Nathan Rufty is a mortgage coach and trainer with
Mortgage Marketing Pros, a company that works with loan
officers to develop marketing plans that increase leads and
closed loans. Mortgage Marketing Pros was created by a
producing loan officer and a master marketer to teach
mortgage professionals how to create their own businesses
without relying so much on one or two streams that can
dry up without warning. For more information, visit
mortgagemarketingpros.com. Reach Rufty at (909) 731-1218.
Prepare for Program Changes
Stay up to date on government loan programs to provide more options
By Nathan Rufty
With the refinance market shrinking and the availability of affordable housing dwindling in many markets, many loan programs will be loosening their guidelines. Government and government-sponsored enterprise (GSE) loans still remain the
dominant programs for most borrowers, so it is important for originators to keep up with any changes in
Tracking all of the changes to lending guidelines
made on Federal Housing Administration (FHA), U.S.
Department of Agriculture (USDA), U.S. Department
of Veterans Affairs (VA), Fannie Mae and Freddie Mac
loan programs can be difficult, however. One way to
stay current is to subscribe to their newsletters, which
will ensure you receive updates on changes in a timely
Continuing education is such a big part of a loan
originator’s job function that it can’t really be overstated. You must know the guidelines of the loan programs you use or you risk losing clients when their
mortgages get denied.
Check your findings
Change often comes fast in this industry, so when you
run loan scenarios through automatic-underwriting
and risk-assessment tools such as Fannie Mae’s Desktop
Underwriter (DU), Freddie Mac’s Loan Prospector (LP),
FHA’s TOTAL Scorecard or USDA’s Guaranteed Underwriter System (GUS), it is important to read the entire
findings they return. Check how the findings address
the income, credit and value sections, for example. You may be surprised at what is currently being
requested — or not requested — by these findings.
Lately, many of these systems are not requesting
federal tax returns on straight W2 wage earners.
Instead, they want to see just a current paystub dated
within the last 30 days and, sometimes, the borrowers’
W2s from the previous year. This reduces the amount
of paperwork loan originators must request from
GSE findings also will inform you if your borrower
These two programs allow qualified buyers to make
3 percent downpayments on conforming loans and
will often pencil out better than the FHA 3. 5 percent
In addition, GSE findings can reveal when borrowers
looking to refinance their primary home with a rate-and-term or cash-out refinance may not be required to
get a new appraisal done on the property. When was
the last time that requirement was waived? Probably
at least 10 years ago.
This is where educated originators outshine their
competition. Staying up to date on government and
GSE lending guidelines and running scenarios through
DU, LP, GUS and Scorecard will help ensure you present
your borrowers with the best program to fit their needs.
Presenting several loan options that fit your borrowers’ needs is better than trying to hard sell them on