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20 Hour Mortgage Loan Originator Maryland SAFE Comprehensive Course Course Syllabus -- 7 Day (14 Day Schedule included

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Welcome to our Maryland SAFE Comprehensive Course. We are excited to assist you in furthering or beginning your mortgage career and are pleased you chose Praedo Institute to satisfy your education requirements. Course Purpose This course is meant to satisfy the 20 hour SAFE education requirement for mortgage originator licensure for the state of Maryland. This course will also prepare you for the National Component of the SAFE Mortgage Loan Originator Exam as well as the Maryland component of the SAFE exam. Course Description Along with the 20 hours of SAFE required education, this course includes 5 hours of Maryland Law as well as information related to loan qualification and the loan process. Included in the course are 1 hour of Maryland Mortgage Originator Law and Mortgage Originator Regulations, 1 hour of Maryland Mortgage Lender Law and Mortgage Lender Regulations, 1 hour of Interest and Usury laws, Maryland Equal Credit Opportunity Act, Credit laws, Real Property Law, Administrative Procedures Act, Criminal Law (including issuing counterfeit private instruments and documents), and any other subsequent act(s) or regulation(s) applying to mortgage lender or mortgage loan originators and 2 hours of Maryland finders fee law. This course meets MDOCFR's new requirements. This course satisfies the Maryland SAFE requirement. Included in this course are: discussion forums, interactive content, practice questions, and live instructor support. Course Dates and Times This course begins on Tuesday at 8:00am Mountain Time and must be completed by midnight on the session end date. Instructor Contact Information Once you register for the course, you will receive an email from the instructor assigned to your course. The email will introduce your instructor as well as explain contact methods and expected response times. All of our instructors are required to respond to student questions within one business day of the receipt of your question. Your instructors personal email will be included in the introduction email.

Course Objectives Each of the individual modules in this course include learning objectives applicable to the individual module itself. Our course is meant to give you an introduction to the mortgage industry. Upon completing this course, you should be able to do the following: Define basic mortgage terms; Perform mathematical calculations common to the mortgage industry; Explain certain mortgage concepts to potential borrowers; Comply with applicable federal laws related to the mortgage industry. You should also be able to pass the National Component of the SAFE Mortgage Loan Originator Exam as well as the Maryland component of the SAFE exam. Grading Policy Most of the sections in this course consist of slides mixed with comprehension questions. Each chapter includes a chapter quiz, and most sections include a course final. You may view the slides at your own pace, but you must answer all of the comprehension questions correctly and score 80 percent on all quizzes to receive credit for the course. You must also pass the course section final exams with a score of 80 percent in order to receive credit for the course. Please remember, your course does include a completion deadline. Several of the modules also include case studies, which involve the completion of a certain project. The details for the individual case studies are found in the course. Our course includes 8-10 learning activities. In each of the learning activities, you will be required to either post comments on our discussion forum or email an assignment to your instructor for grading. Instructions for the learning activities are included in the course. Your course consists of five parts. At the end of each part, you will be required to submit an assignment to your instructor. Your instructor will grade your assignment within one business day of assignment submission. Once your instructor grades the assignment, your instructor will allow you access to the next part of your course. The instructor reserves the right to delay your advancement to the next part in the event you are progressing substantially faster than the other students in that part. Course Policies Each student is required to sign an Identity Affidavit. By signing this agreement, the student certifies that the course work was or will be completed by the person for whom the certificate will be issued. The student further certifies that they did or will not receive any assistance in

completing the course. The submission of a completion certificate for a course they did not complete themselves may constitute fraud on the students part and is subject to prosecution and/or discipline. Technical Support As our course is entirely online, we do offer live technical support via telephone, email, and chat from 8:30am to 5:00pm Mountain Time on regular business days. After hours, holiday, and weekend support is available 365 days a year via email from 9:00am to 10:00pm Mountain Time. Our telephone number is 801-492-9933 and the support email is support@praedo.com. Please note, our technical support staff will often be unable to answer content questions which are more appropriately directed to your instructor. Using our System Once you purchase the course and are logged into our system, you should see a link to the course on your home page. This link will launch the course. The course will not launch properly unless your computer has the most recent versions of Flash Player (www.adobe.com) and Java (www.java.com) correctly installed. Please carefully review the introduction module for instructions on using our online system. Course Outline This course consists of five parts, each covering different aspects of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). SAFE 20 Hour Pre-licensing Course Introduction: This module will introduce you to our system. Adherence to the advice and instructions offered in this module will greatly improve your online education experience. SAFE Part One: Consumer Protection (6 Hours) Learning Activity Welcome: The student will follow the instructions to make a post about themselves. Consumer Protection Chapter 1: Chapter One covers the Gramm-Leach-Bliley Act. It consists of the following sections: Privacy Rule Safeguard Rule Pre-texting Consumer Protection Chapter 2: Chapter Two covers the Do Not Call Rules. It consists of the following sections: Do Not Call Registry

Do Not Fax Rules Consumer Protection Chapter 3: Chapter Three covers the Red Flags Rule. It consists of the following sections: Definitions Red Flag Rule Requirements Identifying Red Flags Learning Activity Consumer Protection: The student will follow instructions to post information on the discussion forum regarding consumer protection. Identity Theft Case Study: The student will review information on the Federal Trade Commission's web site and answer related questions. Learning Activity Identity Theft: After reviewing the information from the case study, the student will follow instructions to post remarks on the discussion forum. Fair Lending & Housing Chapter 1: Chapter One covers the Fair Housing Act, the Equal Credit Opportunity Act, and the Home Mortgage Disclosure Act. It consists of the following sections: Fair Housing Act Equal Credit Opportunity Act Home Mortgage Disclosure Act Fair Lending & Housing Chapter 2: Chapter Two covers the Fair Credit Reporting Act and the Fair and Accurate Credit Transaction Act. It consists of the following sections: Fair Credit Reporting Act Fair and Accurate Credit Transaction Act Fair Lending & Housing Chapter 3: Chapter Three covers the governmental agencies who participate in regulating the mortgage industry. It consists of the following sections: Role of the Federal Reserve Role of the Federal Trade Commission Role of the Department of Housing and Urban Developments

Hud Case Study: The student will review information on the HUD web site and answer related questions with regard to Fair Housing. Learning Activity Fair Housing: After completing the HUD case study, the student will follow instructions to post a scenario on the discussion forum.

Loan Fraud & Ethics Chapter 1: Chapter One will introduce you to the definition of loan fraud and different types of loan fraud. It consists of the following sections: Introduction to Loan Fraud Definition of Loan Fraud Consequences of Loan Fraud Types of Fraud Loan Fraud and Ethics Chapter 2: Chapter Two will review popular loan fraud schemes and loan fraud statistics. This chapter also discusses ways to detect fraud and licensee obligations when it comes to loan fraud. It consists of the following sections: Common Loan Fraud Schemes Short Sale Fraud MARI Fraud Index Loan Fraud Case Study: The student will review information on the FBI's web site and answer related questions with regard to fraud. Learning Activity Loan Fraud & Ethics: The student will search the Internet for two examples of loan fraud and report their findings to their instructor through the internal email system. SAFE Part Two: Federal Law (5 Hours) Non-Traditional Mortgage Products Chapter 1: Chapter One introduces the student to nontraditional mortgage products. It consists of the following sections: Introduction to the Industry Definition of the Industry Product Overviews Non-Traditional Mortgage Products Chapter 2: Chapter Two covers federal guidance of the non-traditional mortgage industry. It consists of the following sections: Interagency Guidance on Nontraditional Mortgage Product Risks Loan Terms and Underwriting Standards Portfolio and Risk Management Practices Consumer Protection Issues Statement on Sub-prime Mortgage Lending Predatory Lending Prepayment Penalties Reduced Documentation Payment Shock

Workout Arrangements Consumer Protection Principles

RESPA Chapter 1: Chapter One introduces RESPAs provisions regarding disclosure of costs and record keeping. It consists of the following sections: Purposes of the Real Estate Settlement Procedures Act Scope of RESPA Exempt Transactions Definitions Advance Disclosure of Costs - Good Faith Estimate RESPA Chapter 2: Chapter Two explains RESPAs kickback and referral fee provisions. It consists of the following sections: Eliminate Kickbacks and Referral Fees Common RESPA Violations RESPA Chapter 3: Chapter Three covers affiliated business arrangements and servicing requirements set forth in RESPA. It consists of the following sections: Affiliated Business Arrangements Servicing Issues Learning Activity RESPA: The student will follow the instructions to post a comment on the discussion forum regarding RESPA. TILA Chapter 1: Chapter One introduces the Truth in Lending Act and includes definitions as well as information on APR and advertising. It consists of the following sections: Definitions Annual Percentage Rate Advertising Rules Trigger Terms Required Disclosures TILA Chapter 2: Chapter Two covers disclosure and the right to cancel. It consists of the following sections: Disclosure Requirements Early Disclosures Early Disclosure and Closing Collecting Fees Changes During the Transaction Right of Rescission

High-Cost Loans Additional Disclosures Higher-priced Loans TILA Chapter 3: Chapter Three covers loan officer compensation. It consists of the following sections: LO Compensation Rule Payments Based on Transaction Terms Reducing LO Compensation on a Transaction Other Compensation Issues Final Rule and Official Staff Commentary Safe Harbor Presenting Loan Options TILA Chapter 4: Chapter Four Covers the ability to repay and QM rule. It consists of the following section: Ability to Repay and QM Rule Learning Activity TILA: The student will follow the instructions to search the Internet to find mortgage ads which include trigger terms. They will complete an assignment and submit it to their instructor through the internal email system. SAFE Part Three: Industry Basics (4 Hours) Industry Chapter 1: Chapter One reviews the structure of the mortgage industry. It consists of the following sections: Structure of the Mortgage Industry The Primary Market The Secondary Market Mortgage Brokers Mortgage Lenders/Bankers Secondary Market Transactions The Capital Market Industry Chapter 2: Chapter Two discusses the basic mortgage categories. It consists of the following sections: Mortgage Industry Overview Purchase Transactions Rate/Term Refinance Cash-Out Refinance

Mortgage Categories Conventional/Conforming FHA - Federal Housing Administration Advantages of FHA Lending Higher Debt to Income Ratios Non-occupant Co-borrowers Disadvantages of FHA Lending VA Loans Rural Housing Construction Loans Jumbo/Non-Conforming Second Mortgage/HELOC Reverse Equity/HECM

Loan Process: Qualification Chapter 1: Chapter One covers pre-qualification. It consists of the following sections: Pre-qualification Down Payment Income Debts Credit Loan Process: Qualification Chapter 2: Chapter Two explores file documentation. It consists of the following sections: Assembling the File Income Documentation Acceptable Assets Loan Process: Qualification Chapter 3: Chapter Three reviews credit reports. It consists of the following sections: Credit Reports Credit Scores FICO Scores Case Study: The student will review credit scores and answer questions related to FICO. Learning Activity Credit Report: The student will follow the instructions to post a comment on the discussion forum regarding credit scores.

Learning Activity Loan Process: Qualification: The student will complete an assignment based on qualification calculations and submit their work to their instructor through the internal email system. SAFE Part Four: Maryland Mortgage Law (5 Hours) Maryland Mortgage Law Chapter 1: Chapter One covers mortgage regulatory agencies, definitions and relevant state law. It consists of the following sections: Mortgage Regulatory Agencies Acts and Code Definitions Relevant State Law License Required Mortgage Loan Originators Maryland Mortgage Law Chapter 2: Chapter Two covers license law and regulation for mortgage lenders. It consists of the following sections: Persons Required to be Licensed Multiple Licenses Exemptions Not Required to be Licensed License Qualifications The Application Surety Bond Investigation License Renewal Maryland Mortgage Law Chapter 3: Chapter Three covers license law and regulation for mortgage loan originators. It consists of the following sections: Persons Required to be Licensed The License License Qualifications The Application Financial Responsibility NMLSR Pre-licensing Education Tests License Renewal Continuing Education

Non-active Status Maryland Mortgage Law Chapter 4: Chapter Four covers compliance. It consists of the following sections: Duty of Care Duty to Report Required Conduct Record Keeping Time Period for Records Content of Records Reporting Repayment Fees Finder's Fee Fees and Charges Service, Late, and Prepayment Charges Actual Expenses Prohibited Fees Disclosure of Right to Refund Agreements in Blank Financing Agreements Advertising Prohibited Conduct and Practices Mortgage Fraud Maryland Mortgage Law Chapter 5: Chapter Five covers disciplinary action. It consists of the following sections: Investigations Order to Stop Doing Business Suspension and Revocation of Licenses Fines and Penalties Civil Liability Criminal Liability Attorney General Enforcement Actions Case Study: The student will review three mortgage lender enforcement action cases. To complete the assignment, the student will write a short review describing what they have learned and what could have been done to avoid disciplinary action.

The student will submit their completed assignment through the internal email system to their instructor for grading. Course Evaluation: Students will be allowed to give feedback regarding the course. Course Schedule This course consists of the five parts outlined below. The requirements for each part are listed with the approximate time needed to complete each learning module. The scheduled days are approximate as well, you are not required to follow the prescribed outline, but doing so would allow you to complete the course in the allotted time frame. This course meets the minimum time requirement of 50 seat minutes for each clock hour the course is approved. This course is approved as a 20 hour course and must be completed in its entirety in order for you to receive credit.

Good Luck Once again, thank you for choosing Praedo Institute. Your success is extremely important to us. Please let us know if we can be of assistance at any time. Enjoy the course!

Course Outline and Schedule - 7 Day Schedule Topics and Activities MD SAFE 20 Hour Pre-licensing Course Introduction SAFE Part One: Consumer Protection Learning Activity Welcome Day 1 Consumer Protection Learning Activity Consumer Protection Identity Theft Case Study Learning Activity Identity Theft Fair Lending & Housing HUD Case Study Learning Activity Fair Housing Loan Fraud & Ethics Loan Fraud Case Study Learning Activity Loan Fraud & Ethics SAFE Part Two: Federal Law Non-traditional Mortgage Products RESPA Reading Due Introduction and Syllabus Assignments Due Submit Online Affidavit Post an introduction on the Discussion Forum Complete Chapter Quizzes and Test Post Information regarding consumer protection on the Discussion Forum Complete Quiz Post remarks on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Post a scenario on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Post a comment on the Discussion Forum regarding RESPA Instruction Time Allocation (in minutes) 10

Learning Activity Instructions

Chapters 1, 2, & 3 Learning Activity Instructions Review information on FTC's website Review information on FTC's website Chapters 1, 2, & 3 Review information on HUD's website Review information on HUD's website Chapters 1 & 2 Review Information on FBI's website Internet search for loan fraud examples Chapters 1 & 2

100

10

10 10 100 10 10 80 10 20

Day 2

80

Day 3

Chapters 1, 2, & 3

90

Learning Activity RESPA

N/A

10

TILA Day 4 Learning Activity TILA SAFE Part Three: Industry Basics Industry Loan Process: Qualification FICO Scores Case Study Learning Activity Credit Report

Chapters 1, 2, 3, & 4 Internet search for trigger terms Chapters 1 & 2 Chapters 1, 2, & 3 Review credit scores

Complete Chapter Quizzes and Test Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Complete Quiz Post a comment on the Discussion Forum regarding credit scores Complete an assignment based on qualification calculations and submit to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Course Final

110 20 80 100 10

Day 5

Review credit scores

10

Learning Activity Loan Process: Qualification SAFE Part Four: Maryland Mortgage Law Maryland Mortgage Law Maryland Mortgage Law Day 7 Enforcement Actions Case Study Evaluation

N/A

20

Day 6

Chapters 1, 2 & 3

150

Chapters 4 & 5

110

Read enforcement action cases


N/A

Complete assignment and submit to instructor


Complete evaluation

30

Course Outline and Schedule - 14 Day Schedule Topics and Activities WV SAFE 22 Hour Pre-licensing Course Introduction SAFE Part One: Consumer Protection Learning Activity Welcome Days 1-2 Consumer Protection Learning Activity Consumer Protection Identity Theft Case Study Learning Activity Identity Theft Fair Lending & Housing HUD Case Study Learning Activity Fair Housing Loan Fraud & Ethics Loan Fraud Case Study Learning Activity Loan Fraud & Ethics SAFE Part Two: Federal Law Non-traditional Mortgage Products RESPA Reading Due Introduction and Syllabus Assignments Due Submit Online Affidavit Post an introduction on the Discussion Forum Complete Chapter Quizzes and Test Post Information regarding consumer protection on the Discussion Forum Complete Quiz Post remarks on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Post a scenario on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Post a comment on the Discussion Forum regarding RESPA Instruction Time Allocation (in minutes) 10

Learning Activity Instructions

Chapters 1, 2, & 3 Learning Activity Instructions Review information on FTC's website Review information on FTC's website Chapters 1, 2, & 3 Review information on HUD's website Review information on HUD's website Chapters 1 & 2 Review Information on FBI's website Internet search for loan fraud examples Chapters 1 & 2

100

10

10 10 100 10 10 80 10 20

Days 3-4

80

Days 5-6

Chapters 1, 2, & 3

90

Learning Activity RESPA

N/A

10

TILA Days 7-8 Learning Activity TILA SAFE Part Three: Industry Basics Industry Loan Process: Qualification FICO Scores Case Study Learning Activity Credit Report

Chapters 1, 2, 3, & 4 Internet search for trigger terms Chapters 1 & 2 Chapters 1, 2, & 3 Review credit scores

Complete Chapter Quizzes and Test Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Complete Quiz Post a comment on the Discussion Forum regarding credit scores Complete an assignment based on qualification calculations and submit to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Course Final

110 20 80 100 10

Days 9-10

Review credit scores

10

Learning Activity Loan Process: Qualification SAFE Part Four: Maryland Mortgage Law Maryland Mortgage Law Maryland Mortgage Law Days 13-14 Enforcement Actions Case Study Evaluation

N/A

20

Days 11-12

Chapters 1, 2 & 3

150

Chapters 4 & 5

110

Read enforcement action cases


N/A

Complete assignment and submit to instructor


Complete evaluation

30