the best rates in the biz and the good ones don’t mark up the postage on you which saves you money as well. Not many of them include the data source with your mailing but you can can find one that does then you may want to go with them. If the mail piece drops and fails you only have one company to call and blame not a mail house and then a data vendor. Just do good research on finding one and you should be good.