Non-QM and Adjustable Rate Loans

Outline

1. The
   Use of Nontraditional Mortgage Products Interagency
   Guidelines
   1. Guidance on Nontraditional Mortgage Products
   2. Statement on Subprime Mortgage Lending
   3. Predatory Lending
2. Subprime
   Loans
   1. Assessing Risk
3. Adjustable
   Rate Mortgages (ARMs)
   1. How ARMs Work
   2. ARM Standardization
   3. ARM Disclosures
   4. ARM Programs
4. Seller
   Financing
   1. Purchase Money Mortgage
   2. Assumption
   3. Seller-Sponsored Wraparound Financing
   4. Purchase Money Second Mortgage
   5. Land Contracts
   6. Land Contract with Assumption of an Existing Mortgage
5. Other
   Forms of Creative Financing
   1. Lease/Options
   2. Lease/Purchases
   3. Equity Exchanges
   4. Participation Plans
6. Homebuyer
   Assistance Programs

Learning Objectives

1.       Demonstrate knowledge of mortgage products
   available in the market
2.       Identify characteristics of sub-prime loans
3.       Identify and define nontraditional products as
   defined by the SAFE Act
4.       Demonstrate ability to identify ARM components
5.       Learn calculations for ARM interest rate and
   payment adjustments
6.       Understand how consumers can be harmed by
   products
7.       Demonstrate ability to appropriately disclose
   features of all products

Teaching Methods:  

PowerPoints, Video PowerPoint Presentation and Optional Quiz