20HR GA SAFE NMLS Mortgage Loan Originator Pre-Licensure Course

Chapter 1: Mortgage Lending Industry

This chapter will give you an overview of the mortgage lending industry. Students will learn about major parties who are involved in the mortgage lending process. This chapter will also explain the SAFE Act and its implications on the mortgage industry. The chapter will introduce the mortgage term glossary and a mortgage acronym glossary.  

At the end of this Chapter, students will be able to:

-       Recognize the differences between the primary and secondary mortgage markets

-       Identify the roles of the major players that are part of each mortgage market  

-       Recognize the requirements for obtaining a mortgage loan originator license

-       Outline the Loan Originator Compensation Rule

-       Restate key mortgage terminology

-       Understandkey acronym

Chapter Time: 105 minutes

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Chapter 2: Learning the Products and Programs

There are a variety of loan programs available for applicants to qualify for. This segment will give students an overview of a variety of loan programs that borrowers can apply for.

At the end of this Chapter, students will be able to:  

-       Explain the difference between fixed rate and adjustable rate mortgages

-       Recognize how the interest rate on an adjustable rate loan is calculated

-       Explain the specialty loan programs available: FHA, USDA, VA, and conventional programs

-       CalculateDebt to Income, Loan to Value and Down payment requirements

-       Restate the requirements for mortgage insurance, reserves and seller concessions depending on the program

-       Describe the requirements provided in both the Interagency Guidance on

Nontraditional Mortgage Product Risks and theStatement on Subprime Lending  

Chapter Time: 185minutes

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Chapter 3: Mortgage Loan Application

This chapter outlines the initial application. It begins with overview of the initial interview, prequalifying borrowers and advertising requirements under both the Truth in lending Act andthe Mortgage Acts and Practices Rule. The students will also take a deep dive into the 1003 application form, the loan Estimate, the 4506-T Request forTranscript of Tax Return, the Home Loan Toolkit and housing counseling.  

At the end of this Chapter, students will be able to:

-       Restate the requirements for mortgage advertising under federal laws

-       Demonstrate how to complete the form fields in the Uniform Residential Loan application

-       Demonstrate how to complete the form fields in the Loan Estimate

-       Describe the requirement for the 4506-T and its purpose

-       Explain the purpose of the Home loan Toolkit and housing counseling

Chapter Time: 195 minutes

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Chapter 4: Processing and Underwriting

Mortgage underwriting is a thorough evaluation of borrower’s financial information and supporting documentation by a licensed underwriter. This process enables the mortgage lender to check borrower’s eligibility and determine if they are approved or denied for the loan program they applied for.

This chapter includes the analysis a borrowers' income, assets, liabilities, and qualifying ratios, as well as the analysis of credit reports and introduction to the federal requirements under the Ability to Repay rule. The second part of the chapter discusses QualifiedMortgage Rule, High Cost home loans and higher priced mortgage loans. At the end of the chapter we will review appraisals, title and insurance.  

At the end of this Chapter, students will be able to:

-       Analyze a borrower's qualifications including income, assets, and credit report

-       Calculate income based on the applicant's pay periods and supplemental forms of revenue.  

-       Calculate debt-to-income ratios.

-       Describe high-cost home loan or higher priced mortgage loan criteria

-       Restate the Qualified Mortgage Rule

-       Recognize three types of appraisal

-       Relate what title is and what a title report is

-       Describe the different types of insurance that could be required

Chapter Time: 185 minutes

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Chapter 5: Closing and Funding

The chapter begins with the per-page review of the CFPB's Closing Disclosure. This form is in conjunction with the earlier Loan Estimate discloses the final details of the approved loan to the borrower. There will also be a discussion on circumstances under whichClosing Disclosure may be changed, the right of rescission, the role of the settlement and closing agents, as well as analysis of how funding works. The students will also learn the difference between judicial and nonjudicial foreclosure.

At the end of this Chapter, students will be able to:  

-       Identify each of the sections in the Closing Disclosure and understand the information included in it

-       Restate the right of rescission and when it applies

-       Describe the roles of settlement and closing agents in the closing and funding process

-       Discuss the difference between a judicial and non-judicial foreclosure

-       Relate what happens at closing and how and when a loan is funded

-       Understand all the calculations discussed in the first few chapters of this course

Chapter Time: 125 minutes  

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Chapter 6: Ethics and Consumer Protection

Interacting with the public must always be done in an ethical manner. There are many courtesy standards that should be followed, as licensees are expected to protect the consumer’s interests and not take an unfair advantage of the borrower in order to earn a commission. This chapter includes a definition of ethics, review on common fraud schemes, discussion of Unfair, Deceptive or Abusive Acts or Practices(UDAAPs), predatory lending and steering and fair lending.   At the end of this Chapter, students will be able to:  

-       Recognize how unethical behavior negatively impacted the public's perception of the lending industry.

-       Identify acts and practices that are considered unethical by regulators.

-       Outline conduct that will ensure ethical treatment of loan applicants.

Restate common fraud schemes and the red flags associated with them

-       Identify what is considered a UDAAP

-       Recognize what predatory lending and steering are

-       Restate the definitions of disparate impact and disparate treatment, redlining and blockbusting

Chapter Time: 160 minutes  

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Chapter 7: Federal Mortgage-Related Laws

This segment will outline many of the important federal regulations and rules that students will need to comply with when working with borrowers on residential loan transactions. This first part of the chapter includes review of the Real Estate Settlement ProceduresAct, the Truth in Lending Act, the TILA-RESPA Integrated Disclosure Rule, theEqual Credit Opportunity Act, and the Home Mortgage Disclosure Act. The second part outlines the Fair Credit Reporting Act and the Fair and Accurate CreditTransaction Act, Do Not Call Act, Gramm-Leach-Bliley or Financial ModernizationAct, Mortgage Acts and Practices Act, USA Patriot Act, Esign Act, Homeowner'sProtection Act.  

At the end of this Chapter, students will be able to:

-       Outline many of the consumer protection laws that have been passed by the FederalGovernment.

-       Restate the requirements of each of the federal laws outlined in the chapter  

-       Describe the ways federal laws protect consumer from predatory lending

-       Describe the ways a consumer is protected from discrimination in lending

-       Identify the ways in which licensees can protect a consumer's private financial information  

Chapter Time: 215 minutes  

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