This Course Includes:
- OIL – 2 Hour Online SAFE PE – Loan Fundamentals (1691)
- OIL – 3 Hour Online SAFE PE – Ethics, Fair Lending and Fraud (1646)
- OIL – 3 Hour Online SAFE PE – Federal Law – RESPA TRID Integrated Disclosures & SAFE Act (1695)
- OIL – 3 Hour Online SAFE PE – FHA 100 – FHA Overview (2181)
- OIL – 3 Hour Online SAFE PE – FHA 200 – Maximum Loan Amount (2263)
- OIL – 4 Hour Online NV SAFE PE – Nevada State Law (3102)
- OIL – 4 Hour Online SAFE PE – Federal Law – Credit and Information (1694)
- OIL – 4 Hour Online SAFE PE – Federal Law – TILA (1700)
- OIL – 4 Hour Online SAFE PE – Nontraditional Mortgages Overview (1699)
This course covers SAFE Pre-licensure Education Requirements for any state without state-specific education. Specifically, this course includes the required 4 Hours on Nevada State Law, 3 Hours on Federal Law and Regulations, 3 Hours on Ethics, 4 Hours on Nontraditional Mortgages and other courses that will complete your 30 hour requirement. We emphasize federal law due to the rigor and focus on federal law in the National Exam.
Online Instructor Led (“OIL”). This education is delivered in the Online Instructor Led format as required by the NMLS for online Pre-Licensure (“PE”) education. It is available on our website through any internet connection.
Important NMLS specifications include:
• Defined start and end dates (See Course Calendar at top of page).
• Interaction with the instructor and students through forum activities
• Progression as a cohort. At times you will wait for instructor feedback before continuing.
(Note: This is not an “Self-Study” course and does not allow for study at any pace or without instructor/classmate interaction)
Our Unique Modular Lesson Plan. We offer a unique experience by breaking our course down into modules of 2 and 5 hours, each of which can be started at any of defined start times in the course calendar. A couple of example study plans may be:
• Example A: A person new to the industry decides to progress in the recommended order over a two week period.
• Example B: An industry veteran finishes all 20 hours in three days, taking the federal law courses first.
Description of Contents
Nevada State Law. This course covers Nevada relevant to Mortgage Loan Originators (MLOs). The course is designed to help you understand the specifics of Nevada law and assist you in preparing for the State licensing exam. We will provide you with references as to where to find more details on pertinent parts of the law.
FHA 100 – Introduction to FHA. We cover the “Three C’s” of Credit, Collateral and Capacity, various documentation required for loans and give an overview of some basic loan products.
In this course we introduce the Federal Housing Administration’s Insurance Program, generally called “FHA.” FHA was mandated by the National Housing Act in 1934 and the loan programs that have evolved out of that Act and its consequent regulation have been a cornerstone for many Americans pursuing the American Dream. FHA insured housing plays a key role in allowing lower to middle income households to afford their first home.
This course is only a primer. We will introduce FHA, from its concept to the actual systems involved in starting the process of originating an FHA loan. We will also discuss many of the different loan programs offered through FHA.
FHA 200 – Maximum Loan Amount. This session deals with calculating the Maximum Loan Amount FHA is willing to insure for a mortgage borrower in the purchase and refinance of their homes.
Most of the time, the maximum amount that mortgage lenders are willing to lend is based exactly on the maximum amount FHA is willing to insure. For this reason, the maximum loan amount the borrower can obtain usually ends up being the FHA Maximum Loan Amount.
Because most FHA borrowers have little cash in hand for down payments, they rely on you, the loan officer, to help them receive the largest FHA loan possible. That is why this lesson is so important.
- Definitions. We will define some of the most critical terms you will need to know for understanding this lesson
- LTV Limit. We will talk about factors that affect LTV Limit, which includes Borrower’s Minimum Cash Investment Requirements, Interested Third Party Contribution and Inducement to Purchase.
- Statutory Loan Limit. We will explain how to look up the Statutory Loan Limits for different FHA mortgage types and locations. We will explain how to appeal to HUD to change the Statutory Loan Limit for a specific county. This might be necessary when the housing prices of a certain area increase significantly.
- Effects of Repair and Improvements on Maximum Mortgage Amount. We will look at how certain Repairs and Home Improvements can affect both LTV and Statutory Loan Limit.
- LTV Limits for Specific Situations. We will then look at additional exceptions such as transactions between family members, construction loans and mortgage assumptions that can affect both LTV and Statutory Loan Limit.
Loan Fundamentals. This course provides the “key elements” a loan officer needs to understand as they enter the mortgage industry. It focuses on the most critical part of the business – qualifying a customer and making the right type of loan for the right client.We cover the “Three Cs” of Credit, Collateral and Capacity, various documentation required for loans and give an overview of some basic loan products.
Federal Law – RESPA and SAFE. This course covers two industry laws key to the conduct of all mortgage loan originators:
• RESPA – Real Estate Settlement Procedures Act (enacted in 1974 implemented by Reg X). Establishes specific disclosure requirements in the real estate settlement process and prohibits specific practices such as kickbacks.
• SAFE Act – Secure and Fair Enforcement Act for Mortgage Licensing (enacted in 2008). This act is a key component of the Housing and Economic Recovery Act of 2008 (Title V). The SAFE Act sets forth requirements for the licensing and registration of all mortgage loan originators and mandates the creation of a National Mortgage Licensing System and Registry (NMLSR).
Federal Law – TILA. In this course, we cover the Truth-in-Lending Act, generally known as TILA. Along with the discussion of TILA, there are several important amendments. One we will cover in depth is HOEPA. We also include the newest MDIA updates. Knowing TILA well will be critical for your business with regards to regulators, litigation and reputational challenges.
This course additionally details the Truth-In-Lending Disclosure, the Right to Rescission Form and the Section 32 Truth-In-Lending Disclosure
Federal Law – Credit and Information. In this course, we are going to cover a number of Federal Laws and regulations that deal with the extension of credit to borrowers based on information about the borrower and the handling and use of consumer information in the mortgage industry. Specifically, we will cover ECOA, FCRA/FACTA/Red Flag Rules, HMDA and the DNCIA as well as some of the key associated disclosures.
Ethics, Fair Lending and Fraud. This course provides an ethical foundation and summary for Fair Lending Laws, a summary of fraud schemes and preventative measures and, lastly, focuses on a couple of key topics in Fair Lending. Specifically, this course includes the following modules:
• How Laws Enforce Ethics – this module covers the ethical and economic basis for laws and discusses the purpose of various fair lending laws in the mortgage industry.
• More on HOEPA and Predatory Lending – this module details the topic of predatory lending, showing the various methods that have been used and the general prohibitions HOEPA outlines to protect consumers from these practices
• More on Yield Spread Premiums – this module delves deeper into the hot topic of Yield Spread Premiums
• Mortgage Fraud – this module covers the common mortgage schemes that have been practiced as well as some basic preventative measures
Nontraditional Mortgages Overview. This course summarizes a broad selection of non-traditional mortgages that have been introduced over the last 30 years. This course is taught in context of the 2007 housing meltdown and includes the features, pros/cons and pitfalls of each type of loan.
Specific loans covered include:
• Adjustable rate mortgages (ARMs)
• Interest Only mortgages (IOs)
• Negative Amortization mortgage
• Construction permanent mortgages
• Reverse Mortgages