Mortgage Roundup | Your CRM, But Smarter

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Let’s make your job a little easier. The Empire Learning Mortgage Roundup newsletter brings you mortgage industry tips, market know-how, and CE updates—all in one quick email.

🗣️ Quote of the Week

“It’s not your customer’s job to remember you. It is your obligation and responsibility to make sure they don’t have the chance to forget you.”

– Patricia Fripp (Executive Speech Coach and Sales Presentation Skills Trainer)

🚀 Featured Article

Your CRM, But Smarter (Auto-Summaries, Call Notes, and Follow-Ups)

Imagine ending a call with a borrower and not having to scramble to jot down notes or set reminders. That’s the vision behind an AI-enhanced CRM for MLOs. It’s about freeing you from tedious after-call paperwork so you can focus on building relationships and closing loans. In this article, we’ll explore how AI transcription and summarization can automatically log call details, push tasks into your CRM, record borrower Q&As, and even draft recap emails after calls with borrowers or real estate agents. Let’s dive into how this works and why it’s a game-changer for busy loan officers.

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🏕️ Browse CE Courses

Offer valid through August 17. Use promo code EXPLORE at checkout.

🏆 Trending on Empire Learning

🕵️‍♂️ ID Theft in the Loan App

Synthetic identity fraud is on the rise, and it means some loan applications might not be what they seem at first glance. Fraudsters mix real and fake personal data to create “ghost borrowers” who look real on paper but aren’t. This scheme has quickly become one of the fastest-growing threats. Nearly 30% of all identity fraud cases in 2024 were synthetic IDs. For MLOs, this trend means you have to double-check details and trust your instincts if something feels off.

• Inconsistent or mismatched identity details. Be alert if the borrower’s personal data doesn’t line up. For example, an applicant using a Social Security number issued long before their birthdate or one that appears on the SSA’s Death Master File is a major red flag. Synthetic identities often pair a real SSN (sometimes from a child or deceased person) with a fake name, so any SSN that doesn’t logically match the borrower’s identity or age should prompt extra scrutiny.
• Strange credit profile activity. Anomalies in the credit report can signal a fake identity in the works. Watch for a very thin credit file that doesn’t match the borrower’s age or income level, or a file that suddenly shows a flurry of new accounts and inquiries in a short time. Fraudsters building a synthetic credit will often open multiple lines rapidly to boost a bogus credit score. These “credit sprees,” like an unusually high number of recent inquiries, are a clue that the person may be trying to quickly build up credit under false pretenses.
• Unexpected credit freezes or alerts. If you request a credit report and learn the file is under a recent credit freeze or has a fraud alert, look out. A consumer-initiated security freeze in response to a credit pull is considered a potential red flag for identity theft. Legitimate borrowers typically won’t freeze their credit right when seeking a loan, so a sudden freeze or fraud alert on the report could indicate someone else (perhaps the real person whose identity was stolen) is trying to lock down their information. This is a sign to pause and verify the applicant’s identity very carefully.
• Odd employment or income claims. Pay close attention to the borrower’s job history and income statements. Synthetic fraudsters often list fake employers or exaggerated salaries that don’t make sense for the person’s age or role. If an employer can’t be contacted or the business itself seems sketchy, that’s a red flag. Likewise, income that is disproportionately high relative to the stated job position (or a field that typically wouldn’t pay such an amount) is suspicious. Always attempt to independently verify employment (through public business records or a third-party service). If you can’t, it may be time to dig deeper or decline the file.

🎓 Student Loan Strategy Shifts

When it comes to student loans, the landscape is changing (yet again), and it can feel like a moving target for everyone, including MLOs. After years of payment pauses and policy debates, borrowers are facing new programs and rules that affect how their student debt is managed. The new SAVE plan (Saving on a Valuable Education) has rolled out, promising lower payments for many, even $0 for some, and there are constant headlines about possible loan forgiveness or other relief measures. Meanwhile, the long COVID-era payment freeze has ended, meaning borrowers who haven’t paid in years are resuming payments (with new amounts). All this boils down to one thing... as an MLO, you need to stay nimble. The way we calculate student loan payments for mortgages must adapt to whatever Washington does next, and different loan programs (FHA, VA, Fannie/Freddie) each have their own rules. It’s a lot to track, but keeping up-to-date is key to helping your clients navigate their options confidently.

• New SAVE plan = lower payments (or none at all). The SAVE income-driven repayment plan is a game-changer for many borrowers. It caps undergraduate loan payments at just 5% of discretionary income (versus 10% under older plans), which dramatically cuts monthly payments for those who qualify. In fact, SAVE became the most popular repayment plan almost overnight. Nearly 8 million borrowers enrolled, and about 4.5 million of them now qualify for $0 monthly payments under its formula. For MLOs, this means you’ll encounter more applicants whose credit reports show tiny or nonexistent student loan payments. It’s great for borrowers’ budgets (and their debt-to-income ratios), but you’ll need to verify those terms and make sure you apply the correct underwriting guidelines for such low payment amounts.
• Repayment pause is over, borrowers adjusting. Federal student loan payments were on hold for over three years, and interest was temporarily set at 0%. As of late 2023, that big pause finally ended. Borrowers are facing bills again, and interest is accruing. There’s been some turbulence. At one point in 2024, parts of the SAVE plan were blocked in court, and many borrowers were put into an administrative forbearance with 0% interest. But as of now, normal repayment has largely resumed, and interest has started ticking up again. This transition means some borrowers might have unusually low payments currently (due to an on-ramp or adjustment period) or might be seeing their first real student loan bills in years. As an MLO, be aware that a borrower’s self-reported student payment may not reflect their long-term obligation. Always check the latest loan statements. Borrowers themselves might be confused about what they owe as things normalize, so a little extra guidance here can go a long way.
• Forgiveness rumors vs. reality. We all heard about the big one-time forgiveness plan (the proposal to cancel $10k–$20k per borrower), and we also know it was struck down by the Supreme Court in 2023. Since then, the situation has been fluid. The Biden administration pivoted to other debt relief efforts, managing to forgive around $180 billion for 4.9 million borrowers via existing programs (like Public Service Loan Forgiveness expansions, IDR account adjustments, etc.). So while there’s no blanket forgiveness for everyone, some borrowers’ balances are indeed shrinking or even gone thanks to targeted programs. What’s the takeaway for MLOs? Don’t assume a big loan will remain forever. Check if your client is pursuing PSLF or other forgiveness that could eliminate that debt down the road. However, until a loan is actually forgiven, you must still count it in their debt load per current guidelines. In short, stay empathetic (many clients are hopeful or anxious about forgiveness news), but also stick to the facts. If and when their balance is officially discharged, then you can adjust your calculations.
• Different mortgage programs, different rules. One of the trickiest parts is knowing how to count a borrower’s student loan payments for qualifying, because each loan program has its own formula. For example, conventional loans follow Fannie Mae/Freddie Mac guidelines. Fannie Mae generally requires using 1% of the student loan balance (if no actual payment is reported) or a fully amortizing payment amount. Freddie Mac is a bit more lenient... it allows using 0.5% of the balance if the credit report shows no payment or if the loan is in deferment. FHA loans have their own approach. Currently, FHA uses 0.5% of the balance if the loans are deferred or in forbearance (this was a change from an older 1% rule). VA loans are different still. If a veteran’s student loans are deferred at least 12 months out, VA may exclude them entirely. Otherwise, VA typically counts 5% of the balance divided by 12 (roughly 0.42% per month) as the payment. The details can make your head spin, but the key point is to apply the right rule for the right program. Double-check the latest guidelines for whatever mortgage product you’re working with, so you don’t over- or under-count someone’s student debt.

💼 “Employer Doesn’t Do VOE”

Picture this... your borrower works for a brand-new startup or a huge international firm, and when you send in the Verification of Employment request, the company refuses to fill it out. 😫 It’s more common than you’d think. Some employers (especially smaller startups without a formal HR, or giant corporations with rigid policies) simply won’t complete a VOE form or answer your calls. First, don’t panic, and don’t take it personally! Employers aren’t legally obligated to complete the lender’s VOE form, and they might have their own policy against sharing employee info. The good news is you have options to get the proof you need without that standard form. Here’s a practical rundown of strategies to use when an employer won’t play ball on a VOE.

• Leverage alternative documents (paystubs and W-2s). The easiest workaround is to gather proof of income directly from the borrower. Lenders will generally accept recent pay stubs and prior W-2 forms as evidence of employment. Make sure you get the most up-to-date paystub (within 30 days of application) showing year-to-date earnings. A final year-to-date paystub from last year can also help if needed. In fact, guidelines allow using an IRS Wage and Income Transcript (which is basically the IRS-verified summary of W-2 info) or even the borrower’s final YTD paystub in lieu of an employer’s written VOE, as long as it has all the key details.
• Show direct deposit proof via bank statements. If the employer won’t confirm employment, let the borrower’s bank statements do the talking. Many lenders are comfortable seeing a pattern of regular payroll deposits to confirm the borrower’s job and income. For instance, you can have the client provide 2–3 months of bank statements highlighting the ACH deposits from their company. The amounts and frequency should align with their pay stubs. This is especially useful for gig-economy jobs or startups where formal verification is tough.
• Obtain a written employment letter or contract. If the employer won’t fill out our form, perhaps they’ll provide their own verification letter. Ask your borrower to request an official letter on company letterhead stating their position, hire date, and current salary. Sometimes HR is willing to do this even if they won’t do the lender’s form. Similarly, if the borrower is new to the job, an offer letter or employment contract can serve as proof. A signed offer letter that outlines the terms of employment (start date, salary, etc.), combined with a first pay stub when available, usually satisfies most lenders’ requirements for a new job.
• Use third-party verification services. Many large companies outsource employment verification to dedicated services like The Work Number or Truework. If your borrower’s company is one of them, you can go through that service (with the borrower’s consent) to get the verification. It might cost a small fee, but these services provide an instantaneous report of the person’s employment status, title, and income.

🎯 Quick CE Tip of the Week

🤏 Micro-Goals. Instead of slogging through an entire course in one sitting, set “micro-goals” like completing one video, one quiz, or one section before lunch. Small wins stack up quickly and keep you motivated.

→ Start a Micro Goal Today!

📈 Market Highlight: August Snapshot

🔥 Did You Know? Not much has changed since last week. If you missed last week's market highlight to kick off August, we're keeping it in this week's newsletter. If you already skimmed it last week, you're good to go! Mortgage rates held steady in the high‑6% range as purchase demand cooled and inventory improved across many markets, while regulatory updates (FHA documentation simplifications, the reinstatement of VA partial‑claim foreclosure relief, and changes to medical debt reporting) are reshaping lender requirements and borrower options. Get key insights on rates, borrower sentiment, refinance trends, and notable policy shifts MLOs need to know heading into late summer.

→ View Full Market Highlight

💡 Feedback Welcome!

We'd love your feedback. The lifeblood of any good business is figuring out what their customers truly care about — the best MLOs also learn this about their clients.

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Happy Learning,

— The Empire Learning Team
www.empirelearning.com