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8 Hour SAFE Comprehensive Mortgage Loan Originator Course 2016

Course Syllabus
Welcome to our SAFE Comprehensive Mortgage Loan Originator Course for 2016. We are
excited to assist you in furthering your mortgage career and are pleased you chose Praedo
Institute to satisfy your continuing education requirements.
Course Purpose
This course is meant to satisfy the NMLS eight hour mortgage loan originator continuing
education requirement for 2016. This course does not contain any state-specific continuing
education.
Course Description
Our comprehensive course meets the NMLS Comprehensive CE requirement by covering the
following topics: four hours of Federal Law, two hours of Ethics and Loan Fraud, and two hours
of Nontraditional Lending.
Course Dates and Times
This course is offered for the 2016 license renewal period. In order to ensure proper reporting
to NMLS before all mortgage loan originator licenses expire on December 31, 2016, this course
must be completed by December 21, 2016.
Course Objectives
Upon completing this course, you should be able to do the following:
Explain why fair lending is an important compliance issue for mortgage companies;
Understand the federal laws related to fair lending;
Apply lessons learned in fair lending cases to your mortgage practice;
Analyze situations and properly evaluate them in the context of fair lending compliance;
Understand the definition of an MSA;
Apply the CFPB's stance on MSAs to real life situations;
Identify a non-compliant MSA according to RESPA And CFPB guidance;
Understand what constitutes loan fraud;

Explain the anti-money laundering and Suspicious Activity Report requirements;


Recognize when a mortgage lender or broker would be required to file a Suspicious
Activity Report;

Better understand the VA Home Loan Benefit;


Understand the differences in loan authority granted to lenders;
Learn to identify eligible veterans;
Learn the general process options for obtaining a Certificate of Eligibility; and
Review unique VA policies and guidelines.

Grading Policy
The course consists of slides mixed with comprehension questions. Each chapter includes a
chapter quiz. At the end of the final part, you will be required to take and pass a final exam.
This course is timed as an eight hour course. You must complete the parts, in order, to progress
through the course. You must answer all of the comprehension questions correctly and score
80 percent on all quizzes and tests to receive credit for the course. You may retake course quiz
questions until you pass, but you are allowed only 10 retakes of the course final.
Course Policies
Each student is required to submit an Identity Affidavit. By confirming the attestation, 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 and email,
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 mailing address is 42 North, 200 East, Ste. 3, American Fork, UT 84003. Our
telephone number is 801-492-9933 and our support email is support@praedo.com.
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. Please carefully review the
introduction module for instructions on using our online system.

Course Outline
This course consists of three parts, covering the following subjects: Federal Law, Loan Fraud,
and Nontraditional Mortgage.

SAFE CE 2016 Part 1: Federal Law


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.
Fair Lending Chapter 1: Chapter One reviews fair lending. It consists of the following sections:
Department of Justice
Consumer Financial Protection Bureau
Fair Housing Act
Equal Credit Opportunity Act
When You Apply for Credit
When Deciding to Grant Credit
You Also Have the Right to
If a Creditor has Discriminated Against you
Types of Discrimination
Overt Discrimination
Disparate Treatment
Disparate Impact
Fair Lending Chapter 2: Chapter Two reviews the Home Mortgage Disclosure Act. It consists of
the following sections:
Home Mortgage Disclosure Act
HMDA Case Study
HMDA Data
Tips for Compliance
Case Study #1
Case Study #2
Case Study #3
Recent Cases
RESPA Enforcement Chapter 1: Chapter One reviews cases involving Wells Fargo/Chase and
Lighthouse Title. It consists of the following sections:
Introduction

Wells Fargo/Chase CFPB Settlement


Lighthouse Title CFPB Settlement
RESPA Enforcement Chapter 2: Chapter 2 reviews the CFPB Compliance Bulletin and several
hypothetical examples that apply. It consists of the following sections:
CFPB Compliance Bulletin
Case Study

SAFE CE 2016 Part 2: Ethics and Loan Fraud


Loan Fraud 2016 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
Fraud for Housing
Fraud for Profit
Air Loan
Appraisal/Valuation
Assets
Employment
Identity Theft
Income
Non-Arms Length Transaction
Occupancy Fraud
Settlement Agent
Short Sale
Shot-Gunning
Straw Borrower
Undisclosed Debt
Affinity Fraud
Builder Bail-Out
Foreclosure Rescue
Loan Modification Scams
Reverse Mortgage Fraud
Case Study
Loan Fraud 2016 Chapter 2: Chapter Two will review loan fraud statistics and SARS reporting.
It consists of the following sections:
Loan Fraud Statistics

Types of Fraud
Mortgage Fraud Case Studies
SARs Reporting
Anti-Money Laundering Rule
SARs Rule Reporting Requirements

SAFE CE 2016 Part 3: Nontraditional Lending


VA Home Loans: This part covers the origination of mortgage loans that are to be guaranteed
by the Veterans Administration (VA) on 1-4 unit Single Family Residences. It consists of the
following sections:
What is a VA Home Loan?
VA Loan Features
Eligible Loan Purposes
Property Eligibility
Occupancy Requirements
Who has Jurisdiction over the Lender?
Types of Approval Authority Granted to Lenders
Basic Entitlement and the Amount of Loan Guaranty
Who is Eligible for a VA Home Loan
How to Document Eligibility and Entitlement
VA Lender Resources
What is Restoration of Entitlement?
Clearing Loans Listed as Unpaid on the COE
Back-to-Back Closings
VA Guaranty Calculation
Joint Loans
Case Study
Maximum Loan-To-Value
Maximum Loan Amount
Funding Fee
Appraisals
Minimum Property Requirements
Refinances
Energy Efficient Mortgage
Credit

Income
Reservists, National Guard & Active Duty Applicants
Helpful Hints for Reviewing the Military LES
VA Education Benefits
Rental Income for 2-4 Unit Properties
Debt to Income Ratio (DTI)
Residual Income
Special Instructions for using Tables
Residual Income Calculation
Power of Attorney (POA)
Alive and Well Status
VA Loan Fees
Seller Concessions
Purchase Agreement Escape Clause
Case Study
SAFE CE 2016 Course Final: 25 question final exam covering all of the material discussed in the
course
Course Evaluation: Students will be allowed to give feedback regarding the course.
Course Schedule
This course consists of the three parts outlined below. The requirements for each part are
listed with the approximate time needed to complete each learning module. This course meets
the minimum time requirement of 50 seat minutes for each clock hour the course is approved.
This course is approved as an eight 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


Module

Reading

Assignments Due

Instruction Time
Allocation (Minutes)

SAFE CE 2016 Part 1: Federal Law


Introduction
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
1
Fair Lending Chapter
2
Fair Lending Chapter
2
Fair Lending Chapter
2
Fair Lending Chapter
2
Fair Lending Chapter
2

Instructions

ROC & Attestation

10

Department of Justice

Quiz Question

Consumer Financial
Protection Bureau

Quiz Question

Fair Housing Act

Quiz Questions

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Overt Discrimination

Quiz Question

Disparate Treatment

Quiz Questions

Disparate Impact

Quiz Questions

Home Mortgage
Disclosure Act

Quiz Question

HMDA Case Study

Quiz Question

HMDA Data

Quiz Question

Tips for Compliance

Quiz Question

Case Study #1

Quiz Questions

Equal Credit
Opportunity Act
When You Apply for
Credit
When Deciding to
Grant Credit
You Also Have the
Right to
If a Creditor has
Discriminated Against
you
Types of
Discrimination

Fair Lending Chapter


2
Fair Lending Chapter
2
Fair Lending Chapter
2
RESPA Enforcement
Chapter 1
RESPA Enforcement
Chapter 1
RESPA Enforcement
Chapter 1
RESPA Enforcement
Chapter 2
RESPA Enforcement
Chapter 2

Case Study #2

Quiz Questions

Case Study #3

Quiz Questions

Recent Cases

Quiz Questions

24

Quiz Question

Quiz Questions

25

Quiz Questions

17

Quiz Questions

Quiz Question

32

Introduction
Wells Fargo/Chase
CFPB Settlement
Lighthouse Title CFPB
Settlement
CFPB Compliance
Bulletin
Case Study

SAFE CE 2016 Part 2: Ethics and Loan Fraud


Loan Fraud Chapter 1
Loan Fraud Chapter 1
Loan Fraud Chapter 1
Loan Fraud Chapter 2
Loan Fraud Chapter 2
Loan Fraud Chapter 2
Loan Fraud Chapter 2
Loan Fraud Chapter 2
Loan Fraud Chapter 2

Introduction
Types of Fraud
Case Study
Loan Fraud Statistics
Types of Fraud
Mortgage Fraud Case
Studies
SARs Reporting
Anti-Money
Laundering Rule
SARs Rule Reporting
Requirements

Quiz Question
Quiz Questions
Quiz Questions
Quiz Question
Quiz Question

6
27
11
4
4

Quiz Question

Quiz Questions

12

Quiz Questions

Quiz Questions

17

SAFE CE 2016 Part 3: Nontraditional Lending


VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans

VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans

What is a VA Home
Loan?
VA Loan Features
Eligible Loan Purposes
Property Eligibility
Occupancy
Requirements
Who has Jurisdiction
over the Lender?
Types of Approval
Authority Granted to
Lenders
Basic Entitlement and
the Amount of Loan
Guaranty
Who is Eligible for a
VA Home Loan?
How to Document
Eligibility and
Entitlement
VA Lender Resources
What is Restoration
of Entitlement?
Clearing Loans Listed
as Unpaid on the COE
Back-to-Back Closings
VA Guaranty
Calculation
Joint Loans
Case Study
Maximum Loan-ToValue
Maximum Loan
Amount
Funding Fee
Appraisals

Quiz Question

Quiz Question
Quiz Question
Quiz Question

1
1
2

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question
Quiz Questions

1
5

Quiz Question

Quiz Question

Quiz Question
Quiz Question

1
1

VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans

VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
VA Home Loans
SAFE CE 2016 Course
Final
Course Evaluation

Minimum Property
Requirements
Refinances
Energy Efficient
Mortgage
Credit
Income
Reservists, National
Guard & Active Duty
Applicants
Helpful Hints for
Reviewing the Military
LES
VA Education Benefits
Rental Income for 2-4
Unit Properties
Debt to Income Ratio
(DTI)
Residual Income
Special Instructions for
using Tables
Residual Income
Calculation
Power of Attorney
(POA)
Alive and Well Status
VA Loan Fees
Seller Concessions
Purchase Agreement
Escape Clause
Case Study
N/A
N/A

Quiz Question

Quiz Question

Quiz Question

Quiz Question
Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question

Quiz Question
Quiz Question
Quiz Question

1
3
1

Quiz Question

Quiz Question
Comprehensive Final
Exam
Evaluation

5
25
5