$99 including the $12 NMLS Fee (Save $30 for limited time) *
Course Delivery Time: 8 one hour classroom presentation videos and quizzes, case study and final exam to be completed within 24 hours.
S.A.F.E. ACT Continuing Education Requirements
The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act) requires that state-licensed mortgage loan originators (MLOs) complete annual continuing education. To meet continuing education requirements state-licensed MLOs must complete 8 hours of NMLS approved education which include the following:
3 hours of Federal law and regulations;
2 hours of ethics, this shall include instruction on fraud, consumer protection, and fair lending issues;
2 hours of training related to lending standards for the nontraditional mortgage product marketplace; and
1 hours of undefined instruction on mortgage origination.
8 Hours Total
Purpose of the Course:
The course is designed to present topics that are most important To understanding the financing of residential real estate as generally applied to all states. The material covered provides an understanding of what a mortgage loan originator and a mortgage broker need to know in the performance of the origination of a residential mortgage loan. The course is broken up into 5 Module areas as follows:
- Ethics for the Mortgage Professional
- Federal Mortgage Laws in 2018
- The Ethics of Borrowers
- Non-Traditional Products - What are Lender Options in 2018
- Regulatory Update for 2018
To make available quality mortgage education in compliance with the SAFE Act for the primary purpose of developing knowledgeable mortgage professionals to better serve consumers.
This 8-hour course has been developed to meet the minimum standards as set forth by the SAFE Act. The course has been developed by industry professionals with 50 plus years of combined mortgage, business and teaching experience.
The main objective of the course is to provide each student with the necessary knowledge as required by the SAFE Act to meet annual Continuing Education Requirements. Each module includes the content and objectives along with a Session quiz which are designed to stimulate an understanding of the material.
- Upon completion of this course, students will be able to:· To understand UDAAP and its implications for Mortgage Originators
· Discuss disclosure provisions of federal laws related to mortgage lending.
· Recognize indicators of mortgage ethical situations.
· Identify predatory lending practices and non-traditional products
· Discuss agency guidelines on lending and subprime loans.
· Understand the recent changes in mortgage regulations
MODULE 1 Ethics Today and The Mortgage Professional
Session 1 : UDAAP (Ethics)
1. To understand what UDAAP stands for.
2. To understand the definition of "material"
3. To understand what makes an act or practice unfair
4. To understand how deceptive acts or practices are used
5. To know examples of UDAAP acts or practices.
6. To know the primary concerns under UDAAP
7. To know what substantial injury is.
8. To see how material interference and taking unreasonable advantage of people are abusive acts.
9. To Know if avoidable acts or practices are unfair.
10. To understand how public policies, affect UDAAP violations
11. To understand the FTC Test for advertising
12. To understand the how ethics guides the needs of the customer over your own
Teaching Methods: Power Points, Video PowerPoint Presentation and Quiz
Module 2 Federal Mortgage Laws
Session 2: Truth-in Lending (Federal Laws)
1. To understand what is beneath all laws and regulations on lending
2. To understand what is loan “consummation”
3. To understand what TILA applies to
4. To understand what loans covered under TILA
5. To understand the definition of a "PERSON" under TILA
6. To know how to comply with TILA
7. To know important definitions under TILA
8. To know the what the definition of “Application” is under TILA
9. To understand how loans for personal or family purposes is defined
10. To understand the definition of dwellings under TILA
11. To understand TILA advertising restrictions
12. To understand what are triggering terms in advertising
13. To understand what advertisements requires additional disclosures
14. To understand critical criteria of multi-page ads
15. To understand what are TILA permissible finance charges
16. To understand which third party fees for conducting closings are considered finance charges
17. To know how to determine if the APR is correct
18. To understand TILA permissible tolerances
19. To understand what makes a finance charge accurate
20. To know purpose of identifying finance charge violations
21. To understand how APR is used by consumers to compare between lenders when shopping
22. To understand how to disclose Finance Charges on Initial LE
23. To understand "Zero Tolerance" for origination fees and other charges borrowers cannot shop for
24. To understand the issues that arises from overstated finance charges
25. To understand the relationship between federal and state laws controlling mortgage originators.
Session 3: Truth-in Lending Continued (Federal Laws) 1 Hour
1. To understand TILA Refinancing Right to Rescind
2. To understand who the right of rescission applies to
3. To know which borrowers must receive a Right to Cancel notice at closing?
4. To know how to determine the rescission period for a refinance
5. To understand the extended right to rescind
6. To understand material disclosure related to rights to rescind
7. To understand why consumers rescind
8. To understand effects of rescissions
9. To understand when creditors are required to refund any money or property
10. To know what creditors must file in the public record
Teaching Methods: Power Points, Video PowerPoint Presentation and Quiz
Session 4: RESPA (Federal Laws)
1. To understand the primary purpose of RESPA Reg "X"
2. To know the services covered under RESPA
3. To know loans covered under RESPA
4. To understand RESPA Tolerances
5. To understand the three tolerance categories
6. To understand change of circumstances and how they affect the CD
7. To understand the affect If the loan originator selects a third-party settlement service provider
8. To understand the effect of charges exceeding tolerance for a specific category
9. To understand RESPA prohibitions
10. To understand when a thing of value is received in connection with a business referred:
11. To understand how fees in a marketing service agreement would be legal.
12. To understand when affiliated business arrangement exists and the disclosure of the arrangement
13. To know what a "thing of value" is
14. To understand the effect a charge for which a nominal service has
15. To know what percentage ownership requires affiliated Business disclosures
16. To understand marketing service agreements and what makes them legal
17. To understand the effect when the payment of a thing of value exceeds the value of the services provided
18. To know how to deal with expenses for web banners, signs and sharing home buyer guides
19. To understand RESPA Section 8
20. To know when the CFPB takes action for RESPA violations
21. To know what kickbacks are
Module 3 Ethics on Borrower Activities
Session 5: BSA/AML (ETHICS)
1. To understand the Bank Secrecy Act and why we should care
2. To understand the Anti-money laundering rules and how they affect mortgage professionals
3. To understand the purpose of the establishment of the Financial Sector Assessment Program
4. To understand what violations of AML rules are
5. To know under BSA/AML rules, a how "bank" is defined
6. To know what an "established customer" is
7. To know what monetary instruments include
8. To understand the definition of "structuring,"
9. To understand what the term "loan or finance company specifically includes
10. To understand The Customer Identification Program (CIP)
11. To understand the regulatory requirements for CIP
12. To know how an "extension of credit" for CIP purposes is considered
13. To understand the failure to comply with reporting requirements
14. To understand Section 1010 and 1029 of Title 31 C.F.R. that requires mortgage lenders to establish AML programs
15. To understand what reportable transactions are.
16. To understand BSA/AML penalties for non-compliance
17. To know what FinCen is
Module 4 Non-Traditional Mortgage Products in 2018
Session 6: Non-Traditional Products (Non-traditional Products)
- To understand how nontraditional products are defined
- To understand the general characteristics of subprime loans
- To understand the primary reasons for the mortgage crisis
- To know what deferred principal refers to
- To understand misaligned incentives referring to originators putting borrowers into risky loans
- To understand Interest only loans
- To understand the Loan Originator Compensation rule
- To know what the LO Compensation rules prohibit
- To understand what is the “safe harbor” for lenders
- To understand the anti-steering rule
- To understand Dual compensation
- To know why The Interagency Statement on Subprime Mortgage Lending was developed
- To understand the common factor in subprime and non-prime
- To understand The Statement on Subprime Lending
- To understand what is considered in the risk layering assessment.
- To understand when borrowers want advice on not paying their mortgage:
- To understand loan limits
- To understand the Loan Limit Geocoder
- To understand how amortization is defined
- To understand how the interest rates on a 15 year mortgage compared to a 30 year mortgage
- To know what Portfolio loans are
- To understand how mortgage payments can lowered by paying down the principal
- To understand why Adjustable rate mortgages may be more suited for some buyers
Session 7: Non-traditional Products Continued – (Non-traditional Products)
1. To know how to determine the fully amortizing payment on a mortgage
2. To know the risk level of each interest payment types
3. To understand the advantages and disadvantages of an interest only loan
4. To understand Interest and ARM calculations
5. To know what the life cap is
6. To know what the interest rate floor is
7. To understand the components of an ARM
8. To understand Negative Amortization
9. To understand the payment options on a negative amortization loan
10. To understand the start rate on a Negative amortization loan
11. To understand how payments on HELOCS differ from home equity loans
12. To understand how Reverse mortgages are designed for borrowers
13. To understand the most important disclosure for consumers taking a balloon mortgage
14. To understand how a "construction loan" payments are calculated
Module 5 Update of Federal Mortgage Laws 2018
Session 8 Statutory and Regulatory Update 2018 (Federal Laws)
1. To understand 2018 Regulatory updates during the past year
2. To understand the 2018 TRID rule
3. To understand how the tolerance may be reset
4. To understand what are changes in circumstances
5. To understand the three-day waiting period for a corrected Closing Disclosure
6. To understand THE BLACK HOLE
7. To better understand violations under TRID
8. To understand when there is a violation in the tolerances, lenders must refund borrowers
9. To understand what failures to reimburse consumers may constitute
10. To understand the effect of the CFPB slowing down enforcement actions
11. To understand ECONOMIC GROWTH, REGULATORY RELIEF AND CONSUMER PROTECTION ACT
12. To understand how the SAFE Act was amended
13. To understand the requirements to qualify for transitional licensing
14. To understand the new law and what consumers must be permitted to do
15. To know how Veterans applying for a refinance are affected
* Some states require additional PE credits that are state specific. We offer these courses in an online self study format at an additional charge.