Learning Objectives 1. Identify the role of the mortgage professional 2. Learn differences between Prequalification and Preapproval 3. Learn about the loan process Teaching Methods: Power Points, Video PowerPoint Presentation and Quiz
Outline Loan to Value Ratio (LTV) Qualifying a Borrower Credit Ability to repay Property Eligibility Assess Risks Analyzing Borrower and Property Capacity Credit Collateral Analyzing assets Down payment Reserves Third Party Verification Gifts Automated Underwriting Systems Desktop Underwriter DU – Fannie Mae Loan Product Advisor LP – Freddie Mac Calculating Debt to Income Ratios Income Components Debt Components Employment and Income Requirements Computing Monthly Income Credit Scores and Credit Scoring Learning Objectives Calculating …
Outline A Brief History of Mortgage Lending The Story of Mortgage Lending Key Terminology Government Agencies Federal Housing Finance Agency (FHFA) Federal Housing Administration Industry Participants – Primary Mortgage Markets Commercial Banks Savings and Loan Associations Mortgage Companies, Bankers, and Brokers Other Primary Mortgage Market Lenders Secondary Mortgage Markets Function of Secondary Markets The Flow of Mortgage Funds Secondary Markets Agencies Secondary Market Standards Present Day Mortgage Lending The Subprime Mortgage Crisis Learning Objectives …
Outline Credit Reports and Scores Credit Repositories Consummation Consummation Closing Disclosure Clearing Title Conditions Settlement Reconciliation Down payment Reserves Third Party Verification Gifts Proration and Expenses Calculating Per Diem Interest Purchase Transactions Final Closing Disclosure CD issued 3 days prior to closing Refinance Transactions Right of Rescission Learning Objectives CREDIT Understand Fair Credit Reporting Act governs credit Learn about the Fair and Accurate Credit Transaction Act Identify credit criteria …
Outline Conventional Financing Traditional Conventional Loans 15-Year Mortgage Loans Conforming versus Nonconforming Loans Conventional Loan Programs 80% LTV Conventional Loan Higher LTV Loans Learning Objectives Comprehend overview of mortgage marketplace Learn about conventional loans Know the different types of conventional loans Identifying non-conventional loans Determine how conventional loans easier to obtain by : Being insured by private mortgage insurance (PMI) Secondary …