An individual seeking a mortgage career can gain experience through trainee positions such as mortgage loan officer, loan underwriter, and account collector. Trainee mortgage jobs are usually entry-level positions that allow an employee to receive on the job training and develop the skills necessary for career advancement within the company or industry. Mortgage loan officers identify potential clients and guide them through the mortgage application process. Loan underwriters help mortgage companies determine whether or not prospective home loans are too risky. Account collectors attempt to collect payments on behalf of mortgagees from homeowners overdue on their mortgage payments.
The job descriptions associated with trainee mortgage jobs, such as loan officer, vary. An individual working trainee mortgage jobs in consumer loans help customers borrow against their home equity while mortgage loans are issued to people seeking to purchase real estate or refinance a current mortgage loan. A trainee in this position is informed about the various loans and credit terms offered by the firm he works for. New loan officers are also taught how to effectively solicit and communicate with new clients in order to complete the application process. If trainee job placement is in a region that requires loan officers to be licensed, companies may sponsor classes and pay for the trainee to take the test.
After a potential borrower files an application with a loan officer, an underwriter assesses the applicant’s creditworthiness to determine the amount of risk associated with the loan. Trainee mortgage jobs in this field usually teach the individual how to evaluate potential risks based on three factors: credit, capacity, and collateral. Credit reports are viewed by underwriters to determine how much debt an applicant has and how well he manages it. Underwriting trainees evaluating an applicant’s capacity to pay look at his employment history, income, and debt to asset ratio. Collateral is essentially the value of the property compared the amount requested for borrowing.
Trainee mortgage jobs in account collections require an individual to contact delinquent borrowers and set up a payment. Someone working a trainee position like this is usually educated about the regional or national rules and regulations that govern how the collections process must be conducted. She may also attend company sponsored communication or sensitivity training seminars so that she understands how to deal with emotional borrowers when attempting to collect. A company also teaches its trainee how to use databases in order to locate hard to reach borrowers or file for repossession if the debtor cannot be found or refuses to pay.
