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Special Reports
FHA Lending
FHA Training Seen as Key Strategy
Being able to get and use Federal Housing Administration loan training quickly
appears to have been a key strategy for at least one firm when it came to surviving the so-called subprime market's
demise.
Like many, Franklin Financial here reached a point where it had to grapple with
the fact that many of the products it used to originate were no longer available when the inordinately poor performance
of certain recent vintage "subprime" or "nontraditional" mortgages and related concerns shut
that market and a number of companies in it down. "Once I realized the company's future was in jeopardy, I
immediately went online and searched for a company that could offer comprehensive FHA loan training so that our
originators could replace the disappearing loan products," said Suzanne Lopez, corporate operations director
for Franklin Financial, in a case study. "Although our company had maintained its FHA lender approval status,
our staff had not dealt with FHA loans on a regular basis."
The company got training help on short notice from AllRegs (see related story,
page 26) and credits that training with giving her company the ability to rebuild some volume lost during the nonconforming
market's collapse by increasing FHA origination efforts. According to the study, after the training Franklin Financial
was able to reach a point where all of its originators had "at least two FHA loan candidates in the sales
pipeline."
Without the training, "we would have been in an unpleasant financial situation,"
Ms. Lopez said in the case study.
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