Non-Traditional Products Update

Outline

1. Non-Traditional Products Update
2. It Wasn’t just the ….
3. Loan Originator Compensation
4. Subprime What is it
5. The “Statement on Subprime Lending” A Solution?
6. Where are We Now? Slowly coming out….
7. Conforming Loan Limits

Learning Objectives       

1. To understand how nontraditional products
   are defined
2. To understand the general characteristics
   of subprime loans
3. To understand the primary reasons for the
   mortgage crisis
4. To know what deferred principal refers to
5. To understand misaligned incentives referring
   to originators putting borrowers into risky loans
6. To understand Interest only loans
7. To understand the Loan Originator
   Compensation rule
8. To know what the LO Compensation rules prohibit
9. To understand what is the “safe harbor” for
   lenders
10. To understand the anti-steering rule
11. To understand Dual compensation
12. To know why The Interagency Statement on
    Subprime Mortgage Lending was developed
13. To understand the common factor in
    subprime and non-prime
14. To understand The Statement on Subprime
    Lending
15. To understand what is considered in the
    risk layering assessment.
16. To understand when borrowers want advice
    on not paying their mortgage:
17. To understand loan limits
18. To understand the Loan Limit Geocoder
19. To understand how amortization is defined
20. To understand how the interest rates on a
    15 year mortgage compared to a 30 year mortgage
21. To know what Portfolio loans are
22. To understand how mortgage payments can lowered
    by paying down the principal
23. To understand why Adjustable rate
    mortgages may be more suited for some buyers

Teaching Methods:

Power Points, Video PowerPoint Presentation and Quizzes