The Loan Officer’s Practical Guide to Residential Finance - SAFE Act Version
The Loan Officer’s Practical Guide to Residential Finance - SAFE Act Version
This is the 2009 Edition of the first book in the “Practical Guide” series for the mortgage industry. The October 2009 Version has been updated to meet the requirements of the SAFE Act.
It covers all of the vocational skills required of the loan originator, but also includes all Federal law, ethics, predatory lending and fraud components required by the Federal SAFE loan originator licensing Act of 2008.
Published since 1992, and updated annually, this 378 page textbook was written as an answer to the “sink-or-swim” training methods of many mortgage firms. The format is designed to give the newly initiated loan officer/agent, lender, processor, or other initiate the practical information they need to do the loan officer’s job.
The reader learns how to understand rate and point quotes, how to use a financial calculator, how to make basic computations customers require, how to understand loan programs and compare product features. The student progresses through understanding loan specifications - Conventional Conforming, Jumbo, FHA/VA and Sub-Prime program guidelines - to a practical understanding of ratios, income, assets and closing costs, debts and credit history. This is then placed in the context of the loan application - how to collect all the required documents and disclosures and supervise a loan from application to closing. Beyond the basics, students learn how to finance various property types; condos, PUDs, new construction and investment property. A detailed chapter on refinancing addresses the issues which most often confront the loan officer in a period of heavy refinancing - 10 reasons to refinance.
Finally, understanding how loans are made in the secondary market and the basics of interest rate quoting and behavior are covered.
This product is submitted for approval for use in continuing education in all states which have, or are adopting, a requirement. Many companies use this product as a handout to prospective new loan officers. Many loan officers give this product to their referral sources to help educate them to the requirements of the industry.
User Ratings and Reviews
4 Stars Great book, but . . . .
This is a great book and needs to be in your library if you are, or are considering a career in the mortgage industry. But, Mr. Morgan needs to do a better job of describing what is in the tables used as examples. It becomes confusing when looking at a box with numbers in it and little or no quantification of the rows or columns. If this book is truly a “guide to residential finance” then more examples are needed and perhaps some excises with answers, kind of like a text book. Even though this book has been around for several years, a few modifications could make it a well rounded text and an industry standard.
3 Stars Quilted Patchwork
The subtitle indicates that this book is a “comprehensive guide on how to make loans on a practical basis”. I’m not sure I agree with that assessment and therefore I have mixed feelings about this book.
The book provides a plethora of reference material pertaining to the residential mortgage industry. It’s nice to have so many reference tables in one place! The author educates readers on a variety of different topics - even seasoned professionals can benefit from reading this book, as I did cover to cover. The material seems to be current, an important consideration in a very dynamic industry. And I really liked the author’s conversational approach throughout the book.
However, there are some things about the book that can be improved. The book contains some sloppy errors which seasoned professionals will find annoying and new hires will find confusing. The book has a “crowded” and “rushed” feel to it with occasional grammatical, formula and reference errors. I guess it needs better proofreading - page 63 has a paragraph repeated word for word. Some chapter titles scream at you. Some conceptual and procedural explanations seem to come up short.
The book seems to be more informational rather than a practical “how-to” guide. Some readers may be disappointed at this and are able to get more in-depth information from other sources such as Fannie Mae, FHA, VA, AllRegs, etc. In addition, if the book is to benefit more readers, I suggest that the author add HP 12C and TI BAII Plus keystrokes as these calculators are widely used by mortgage professionals.
5 Stars A must have…
This book is a must have for anyone interested in pursuing a career in mortgage brokering and origination. This book is definitely one of the best refernces I’ve seen so far. Many other books out there either overwhelm you with techniques or just swaths of information that can be a bit confusing. This guide is very easy to read and well organized. The industry terminology is well explained and accompanied by lots of graphic examples and sidebars. The author really breaks down the financial side of realestate transactions so that not only do you learn the details of putting a transaction together properly, you understand the flow of the mortgage business and legal limitations. Even those who may be a bit mathmatically challenged can understand and easily perform standard calculations by following the well explained examples. This book has really filled in gaps in my current education and experience in the mortgage business and I would recommend it to anyone. Even experienced brokers and Loan Officers may want to keep it as a refresher reference.
5 Stars Mortgage Book
I recently ordered several mortgage books as learning and reference tools as I embark on my new career as a loan officer. I have not read any of the books from cover to cover, but they are serving me well for the purpose intended. The book arrived in a timely manner and in the condition described.
4 Stars One of the best!
If you’re new to the mortgage business, then I highly recommend buying this book. It’s very detailed and contains all of the practical info that you need to get a start in the mortgage industry.
Other than that, at times it becomes confusing due to a few editing errors.
Filed under: Mortgage Book Reviews
