1. Please explain us what do you know about our company?
This is a highly esteemed privately held company, looking for to invest in human resources to expand Mortgage Loan to families seeking the American Dream of Homeownership.
2. Tell me are you familiar with the Fannie Mae and Freddie Mac Selling Guides?
I am absolutely familiar and spent many years training new loan officers on products and guidelines. I have done recent brushing up via the Internet and would like to gain more from your current employees.
3. Explain me what is ILOC (Irrevocable Letter Of Credit)?
It is a letter of credit or a contractual agreement between financial institute (Bank) and the party to which the letter is handed. The ILOC letter cannot be cancelled under any circumstance and, guarantees the payment to the party. It requires the bank to pay against the drafts meeting all the terms of ILOC. It is valid upto the stated period of time. For example, if a small business wanted to contract with an overseas supplier for a specified item they would come to an agreement on the terms of the sale like quality standards and pricing, and ask their respective banks to open a letter of credit for the transaction. The buyer's bank would forward the letter of credit to the seller's bank, where the payment terms would be finalized and the shipment would be made.
4. Explain me how to review title and appraisal reports?
Title and appraisal documents should be reviewed for issues or inconsistencies upon receipt. Title liens and appraisal issues often take a considerable amount of time to resolve. The underwriting process is expedited when those things are identified and addressed early rather than left for discovery by the lender.
5. Explain me what is commercial bank?
Commercial bank is owned by the group of individuals or by a member of Federal Reserve System. The commercial bank offer services to individuals, they are primarily concerned with receiving deposits and lending to business. Such bank earns money by imposing interest on the loan borrowed by the borrower. The money that is deposited by the customer will be used by the bank to give business loan, auto loan, mortgages and home repair loans.
6. Tell me what is consumer bank?
Consumer bank is a new addition in the banking sector, such bank exist only in countries like U.S.A and Germany. This bank provides loans to their customer to buy T.V, Car, furniture etc. and give the option of easy payment through instalment.
7. Do you know what is debt-to-Income ratio?
The debt-to-income ratio is calculated by dividing a loan applicant's total debt payment by his gross income.
8. Please explain what is Line of credit?
Line of credit is an agreement or arrangement between the bank and a borrower, to provide a certain amount of loans on borrower's demand. The borrower can withdraw the amount at any moment of time and pay the interest only on the amount withdrawn. For example, if you have $5000 line of credit, you can withdraw the full amount or any amount less than $5000 (say $2000) and only pay the interest for the amount withdrawn (in this case $2000).
9. Explain me what have you done in the past year to make yourself a better Mortgage Loan Processor?
Loan originator, learn procedures, guidelines and policies from my previous employers.
10. Tell me what lenders have you worked with? Which are you most familiar with?
Chase, Huntington, PNC, and Private Clients.
11. Tell me what is ‘Fixed' APR and ‘Variable' APR?
‘APR' (Annual Percentage Rate) can be ‘Fixed' or ‘Variable' type. In ‘Fixed APR', the interest rate remains same throughout the term of the loan or mortgage, while in ‘Variable APR' the interest rate will change without notice, based on the other factors like ‘prime rate'.
12. Tell me what are payroll cards?
Payroll cards are types of smart cards issued by banks to facilitate salary payments between employer and employees. Through payroll card, employer can load salary payments onto an employee's smart card, and employee can withdraw the salary even though he/she doesn't have an account in the bank.
13. Tell me what is ‘Availability Float'?
Availability Float is a time difference between deposits made, and the funds are actually available in the account. It is time to process a physical cheque into your account.
For example, you have $20,000 already in your account and a cheque of another $10,000 dollar is deposited in your account but your account will show balance of $20,000 instead of $30,000 till your $10,000 dollar cheque is cleared this processing time is known as availability float.
14. Tell me how confident are you in making crucial decisions?
Extremely confident in making crucial decisions. I have learned to trust my gut instinct. I would rather stop knowing that I erred on the side of caution.
15. Tell me what is ‘Bill Discount'?
‘Bill Discount' is a settlement of the bill, where your electricity bill or gas bill is sold to a bank for early payment at less than the face value and the bank will recover the full amount of the bill from you before bill due date. For example, electricity bill for XYZ is $1000; the electricity bill company will sell the bill to the bank for 10% to 20% discount to the face value. Here, the bank will buy the electricity bill for $900 whose face value is $1000, now the bank will recover, full amount of bill from the customer i.e $1000. If the customer fails to pay the bill, the bank will put interest on the outstanding bill and ask the customer for the payment.
16. Explain what is the difference between bank guarantee and letter of credit?
There is not much difference between bank guarantee and letter of credit as they both take the liability of payment. A bank guarantee contains more risk for a bank than a letter of credit as it is protecting both parties the purchaser and seller.
Math, communication (written and verbal), ethics, organizational skills, setting and executing to achieve goals, proficiency in the application of the statistical and probability studies using the collected data and then concluding with a logical decision.
18. Do you know know alternative ways to meet document requirements and underwriting conditions?
An experienced processor knows that although the condition sheet says that the lender wants one thing, they will actually accept another. Knowing how to ask the right person the right questions can save a lot of time and trouble.
19. Explain me how and when to request file documentation?
In order for a loan to close in a timely fashion, file documentation must be available when needed. Find out the turn around time for all of the documents required for your file and request them far enough in advance.
Before opening a bank account, if it is a saving account, you have to check the interest rate on the deposit and whether the interest rate remains consistent for the period. If you have the checking account, then look for how many cheques are free to use. Some banks may charge you for using paper cheques or ordering new cheque books. Also, check for different debit card option that is provided on opening an account and online banking features.
21. Explain what do you feel is your favorite thing about loan processing?
Variety of tasks, feeling of satisfaction I get when I can assist consumers in their home needs.
22. Explain me four different types of mortgages and why a client would select each one?
Fixed = client pays off a fixed rate over a fixed time period regardless of changes in trends that may cause the loan payment to increase or decrease.
FHA= 1st time buyers with low or no downpayment and lower credit scores. It is secured by Mortgage insurance that is included in the payment of the loan.
VA= former military and is usually no money down. Interest Only=borrow has option to pay only the interest on this loan for a specified period of time.
Adjustable (ARM)= a client who wants a lower rate up front and is willing to have the payments balloon at a later date. Someone who.
23. Please explain what do you mean by ‘foreign draft'?
Foreign draft is an alternative to foreign currency; it is generally used to send money to a foreign country. It can be purchased from the commercial banks, and they will charge according to their banks rules and norms. People opt for ‘foreign draft' for sending money as this method of sending money is cheaper and safer. It also enables receiver to access the funds quicker than a cheque or cash transfer.
24. Explain me what's your ideal company to work for?
My ideal company to work for would be one that is fast growing, fast paced and where there is room for learning and advancement.
Delays are usually encountered at closing. To avoid delays at closing always send the good faith estimate to the loan officer the day before closing to go over with the customers to make sure they are in agreement with the final numbers.
26. Tell me what is home equity loan?
Home equity loan, also known as the second mortgage, enables you to borrow money against the value of equity in your home. For example, if the value of the home is $1, 50,000 and you have paid $50,000. The balance owed on your mortgage is $1, 00,000. The amount $50,000 is an equity, which is the difference of the actual value of the home and what you owe to the bank. Based on equity the lender will give you a loan. Usually, the applicant will get 85% of the loan on its equity, considering your income and credit score. In this case, you will get 85% of $50,000, which is $42,500.
27. Do you know what are the types of Commercial Banks?
a) Retail or consumer banking
It is a small to mid-sized branch that directly deals with consumer's transaction rather than corporate or other banks
b) Corporate or business banking
Corporate banking deals with cash management, underwriting, financing and issuing of stocks and bonds
c) Securities and Investment banking
Investment banking manages portfolios of financial assets, commodity and currency, fixed income, corporate finance, corporate advisory services for mergers and acquisitions, debt and equity writing etc.
d) Non-traditional options
There are many non-bank entities that offer financial services like that of the bank. The entities include credit card companies, credit card report agencies and credit card issuers
28. Where do you see yourself in 5 years as Loan Processor?
I am driven to be the best at what I do and I want to work somewhere where I'll have opportunities to develop my skills, take on interesting projects, and work with people I can really learn from. Some of the most innovative thinkers in the industry work here and that's a big reason why I would love to build a career here.” OR “My goal right now is to find a position at a company where I can grow and take on new challenges over time. Ultimately, I'd like to assume more management responsibilities and get involved in product strategy. But most importantly, I want to work for an organization where I can build a career.
29. Explain me what is the difference between ‘Cheque' and ‘Demand draft'?
Both are used for the transfer of the amount between two accounts of same banks or different bank. ‘Cheque' is issued by an individual who holds the account in a bank, while ‘Demand draft' is issued by the bank on request, and will charge you for the service. Also, demand draft cannot be cancelled, while cheques can be cancelled once issued.
30. Tell me what is Cost Of Funds Index (COFI)?
COFI is an index that is used to determine interest rates or changes in the interest rates for certain types of Loans.
I enjoy multi-tasking to the best of my ability and feel that organization is key to being able to multi-task.
32. Explain me what is ‘Credit-Netting'?
A system to reduce the number of credit checks on financial transaction is known as credit-netting. Such agreement occurs normally between large banks and other financial institutions. It places all the future and current transaction into one agreement, removing the need for credit cheques on each transaction.
33. Tell me which loan origination system software are you most familiar with?
The loan origination system software I am most familiar with would be LIS as I had worked on it and installed new systems to the software for about two years.
34. Tell me how to avoid closing delays?
You'd be surprised how many times someone forgot about that at closing condition. Pay special attention to those conditions and get as many as possible cleared beforehand. Additionally, make certain that you are aware of the lender's deadline for closing document requests.
35. Tell me what are your career goals as a Mortgage Loan Processor?
To perform at a consistent, then exemplary level by the end of year one. By year two, to have earned recommendations from current accounts.
