Project Report - On The Job - SWMC

On The Job
Project Report
American Housing Mortgage market
Organization: XL Dynamics India Pvt. Ltd.
Submitted By
Name: MOHIT KUMAR
Roll No: PGFA1233
SUBMITTED TO: Dr. Ritika Gugnani
XL DYNAMICS INDIA PVT. LTD
Declaration
I hereby declare that the On Job Training Report entitled "American Housing Mortgage
Market is an authentic record of my own report as a part of my role in the organization from
26th December, 2013 to 28th Feb, 2014 for the award of degree of PGDM (Post Graduate
Diploma in Management), Jaipuria Institute of Management, Noida under the guidance of Dr.
Ritika Gugnani.
Mohit Kumar
Date: 31/03/2014
ii
PGFA1233
Jaipuria Institute of management, Noida
Acknowledgement
A fruitful work is incomplete without paying a word of thanks to all the people who are
directly or indirectly involved in its completion. So I would like to thank my mentor Mr. Ravi
Joya for guiding me through my on the job report.
I would like to thank my faculty mentor Dr. Ritika Gugnani (Faculty JIM, Noida), for guiding
me to complete this project.
I would like to thank a lot to all the staff of XL Dynamics because working with them is just
like a fun and I am learning a lot of things from them.
Mohit Kumar
PGFA1233
iii
Table of Contents
Declaration ................................................................................................................ ii
Acknowledgement ................................................................................................... iii
Chapter-1 ....................................................................................................................5
Company Description ................................................................................................5
Chapter-2 ..................................................................................................................16
Job Description ........................................................................................................16
Chapter-3 ..................................................................................................................25
Analysis of the Job Done .........................................................................................25
Chapter-4 ..................................................................................................................27
Learning Outcomes ..................................................................................................27
Chapter-5 ..................................................................................................................29
Suggestions and Recommendations.........................................................................29
Bibliography.............................................................................................................30
Chapter-1
Company Description
XL Dynamics India Pvt. Ltd. (a part of SWMC or Sun West Mortgage Company) is a private
corporation and is headquartered in Cerritos; CA. XL Dynamics India Pvt. Ltd. was founded in
the year 1992 and incorporated in the year 1998. XL Dynamics India Pvt. Ltd.'s team, which
consists of professionals with Mortgage Banking experience and strong technical knowledge,
laid the foundation for a revolutionary organization - one that has been designed by Mortgage
Bankers for Mortgage Bankers. XL Dynamics India Pvt. Ltd., India started operations in 2002
with its wholly owned office located in Mumbai. XL Dynamics India Pvt. Ltd. India provides an
end-to-end solution to the Mortgage Industry to all our clients, from loan processing through
secondary market portfolio management. Our web-based loan origination and servicing systems
is one of the most advanced technology platforms in the industry. Our technology platform has
been fully developed in house and is fully customizable, secure, scalable and reliable.
XL Dynamics India Pvt. Ltd., India conforms to international standards to foster an efficient and
contemporary work environment. XL Dynamics India Pvt. Ltd., India is a customized blend of
onshore and offshore capabilities. These are tailored and coordinated to meet clients' specific
business goals while ensuring that the right resources and skills are available at desired locations.
XL Dynamics India Pvt. Ltd.'s implementation and delivery model leverages capacity,
capabilities, and competencies across geographies to achieve optimal customer satisfaction.
XL Dynamics India Pvt. Ltd. - The Platform for Today - The Pathway to Tomorrow
LOCATION
XL Dynamics India Pvt. Ltd. is located in the planned satellite township of Mumbai, Navi
Mumbai, at Millennium Business Park. Millennium Business Park (MBP) is a government
owned IT Park and is one of the biggest industrial hubs in the Navi Mumbai Area.
Millennium Business Park is located in the suburb of Mahape. This is located near Ghansoli
Railway station on the Thane - Vashi Railway on the Harbor route of Mumbai.
Millennium Business Park (MBP) is well connected to Thane, Kalyan, Vashi, Panvel and other
Mumbai suburbs. The closest railway station to Mahape is Ghansoli.
XL Dynamics India Pvt. Ltd.

Block No. 301/302
Building V, Sector II
Millennium Business Park
Mahape, Navi Mumbai
India. 400 701
Phone 91-22-27781211
Email: contact@xldynamics.co.in
SERVICES
XL Dynamics India Pvt. Ltd. provides end-to-end solutions to the US Mortgage Banking
Industry. Following are the services offered by XL Dynamics(a) IT solutions to the Mortgage Industry with its cutting-edge Loan Origination Technology;
(b) Operational Support to Mortgage Industry Brokers, Lenders, Servicers and Investors;
(c) Expert analysis and risk assessment of complex financial products;
(d) Execution of complex trades in the capital markets;
(e) Trading and hedging strategy and support;
(f) Financial accounting services;
(g) Regulatory compliance and audit services;
(h) Quality Control services and
(i) Securitization of loan instruments.
FUNCTIONS
1. Pre-Risk Analysis
2. Risk Analysis Quality Control
3. Hedging Analysis
4. Collateral Security Instruments Review and Approval
5. Documents Preparation
6. Funding Audit & Process QC
7. Loan Boarding
8. Loan File Coordination
9. Loan File Coordination Quality Control
10. Loan Settlement Analysis and Quality Control
11. Servicing Quality Control
12. Secondary Market
13. Broker Approval and Support
14. Shipping Support
Pre-Risk Analysis
The Pre-Risk Analysis Team assesses the risk associated with complex financial products being
offered to customers by the client by comparing the information in the system with the loan
documents submitted by the client. They analyze documents such as property title reports,
appraisals, income and asset statements, etc. They provide the Risk Analysis Team a summary of
their findings at the client's location in US. This helps the clients to make a better credit decision.
Risk Analysis Quality Control

The Risk Analysis Quality Control Team at XL Dynamics India Pvt. Ltd. audits the work
completed by the Loan Boarding, Pre-risk Analysis and Risk analysis Team. The functions
involve reviewing the loan decision sent out by the Risk Analyst in US. Once the audit is

complete, the findings are sent to the Risk Analyst to take any corrective action, if necessary.
They also verify the system for accuracy of the information in the system.
Hedging Analysis
Hedging Review Team assists the Capital Markets team in managing the financial risk in the
company's mortgage originations. The team performs the daily audits of the locked pipeline to
ensure only active loans are hedged for the financial risk and the sales reporting to the hedging
vendor.
Collateral Security Instruments Review and Approval

The Collateral Security Instruments Review and Approval team ensures that the original loan
security instruments are returned to the Client after them being recorded by the County where the
collateral is located. This involves following up with the Settlement Agents and Attorneys to
ensure the security instruments were sent appropriately to the county for recording. They then
follow up to retrieve the documents once the county has recorded them and review the
instruments to ensure that a lien was properly recorded in the Client's Name and for the correct
amount.
Documents Preparation
The document preparation team ensures that accurate loan data is entered in the document
preparation software, by ensuring the Borrower and Property information is accurate. They
update the fees in the system match the Settlement Statement and ensure all other data in the
Document Preparation software does not have any clerical errors. They prepare packages that
need to be sent for attorney approval whenever necessary.
Funding Audit & Process QC

This team verifies and audits the loans to ensure that all the loans that are funded are in
compliance and without any defects or qualify control issues. This is done in three stages - The
first audit is done before the loan is funded, the second audit is completed after the loan is funded
and the final audit is completed for all the processes in loan's life cycle right from loan

origination to funding. All relevant loan documents are reviewed and verified to ascertain that
the loan is in compliance with Federal, State & Investors guidelines. As a part of Process QC,
they review each process of loan cycle for every loan to verify if the loan was in compliance at
each process and provide necessary feedback to the respective teams in case of any qualify
and/or compliance issues.
Loan Boarding
The Loan Boarding department at XL Dynamics India Pvt. Ltd. ensures that loans are accurately
set up into the ERP systems of our clients by thoroughly reviewing the loan files submitted.
After accurately entering the Loan Information in the ERP system, certain important compliance
verifications are done to ensure the loan was originated in compliance and may be submitted for
approval.
Loan File Coordination

The Loan File Coordination Team provides clerical support to the Relationship Manager by way
of splitting and uploading documents to the file storage location. They also assist in ensuring the
documents are sent to the Risk Analysts for review to ensure loan conditions are promptly signed
off.
Loan File Coordination Quality Control

The Loan File Coordination Quality Control Team audits the activities completed by the
Relationship Manager by checking that the timely response was sent by the Relationship
Manager to all Clients or not. They also review that the appropriate comments justifying
condition resolutions were added in the system. When the loan is cleared for closing they ensure
that the process checklists are filled correctly with respect to the data in the system and loan
documents uploaded in the file storage location.
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Loan Settlement Analysis and Quality Control
The Loan Settlement Analysis and Quality Control Function at XL Dynamics India Pvt. Ltd.
ensure that the Closing Agent or Attorney has disbursed funds received from the Client as per the
Settlement Statement. This involves reviewing the Settlement Statement prepared by the Closing
Agent or Attorney and verifying all fees charged. If non- allowable fees are found, these are
recommended to the Funding Team in the US to request a refund from the service provider.
Servicing Quality Control

Servicing refers to loan maintenance once the funds are disbursed to the Borrower. The quality
control function is involved in the internal audit of various servicing functions like Monthly
Payment Collection, Default Management, Handling Customer Service Requests, Loss
Mitigation efforts and forbearance, Foreclosure, REO and Claims.
Secondary Market
This team studies the secondary market and prepares the competitive daily rate sheets for clients
and is also responsible for locking the interest rate for lenders and its affiliated clients in the ERP
system. This is done through thorough analysis of secondary market where mortgages are bought
and sold and preparing competitive rate sheets as per the market fluctuation in timely manner
and distributing the updated rate sheets to the client and client's affiliates. They publish the
updated rate sheets in timely manner to client's website whenever there is any change in the
market and integrating the updated rate sheet in the ERP systems to ensure that the most recent
and updated rates are available to the client and client's affiliate..
Broker Approval and Support

The Broker Approval and Support looks after support functions to the B2B customers of the
Client. They review the Business Licenses and Approvals in the state where the B2B Customer's
offices are located. They review the company's status in the Better Business Bureau to verify if
the B2B Client has any customer complaints against it and sending it to the Account's Executive
for review. They also handle B2B customer service queries and their resolution. They also
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perform Annual review and the recertification requests and send them to the Broker Company.
They also facilitate User ID Creation / Deletion of Ids.
Shipping Support
The shipping support Team is responsible for the verification of the loan documents as per the
investor requirement, preparing the document packages and sending them to US Shipping Team
in US which will be further sent to the investors.
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Types of Mortgages Loan offered by company

XL Dynamics Pvt. Ltd. offers variety of loans that allow borrowers to choose what is best for
them. Whether they come through our mortgage loan officers (LOs) or through one of our broker
partners, Sun West is committed to ensuring that they obtain a mortgage that is affordable and
fulfill HUD guidelines. For instance, in case of a refinance, we will analyze the mortgage
transaction to ensure that there is a positive benefit to borrowers by way of a reduction in
payment or they can receive cash(Cash Out Refinance) that can be used to consolidate debts or
for renovation of their home.
FHA (Federal Home Administration) programs are the most secure and easy because they are
secured by FHA. If borrower is from a veteran family then he/she may be able to take advantage
of VA benefits for a purchase loan or an interest rate reduction refinance program from the
Department of Veteran Affairs. For borrowers who meet certain maximum income limits in rural
zone may qualify for loan programs guaranteed by the USDA-RD (United States Department of
Agriculture - Rural Development).
There are own built Loan Calculators to estimate monthly payments, affordability, or your
refinance options. There are a number of ways to approach an affordability analysis, and these
calculators allow you to assess the effects of different variables when buying a home.
Reverse Mortgage (HECM)

This special type of home loan lets homeowners convert a portion of his or her home equity into
cash providing for a secure financial future. Without selling the home, without giving up title, or
without taking on a new monthly payment senior homeowners have the benefit of maintaining a
lifestyle they have earned. The money from the reverse mortgage provides seniors with the
financial security they need to fully enjoy their retirement years.
Anyone aged 62 and older may choose to consider a reverse mortgage insured by the FHA as a
means to pay off a mortgage or convert the equity in their homes to a positive cash-flow. This
mortgage is also commonly referred to as the Home Equity Conversion Mortgage (HECM,
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Pronounced as heckum). In this loan borrowers remain title holders of home while benefitting
from the equity in their home. From loan calculator we can estimate how much mortgage you
may be able to obtain through a Reverse Mortgage.
Wholesale Lending
Company is an FHA, VA and USDA approved full service mortgage banker in business since
1980. With a fully automated, totally integrated, and internet-based system (SunSoft) to carry out
all lending functions, SWMC's technology empowers its clients with up-to-the-minute status on
their loans at anytime from anywhere through the internet. SWMC is an approved FHLMC,
FNMA, GNMA, HUD, and VA lender. It is also an approved HUD Reverse Mortgage
Lender/Servicer. It offers a wide range of jumbo and conventional loan products.
Correspondent Lending
Company is an FHA and VA approved full service mortgage banker. It is also an approved HUD
Reverse Mortgage Lender/Servicer. It offers correspondent customers a complete range of
mortgage products including jumbo and conventional loan products that satisfy the demands of
hard-to-win customers and face of a fiercely competitive mortgage market. Correspondent
Lending Program is built around the belief that customer service is vitally important to success in
the secondary market. If you're not receiving the attention and response times you deserve from
your current investors, you should experience what our lenders have come to expect:
A. Personalized service
B. Operational Support (Outsource services to us)
C. Accessible staff
D. Fast funding
E. A commitment to technology
F. Consistent & aggressive pricing on the products you need the most
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Basically SWMC offers three types of loan that are following:

1. PURCHASE PROGRAM
2. REFINANCE PROGRAM
3. HOME IMPROVEMENT PROGRAME
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Chapter-2
Job Description
COMPANY: XL Dynamics India Pvt. Ltd.
POSITION: Pre-underwriter
TEAM: Pre-Underwriting
OBJECTIVE OF INCOME ANALYSIS
To verify income used to qualify the borrower for the mortgage is stable.
To verify two year income history of the borrower.
To detect employment gap.
To analyze the future trend of income.
To verify that income documents are within SWMC guidelines and follows
HUD guidelines.
To verify and validate source of income: business income, rental income,
pension income or social security income.
About income analysis for mortgage loans:

Mortgage underwriting in the United States is the process a lender uses to
determine if the risk of offering a mortgage loan to a particular borrower under
certain parameters is acceptable. Most of the risks and terms that underwriters
consider fall under the three Cs of underwriting: credit, capacity and collateral.
To help the underwriter assess the quality of the loan, banks and lenders
create guidelines and even computer models that analyze the various aspects of
the mortgage and provide recommendations regarding the risks involved.
However, it is always up to the underwriter to make the final decision on whether
to approve or decline a loan.
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Capacity refers to the borrowers ability to make the payments on the loan. To
determine this, the underwriter will analyze the borrowers employment, income,
their current debt and their assets.
While reviewing the borrowers employment, the underwriter must determine the
stability of the income. People who are employed by a company and earn hourly
wages pose the lowest risk. Self-employed borrowers pose the highest risk, since
they are typically responsible for the debt and well-being of the business in
addition to their personal responsibilities. Commission income also carries similar
risks in the stability of income because if for any reason the borrower fails to
produce business, it directly influences the amount of income produced. Usually if
self-employment or commission income is used to qualify for the mortgage, a two
year history of receiving that income is required. Although a bonus (sometime it is
indicated as "incentive pay" by many corporations) is part of the paystub income, a
two-year employer verification is also required.
Documentation of the income also varies depending on the type of income. Hourly
wage earners who have the lowest risks usually need to supply paystubs and W2 statements. However, self-employed, commissioned and those who collect rent
are required to provide tax returns (Schedule C, Schedule E and K-1). Retired
individuals are required to prove they are eligible for social security and document
the receipt of payments, while those who receive income via cash investments
must provide statements and determine the continuance of the income from those
payments. In short, the underwriter must determine and document that the income
and employment is stable enough to pay the mortgage in years to come.
Furthermore, underwriters evaluate the capacity to pay the loan using a
comparative method known as the debt-to-income ratio. This is calculated by
adding the monthly liabilities and obligations(mortgage payments, monthly credit
and loan payments, child support, alimony, etc.) and dividing it by the monthly
income. For an example, if a borrower has a $500 car payment, $100 in credit and
loan payments, pays $500 in child support and wants a mortgage with payments
$1,000 per month, her total monthly obligations is $2100. If she makes $5,000 a
month, her debt to income ratio is 42%. Typically the ratio must be below
anywhere from 32% for the most conservative loans to 65% for the most
aggressive loans.
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Assets are also considered when evaluating capacity. Borrowers who have an
abundance of liquid assets at the time of closing statistically have lower rates
of default on their mortgage. This is termed as reserves by the industry. For
example, with a total mortgage payment that is $1,000 a month and the borrower
has $3,000 left after paying the down payment and closing costs, the borrower has
three months reserves. Underwriters also look closely at bank statements for
incidences of NSF's (non-sufficient funds). If this happens regularly, this is a red
flag with the underwriter because this indicates that the borrower doesn't know
how to manage his or her finances.
When a borrower receives a gift for the down payment the assets need to be
verified. Any large deposits, in fact, showing on bank statements will require an
explanation from the borrower.
Furthermore, if the borrowers employment is interrupted for any reason, the
borrowers would have enough cash in reserve to pay their mortgage. The amount
of cash reserves is qualified by the number of payments the borrower can make on
his or her total housing expenditure (the total of the principal and interest
payment, taxes, insurance, homeowners insurance, mortgage insurance, and any
other applicable charges) before the reserves are completely exhausted. Often
lenders will require anywhere from two to twelve months of payments in reserve.
If a borrower is applying for an FHA (Federal Housing Administration), there are
no reserves required.
The most typical asset is a borrowers checking and savings account. Other sources
include
retirement
funds
(401K, Individual
Retirement
Account), investments (stocks, mutual funds, CDs) and any other liquid source of
funds. Funds that have penalties for withdrawing must be considered
conservatively and are evaluated at 70% or less of their value. Accounts such
as pensions and other accounts and personal property that lack liquidity may not be
used as assets.
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Automated underwriting:
Fanie Mae and Freddie Mac are the two largest companies that purchase mortgages
from other lenders in the United States. Many lenders will underwrite their files
according to their guidelines, but to ensure the eligibility to be purchased by
Fannie Mae and Freddie Mac, underwriters will utilize what is called automated
underwriting. This is a tool available to lenders to provide recommendations on the
risk of a loan and borrower and it provides the amount of documentation needed to
verify the risk.
It is important to remember that the approval and feedback is subject to the
underwriter's review. It is also the responsibility of the underwriter to evaluate the
aspects of the loan that is beyond the scope of automated underwriting. In short, it
is the underwriter that approves the loan, not the automated underwriting.
On the other hand, automated underwriting has streamlined the mortgage process
by providing analysis of credit and loan terms in minutes rather than days. For
borrowers it reduces the amount of documentation needed and may even require no
documentation of employment, income, assets or even value of the property.
Automated underwriting tailors the amount of necessary documentation in
proportion to the risk of the loan.
Approval decisions:
After reviewing all aspects of the loan, it is up to the underwriter to assess the risk
of the loan as a whole. Each borrower and each loan is unique and many borrowers
may not fit every guideline. However, certain aspects of the loan may compensate
for the lack in other areas. For an example, the risk of high LTVs can be offset by
the presence of a large amount of assets. Low LTVs can offset the fact that the
borrower has a high debt to income ratio and excellent credit can overcome the
lack of assets.
In addition to compensating factors, there is a concept known as layering of risk.
For an example, if the property is a high rise condo, occupied as an investment,
with a high LTV and a borrower who is self-employed, the cumulative effect of all
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these aspects yields higher risk. Though the borrower may meet all requirements
under the guidelines of the loan program, the underwriter must exercise caution.
There is an old saying in lending: If your portfolio does not have one foreclosure,
you are not accepting enough risk. Underwriters should review a loan from
a holistic point of view; otherwise they may turn down a loan that is high risk in
one aspect but low risk as a whole.
Income documents:
W2 Form
The form that an employer must send to an employee and the IRS at the end of the
year. The W-2 form reports an employee's annual wages and the amount of taxes
withheld from his or her paycheck.
Every employer engaged in a trade or business who pays remuneration, including
noncash payments of $600 or more for the year (all amounts if any income, social
security, or Medicare tax was withheld) for services performed by an employee
must file a Form W-2 for each employee (even if the employee is related to the
employer) from whom:
Income, social security, or Medicare tax was withheld. Income tax would have
been withheld if the employee had claimed no more than one withholding
allowance or had not claimed exemption from withholding on Form W-4,
Employee's Withholding Allowance Certificate.
1040 Form
The standard Internal Revenue Service (IRS) form that individuals uses to file their
annual income tax returns. The form contains sections that require taxpayers to
disclose their financial income status for the year in order to ascertain whether
additional taxes are owed or whether the taxpayer is due for a tax refund. 1040
forms
need
to
be
filed
with
the
IRS
by
April
15.
20

Also known as the "U.S. individual income tax return" or the "long form". While
the 1040 form is composed of only a couple of pages, taxpayers may need to fill
out extra sections called schedules. For example, if a taxpayer received dividends
that totaled more than $1,500, he or she will need to fill out Schedule B, which is
the
section
for
reporting
interest
and
ordinary
dividends.
There are several variations of the 1040 depending on your individual tax situation.
For example, taxpayers that possess very simple taxation circumstances can fill out
the Form 1040EZ, which is a less comprehensive form.
Verification of employment (VOE)

Verification of Employment is a process used by banks and mortgage lenders in
the United States to review the employment history of a borrower, to determine
the borrower's job stability and cross-reference income history with that stated on
the Uniform Residential Loan Application (Form 1003). Lenders require complete
VOE declaring all positions held for the last two years of employment history.
Pay stub
A pay stub or paystub is a document that an employee receives as a notice that the
direct deposit transaction has gone through. It is a piece of paper that is given to an
employee with each paycheck and that shows the amount of money that the
employee earned and the amount that was removed for taxes, insurance costs, etc
Tax transcripts
A tax return transcript shows most line items from your tax return (Form 1040,
1040A or 1040EZ) as it was originally filed, including any accompanying forms
and schedules. In most cases, your transcript includes all the information a lender
or government agency needs. It does not show any changes you, your
representative or we made after you filed. Ask your financial institution to be sure
a return transcript will meet their requirements. The tax return transcript is
generally available for the current and past three years.
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We can also provide a tax account transcript. The tax account transcript, which is
also free, shows basic data from your return, including marital status, type of return
filed, adjusted gross income and taxable income. It also includes any adjustments
you or we made after you filed your return. Like the tax return transcript, the tax
account transcript is generally available for the current and past three years.
W2 Transcripts
1. Wage and income transcripts show earnings reported to IRS by payers.
Income documents are derived from information returns, including, but not
limited to:
W-2 Series Forms
Form W-3, Transmittal of Wage and Tax Statements
2. This transcript is ordered when the taxpayer wants income documentation.
Some reasons may include, but are not limited to:
Answer a notice
File their tax return
Personal record of income
Employment verification
3. The information displayed on the wage and income transcript contains, but
is not limited to::Wage and salary income, Federal income tax withholding,
Mortgage interest paid, Distributions from retirement income, Gross
proceeds from stock/bond transactions, Gross income from non-employee
compensation, Interest income and Dividend income.
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Process of Underwriting:
As an Underwriter we (underwriters) have to take care of major responsibilities which are related
to loan processing. Underwriting means a process that a mortgage lender bank, insurer or a
investment house uses to assess the eligibility of a customer to receive their products (equity
capital, insurance, mortgage, or credit). Overall Process In loan processing in the company
1) Loan boarding Team
2) Pre Underwriting Team
3) Underwriting Team
4) RM Team
5) Docs Team
6) Funding Team
7) Shipping Team
Roles and Responsibilities

The job done by me as a financial analyst in XL Dynamics India Pvt. Ltd. is totally different
from the financial analyst of the other finance companies. It is because XL Dynamics India Pvt.
Ltd. is in mortgage industry so I as a financial analyst do more of compliance analysis over here.
I use to work on test loan files because I am still in training. But I go through the same process
which is followed by a pre-underwriter on live loans. There are number of checklists and
conditions and for these checklists and conditions there are documents which needed to be there
to fill checklist and resolve condition. If correct documents are not provided by broker, loan
cannot be processed further so as a pre-underwriter I need to find out that which document is not
present in loan file and the provided documents are fulfilling the HUD, FHA and SWMC
guidelines. Below are the major roles and responsibilities which are performed by me
1. We have to timely check that the timely response was sent to the Relationship Managers or
UW RMs to call Clients and inform them about discrepancy and shortcoming in loan file and ask
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them for correct documents. We also review that the appropriate comments justifying condition
resolutions were added in the system for the documents which are missing in the loan docs or for
the replacement of incorrect documents.
2. To make sure that risk is mitigated before the preparation of loan documents.
3. To remain in contact with the UW RMs and broker/client till the loan not cleared to close.
4. To make sure information is flowing through each department in the company for the loan.
5. To push the loan toward the funding as soon as possible.
6. To make sure broker/client is providing documents that are needed for closing the loan.
7. To make sure RMs is regularly calling broker/clients and borrower for the documents.
8. To follow up the mails regularly to keep ourselves updated.
9. To make sure loan is being properly handed over to docs drawing department after submitting
to prior to Doc or PTD requested.
10. When the loan is cleared for close then we ensure that the process checklists are filled
correctly by UW-RMs with respect to the data in the system and loan documents uploaded in
the file storage which is called Broker Inbox or BI.
11. To make sure loan is being dispatched for borrower to sign as soon as possible so that loans
queue could be effectively handled by ARM team for better quality and satisfactory service of
borrowers.
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Chapter-3
Analysis of the Job Done
The job done by me as a financial analyst in XL Dynamics India Pvt. Ltd. is totally different
from the financial analyst of the other finance companies. It is because XL Dynamics India Pvt.
Ltd. is in mortgage industry so I as a financial analyst do more of compliance analysis over here.
I use to work on test loan files because I am still in training.
Working as a pre-underwriter in the company for two months I have learned and understand many
things which built a firm base for me to go further in the company.
Below are the few points which I have done and come to know
1. There are so many types of loan on which we work
Purchase loans
HECM Purchase loans
Refinance loans
FHA loans
Conventional loans
USDA
Veteran Affairs (VA) loans
2. Turnaround time on loan to get fully executed depend upon the origination type of loan, because
everything get changed as per the origination type. Following are the origination types of loan
B** Wholesale loans (The loan is originated by Broker)
A** Retail loans (The loan is Originated by SWMC)
C** Correspondent loans (The loan is purchased from correspondents)
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W** Warehouse loans (The loan is originated by Other lenders and sold to us)
S** Servicing loan (The loan on which we just do servicing)
3. We work at night, so we use o interact with U.S staff, Broker/client and borrowers.
4. I come to know how to mitigate and reduce risk by using appropriate underwriting techniques and
conditions which are being imposed on loans for mandatory checkpoints to close the loan.
5. I come to know how to identify borrowers credibility whether the borrower would be able to pay
regularly installments or not and if not then how we ask for more legal documents (e.g. bank
statements, any liens if have, other credits) to verify whether the borrower would be able to pay in
the future.
6. If as a result of my fault or delay in the loan process broker cancels the loan with company this
would result as loss for the company as well as for me as it would definitely impact the overall
growth of mine.
7. Even a small mistake could result in a big loss for the company .So I could say it a more technical
and risky job.
8. We decide when to sell the loans as MBS or mortgage based security to big banks like WELLS
FARGO.
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Chapter-4
Learning Outcomes
As I have mentioned earlier that the job done by me as a financial analyst in XL Dynamics India
Pvt. Ltd. is totally different from the financial analyst of the other finance companies and I have
also mentioned that XL Dynamics is in mortgage industry. So I learned a totally new concept
over here. During these two months on the job, I have learned lot of things, which are related to
mortgage industry. Following are the points that I have learned on job are
Learned about AML- Anti Money Laundering and passed Anti Money Laundering quiz
which is a compulsory requirement for working in XL Dynamics or any US finance
company.
I worked on following mortgage tools.
SunSoft
Financial(Mortgage) Calculator
MOL
DU- Desktop Underwriter
LP- Loan Prospector
Applied concept of U.S Mortgage basics on test loans which I had learned from the initial
training assessment for 10 days. Basics learned in training helped me to apply the right
concept to review the loans in easier way.
I come to know that how the U.S mortgage industry works. What the different types of loans
and loan programs are there in the U.S.
Learned how to analyze a credit report of any person.
Applied the concept of credit report, property valuation and appraisal.
I learned how to add conditions and resolve/ waive them. It means how to resolve particular
issue with the use of documents which is provided by the broker/client.
27
Applied concept of conditions in the SunSoft software.
Leaned to work on the MOL software.
Leaned to work on the documents which is sent by the broker at night and with knowledge of
expertise learned how and where those documents should be processed or used to resolve
condition.
I learned to work in hectic schedule.
I prepared myself to work in night. For some days it was unbearable to awake at night and
work efficiently but now I do not find any difficult to remain active during night shift.
28
I learned how to handle situation efficiently.
I learned to remain efficient and active during the 9 hours to 11 hours shift.
Chapter-5
Suggestions and Recommendations
After working in XL Dynamics India Pvt. Ltd. or I should say SWMC (Because it is the parent
company and all the operations are controlled by it) for 2 months, there are some suggestions
which I would like to give to the company. Following are the suggestions1. Training duration of new comers is very short (10-12 days only) but content which they
deliver in the training is very big. It should be at least three weeks long so that new comers get
enough time to understand the concept.
2. Conditions should be grouped into different groups as per origination types so that each of the
issue of different loan products could be handled separately and executed quickly and efficiently.
3. There are so many issues in the SunSoft software of the company. Sometimes it works
properly but sometime it does not work which result in data loss. Some time it works very slow.
This issue needs to be fixed as soon as possible so the work could be handled efficiently and
quickly.
4. There should be more coordination of work between the teams. As I found that because of
other teams loan get stuck for few days. If this problem is resolved then speed of the processing
of the loan could be enhanced.
5. In spite of using Libra Office which is very slow, they should use MS Office package because
it is easy, fast, reliable and convenient and we are familiar with it also. If they do this then the
speed of reviewing documents could be improved,
29
Bibliography
1. http://www.firstresearch.com/Industry-Research/Mortgage-Banking.html
2. https://www.fas.org/sgp/crs/misc/R42995.pdf
3. http://www.swmc.com/swmc/
4. http://www.xldynamics.com/
5. http://www.xldynamics.co.in/
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On The Job

American Housing Mortgage market

Organization: XL Dynamics India Pvt. Ltd.

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

XL Dynamics India Pvt. Ltd.

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Risk Analysis Quality Control

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Collateral Security Instruments Review and Approval

Funding Audit & Process QC

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Loan File Coordination

Loan File Coordination Quality Control

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Servicing Quality Control

Broker Approval and Support

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Types of Mortgages Loan offered by company

Reverse Mortgage (HECM)

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Basically SWMC offers three types of loan that are following:

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

OBJECTIVE OF INCOME ANALYSIS

About income analysis for mortgage loans:

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Verification of employment (VOE)

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD

Roles and Responsibilities

Jaipuria Institute of management, Noida

XL DYNAMICS INDIA PVT. LTD