Mortgage origination , a special subset of loan origination, in consumer loans is the process by which a lender works with the borrower to complete a mortgage transaction, resulting in a mortgage loan. Mortgages are loans in which property or real estate is used as collateral. During this process, the borrower must submit various types of financial information and documentation to the mortgage lender, including tax refund, payment history, credit card information, and bank balance. The mortgage lender uses this information to determine the type of loan and the interest rate that the borrower qualifies. The process in the United States has become complicated by the proliferation of loan products and consumer protection regulations.
Video Mortgage origination
Proses originasi hipermarket
The origin of credit, a subset of loan origination, is a complex and evolving process involving many steps, which vary from lender to lender. Basic steps include
- Take the app : this step is initiated by the borrower and generates an application to borrow money to purchase real estate property that includes details of mortgage products, property specifications, borrower information and supporting documentation. This application is filled by the borrower, either through self-service or with the help of a loan officer.
- Processing : loan processors ensure accurate loan packaging, which includes ensuring that all loan documentation is complete, verified, and appropriate for the underwriting. Credit processors then order services and coordinate loan documents.
- Underwriting : determines whether the risk of offering a mortgage loan to a particular borrower under certain parameters is acceptable, and includes verification, assessment, title and insurance searching, flood certification, and surveys.
- Closing/funding : the logistics managing settlement agent provides the borrower the ultimate borrower's document for review and signature, releases and disbursements, and records the mortgage at which point the official mortgage./li>
- Shipping and delivery : documents reviewed for audit and quality control purposes, copies sent to investors, and purchase notices sent to other departments.
Maps Mortgage origination
Primary consumer protection rules
The origination process of a mortgage in the United States is required to comply with the following rules:
- Fair Housing Act : enacted in 1963, making it "unlawful to refuse to sell, rent or negotiate with anyone because the person belongs to a protected class". The Equal Credit Opportunity Act (ECOA): enacted in 1974, making it unlawful for creditors to discriminate against any applicant, in respect of any aspect of credit transactions, on the basis of race, skin color , religion, national origin, sex, marital status, or age (provided the applicant has the capacity to contract).
- The House Mortgage Disclosure Act (HMDA) : enacted in 1975, to provide information indicating whether financial institutions serve the needs of local housing loans, and to assist public officials in targeting public investment. Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) : passed in 2010 in response to the financial crisis of 2007-2008, it brought the most significant changes to financial regulation in the United States since the regulatory reforms that followed the Great Depression. It makes a change in the American financial regulatory environment that affects all federal financial regulatory bodies and virtually every part of the country's financial services industry.
- The TILA-RESPA (TRID) Integrated Disclosure Rule : effective October 2015, TRID is required by Dodd-Frank actions and requires the use of a new, integrated disclosure form for consumers at the time of application and settlement- known as Loan Estimate (LE) and Closing Disclosure (CD). This is based on the Truth in Lending Act (TILA) enacted in 1968 which requires disclosure of the terms and fees to standardize the way in which the costs associated with borrowing are calculated and disclosed, and Housing Settlement Procedures (RESPA) were enacted in 1974 that protects homeowners by helping them become more educated while shopping for real estate services, and eliminating bribes and referral fees that add unnecessary costs to the settlement service.
The origination hypermarkets
Mortgage origination tools are divided into three categories:
- Point Of Sale (POS) : a platform that allows a lender to make a sale with the borrower. It can interact directly with the borrower, loan officer, or both. The POS system may include self-help borrowers, data validation, and compliance checks to ensure loan applications are ready for processing and underwriting.
- Loan Origination System (LOS) : platform that takes complete loan applications and facilitates mortgage transactions from processing to delivery. The LOS system can include document management, esigning, and compliance checks to reduce risk and improve loan quality.
- Mortgage origination services : Services used throughout the mortgage origination process and include ratings, pricing, floods, fraud, titles, and credit checks.
References
External links
- Consumer Financial Protection Bureau (CFPB)
- HMDA CFPB page
Source of the article : Wikipedia
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