This is a single-family/residential course.
Loan administration is a critical component of the lending cycle since it contributes so heavily to the overall profitability of mortgage banking. This course takes a look at the critical concepts related to loan administration.
Loan Administration Concepts begins with an overview of the major goals, functions, and tasks of loan administration (servicing). It then examines the basic functions of loan administration and their associated tasks such as accounting, customer relations, escrow administration, and asset management as well as the outsourcing of tasks. Next, the course discusses the entities involved with loan administration: borrowers, investors, insurers, and outsource vendors, giving a detailed description of each.
From there, the course examines the various loan programs, both government and conventional, and financing options that make up the loans in the servicing portfolio. The financing options sections discusses amortization types, loan terms, and risks to the servicer. Additionally, this section covers the loan programs' impact on servicing.
Toward the end of the course, concepts related to the financial management of loan administration are examined. These include sources of revenue, cost control, and the trend toward treating the loan administration portfolio as an asset that produces a cash flow stream.
Finally, the course takes a quick look at some of the important laws that impact servicing.
Loan Administration Goals
Loan Administration Functions and Tasks
Entities Related to Loan Administration
Financial Manageent in Loan Administration
Seat time approximately one (1) hour.