Board Topic: Help with loan origination process
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Help with loan origination process

Posted by: Tokill2001 Oct 11 2004, 09:45 AM
Hello Everyone,

I just started a new job here in Louisiana as a Loan officer. I've been fixing computers for years and decided to do something new and believe me when I say " I'm in a whole new world now" After only a few days of working, I've really picked up on how to perform the necessary duties as a loan officer. I think the Senior Loan officer who's been training me is not timidated by me. I've learned underwriting, order appriasals, etc. I just need someone that can break down every step on what I need to do. I know how do mostly everything, but I don't know the order. After getting information and running credit, I get stuck. Can someone please help me. This is really important that I learn this. This job is difficult with no one to train you.

Thank You

Posted by: loanuniverse Oct 11 2004, 12:25 PM
Well it depends…..

Are you working for a bank or a non-bank lender?
Are you commercial, consumer or residential?

My background is in commercial lending, and even that has three sub-divisions ”Corporate, Commercial Real Estate & Small Business”. Depending on who you work for and their internal procedures, the process will change a little. Lets say that you are a small business lender whose target is companies with sales less than $5,000,000 a year. Then you probably have a yearly goal from $4 million to $10 million in new loans a year. In addition, you will be required to bring a certain amount of deposits.

The steps are simple:

1- Find prospects {includes cold calling, attending chamber meetings, getting referrals from walk-ins, etc}

2- Making contact to find out their needs, request financial information.

3- Provide financial information to underwriting unit.

4- If the credit portion of the lender gives its blessing, then get the request approved.

5- Provide the customer with a commitment letter if the loan is approved.

6- Once the commitment is signed by the customer and the commitment funds are received {order an appraisal if one is needed}

7- Close the loan

Of course things can change. The lender might not have an independent credit department, and you might have to do the underwriting for certain amounts. You could probably order the appraisal earlier if you got money for it from the customer. In addition, there are a lot of tricks in dealing with customers as well as the internal processes of the lender that you work for that will determine how successful you are.

Posted by: tokill2001 Oct 11 2004, 09:24 PM
We only do residential loans.

Posted by: tokill2001 Oct 11 2004, 09:26 PM
We also submit the loans to other lenders for approval. I hope I am helping you to answer my question.

Posted by: loanuniverse Oct 11 2004, 10:08 PM


I suspected that much after reading your original post. Unfortunately while I got an idea of the process done by residential, that is not my area of expertise.



Posted by: Commercial Lender Oct 11 2004, 11:40 PM
A few recommendations...Learn to manage client expectations, manage your time, know the various programs of the lenders you deal with inside out (the more you know, the more professional you will become), and mange your relationships with the lenders you deal with (better relationships = exceptions and favors). One more reco, start learning about commercial since you will be getting into it down the line. Start by learning the lender programs for residential, know what docs the lender will ask for and make up a doc list that you can have for either each lender and fwd them to clients as soon as you have a loan placed. Let the clients know what they will need to provide and depending on the program get the docs needed first or get the client to fwd you everything in one package. Hope this helps. It’s a start. Good Luck.
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