Outline
- The Use of Nontraditional Mortgage Products Interagency Guidelines
- Guidance on Nontraditional Mortgage Products
- Statement on Subprime Mortgage Lending
- Predatory Lending
- Subprime Loans
- Assessing Risk
- Adjustable Rate Mortgages (ARMs)
- How ARMs Work
- ARM Standardization
- ARM Disclosures
- ARM Programs
- Seller Financing
- Purchase Money Mortgage
- Assumption
- Seller-Sponsored Wraparound Financing
- Purchase Money Second Mortgage
- Land Contracts
- Land Contract with Assumption of an Existing Mortgage
- Other Forms of Creative Financing
- Lease/Options
- Lease/Purchases
- Equity Exchanges
- Participation Plans
- Homebuyer Assistance Programs
Learning Objectives
- Demonstrate knowledge of mortgage products available in the market
- Identify characteristics of sub-prime loans
- Identify and define nontraditional products as defined by the SAFE Act
- Demonstrate ability to identify ARM components
- Learn calculations for ARM interest rate and payment adjustments
- Understand how consumers can be harmed by products
- Demonstrate ability to appropriately disclose features of all products
Teaching Methods:
PowerPoints, Video PowerPoint Presentation and Optional Quiz
Course Features
- Lectures 1
- Quizzes 1
- Duration 1 hour
- Skill level All levels
- Language English
- Students 10
- Assessments Yes