A loan officer is front line employee of a mortgage brokerage or lender who attend to inquiries, counsel and sell loan products to borrowers.
When dealing with a bank, the loan officer might be a banker as well. And when dealing with mortgage brokers, the loan officer might also be a broker top.
However, it must be noted that not all loan officers hold a dual role or title.
Cumulative interest is the sum of all interest paid on a loan at a point in time, or for the full term.
When reviewing mortgages for comparison, cumulative interest over the entire life of the loans will be able to show a borrower how much actual interest it will cost a borrower in real dollars.
However, be mindful that it is most accurate with amortization schedules on a fixed rate loan.
The existence of a conversion option in a mortgage contract agreement allows the borrower to convert the loan to another during a stipulated period of time.
The conversion option comes with a date in which it will be active, and expire once the date passes.
While these types of options are more predominantly found in ARMs allowing borrower to convert the loans to FRMs, it is not exclusive to these uses.
“Know Your Customer” is a systematic business process of conducting due diligence checks on a potential customer before deciding whether to do business with the party at all.
Different companies in different industries can apply different standards to KYC.
In the lending industry, checks on borrowers might include: