If you already have some understanding of what's involved in processing residential mortgage loans, and want formal guidance in processing government loans, this course is for you. Essentials of Government Loan Processing is designed to give you a general understanding of the procedural requirements, documentation and terminology associated with FHA, RHS and VA loan programs. Since this course does not have prerequisites, the first two lessons provide general background on the role of the loan processor and loan finance.  Essentials of Government Loan Processing provides a convenient supplement to your company's library of handbooks, circulars, mortgagee letters and procedural guides distributed by the Federal Housing Administration, Department of Veteran's Affairs and the Rural Housing Service.

Course Outline:

Lesson 1 - Processing Loans

• Function and Organization of the Loan Production Department
• Working as a Processor
• Processing Responsibilities
• Regulatory Compliance

Lesson 2 - Loan Programs and Financing Options

• Loan Programs
• Financing Options
• Types of Financing Transactions

Lesson 3 - Processing FHA-Insured Loans

• HUD's Single-Family Housing Programs
• FHA Requirements
• Evaluating an Applicant
• Maximum Loan Amount and Minimum Cash Investment
• Qualifying Ratios and Compensating Factors
• Mortgage Insurance Premiums
• Refinance Transactions

Lesson 4 - Processing VA-Guaranteed Loans

• VA-Guaranteed Loans
• VA Requirements
• Processing VA Loans
• Qualifying Ratios and Compensating Factors
• The Funding Fee
• The Appraisal
• Maximum Loan Amount and Down Payment
• Seller Concessions and Settlement Costs
• VA Interest Rate Reduction Refinance Transactions

Lesson 5 - Processing RHS-Guaranteed Loans

• RHS-Guaranteed Loans
• RHS Requirements
• Qualifying the Applicant's Income
• Qualifying Ratios and Credit
• The Guarantee Amount and the Guarantee Fee
• RD Government Underwriting System
• Assembling the Loan Package
• Issuance of Commitment and Loan Note Guarantee
• Refinance Transactions

Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or Certified Mortgage Technologist (CMT) designations.