FHA Training: The Many Benefits Of FHA Training For Your Office
FHA training can make the difference between having an office struggling for closings and bleeding red ink and an office brimming with activity, referrals and profits. While FHA is not the one size fits all answer for every mortgage broker or loan officer, FHA is a mortgage product that can be used to fit certain borrowers into a loan with a great low fixed rate and still have the loan officer make a nice profit worthy of the effort. There are many benefits to having a good FHA training program for your office.
If your office's FHA training program is effective, your loan officers will be able to quickly make an determination whether FHA guidelines fit the borrower's situation better than a conventional mortgage. Although borrowers are typically focused only on the rate difference, new higher conventional rates for mortgage insurance have made FHA once again a wise choice for more borrowers - not just because they only qualify for FHA, but because FHA actually gives the borrower a better payment. Not all borrowers fit into the FHA mold but a good FHA training course will have your loan officers ready to make the determination quickly.
FHA guidelines allow for very high loan to value ratios under specific circumstances and FHA training will prevent your loan officers from making incorrect calculations. FHA has an upfront mortgage insurance premium that is not like conventional mortgage programs. FHA training for your loan officers will teach them how to correctly determine the loan amount and maximum loan to value allowed.
The FHA Secure program was set up to offer a chance to borrowers whose mortgage rates have adjusted up and they couldn't handle. However, not everyone that has a mortgage late will qualify for the FHA Secure program and the guidelines are changing. FHA training can help your loan officers target a broader market for refinancing distressed borrowers and actually be able to handle the business professionally.
If an FHA loan submission does not get approved by the automated underwriting system, it doesn't mean the loan is turned down. Someone with a thorough knowledge of FHA guidelines can package the loan and get a manually underwritten approval. This can take someone with questionable credit or high credit ratios from a disappointing turndown to a happy new homeowner. Good FHA training can make this a common occurence in your office
Good FHA training will help you and your office locate more borrowers and get more good loan approvals. FHA training will also often result in your office closing files that have been wrongly rejected by loan officers who don't know FHA guidelines.
For more information, commentary and FHA guidelines updates, visit the FHA Loan Advice blog.
