MORTGAGE

LOAN
CASE STUDY
Presented by,
Syed Abdulla Furkhan
1RV18CV113
B Section
WHAT IS MORTGAGE LOAN
 A mortgage loan is a loan used either by purchasers of real property to raise funds to buy real
estate, or alternatively by existing property owners to raise funds for any purpose while
putting a financier on the property being mortgaged.
 In consumer lending, mortgage origination, a specialized subset of loan origination, is the
process by which a lender works with a borrower to complete a mortgage transaction,
resulting in a mortgage loan.
 Mortgage borrowers can be individuals mortgaging their home or they can be businesses
mortgaging commercial property.
 The lender will typically be a financial institution, such as a bank, credit union or building
society, depending on the country concerned, and the loan arrangements can be made either
directly or indirectly through intermediaries

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The lender's rights over the
secured property take priority
over the borrower's other
creditors, which means that if
the borrower becomes bankrupt
or insolvent, the other creditors
will only be repaid the debts
owed to them from a sale of the
secured property if the mortgage
lender is repaid in full first.

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 Simple Mortgage by
Mortgage Conditional
Sale

TYPES OF
MORTGAG
English
Usufructuary Mortgage
Mortgage

E IN INDIA
Deposit of Anomalous
Title-Deeds Mortgage

Property Mortgage Laws in India

Transfer of Property Act
The Transfer of Property Act deals with the mortgage of immovable property in
India. A property mortgage is a transfer of an interest in a specific immovable
property for securing the payment of money advanced in the form of a loan, an
existing or future debt, or the performance of an engagement which may give rise to
a pecuniary liability.
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MORTGAGE LOAN PROCESS OUTLINE

 Loan Packaging & Lender’s Disclosures (1-2 days)

 Loan Setup (2-3 days)
 Appraisal Process (1 week)
 Processing / Credit Approval (2-3 days)
 Initial Underwriting Approval (2-3 days)
 Sign the Initial Closing Disclosure (CD) (Immediate)
 Final Underwriting Approval (1-2 days)
 Docs to Title / Final CD Issued (1-2 days)
 Closing & Funding (TBD)
 After Closing
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FOUR PAPERWORK STAGES
 1. The first request is already completed – it was done when you got pre-approved. The next
three requests are forthcoming and are noted below with red text in the “Mortgage Process
Outline”.
 2. The loan packaging step is largest effort required from you when staring the mortgage loan
process. Document requests are drastically reduced after this stage; however, the urgency will
be intensified the closer we get to closing.
 3. The processing step involves the Loan Processor reviewing your file along with third party
documents (like the appraisal, title work, your verification of employment, etc.). They may
request additional information should it be needed before submitting the loan to underwriting
for the conditional approval.
 4. The fourth and final step where we request paperwork comes when your file is underwritten.
Underwriters meticulously reviews files to ensure they meet all guidelines. It’s normal for
additional information or documentation to be requested. These “conditions” are typically quick
and easy requests.
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REPAYING THE MORTGAGE
Mortgage Loan. Total Payment = Loan Principal + Expenses (Taxes & fees) + Total interests. Fixed
Interest Rates & Loan Term
In addition to the two standard means of setting the cost of a mortgage loan (fixed at a set interest
rate for the term, or variable relative to market interest rates), there are variations in how that cost
is paid, and how the loan itself is repaid. Repayment depends on locality, tax laws and prevailing
culture. There are also various mortgage repayment structures to suit different types of borrower.
 Principal and interest
 Interest only
 Interest-only lifetime mortgage
 Reverse mortgages
 Interest and partial principal
 Foreclosure and non-recourse lending.
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 CASE STUDY
The client was relocating to a new city and was looking for a
The Client home big enough for his family that was within his monthly
budget.

Loan Type Condo Purchase

Program Conventional Home Possible 3%
Sales Price $199,220
Rate 4.875%
Required Down Payment 3% ($5,977)
Payment $1,808

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 CASE STUDY
• The client was adamant about putting down as little as
Client possible, but needed to maintain a payment within his
Requirement budget.
• The other main requirement was being able to purchase
something at the high end of his budget.

1. Needed a conventional program that would allow a low down

payment.
2. Reduced mortgage insurance a plus to keep payment low. Loan Challenges
3. Must stay under a certain amount per month on mortgage payment.

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CASE STUDY
• The company researched all 26 lenders and banks that they work with and
found a perfect program that checked all the boxes.
• The program was the Freddie Mac 3% Home Possible program for first
Solution
time home buyers.
• It offered a low-down payment, reduced mortgage insurance and offers
competitive rates, especially on a condo purchase.

• The company were able to secure financing for an amazing condo, in the right zip code, for
just the right price. The company were able to get the client approved fast and had their loan
closed within 28 days.
• They found a loan program that catered to a low down payment as well as flexible guidelines The Results
to help the client get the home they wanted.
• Client was able to purchase their new condo in less than a month.
• The monthly payment ended up being exactly what they expected.