Loan Officer Sales Training 04/04/24: Understanding Mortgage Products

Join us for an enlightening episode of "Loan Officer Sales Training" as we delve into the world of mortgage products. Hosted by Kyle Hiersche, this episode serves as a comprehensive guide to help loan officers and borrowers alike understand the various mortgage options available in today's market.

Tune in as we break down the different types of mortgage products, including conventional loans, FHA loans, VA loans, and more. Our expert guests share valuable insights into the features, benefits, and eligibility criteria for each type of mortgage, empowering listeners to make informed decisions about their home financing needs.

Whether you're a seasoned loan officer or a first-time homebuyer, this episode will provide you with a solid foundation of knowledge to navigate the complex landscape of mortgage products. Don't miss out on this opportunity to expand your understanding and expertise in the world of home lending.

For more episodes visit:
https://themortgagecalculator.com/Page/Loan-Officer-Sales-Training-Podcast

About The Mortgage Calculator:

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as over 5,000 Non-QM mortgage loan programs using alternative income documentation! 

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of over 350 licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages, P&L Mortgages, Asset Based Mortgage Programs, No Ratio CDFI Loan Programs, DSCR Investor Mortgages, Commercial Mortgages, Fix and Flip Mortgages and thousands more!

Our Mortgage Loan Originators are trained to be loan consultants to guide borrowers throughout the entire loan process. A licensed Loan Officer is only a phone call or zoom meeting away and always available to assist borrowers throughout the lo

The Mortgage Calculator is a licensed Mortgage Lender (NMLS #2377459) that specializes in using technology to enable borrowers to access Conventional, FHA, VA, and USDA Programs, as well as thousands of Non-QM mortgage loan program variations using alternative income documentation!

Using The Mortgage Calculator proprietary technology, borrowers can instantly price and quote thousands of mortgage loan programs in just a few clicks. The Mortgage Calculator technology also enables borrowers to instantly complete a full loan application and upload documents to our AI powered software to get qualified in just minutes!

Our team of licensed Mortgage Loan Originators can assist our customers with Conventional, FHA, VA and USDA mortgages as well as access thousands of mortgage programs using Alternative Income Documentation such as Bank Statement Mortgages...

Transcript

0:02

So welcome everyone. My name is Kyle Hiersche. I am the COO of the Mortgage Calculator. And this is our loan officer sales training that we do every weekday at 12 p. m. Eastern, where we go through the front end and the sales end of the mortgage business. Today, we're going to be talking about understanding mortgage products. Now, this is obviously important for any loan officer, but super important for those of us that specialize in non QM because that's a whole different world, right? So that's what we're going to be talking about here today. So let me go ahead and switch my screen here and we will go through. All right. So first off, you need to know your industry, right? And we need to know our channel. So for those of us at the mortgage calculator, remember we are non delegated correspondent lender. That means that we are the lender, right? A lot of people come from the broker world. You know, think or just kind of in that same mind state of, you know, when they're talking to their clients, they're saying, oh, yeah, the lender, this and the lender that, or, you know, saying the name of the lender and stuff. Remember, we are the lender, the 1 and only lender, right? When we are doing a non delegated correspondent deal, right? It's only our name on all of the documents. The investor's name is not going to be anywhere, right? We disclose the loan. We close the loan. We fund the loan with our own money. And so I think a lot of people from the broker world that helps kind of get their head around it, that literally we do every single thing, even fund the loan with our own money. The fact that we're going to turn around and sell it to an investor later has nothing really to, that has nothing to do with the client. They'll never know that or see that or know who we sold it to or anything like that. So, you know, brokered loan officers got to get out of that mindset of You know that, you know, talking about a lender as a third party or mentioning the name or you know, any type of stuff like that, right? We are the lender. It's only our name on the documents only. We disclose and close and fund the loan and all the compliances on us, which is why it's more important for compliance. That's why there's more extensive training in order to originate the correspondent loans because there's much more compliance on us because. We're not sending it to another lender that handles a lot of that. Like you do when you're brokering a deal. Right. And then of course the investor underwrites the loan. That's what non delegated means, right? Non delegated means that we do not have in house underwriters. We're going to let the investor who's going to buy the loan from us. do an underwrite as a courtesy, right? So the investor underwrites the loan, but we do everything. We originate the loan, we disclose it, we close it, we fund it all that kind of good stuff, right? So just remember that when we're non delegated correspondent, keep that in mind. Now, the next point here, you need to know your guidelines and resources. Remember that when we are correspondent you know, we're pricing in the CRM through optimal blue. We can look at the guidelines right there. You also have in your CRM at the mortgage calculator on the top right hand corner on the resources, you have the actual selling guides. Well, it will pull all the current selling guides from OB. You know, in real time for all of the different programs so that you can search them. Right? And so, you know, know your guidelines, know your resources on where you can find your guidelines. Remember, anytime you're pricing anything in the CRM, right next to the option is the little document button where you can download the matrixes and the guidelines. You know, for that program that you're, you're pricing out, right? So make sure, you know, your guidelines and know your resources to find the guidelines when we are non delegated correspondent, everything is nice right there in our system, right? When we can control everything, it's all automated and streamlined and all that. But of course, when you're brokering loans, you can't, you know, control with the other. Now, let's talk about the advantages of being the lender, right? Here, I put the bullet point, know your competition. So know that you as a correspondent lender, You're competing with some other correspondent lenders, but mostly you're competing with brokers. Now, remember a broker is simply brokering alone. They are not funding the loan. They are not closing the loan, right? They are not taking responsibility for the loan. So what's the big difference, right? Well, we're obviously get much better pricing because one person is just sending them a client while the other person is sending them a closed loan saying, Hey, we already did this loan. We closed it. We funded it. We paid for it. Here it is. Right. So why would a company choose to be a correspondent lender where they have to have warehouse lines and fund the deals themselves with their own money and risk everything and all that? Well, why would they do that instead of just being a broker? Well, the answer is that we get much better pricing. So don't let brokers out there fool you thinking that they're getting better pricing than you. They are not. If they're a broker, you can do the same loan at the same outlet that they can but correspondent and we're going to have 50 to 100 basis points better pricing right off the bat. Right. So just understand that, that there is a difference and why there is a difference. It's not like a mystery of like, Oh, correspondent is better than broker. No, it's obviously one route. The lender does everything the other route we do everything and we just sell it to the lender and they say, okay, cool. Here, it's a closed loan already. Of course, we'll pay you more. Right. Of course, we'll give you better pricing because you already funded the loan and wrapped it up in a nice pretty bow to sell it to us. Right. And so, you know, I think that helps a lot of the people from the broker world get through that idea that it's not anything magic that we're doing to have better pricing than brokers. It's simply, we're doing more of the process. That's all right. And so of course we're going to get better pricing. So my point here is don't let brokers out there fool you thinking that they're getting better pricing. The only reason somebody would ever have better pricing is if they go to like a hundred basis points, total compensation or something, which is not a game that we even want to play, right? That's ridiculous. And so just keep in mind, your competition is mostly brokers and guess what? We can always. Broker alone, right? That's what's so great about being correspondent. That's why we went with this with our business model. When we set up our own company, when we left another company as a branch and set up our own company, we did correspondent because you can do both, right? We're going to get better pricing and all these advantages. When we're correspondent, but we can always broker alone, just like any other broker. So don't let a broker think that they have something that you don't have, or a lot of the times brokers try to say like oh, well, I'm an independent broker and I can broker different places. And you're at a lender, right? Well, they don't understand that we're doing the same exact thing, right? We're brokering loans to different. Investors were just the lender and then we can always broker loans too. So there is no product out there that you guys don't have that somebody else does, you know, has that's you know, a broker and it's like, Oh, well, we're a lender. We can't do that. No, we can broker any deal, but we can also be the lender. So you have a bunch of options and pricing and programs that the brokers don't have. It's not the other way around, right? So just keep that in mind. For those of us at The Mortgage Calculator. When we're doing, you know, correspondent deals when we're out there, you know, competing and just remember that, you know, we can always do both, right? So it's the best of both worlds. Now, with that being said. Because we have so many outlets, we have tens of thousands of loan programs, right? We have over 5, 000 loan programs where we are the lender, right? Each one with totally different guidelines, right? Well, some of them are close, but my point here is different guidelines. None of them are based off the same exact guidelines, right? So 5, 000 plus loan programs here in house, Plus tons that we can broker essentially unlimited options that we can broker. And remember that change is constant every single month, these updates, sometimes by the week, sometimes by the day, anytime they want, they issue. A new guideline or a new matrix, right? This is, it's totally up to them because in what I'm talking about right now is non QM, right? Of course we still do conventional FHA via USDA. That stuff is pretty simple. It all fits into a box, real simple. It's automated underwriting it all. Every one of those loans is going to be exactly the same for every person in the country. Right. Has to fit into the exact same box, but every single loan on the non QM side, all 5, 000 of those loan programs are different. And so it's a continuous learning process, right? It's not something that you're just going to know. So for example, our sales manager, Jose, he's been a loan officer for 28 years. And he doesn't know the guidelines off the top of his head to one of these programs because he couldn't because they change every single month. Right? So it's not something that's like, Oh, you know, once I learn all this, I'll never have to learn it again. Well, there's a lot of things like that. Conventional is like that, right? Once you learn it, you pretty much learn it. They only update things, you know, very seldomly. But with non QM, it's an ever changing thing. We have to stay current on guidelines. We have to stay active on trainings, the mortgage calculator trainings that we do, all those different loan programs. If you don't already watch the daily rates live show, that's the best way to get the loan program info, right? Go back and watch every single one. And those are short, right? Every single one of the daily rates live that we've done, we've done like 600 of them or something. And every single one does a nice little deep dive topic into one loan type. So every loan type you can imagine that we do, we have a, you know, small training on little 10, 15 minute training there on that loan type. So definitely go check those out. That is how we, you know, kind of stay current on pulling up the different programs. Also, here's another big thing, staying active in the WhatsApp chat, the company WhatsApp chat. That's another way of continuous learning, watching what people are sending back and forth the questions, the answers, the programs, the guidelines, right? And then also using the WhatsApp chat. To your advantage when you have a deal, right? Somebody might be able to point you in the right direction or know of a place that, you know, does certain things. And so, you know, crowdsourcing the information from the rest of the team is always a great thing too. So, my point here is that it's. It's a constant, never ending process, but we need to know these mortgage products. So the name of this training, understanding mortgage products, the importance of it. It's so crucial because that's what everything stems from, right? It's your knowledge. of the base material of what's going on that is going to allow you to effectively communicate with borrowers and effectively transact with borrowers. Now, for loan officers here at the Mortgage Calculator, we deal with so many investor clients, That it's really crucial to know what you're talking about. If you're going to be talking to one of these more sophisticated investor clients about investment products, right? This is not something that you want to be you know, that, that they can see right through that they know a lot more than you do. Right? So if you're a new loan officer or maybe just new to non QM or whatever the case may be remember that's super important. You're going to find yourself caught off guard talking to a client where you're going, Holy crap. I'm talking to somebody with 40 rental properties. They're talking to me about things and I can't keep up with them. This is a huge client. I might lose it because I don't really have my feet underneath me of the basics of the type of programs that we offer. You know, and all that kind of good stuff, right? So stay active on the trainings, stay current on guidelines, right? Stay active in the WhatsApp chat and just really, you know, at the Mortgage Calculator, we have the ecosystem every single day to plug into. I mean, multiple live trainings per day, tons of recorded trainings our live support room you know, you're, you're, you're, you're integrated into this all day, every day, right? And so, you know you know, just stay plugged into it is the main thing there. If you stay plugged in to the trainings and to the chats and all that kind of stuff, it's going to just naturally come to where you're seeing what's going on. You're more familiar. And again, the guidelines change all the time. So you can never be afraid to tell somebody, Hey, I got to look and see if we can do that. But you've got to have that base knowledge of everything. Right. And as you start doing more loans, sending more quotes, looking at more guidelines, now it's going to start to all come together. But it's very important to know the products, especially at the mortgage calculator, dealing with all these different types of products, all these non QM products. And especially when we're dealing with investors, we got to know what we're talking about so that we can help them out. And you know, sophisticated investors are our favorite client. But you can get steamrolled by them if you're not prepared on your end, right? By understanding the products and the guidelines and the base of what we do here before you, before you get into any of the salesy stuff, we got to have a grasp on the base of What's going on. So I'll keep it short here today. Have a couple good topics coming up next week. And then of course, we have tomorrow, of course, but I got some cool new topics coming up next week and we'll have a special guest next week as well. So I appreciate everybody tuning in. Remember we do this 12 PM Eastern every weekday where we go through the live mortgage. Oh, excuse me. Not live mortgage rates. I'm on a whole other training where we go through the front end of the mortgage business, right? The sale. So catch you tomorrow, 12 PM Eastern for the next episode of the loan officer sales training with the mortgage.