Mortgage Loan Officer Gustan Cho
Mortgage Loan OfficerForum Replies Created
-
“Recent reports allege that Bryon Noem participated in online bimbofication fetish forums and exchanged photos and messages with models.
The reporting says Bryon Noem was allegedly involved in online “bimbofication” fetish forums, where some participants eroticize exaggerated doll-like femininity and use fake breasts, pink clothing, and similar role-play. The most detailed accounts come from a Daily Mail investigation summarized by outlets like People and Yahoo, which say the report included photos, messages, and alleged payments of at least $25,000.
What Is Claimed
According to those reports, the allegations include:
- Photos of Bryon Noem in women’s clothing with oversized fake breasts made to look like balloons.
- Participation in online fetish chats under a pseudonym, “Jason Jackson”.
- Alleged spending of at least $25,000 communicating with online fetish models.
What Is Not Confirmed
These are allegations from a media report, not independently established facts from a court finding or an official investigation, as far as I can tell from the sources I found. Some coverage also notes the family’s response: Kristi Noem’s representatives said she was “blindsided” and asked for privacy and prayers.
-
The mortgage business is showing signs of recovery for 2026. Recovery appears to be a slow reset rather than a rapid rebound. Business activity is picking up slightly due to rising affordability, increased mortgage applications over several periods, and predictions of higher origination volume.
Key indicators of Recovery
- Mortgage origination volume: The Mortgage Bankers Association (MBA) predicts the volume of single-family mortgages will increase by 8% to $2.2 trillion in 2026 (compared to 2025), with the purchase origination volume increasing by 7.7% to $1.46 trillion and the refinance origination volume increasing by 9.2% to $737 billion. Other forecasts (e.g., Fannie Mae, iEmergent) suggest mortgage origination volume will be close to $2.3 trillion, driven by support for previously unmet needs.
- Mortgage applications and demand: Applications show a year-over-year increase. For instance, purchase applications have risen for multiple weeks. Refinance activity increases whenever rates dip, with a significant rise in refinancing compared to 2025. Lenders’ confidence in buyers grows as rates drop. However, the overall trend suggests rates will increase.
*Support for the Housing Market*Support for the Housing Market: The National Association of Realtors (NAR) believes the housing market is stabilizing, predicting for 2026 an almost 14% rise in sales of previously owned homes and an almost 5% rise for newly constructed homes. These predictions are tied to steady job growth, improved inventory, and fewer homes on the market. Home appreciation rates are expected to be modest, likely in the range of 0% to 4%, with home values remaining mostly flat compared to the purchasing power of the population in 2026
Compared to the 2025 peak, mortgage rates in 2026 have decreased slightly. However, they are still significantly higher than the rates that were present at the peak of the pandemic:
- The 30-year fixed mortgage rate averaged for the end of March 2026 is approximately 6.3% – 6.5%, while Monday rates have been reported as 6.38 to 6.49, with a Monday rate of 6.49% positively correlated with a Monday low rate of 6.38% earlier in the same year.
- Predictions for the year suggest an average mortgage rate of 6% to 7%, with Redfin predicting 6.3%. Some quarterly forecasts expect rates to fall to 5.9% to 6.1%. Federal government regulations on financial markets are seen as signals of stability or possible rate reductions. For homeowners currently paying 6% to 7%, lower rates have created opportunities to refinance. Rate buy-down agreements and adjustable-rate mortgages (ARMs) have also helped bridge affordability gaps for home purchases. However, it is long, slow, and uneven.
- Affordability — Historically high home prices and rates remain constraining. There are some modest improvements as wages increase and inventory levels improve in select markets. Supply remains tight in most areas.
- Volume Drivers — For many lenders, refinances and lump-sum home equity lending are expected to drive gains. Nearly 75% of lenders surveyed expect overall volume to improve. Purchase activity is expected to increase gradually, linked to life events, job-related moves, and Millennials entering the market.
- Risks — Economic uncertainty and inflationary pressures, along with slower Fed easing, could stall momentum. Some analysts call 2026 a reset year and describe it as a selective boom, with stronger Non-QM segments, rather than a full boom.
Encouraging normalization in applications, originations, and sales projections is expected in 2026 after several difficult years. Although 2023 to 2025 will not see a return to the low-rate frenzy of the early 2020s, other industry conditions will be more positive. The most current data will come from the MBA Weekly Applications Survey and Freddie Mac rate reports. Weekly data changes often due to bond market movements and economic news. If you work in the industry, you need to watch rates and stay alert to local inventory in your state, such as Minnesota.
-
A servicing-aligned income program initiative that will enable compliant participation in recurring revenue streams associated with servicing loans they originate for eligible mortgage loan originators (MLOs).
This is consistent with what you have heard from originators and net branch owners. By tying a portion of compensation to the continued performance and servicing of closed loans, the program aims to provide greater stability for MLOs. This relieves MLOs from depending on front-end origination commission revenue, which is subject to market conditions (interest rates and housing demand).
Background: How Mortgage Servicing Works
Mortgage servicers take care of the collections on a borrower’s monthly payments, manage escrow accounts (where funds are held for paying taxes and insurance), deal with delinquency, modify or foreclose on a loan, and pay owners (principal + interest) of the loan (which could include Fannie Mae, Freddie Mac, or Ginnie Mae, as well as private investors). Servicers earn revenue from their loans as follows:
- Contractual servicing fees. This is generally about 25 basis points (0.25%) of the loan balance per annum and is paid from the interest portion of the borrower’s payment.
- Servicing income that is not part of the contract, which can include income from late payments, holds on funds, and certain other incentives (called “ancillary” income).
- Possible worth from Mortgage Servicing Rights (MSRs), an asset class of which some aspects can be purchased, sold, or held by lenders/investors, where MSRs grant an investor the right to service the loan and receive the associated fees.
Servicing comprises a long-term relationship: With a 30-year mortgage, the servicer can be paid for many years, unless the loan is prepaid due to a refinance or a sale of the property. In the mortgage industry, this is a stable, predictable revenue stream compared to the unpredictable revenue from loan origination.
In the past, most of these revenue profits from servicing a loan, have gone to the lender, correspondent, or specialty servicer—and not the individual MLO who worked on the loan in question. MLOs are typically paid a single, one-time commission for their work (typically paid as a percentage of the total loan amount) at mortgage closing.
C2C’s Servicing-Aligned Program: What We Know
From the press release and subsequent articles:
- C2C is building a separately structured servicing platform (currently in advanced development) to facilitate this alignment.
- Compliant C2C-affiliated MLOs will have the opportunity to engage in recurring income opportunities related to servicing, subject to applicable laws, regulations, licensing, jurisdictions, and investor restrictions.
- The model places a premium on regulatory adherence and transparency, utilizing a proprietary tech solution to provide centralized access, reporting, and visibility throughout the loan lifecycle (including the performance of “your” loans in servicing).
- The initial rollout will be internal and may commence around July 2026.
- The model is not traditional ownership of MSRs (which are complex, capitalized, and subject to valuation fluctuations and regulatory uncertainties). This will be a “servicing-aligned” model that offers structured participation in performance-based, recurring revenues related to the loans.
- Benefits C2C mentioned include the opportunity to strengthen relationships over the long haul, retention of MLOs (Mortgage Loan Originators), and financial security during the ups and downs of market cycles—similar to the insurance agent model you mentioned, where renewals provide ongoing income.
CEO Mike Kortas described it as a long-term vision focused on not being irresponsible, expanding options for originators without disrupting the system, and remaining in alignment with all compliance and investor guidelines.
Important Caveats On Mechanics:
- The specifics of payout percentages, eligibility thresholds, vesting periods, and the method for calculating and distributing revenue (e.g., a very small percentage of the servicing fee for loans originated by the MLO and classified as performing) will not be publicly available.
- These are, and will continue to be, highly variable and subject to a multitude of legal or compliance constraints.
- The only loans included in the agreement will be those offered by C2C and its emerging servicing structure.
- Setting regulatory guardrails ahead of time is necessary: The CFPB’s Loan Originator Compensation (LO Comp) rules under Regulation Z usually prevent MLOs from being paid based on the “terms or conditions” of a transaction or on any profits (some interpretations include servicing income) that are pertinent to the transaction.
- C2C is viewing this as a compliant and structured pathway and is likely using a different entity or a profit-sharing structure that avoids the indirect, direct relationship with any specific loans.
- A comp based on profit poses risks in the absence of safe harbors and requires positive structuring.
C2C’s other programs already allow top producers or recruiters to earn income that resembles a residual from revenue sharing and the C2C 100 program, where they can receive ongoing splits from their downline MLOs’ commissions (passive participation in the structure can include 100% comp on certain loans). The new servicing program seems to reflect the aspiration of achieving true “loan-level” recurring income beyond the recruiting element.
Is This Only for C2C, or Do Competitors and Others Offer It as Well?
Individual MLOs’ residual programs aligned with servicing appear to be a C2C initiative rather than an industry-wide practice. There are no significant competitors publicizing similar models in the short time frame surrounding C2C’s announcement.
- C2C’s positioning: As one of the top independent mortgage brokerages with thousands of MLOs and net branches, C2C is pioneering the broker/correspondent channel by providing greater “ownership”- type economics without running a full brokerage.
- Additionally, the revenue share (downline-based), and his commission splits (i.e., 220+ bps) reinforce the long-term incentives, and this servicing tie-in extends it the most.
- Wider Industry:
-
- Conventional models: Most mortgage brokers, correspondent lenders, and direct lenders pay MLOs commission only at the front. Servicing rights are usually retained by the lender/servicer or sold to the secondary market. MLOs do not share in the servicing fees.
- Exemptions and alternatives: Some non-QM or specialty lenders have tried, unlike any other, to use residual or renewal-type compensation on specific portfolios, but these arrangements carry regulatory risks (LO Comp rules make it problematic to pay service income or profits tied directly to servicing).
- A handful of smaller or independent shops entice clients with the idea of “residual income programs,” but what this usually means is recruitment-based revenue share or performance bonuses rather than actual servicing revenue share on specific loans.
- Insurance analogy: Insurance agents get renewals because their policies with the carrier are ongoing contracts. Mortgages are like that \xe2\x80\x94 servicing lasts for years. However, the split between origination and servicing, along with the Dodd-Frank, CFPB, and GSE guidelines, has created barriers to MLOs being paid this way in large numbers.
- Net branches, brokers, correspondents, direct lenders: This is not universal or required by regulation. Brokers (who do not fund loans themselves) have less direct control over servicing than correspondents or portfolio lenders do. Competitors like United Wholesale Mortgage (UWM), loanDepot, and other large players in the market that focus on volume incentives, servicing technology, or flat or high split commissions have not yet disclosed servicing revenue shares for MLOs. Some net branch models offer equity-like or profit-sharing structures similar to this, but typically do not provide access to direct servicer residuals.
If other businesses were to follow this path, it would most likely be in response to a competitive talent market, especially in an origination market that is moving more slowly. However, the cost of starting it is believed to be high (servicing platform, legal structure, investor approval, compliance) and poses compliance concerns. C2C is best positioned in the market, combining its high level of proprietary tech with its size.
Pros, Cons, and ConsiderationsPros (as you have noted)
- Stability: Residual income provides a buffer as rates are high and volumes are low. This represents a stream of income similar to what an annuity would pay for a book of performing loans.
- Alignment: Supports the creation of quality origination and long-lasting relationships with borrowers.
- Retention: Makes the career more appealing, especially for older MLOs who are building a “book of business”.
Cons/Risks:
- Regulatory uncertainty: It is complicated to navigate the LO Comp rules regarding the imposition of a cap on profit share.
- Loan performance dependency: borrower defaults and early refinancing are a risk.
- Eligibility and vesting: Limited to high producers or specific C2C affiliates and may involve clawbacks or a vesting period.
- Tax and accounting: Residuals would be taxable income.
- Market/execution risk: Actual payouts and scalability are uncertain.
It is a good concept that may be attractive to MLOs who want more Income certainty, but much depends on how it is executed, whether regulators permit C2C’s revenue sharing without crossing compliance lines, and how the revenue sharing is structured.
I recommend speaking to C2C leadership or the compliance team if you are an MLO considering joining C2C for the most up-to-date details on the program, who is eligible, and how much they expect it will pay out (the information available to the public is basic, and the mortgage industry, with respect to rates and regulations, evolves quickly). This can invite a lot of conversation among competitors.
If you are an MLO, I encourage you to contact C2C leadership or the compliance team to get the most up-to-date information on the program, who will be eligible, and what the expected payouts will be (public information is limited). Given the rapid evolution of the mortgage industry, particularly with rates and regulations, I anticipate this will invite conversation among competitors.
If you need me to go into detail about comp models, LO Comp regulations, or any other area, just let me know!
-
For National Faith Homebuyers’ DPA, you generally need to be mortgage-qualified for a loan that allows secondary financing, keep your monthly mortgage payment at or below 31% of your household’s gross monthly income, complete the required homebuyer education, and have at least $1,000 of your own funds. You also must be buying a home in one of the eligible cities they fund, and the property must meet Housing Quality Standards.
Where to apply
You can apply through National Faith Homebuyers’ down payment applications page, but only after you meet the eligibility requirements and have an accepted purchase agreement on a property in an eligible city. They say you should submit the contact form on that page and their downpayment department will respond within 24–48 hours.
How to start
National Faith says you can call their Detroit office at (313) 255-9500 or Atlanta office at (678) 553-3770, or use the contact form on their DPA page to begin.
Important details
Their site lists eligible cities as changing based on availability, and it includes places such as Livonia, Westland, Lincoln Park, and several Wayne County communities. The program page also notes the Wayne County DPA loan is a fixed $13,999 for existing homes and is forgivable after five years at 0% interest.
If you want, I can also help you figure out whether your income, credit, and target city likely fit the program before you apply.
nationalfaith.org
Down Payment Assistance Program | National Faith Homebuyers
Down Payment Loan | Forgivable After 5 Years | 0% Interest | Partnered with Michigan State Housing Development Authority | Contact for More Information
-
Mortgage lenders and loan originators are optimistic about 2026, seeing it as a promising year. However, this outlook depends on the performance of specific mortgage market segments.
Industry Sentiment and Volume Projections
Mortgage professionals expect 2026 to outperform recent years. The National Mortgage News Predictions 2026 survey shows most lenders are optimistic and foresee higher mortgage volumes. Among loan officers surveyed, 85% predict increased originations, with 44% expecting growth of more than 10%. 62% anticipate a moderate increase, while 15% expect a substantial rise.
Origination Volume Forecasts
Major industry associations forecast growth in total origination volume.
- Fannie Mae projects a 2026 origination volume of $2.4 trillion, up from $1.94 trillion in 2025.
- The Mortgage Bankers Association anticipates an 8% increase in total single-family mortgage origination volume in 2026, reaching $2.2 trillion.
- Emergent reports a nearly 10% increase in U.S. mortgage loan origination volume in 2026.
- Agencies cite various factors, but the following aspects are most notable.
- Refinancings: The share of originated loans that are refinanced is expected to reach 38% in 2026, up from 29% in 2025 and 21% in 2024.
- Specifically, the Mortgage Bankers Association forecasts a refinancing volume of $737 billion.
- Home Equity Loans: This segment is expected to grow significantly.
- Decline in Interest Rates: Lower mortgage rates are expected to drive higher originations.
- An unnamed loan officer predicted, “By the 3rd quarter of 2026, we will start seeing home sales increase, and mortgage rates decrease.”
- Growth in the Non-Qualified Mortgage (Non-QM) Market:
Non-qualified mortgages (Non-QM) remain a strong segment of the market:
- In 2025, Non-QM loans accounted for over 10% of total mortgage applications for the first time, establishing a new record.
- By 2026, the Non-QM sector is projected to reach a market share in the low teens.
- Originators are increasingly comfortable with these loans, and this trend is expected to continue despite market changes.
Industry Challenges: Despite Optimism, The Industry Continues To Face Several Challenges That Require Attention:
- Housing Affordability: High home prices were identified by 43% of loan officers as the most significant obstacle for homebuyers in 2026, while an additional 31% cited challenges in saving for down payments.
- Inventory Constraints: Housing shortages persist, especially in entry-level and mid-tier markets.
- Demographic Disparities: Some analysts see first-time homebuyers as having the most growth potential, while others expect limited growth, especially among low- and moderate-income families.
- Economic Uncertainty: Ongoing inflation and potential economic weakness remain concerns that could negatively affect loan performance.
- Regional Variation: Respondents’ expectations for demand in 2026 vary by location, but most anticipate increases.
- The most optimistic projections highlight refinancing and home equity lending in 2026, especially if interest rates fall.
- These trends may help the mortgage industry address ongoing inventory and affordability challenges.
- After several challenging years, these forecasts suggest that 2026 could be a period of growth and positive change.
-
One of my friends and former business colleague who used to work at NEXA and now works for a different mortgage brokerage did a price comparison on rates between NEXA and the other mortgage brokerage. They are on a 250 compensation plan with the wholesale lender. At NEXA we are at 2.75% yield spread compensation plan. When comparing rates, NEXA’s rates were lower than the other brokerage even though our comp plan at NEXA was higher. I heared that NEXA has volume preferred pricing versus other mortgage brokerage.
https://gustancho.com/yield-spread-premium/
gustancho.com
Yield Spread Premium Charged By Mortgage Brokers
The maximum Yield Spread Premium mortgage brokers can make is 2.75% whereas mortgage bankers are exempt and have no cap
-
Begin your path to mortgage approval by addressing major negative marks on your credit. Next, open three or four new credit accounts and manage them responsibly. This guide offers easy steps, card recommendations, and tools to help boost your score.
Key rules lenders care about:
- Maintaining on-time payments over the past 12 months is critical.
- Recent late payments have a greater negative impact than older charge-offs.
- Perfect credit is not required, nor is payment of every collection account.
- The objective is to present a credit profile that automated or manual underwriting will assess as an acceptable risk.
- Most agency loans use a “representative” score (the middle of three scores, or the lower of two) and do not require a minimum score for computer approvals.
- Manual reviews usually need a score of 620 or higher, and some established credit accounts.
Core rebuild plan (works for most borrowers):Follow these steps unless your situation requires a different order.Have 3–4 primary tradelines reporting
- Try to get three secured credit cards, each with a $300 to $500 deposit.
- These cards will help you build stronger credit.
- If you can, add an installment account, such as a credit builder loan, self-lender product, or small personal loan, as long as your debt is not too high for your income.
Use your secured credit cards in the following ways:
-
- Keep each card’s balance between 10 and 30 percent of its limit. Let one or two cards show a small balance, and keep another card at or near zero.
- This approach gives your credit score the best chance to improve.
- Give your credit score time to reflect your positive habits.
- With three secured cards and a few months of careful use, you can often turn a denial into an approval from the automated system.
- A full year of on-time payments can make your application stand out for manual review.
- Be cautious with credit score booster tools.
- Use them only if they fit your needs.
- You can add phone bills, streaming bills, and sometimes rent to Experian for free, which might raise your Experian FICO score a little.
- Don’t rely only on booster tools, because many lenders check more than just Experian scores.
Scenario 1: Borrowers with outstanding collections and charge‑offs
- Key point: You usually do not have to pay off most collections to get an FHA, VA, USDA, or Conventional loan unless they turn into a judgment, lien, or make your debt too high compared to your income.
- Paying off all collections at once can actually lower your score by making old negative items look recent.
Step 1. Stop the bleeding
- Ensure there are no recent 30/60/90‑day lates on open accounts.
- Prioritize bringing any delinquent revolving accounts or auto loans current.
Step 2. Triage collections
- Unless guidelines or overlays require it, old small medical collections can be ignored.
- For big, recent non-medical collections that could turn into a judgment,
- try to settle them one at a time with written agreements.
- This helps avoid all accounts updating in the same month, and causing your score to drop for a short time.
Step 3. Avoid disputes before the mortgage
- Take off any credit bureau disputes as your lender tells you before your loan is reviewed, especially on non-medical accounts.
- Disputes can hide your real credit scores and affect computer loan decisions.
Step 4. Build new credit
- Even if you have collections, open three secured credit cards and keep balances low.
- Building fresh, positive credit history will do more for you in the long run than just cleaning up old negatives.
- If you don’t have any open credit accounts, start by opening three secured credit cards with $300 limits.
- Pick cards from major banks, not store cards, and avoid those with high fees.
- Make sure the cards report to all three credit bureaus
Optional: Add a Credit Builder Loan
A small loan with automatic payments for 12 to 24 months can improve your credit mix and show you pay on time
- Use and Wait.
- Six months of steady, on-time payments will raise your score and give the automated system a good track record to review.
Scenario 3: Open Derogatory Accounts
Profile: The borrower has no active positive accounts, only closed or potentially charged-off accounts.
Steps to Follow:
- Old Closed Charge-Offs Remain
- Undisturbed Without Cause
- Paying off old negative accounts can make them appear recent, which may temporarily lower your credit score.
Look to closed accounts for judgments and make settlements.
- Get 3 Secured Cards + 1 Builder Line
- Aim for three secured cards and consider adding a credit builder loan.
- As you add new positive activity, your credit will gradually shift from mostly negative to a healthier mix that improves your score.
Scenario 4: Borrowers with Delinquencies on Open Accounts
Recent late payments are a major reason for receiving a ‘Refer’ or ‘Caution’ result in computer loan reviews.
Steps to Follow:
- Bring Everything Current
- Avoid new late payments. Keep in mind that opening a new account might lower your score and could even make a collection account disappear from your report.
- Let Time Pass: The Late Will Age
- Generally, underwriters require 12 months of clean activity to assess the post-late period.
- Pay Down Credit Cards
- Keep your credit card balances below 30% of their limits to give your score the biggest boost.
Goodwill If Applicable
- A goodwill letter lets you explain a one-time late payment, such as one caused by a hospital stay.
- It might help, but don’t rely on it as your main strategy.
No Credit Scores or Only Two Out of Three Credit Bureaus Are Reporting Credit ScoreUsing Non-Traditional Credit Manual Underwriting
- While many lenders consider three scores mandatory, policies still allow manual underwriting with one, two, or even no scores for non-traditional credit.
Step by Step:
- Check that all your credit accounts are reported to all three credit bureaus.
- If a card appears on only one or two bureaus, consider getting cards from companies that report to all three bureaus.
- Missing credit scores usually appear within a few months as you add new accounts and time passes.
- If still no score: build non-traditional credit
- As you open new accounts, missing credit scores usually show up within a few months.
- Regular bills and payments can also help fill the gaps.
- Save records like canceled checks, bank statements, or letters from creditors as proof of payment.
- Use Experian’s Boostm to help create your credit score.
- Programs like Experian Go help people without a credit file build a credit report and score by using secured cards.
- If you have little or no credit history, Experian Boost can help you quickly build a usable credit score with Experian.
Scenario 6: AUS “Refer/Caution” – how to turn it around
You can strengthen your credit file or, if possible, switch your application to manual review.
Here are some steps:
- Pay down your credit card debts to improve your debt-to-income ratio and lower your credit usage.
- Keep your credit accounts open to build a longer history.
- Make sure you have two or three well-established accounts, each with 12 to 24 months of on-time payments.
- If your credit file is still thin, wait 60 to 90 days after opening secured cards before trying again with the automated system.
- You can also look into different loan programs or lenders.
- Some lenders are more flexible with computer loan approvals, while others use easier rules for manual reviews on VA or FHA loans
Using Secured credit cards to rebuild and re-establish credit to qualify and get mortgage approval
Look for secured credit cards with low fees, easy approval, and no extra steps.
- Secured credit cards are issued by reputable national banks that:
- Report to all three credit bureaus.
- Have reasonable annual fees and offer refundable deposits.
- Try to get three different cards, each with a $300 to $500 limit.
- Each secured card will be the foundation of your credit rebuilding process.
Credit-Builder Installment Loans
- These loans are usually $500 to $1,000, last 12 to 24 months, and have small monthly payments.
- They are reported to all three credit bureaus.
- Set up automatic payments so you never miss one.
Alternative Data Programs and Boosters
- Experian Boost is a free way to add your utility, phone, and streaming payments to your credit profile, which can help your score.
- Rent reporting services can help if you have limited credit history by adding a year or more of on-time rent payments to your credit reports.
- Warning about high-cost lenders: Payday or online lenders with high interest rates are risky and can be hard to pay back.
- If you must use these lenders, only borrow small amounts you can manage and never rely on them as your main way to build credit.
- Free to use this guide as a sticky forum post or a handy one-page handout.
When you get new credit reports, check your scores from all three bureaus and stop any payments you no longer need to make.
- Open three secured credit cards that report to all three bureaus, and avoid high-fee or retail store cards. For small purchases, keep each card’s balance between 10 and 30 percent of its limit each month, and use each card regularly.
- Set all your debts to autopay so you never miss a payment.
- Pay down your credit card balances to below 30% of their limits as soon as possible. Use Experian Boost to add your phone and utility bill history, and consider a credit builder loan for extra help.
Don’t rush to settle old collection accounts.
- Only pay off those that could lead to judgments or those your loan officer recommends.
- Keep your payment record perfect for six to twelve months.
- After that, if possible, try again with the automated system or apply for manual underwriting.
This plan gives your loan officers and credit-repair partners a clear, lender-approved way to help you, in compliance with agency and credit bureau rules.
Begin your path to mortgage approval by addressing major negative marks on your credit. Next, open three or four new credit accounts and manage them responsibly. This guide offers easy steps, card recommendations, and tools to help boost your score.
Key rules lenders care about:
- Maintaining on-time payments over the past 12 months is critical.
- Recent late payments have a greater negative impact than older charge-offs.
- Perfect credit is not required, nor is payment of every collection account.
- The objective is to present a credit profile that automated or manual underwriting will assess as an acceptable risk.
- Most agency loans use a “representative” score (the middle of three scores, or the lower of two) and do not require a minimum score for computer approvals.
- Manual reviews usually need a score of 620 or higher, and some established credit accounts.
Core rebuild plan (works for most borrowers):Follow these steps unless your situation requires a different order.Have 3–4 primary tradelines reporting
- Try to get three secured credit cards, each with a $300 to $500 deposit.
- These cards will help you build stronger credit.
- If you can, add an installment account, such as a credit builder loan, self-lender product, or small personal loan, as long as your debt is not too high for your income.
Use your secured credit cards in the following ways:
-
- Keep each card’s balance between 10 and 30 percent of its limit. Let one or two cards show a small balance, and keep another card at or near zero.
- This approach gives your credit score the best chance to improve.
- Give your credit score time to reflect your positive habits.
- With three secured cards and a few months of careful use, you can often turn a denial into an approval from the automated system.
- A full year of on-time payments can make your application stand out for manual review.
- Be cautious with credit score booster tools.
- Use them only if they fit your needs.
- You can add phone bills, streaming bills, and sometimes rent to Experian for free, which might raise your Experian FICO score a little.
- Don’t rely only on booster tools, because many lenders check more than just Experian scores.
Scenario 1: Borrowers with outstanding collections and charge‑offs
- Key point: You usually do not have to pay off most collections to get an FHA, VA, USDA, or Conventional loan unless they turn into a judgment, lien, or make your debt too high compared to your income.
- Paying off all collections at once can actually lower your score by making old negative items look recent.
Step 1. Stop the bleeding
- Ensure there are no recent 30/60/90‑day lates on open accounts.
- Prioritize bringing any delinquent revolving accounts or auto loans current.
Step 2. Triage collections
- Unless guidelines or overlays require it, old small medical collections can be ignored.
- For big, recent non-medical collections that could turn into a judgment,
- try to settle them one at a time with written agreements.
- This helps avoid all accounts updating in the same month, and causing your score to drop for a short time.
Step 3. Avoid disputes before the mortgage
- Take off any credit bureau disputes as your lender tells you before your loan is reviewed, especially on non-medical accounts.
- Disputes can hide your real credit scores and affect computer loan decisions.
Step 4. Build new credit
- Even if you have collections, open three secured credit cards and keep balances low.
- Building fresh, positive credit history will do more for you in the long run than just cleaning up old negatives.
- If you don’t have any open credit accounts, start by opening three secured credit cards with $300 limits.
- Pick cards from major banks, not store cards, and avoid those with high fees.
- Make sure the cards report to all three credit bureaus
Optional: Add a Credit Builder Loan
A small loan with automatic payments for 12 to 24 months can improve your credit mix and show you pay on time
- Use and Wait.
- Six months of steady, on-time payments will raise your score and give the automated system a good track record to review.
Scenario 3: Open Derogatory Accounts
Profile: The borrower has no active positive accounts, only closed or potentially charged-off accounts.
Steps to Follow:
- Old Closed Charge-Offs Remain
- Undisturbed Without Cause
- Paying off old negative accounts can make them appear recent, which may temporarily lower your credit score.
Look to closed accounts for judgments and make settlements.
- Get 3 Secured Cards + 1 Builder Line
- Aim for three secured cards and consider adding a credit builder loan.
- As you add new positive activity, your credit will gradually shift from mostly negative to a healthier mix that improves your score.
Scenario 4: Borrowers with Delinquencies on Open Accounts
Recent late payments are a major reason for receiving a ‘Refer’ or ‘Caution’ result in computer loan reviews.
Steps to Follow:
- Bring Everything Current
- Avoid new late payments. Keep in mind that opening a new account might lower your score and could even make a collection account disappear from your report.
- Let Time Pass: The Late Will Age
- Generally, underwriters require 12 months of clean activity to assess the post-late period.
- Pay Down Credit Cards
- Keep your credit card balances below 30% of their limits to give your score the biggest boost.
Goodwill If Applicable
- A goodwill letter lets you explain a one-time late payment, such as one caused by a hospital stay.
- It might help, but don’t rely on it as your main strategy.
No Credit Scores or Only Two Out of Three Credit Bureaus Are Reporting Credit ScoreUsing Non-Traditional Credit Manual Underwriting
- While many lenders consider three scores mandatory, policies still allow manual underwriting with one, two, or even no scores for non-traditional credit.
Step by Step:
- Check that all your credit accounts are reported to all three credit bureaus.
- If a card appears on only one or two bureaus, consider getting cards from companies that report to all three bureaus.
- Missing credit scores usually appear within a few months as you add new accounts and time passes.
- If still no score: build non-traditional credit
- As you open new accounts, missing credit scores usually show up within a few months.
- Regular bills and payments can also help fill the gaps.
- Save records like canceled checks, bank statements, or letters from creditors as proof of payment.
- Use Experian’s Boostm to help create your credit score.
- Programs like Experian Go help people without a credit file build a credit report and score by using secured cards.
- If you have little or no credit history, Experian Boost can help you quickly build a usable credit score with Experian.
Scenario 6: AUS “Refer/Caution” – how to turn it around
You can strengthen your credit file or, if possible, switch your application to manual review.
Here are some steps:
- Pay down your credit card debts to improve your debt-to-income ratio and lower your credit usage.
- Keep your credit accounts open to build a longer history.
- Make sure you have two or three well-established accounts, each with 12 to 24 months of on-time payments.
- If your credit file is still thin, wait 60 to 90 days after opening secured cards before trying again with the automated system.
- You can also look into different loan programs or lenders.
- Some lenders are more flexible with computer loan approvals, while others use easier rules for manual reviews on VA or FHA loans
Using Secured credit cards to rebuild and re-establish credit to qualify and get mortgage approval
Look for secured credit cards with low fees, easy approval, and no extra steps.
- Secured credit cards are issued by reputable national banks that:
- Report to all three credit bureaus.
- Have reasonable annual fees and offer refundable deposits.
- Try to get three different cards, each with a $300 to $500 limit.
- Each secured card will be the foundation of your credit rebuilding process.
Credit-Builder Installment Loans
- These loans are usually $500 to $1,000, last 12 to 24 months, and have small monthly payments.
- They are reported to all three credit bureaus.
- Set up automatic payments so you never miss one.
Alternative Data Programs and Boosters
- Experian Boost is a free way to add your utility, phone, and streaming payments to your credit profile, which can help your score.
- Rent reporting services can help if you have limited credit history by adding a year or more of on-time rent payments to your credit reports.
- Warning about high-cost lenders: Payday or online lenders with high interest rates are risky and can be hard to pay back.
- If you must use these lenders, only borrow small amounts you can manage and never rely on them as your main way to build credit.
- Free to use this guide as a sticky forum post or a handy one-page handout.
When you get new credit reports, check your scores from all three bureaus and stop any payments you no longer need to make.
- Open three secured credit cards that report to all three bureaus, and avoid high-fee or retail store cards. For small purchases, keep each card’s balance between 10 and 30 percent of its limit each month, and use each card regularly.
- Set all your debts to autopay so you never miss a payment.
- Pay down your credit card balances to below 30% of their limits as soon as possible. Use Experian Boost to add your phone and utility bill history, and consider a credit builder loan for extra help.
Don’t rush to settle old collection accounts.
- Only pay off those that could lead to judgments or those your loan officer recommends.
- Keep your payment record perfect for six to twelve months.
- After that, if possible, try again with the automated system or apply for manual underwriting.
This plan gives your loan officers and credit-repair partners a clear, lender-approved way to help you, in compliance with agency and credit bureau rules.
-
Purchasing a home in Missouri is feasible once you familiarize yourself with the local market, available state assistance programs, and adjustable mortgage options offered by lenders like Gustan Cho Associates.
Missouri Mortgage Loans: https://gustancho.com/missouri-mortgage-loans/
Why Purchase a Property in Missouri?
Missouri has a variety of home prices, with most being more affordable than prices in coastal states. There is also a variety of market types, including urban, suburban, and rural. Areas outside downtown St. Louis and Kansas City also qualify for USDA financing, meaning no down payment if you qualify for the income and property guidelines.
In Missouri, buyers qualify for local and state programs administered by the Missouri Housing Development Commission (MHDC), which offer below-market interest rates and down payment assistance. When combined with competitive mortgage programs, Missouri becomes more attractive for most buyers, including first-time and move-up buyers.
Missouri Homebuying Process Step-by-Step
Having a clear outline makes the journey less difficult and helps you feel comfortable with the idea of closing day.
- Pre-approval
- Pre-approval involves a review of credit history, income, and assets, and an assessment of debt to determine a maximum price range and loan options.
- Missouri sellers require strong pre-approval letters before they will consider any offers, especially in the more competitive price ranges.
- Budget
- Consider more than just the mortgage payment, and include property taxes, homeowner’s insurance, HOA dues (if applicable), and maintenance when determining the budget.
- Your loan officer can help you determine a target price based on a monthly payment you’re comfortable with.
- Select Your Mortgage Program
- Most Missouri buyers use conventional, FHA, VA, or USDA loans, often combined with MHDC assistance if they qualify.
- Gustan Cho Associates supports over 210 lenders, which provides you with a variety of loan options and underwriting flexibility.
- Home Shopping with Your Agent
- Your real estate agent can help you identify appropriate neighborhoods based on your budget, commuting preferences, and loan type (e.g., USDA).
- When you find a home, you make an offer and include your pre-approval letter.
- Under Contract, Start Underwriting
- After an offer is accepted, you lock in your interest rate and order your appraisal. After that, you submit your updated paperwork for processing and underwriting.
- The lender verifies employment, income, and assets, conducts a credit check, and assesses the property’s value and condition.
- Closing Day and Clear to Close
- Once all conditions are met, you receive a final closing disclosure outlining your specific figures. This happens at least three business days prior to closing.
- On the day of closing, you will sign the final paperwork, pay any necessary fees, and get your keys to your new home in Missouri.
Core Mortgage Options in Missouri
Most buyers in Missouri consider four loan types. Each loan type has its advantages and disadvantages, depending on credit, income, and where you live.
FHA loans
- FHA loans are backed by the Federal Housing Administration and are very popular with first-time buyers or those who have had recent credit issues.
- The down payment is as low as 3.5%, depending on the borrower’s qualifications. Credit requirements are more lenient, and in some cases, manual underwriting is available.
- An upfront mortgage insurance premium and an annual mortgage insurance premium are required. These are what allow FHA to accept buyers who typically would not meet the standard guidelines.
Conventional loans
- These are not government-insured loans. Therefore, they are best for buyers who meet the credit score and income requirements.
- Down payment is as low as 3% for first-time buyers. Private mortgage insurance can be eliminated when the borrower has enough equity.
- Conventional loans are more permissive with second homes and investment homes than FHA and USDA loans.
VA Loans
- These loans are offered to eligible active-duty service members, veterans, and surviving spouses.
- They have 0% down payment, no private mortgage insurance, and some of the best interest rates.
- Most are financed with a loan to avoid paying the VA funding fee, but some are exempt due to disability.
USDA Loans (Large Portion of Missouri Applicable)
In some rural and suburban areas across much of Missouri outside the major city centers, USDA loans are a good option.
There is 0% down financing, and the only restrictions are on the buyer’s income, applicable home costs, and a target debt-to-income ratio of around 41%. The home you finance must be your primary residence, and there are minimum property standards for safety and habitability.
Missouri-Specific Assistance Programs: Missouri buyers can combine conventional loans with state/local programs that may help lower initial costs and monthly payment obligations.
MHDC First Place Program
Assists eligible first-time buyers (and some veterans) statewide with 30-year fixed-rate mortgages, as well as down payment assistance.
Down payment assistance is up to 4% of the mortgage amount and is a second, forgivable loan with stipulations.
There are borrower, income, and purchase price restrictions that are determined by household size and the respective county.
MHDC Next Step Program
It is available to first-time and repeat buyers who qualify for the program’s income and purchase price limits.
Offers lower interest rates with the ability to add in financing for down payment and closing cost assistance.
- Assistance is generally forgivable over time, but using it can sometimes come with slightly higher interest rates, so a loan officer should compare scenarios.
Local city programs
- Cities such as Springfield and Columbia periodically offer targeted down payment assistance or forgivable loans with their own income, credit, and purchase price caps.
- These programs often require you to live in the home as your primary residence for a minimum period and may require homebuyer education.
How Gustan Cho Associates Helps Missouri Buyers
Gustan Cho Associates specializes in educating buyers and pairing them with lenders and loan programs that fit complex or non‑traditional scenarios.
- Wide lender network: With relationships to more than 210 lenders, the team can place loans that need flexible credit, higher debt‑to‑income ratios, or manual underwriting.
- Education‑first approach: Their mortgage guides and homebuyer resources walk you through pre‑approval, documentation, and closing so you know what to expect at each step.
- Strategy on costs: Many buyers can use seller credits or lender credits to offset closing costs, reducing the cash needed at closing without derailing the deal.
For a Missouri buyer, the most effective first move is to request a detailed pre‑approval review, discuss whether FHA, VA, USDA, or conventional best fits your profile, and then layer in MHDC or local assistance where you qualify.
On GCAForums.com, you can encourage users to share their unique situations, credit profiles, and specific goals, enabling the loan officer to formulate customized solutions.
-
NEW MORTGAGE LOAN ORIGINATOR AT NEXA MORTGAGE ACADEMY
Gustan Cho Associates, a DBA of NEXA Mortgage, And Highlights Recruitment For NEXA Mortgage Academy
Are you new to the mortgage industry? Learn how NEXA Academy can help you start your professional journey. If you are ready to begin your career as a loan originator and seeking the right brokerage, Gustan Cho Associates, a dba of NEXA Mortgage, offers comprehensive training through NEXA Academy.
NEXA Academy instructional videos cover the following topics:
✅ What makes NEXA Mortgage a good fit for you
✅ How the Academy supports and trains new loan officers
✅ A detailed explanation of the compensation structure
✅ Strategies for loan officers to achieve consistent income
✅ What sets Gustan Cho Associates apart from other NEXA competitors
✅ The support and training provided to facilitate successful loan closings
Are you looking for a team committed to your professional development?
- If you want to succeed as a loan originator, contact Gustan Cho Associates to schedule a personalized consultation.
- We will discuss how NEXA Academy and our team can help you reach your professional goals.
Please Leave Your Questions Or Comments Below.
- Subscribe now for insights on the mortgage industry, expert training, and valuable mentoring tips.
Is NEXA Academy Beginner-Friendly? | NEXA Mortgage Training For New Loan Officers
- Are you starting your career in the mortgage industry and looking for comprehensive loan officer training?
- Are you considering whether NEXA Mortgage is the right place to launch your professional journey?
- At Gustan Cho Associates, a dba of NEXA Mortgage, we help new loan originators reach their first milestones through NEXA Academy, our foundational training program.
This Video Will Provide Information On The Following Topics:
✅ How easy it is for new loan officers to work with NEXA Mortgage
✅ Explanation of NEXA Academy and an overview of commission structures and compensation
✅ Expected earnings for first-year loan originators
✅ The support provided by Gustan Cho Associates
✅ The process for obtaining your license and enrolling in NEXA Academy.
- Start your mortgage career with a supportive team.
- Contact us for a complimentary consultation to join Gustan Cho Associates and start your journey with NEXA Academy.
If You Are New To The Mortgage Industry, We Offer The Following Resources:
- Training at NEXA Academy
- Guidance from experienced loan officers
- Support for lead generation
- Access to advanced technology and software for client management
- If you have questions, contact us.
- We respond to every inquiry.
Subscribe for weekly tips, career guidance, and industry insights tailored for new loan officers.
NEXA Mortgage: Is it a good choice for new loan officers?
Are you starting your mortgage career? Here are key reasons why NEXA Academy is an excellent starting point:
✅ Great training
✅ Good support
✅ Good pay
✅ Guidance from experienced loan officers
At Gustan Cho aAssociates nd NEXA Mortgage, we support mortgage professionals at every stage of their careers. If you are ready to advance, contact us for a personalized consultation. Follow us for tips and career guidance.
Are you looking to connect with new clients? These strategies can help you stand out:
- Talking points for the video
- Video promotion social media captions
- Templates for recruitment emails
- Recruitment landing page copy for NEXA Academy
https://gustancho.com/remote-mlo-career-opportunities/
gustancho.com
Remote MLO Career Opportunities You Can Start Today
Gustan Cho Associates has remote MLO career opportunities for branch assigned loan officers and independent branch managers
Social Media Links