Volume

1

3L’s Learning Services
Business Communications

Business Writing in the Mortgage Industry
Business Communications
Underwriting Training Manual

( 3L’s Training Services
12345 Main Street • Suite 100
Atlanta, GA 30303
Phone 404.555.0167 • Fax 404.555.0168

Table of Contents

Introduction 1 Training-at-a-Glance 1
The Writing Process 2
Planning Business Messages 3-9 Defining Your Purpose 3-4 Understanding Your Audience 4-5 Gathering Information 6-7 Establishing a Good Relationship 8-9
Writing Business Messages 10-16 Organizing Your Message 10-13 Understanding the Need for Organization 14 Composing and Shaping Your Message 15-16
Answer Key 17-20 Lesson 2a 17 Lesson 2b 18 Lesson 2c 18-19 Lesson 3a 19-20

Introduction

W elcome to the Underwriting Training Course. This course will help you to determine the relevance of effective business communications in your Underwriting job.

Good communication skills are important in any business because these skills help the organization succeed. “Only through effective communication can you anticipate problems, make decisions, coordinate work flow, supervise others, develop relationships, and promote products and services” ( Thill and Bovee 4).

While only a portion of the Underwriter’s responsibility is to write correspondence to various audiences such as mortgage companies and the general public, you must be able to write effective business messages because you are helping to shape the reputation of the U.S. Department of Housing and Urban Development. (HUD). As a public servant, the general public as well as mortgage companies depend on your expertise in the area of FHA. Therefore, you must be able to write effective letters. The ability to communicate in writing is a valuable asset, and one that can be used to help you advance in your career.

This writing workshop has been developed and created for the needs of Underwriters in The Processing and Underwriting Division. This workshop focuses on correspondence, using exercises based on employees’ writing samples. Through this writing workshop, Underwriters will develop their writing skills to assist them in their work.

Training -at- a- Glance
Lessons in this manual are organized according to following categories and goals.

( Learning Objective
1. Valuable Information
Learning Objective(s): Outlines the content of each lesson

Valuable Information: Presents various writing concepts

( Test your Knowledge
Test your Knowledge: Practice exercises in a variety of formats

Lesson

1

The Writing Process

( Learning Objective

After studying this lesson, you will be able to

1. Define the writing process

1. Valuable Information

The Writing Process is the process writers undergo when composing written documents. Although you may not be aware of it, you have used the writing process to compose correspondence. “Whatever related thinking, researching, drafting, revising, editing you do from the moment you receive the recipient’s letter from the moment you complete it --these steps taken together make up the writing process (King). While these steps may vary with each person, there are three basic steps in the writing process: 1) Planning, 2) Writing, and 3) Completing. Following these steps will help you to write a more effective message. Each of the steps in the writing process will be further explained in th next lessons..

[pic]

Figure 1: The Three-Step Writing Process Reprinted from Excellence and Business Communication

Lesson

2a

Planning Business Messages

( Learning Objectives

After studying this lesson, you will be able to

1. Explain the importance of defining the purpose

2. Justify the importance of analyzing the audience and list four ways of developing an audience profile

(Valuable Information

Planning is the first and most important step in composing a business message. Before you can begin writing, it’s important to ask yourself these four questions: 1) what is being asked of me?, 2) what is my purpose?, 3) who is my audience?, and 4) what information will my audience need to know?

Defining Your Purpose

2. Valuable Information

All business messages have two purposes: general and specific. The General Purpose is simply the overall purpose of the document. Your general purpose may be to inform or to persuade. In some messages, you may have to inform and persuade. To help define your Specific Purpose, “. . . ask yourself what you hope to accomplish with the message and what your audience should do or think after receiving this message” (Thill and Bovee 96). Once you have determined your purpose in writing the message, you will need to analyze your audience.

For a business message to be effective, its purpose most be known. Read the following sentence. Notice that the purpose is straightforward and specific.

1. A letter responding to a customer’s complaint that a sales contract was less than the amount at which the loan closed.

General Purpose: To inform Specific Purpose: To inform the customer about the review of his/her case.

2. Test your knowledge

General/Specific Purpose: For each of the following communication tasks, state the general and specific purpose. (See answer key, page 17)

1. A letter to a mortgage company who refuses to pay the principle reduction of a property.

2. A letter explaining to a customer that FHA is not responsible for the condition of an existing home.

3. A letter responding to a customer’s question on how to qualify for a FHA loan.

Understanding Your Audience

( Valuable Information

Before you begin writing correspondence, you will have to learn about the members of your audience or readers, so that you can adjust the message to their needs (See Figure 2). Knowing your audience “. . . will indicate which material you’ll need to cover and how to cover it” (Thill and Bovee 19). In analyzing your audience, you are similar to a detective because you have to obtain information to aid you in your task of writing letters.

[pic] FIGURE 2 Audience Analysis Reprinted from Dr. Carol Smith White’s Communication Strategy Worksheet

( Test your Knowledge

Audience Profile: For each sentence, write a brief answer to these three questions: Who is my audience? What do I know about him/her/them? What is my audience’s general attitude towards my subject? (See answer key, page 17)

1. A letter from an anonymous source complaining about a mortgage company’s violation of HUD’s rules and regulations

2. A request (to HUD) for information on affordable homes in Savannah, Georgia

3. A request (to AAA Mortgage) for copy of borrower’s credit report

Lesson

2b

Planning Business Messages

( Learning Objective

After studying this lesson, you will be able to

1. Explain the importance of gathering information

Gathering Information

(Valuable Information

“The key to satisfying your audience’s information need is finding out what questions your audience has and then providing answers that are thorough, accurate and pertinent” (Thill and Bovee 99). In most of the letters you receive, the audience’s information needs are specified. However, if you are unclear with the request, you should contact the requester to define his or her need more clearly.

You will need to gather information to communicate to your audience. Because you are writing brief messages, informal methods of gathering information will be sufficient for most of these tasks. Informal methods of gathering information might be reading company documents such as HUD’s handbooks and/or discussion with your supervisor or colleagues. A rule of thumb is to double check all sources before sending out any information.

Once you have defined your specific purpose, be sure to provide answers that are thorough, accurate and relevant. To test the thoroughness of your letter, review your letter and check to see if your document answers who, what, when, where, and how (Thill and Bovee 99). In responding to letters, you should only provide relevant information, knowing your audience’s background will help you to decide what information is pertinent.

3. Test your Knowledge

Necessary Information: You are responsible for writing two sets of letters explaining to two different mortgage companies the rules to doing business with FHA: one letter is for a reader who has little knowledge on FHA and the other letter is for a reader who is generally familiar with FHA mortgage insurance’s rules, but still has a few questions. Briefly explain how your two audiences affect your letters. For instance, how would you write the two letters differently and what are the audience’s need for the information? (See answer key, page 18)

Lesson

2c

Planning Business Messages

( Learning Objective

After studying this lesson, you will be able to

1. Discuss two ways you can establish a good relationship with your audience

3. Valuable Information Establishing a Good Relationship

When you write any message, it is important to do more than convey information. You have to establish a good relationship. Believe it or not, all companies depend on and need customers to succeed. Some ways of establishing good relationships in your business messages are to make use of the “you” attitude and emphasize the positive. These methods can be seen as persuasive tool because you are using these tactics to maintain a relationship with your audience.

4. Valuable Information

The “You” Attitude: Effective business messages are always centered on the audience. When writers focus directly on themselves or the company, the business is seen as selfish. While the “you” attitude is more than replacing pronouns, a good rule of thumb is to avoid using pronouns such as I, me, mine, we, us, and ours. In other words, use you or yours when appropriate.

Test your Knowledge

The “You” Attitude: Rewrite these sentences to reflect the audience’s viewpoint. (See answer key, page 18)

1. We request that you provide the information to the Processing and Underwriting Division within 30 days of receiving this letter.

2. Our ability to provide a more favorable response is limited since the complaint did not provide any specific information.

3. We are requiring that future files submitted for insurance endorsement comply with FHA regulations and guidelines.

5. Valuable Information

Positive Language is important in any business message. It is one of many ways to establish and maintain a relationship with the customer. In using positive language, you should “explain what you have done, what you can do, and what you will do- not what you haven’t done, can’t do, or won’t do” (Thill and Bovee 109).

You can say what you mean, and do it positively! Read the following phrase and sentence. What are the differences between the two phrases and sentences?

1. Cheaper Rates VS. Affordable Rates

2. You are not eligible for FHA insurance. VS. To be eligible for FHA insurance, you will need to send in the following documents.

5. Test your Knowledge

Positive Language: Revise these sentences to make them sound more positive. (See answer key, page 18-19)

1. The Department advises Fargo Home Mortgage to make note of the deficiencies and endure these items will be addressed in the future prior to submitting loans for FHA insurance.

2. Copies faxed multiple times which result in illegible documents remain unacceptable submissions for FHA insured mortgage.

3. You failed to supply HUD with the following information:

Lesson

3a

Writing Business Messages

( Learning Objectives

After studying this lesson, you will be able to

1. Explain why good organization is important to the writer as well as the reader

2. Summarize the process for organizing business messages effectively

Valuable Information

Writing is the second step in composing a business message. Writers spend approximately 15% of their time in the writing stage. In this stage, you will need to organize the information you gathered in the planning stage, and then begin composing your first draft. (These steps are discussed in lesson two.) Often writers confuse this stage with the completion stage. One of the biggest mistakes made in this stage is that writers believe that the drafted work is a finished product. The writing stage is when you transform your thoughts to words, “. . . create sentences and paragraphs, and select illustrations and details to support your main idea” (Thill and Bovee 94).

Organizing Your Message

(Valuable Information

Now that you have learned that good organization is necessary in any business message, you will need to know how to organize your message. Because your audience will probably be neutral, neither please nor displease with your message, it is best to use the direct approach. To organize a direct message, you need 1) to clearly state the main idea, 2) provide all necessary details to support the main idea, and 3) close cordially repeating any specific action (depending on your message, it may not be necessary to state the specific action).

In organizing a direct message, you will have three parts to the letter: the opening (main idea), the body (necessary information), and a close (cordial close).

1. State the Main Idea: You will need to state your main idea first. The Main Idea is typically one sentence that sums up the central idea of the message.

2. Provide Necessary Details: Once you have defined your main idea, you will need to identify your major point(s). You should not have more than five major points that clarify your main idea (typically in a letter you will only have about two major points). You will then need evidence that will support and clarify your main idea.

3. Close Cordially: In closing the letter, you should always close cordially by providing information on how you can be reached and add an expression of appreciation. If applicable, you should repeat your request of a specific action.

“Organization is what you do before you do something, so that when you do it, it’s not all mixed up.” -- A.A. Milne Read the following letter to the President/CEO of Center Financial Services. Notice how the writer uses the direct approach to organize an initial letter.

[pic]

Modified from an Initial Letter

( Test your Knowledge

Structuring your Message: Read the following letter addressed to Martha Saunders. Underline the main idea once, box in the main point(s) of the letter and bracket the supporting evidence(s). (See answer key, page 19)

[pic]

Modified from a Response Letter

Understanding the Need for Organization

(Valuable Information

Good organization is necessary in any business message. Good organization helps you to save time and work smart. In addition to that, good organization helps the reader to understand your message, accept your message, and it saves him/or her time from having to read the letter repeatedly for lack of understanding. Most disorganized messages have problems with clarity, relevance, directness and completeness (Thill and Bovee 126). Your audience wants a clear message; this means that your letters should be direct, relevant, clear and thorough. Letter should be organized

6. Test your Knowledge

Message Organization: Read the following routine message to Christopher Knight. Briefly explain the problems with the organization of this letter and suggest ways of improving the message. (See answer key, page 20)

[pic]

Modified from a General Complaint Correspondence

Lesson

3b

Writing Business Messages

( Learning Objective

After studying this lesson, you will be able to

1. Discuss three ways of achieving a businesslike tone

Composing and Shaping Your Message

(Valuable Information

Now that you have figured out what to say and in what order the information will need to go, you can start writing. Remember that this is a rough draft; do not try to write and revise/edit at the same time because a writer who writes and revises/edits at the same time often leaves out important information in the message. This stage is meant to be quick, so just “jot down your ideas and thoughts” (Thill and Bovee 136).

Once you have finished writing down your thoughts and ideas, you are ready to begin shaping your message. You should start by paying attention to your tone. The term tone in business writing refers “to the shape, voice, and force of sentences” (Dusseau). The tone is important in any business message because it is a reflection of your attitude as well as the company’s attitude. “The overall tone of a written message affects the reader just as one’s tone of voice affects the listener in everyday exchanges” (Ober 88). You will need to use the professional/conversational tone in your business messages.

To achieve a professional/conversational tone (Thill and Bovee 137)

1. Use plain English – Do not use words that you would not use in talking with someone face-to-face – Attached herewith is documentation which you requested by HUD.

2. Refrain from being too personal – I remember when I was looking for information regarding FHA/HUD approved borrowers and lenders

3. Avoid sounding like a know-it-all – You have repeatedly done business with HUD, you should have known that this case was unacceptable.

Answer Key

Lesson 2a

7. Test your knowledge
General/Specific Purpose – page 4

1. A letter to a mortgage company who refuses to pay the principle reduction of a property. General Purpose: To inform and persuade Specific Purpose: To request that the mortgage company pay a principle reduction to the loan amount.

2. A letter explaining to a customer that FHA is not responsible for the condition of an existing home. General Purpose: to inform Specific Purpose: To explain to the customer that FHA is not responsible for the condition of an existing HUD home

3. A letter responding to a customer’s question on how to qualify for a FHA loan. General Purpose: to inform Specific Purpose: To explain how to qualify for a FHA loan.

( Test your Knowledge
Audience Profile – page 5

1. A letter from an anonymous source complaining about a mortgage company’s violation of HUD’s rules and regulations Audience: unknown Knowledge of Audience: familiar with HUD’s rules and regulations General Attitude: Neutral

2. A request (to HUD) for information on affordable homes in Savannah, Georgia Audience: general public Knowledge of Audience: looking for an affordable home General Attitude: Accepting of the new

3. A request (to AAA Mortgage) for copy of borrower’s credit report Audience: AAA mortgage Knowledge of Audience: Mortgage Company General Attitude: Neutral

Lesson 2b

( Test your Knowledge
Necessary Information – page 7 (Answers will vary)

Briefly explain how your two audiences affect your letters. For instance, how would you write the two letters differently and what are the audience’s need for the information? For the first letter, the writer will need to provide the reader with detailed information on FHA. For the second letter, the writer should call the reader to ask what specific questions he/she has regarding FHA.

Lesson 2c

( Test your Knowledge
The “You” Attitude – page 9 (Answers will vary)

1. We request that you provide the information to the Processing and Underwriting Division within 30 days of receiving this letter. In order to avoid indemnification, please provide the information to the Processing and Underwriting Division within 30 days of receiving this letter.

2. Our ability to provide a more favorable response is limited since the complaint did not provide any specific information. Please provide specific information so that we are able to complete a proper investigation on the matter.

3. We are requiring that future files submitted for insurance endorsement comply with FHA regulations and guidelines. In order for the loan(s) to be endorsed, the future files you submit will need to comply with FHA regulations and guidelines.

( Test your Knowledge
Positive Language – page 9 (Answers will vary)

1. The Department advises Fargo Home Mortgage to make note of the deficiencies and endure these items will be addressed in the future prior to submitting loans for FHA insurance. Please make note of the deficiencies, so future loans submitted for FHA insurance will not have the same problem.

2. Copies faxed multiple times which result in illegible documents remain unacceptable submissions for FHA insured mortgage. Submit eligible copies of faxed documents

3. You failed to supply HUD with the following information: So that your file may be completed, please supply HUD with the following information:

Lesson 3a.

( Test your Knowledge
Structuring Your Message – page 13

[pic]

Modified from a Response Letter

( Test your Knowledge
Message Organization – page 14 (Answers will vary)

[pic]

1. This message has problems with clarity, relevance, and completeness. Clarity- the writer does explain the instructions clearly Relevance- the writer includes irrelevant subject matters Completeness – the writer does not answer Mr. Knight’s question completely

2. The writer need to state the main idea in the first sentence of the letter, include relevant information and provide thorough explanation on how to access a list of FHA/HUD approved mortgage brokers.