DETERMINING ELIGIBILITY
Especially in today’s uncertain credit climate, the job of loan officer isn’t exactly the worlds easiest. The officer wants to help a potential borrower to buy a home, and at the same time keep risks low and return on investment high. This is a juggling act, requiring the officer to examine income and expenditures, assets, employment history, current debt, expenses, the value of the projected home, and credit scores in an attempt to evaluate the potential borrower’s willingness and ability to pay back the loan.
But there are as many ways of determining eligibility as there are lenders. From a bird’s eye look at the industry, one sees variations in how lenders use credit scoring models and sources; differences in ratio guidelines, like payment-to-income and total debt-to-income; and a variety of methods of determining the steadiness of income and the valuation of personal assets.
But since methods of determining eligibility can be so varied, a lender must have software that’s flexible enough to easily fit to the particular model of the individual company, no matter what the criteria. Proloan is that software.
ORIGINATING THE LOAN
Government compliance is always at least at the back of every lenders mind. No one wants their legitimate lending business to step over the line and suffer harsh fines. That’s why Proloan’s reporting features give you everything you need to produce a clean paper trail for the auditors, as well as helping to make sure everything done is in compliance with regulations in the first place.
If you’re a US lender, our software will help you to comply with the massive RESPA 2010 overhaul, giving you all of the tools and forms to stay within the Good Faith Estimate, make the proper disclosures to the borrower, and follow all requisite steps in the origination process.
Proloan provides you with all of the required HUD forms, it prompts you to easily compare GFE and HUD-1 fees to stay within tolerance limits, it informs you of any potential RESPA violations, it lets you track disclosures and audit history easily, and keeps on top of you by reminding you when it’s time to disclose (or re-disclose) the GFE.
HUD wants to know if you’ve made a commitment to comply with the RESPA. With Proloan customizable software, you can be well on your way to saying yes.
And in the event of audits, Proloan keeps records of all relevant documents safe, organized, and easily accessible.
With our customization, the software can automatically factor in all of the variables and potential glitches that tend to slow or halt the lending process. We can program in ways to deal with the difference between loan and sales price of the house, or changes shown by land surveys, or adjustments and delays due to encroachment or violations of coding requirements and zoning restrictions. We can have the software evaluate and update status from origination of the loan to later stages of the process, like underwriting.
No matter the type of mortgage loan, our software can handle it. The standard 30-year or 15-year fixed-rate mortgage, adjustable-rate mortgages, hybrid ARM’s, and payment-option ARMs that can enable various strategies against negative amortization. Mortgages allowing interest-only payments, Low- or no-documentation loans for those with extremely variable income, or who have trouble verifying their source of income for other reasons. Figuring out where to fit the so-called oddballs like the self-employed, the commissioned professionals, or service-industry workers who rely on tips for a good portion of their income. Reverse mortgages, factoring in pre-payment penalties, temporary or permanent buydown mortgages. Proloan software allows lenders to make all of these types of loans, within the boundaries of regulations and profitability.
SERVICING THE LOAN
Once the loan is in place, software must also be flexible enough to deal with any changes that come up. That includes personal changes in the borrower’s situation, new rules or regulations such as the recent US rules on foreclosures and the HAMP program for those with financial hardships, and internal changes that the lender has, like business growth and expansion.
Proloan gives complete loan servicing on LAN’s and WAN’s. It allows all types of interest arrangements including Rule of 78s, revolving credit, etc. It includes detailed histories and complete aging capabilities as a matter of course, as well as dedicated word processing easily integratable with standard WP programs, unlimited notepad for comments and imaging, as well as complete reporting capabilities including transaction reports and user-designated reports. It allows for any kind of repayment schedule including quarterly, semi-annual, annual, monthly, bi-monthly, weekly, bi-weekly. It integrates with 1098s and cash flow forecasts and management analyses.
Whether it’s a mortgage bank funded by Fannie and Freddie, a mortgage broker working with a multiplicity of investors, an insured national bank, a not-for-profit credit union, a savings association, or private lender – Proloan software fits like a glove. That’s because we’re committed to filling the needs of our customers and we’re flexible enough to do it.
