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8 Hour SAFE Comprehensive: 2014 Originator Essentials


At A Glance:

Price: $70.00 (USD)
+ $12.00 NMLS Credit Banking Fee
Purpose: For MLO license renewal in states that do not require state-specific electives.
Features: online text, online video, printable certificate, PDF eBook
Hours: 8 Hours
Category: Mortgage > Continuing Education > CE Comprehensive
Sponsor /
7405 SW Beveland Rd,
Portland, OR 97223
(503) 670-9278

For MLO license renewal in states that do not require state-specific electives.

NMLS Course ID: 4548

NMLS Sponsor ID: 1400327

View Course Syllabus

This course will instruct mortgage loan originators on a number of regulations that they will have to comply with while taking part in their mortgage loan origination activities. Rules, such as those implemented by the Dodd-Frank Wall Street Reform and Consumer Protection Act, are set in place to protect the interest and well-being of consumers who apply for mortgages to purchase or refinance their properties. To ensure that their business practices satisfy the regulations adopted by federal laws, mortgage loan originators need to keep current on the guidelines published by entities such as the Consumer Financial Protection Bureau (CFPB).

The first part of this course will describe some of the more recent changes to federal laws. To establish a national standard for originating mortgages, rules were implemented in the Truth in Lending Act relating to determining if a consumer can actually repay the loan he or she is applying for. If a mortgage loan originator can successfully evaluate that an applicant can repay the loan, then the issued loan can be classified as a Qualified Mortgage (QM), giving protection to the mortgage loan originator. Mortgage loan originators taking this course will learn the criteria for a loan to be classified as a Qualified Mortgage, including the latest points and fees thresholds that need to be met. Also covered in this section of the course are guidelines on what factors are considered to be compensation, and who can pay compensation to a mortgage loan originator for his or her services.

The second part of this course identifies the importance of a mortgage loan originator to act ethically while conducting business with the public, and be experienced enough to easily recognize mortgage fraud when taking an application from a consumer for a mortgage. A short history of ethical legislation will be covered, along with an outline for a mortgage loan originator's ethical standards of practice. Common mortgage fraud schemes will also be described, with included real-world cases of fraud that cost lenders millions of dollars.

The third part of this course will outline two popular alternative mortgage products: the reverse mortgage for those over the age of 62, and the 203(k) mortgage that can be used to rehabilitate and upgrade a consumer's principal home. The specific requirements for each of these loan products will be detailed, giving a mortgage loan originator more information to better service their consumers on these types of mortgage products.

The final part of this course will review the SAFE Act, passed in 2008 to regulate the licensing of mortgage loan originators. This important federal regulation was responsible for creating national mortgage licensing requirements and standards, setting forth a nation-wide centralized location where consumers can search to see if a mortgage loan originator they are working with is in compliance with the regulations provided for in the act.

Topics and Learning Objectives

This course consists of four primary sections:

  1. ATR and QM, Points and Fees Caps, and Loan Originator Compensation (3 Hours Federal Law)

  2. Ethical Mortgage Lending Practices and Common Fraud Schemes (2 Hours Ethics)

  3. Understanding the Reverse Mortgage and 203(k) Loan Program (2 Hours Non-Traditional Mortgage)

  4. SAFE Act Review (1 Hour Elective)

Total study time: 8 hours

Module 1: ATR and QM, Points and Fees Caps, and Loan Originator Compensation

The purpose of this module is to explain the recent CFPB rules relating to calculating a consumer's ability to replay their mortgage (ATR rules), the criteria for classifying a mortgage as a Qualified Mortgage (QM), the rules relating to prohibited excess points and fees on Qualified Mortgages, and the latest regulations relating to how compensation can be paid to a mortgage loan originator.

Module 1 Objectives

When you have completed this module, you will be able to:

  1. List eight points to consider when determining a consumer's ability to repay.

  2. Determine if ATR documentation is “third party verified”.

  3. List four fundamental types of Qualified Mortgages and determine if a loan is Qualified Mortgage.

  4. Calculate points and fees.

  5. List what is included and excluded from points and fees.

  6. Break down and analyze basic points and fees case studies.

  7. Discern who is or is not a “loan originator”.

  8. Define what constitutes “compensation” and list exceptions to compensation.

  9. Identify illegal compensation models.

  10. Outline basic record retention rules.

Module 2: Ethical Mortgage Lending Practices and Common Fraud Schemes

The first half of this module will emphasize the importance of being an ethical mortgage loan originator, by covering the role of state and federal regulations, such as fair housing laws, as well as outlining ideal professional mortgage loan originator conduct and behavior. The second half of this module will define a variety of common mortgage fraud schemes, including court case studies describing details of fraud and the consequences for those who were caught and prosecuted for fraud.

Module 2 Objectives

When you have completed this module, you will be able to:

  1. List and explain the fiduciary duties of a loan originator.

  2. Recognize unethical behavior in mortgage advertising, daily business, and processing of loans.

  3. Identify nine specific types of mortgage fraud from case studies and examples.

Module 3: Understanding the Reverse Mortgage and 203(k) Loan Program

The purpose of this module is to outline the requirements for a reverse mortgage and the FHA's 203(k) loan. The details of who can apply and qualify for these types of specialty mortgages are outlined, along with the limitations for each of these types of mortgages, what the loan proceeds can be used towards, and some of the fees an applicant may be charged for the loan.

Module 3 Objectives

When you have completed this module, you will be able to:

  1. Define who is eligible for a reverse mortgage.

  2. Outline the terms under which a reverse mortgage can be paid and repaid.

  3. Identify which borrowers would benefit from a 203(k) loan.

  4. List potential 203(k) charges and fees.

  5. Explain helpful features of the 203(k) Streamlined and Energy Efficient Mortgages.

Module 4: SAFE Act Review

The purpose of this module is to summarize the important regulations outlined in the Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act). The module will cover who is covered by the SAFE Act rules, the mortgage loan originator licensing requirements, and the regulatory authority assigned to enforce the provisions of the act.

Module 4 Objectives

When you have completed this module, you will be able to:

  1. Understand the requirements of the SAFE Act as it relates to being licensed as a mortgage loan originator.

  2. Identify the requirements for obtaining and retaining a national license with the Nationwide Mortgage Licensing System and Registry.

  3. Define what the licensing requirements are of a state-licensed mortgage loan originator and the registration requirements are for a registered mortgage loan originator.

  4. Recognize how education, reporting, and personal history are important for licensure and consumer protection.

Our Mission Statement

To provide superior distance education that exceeds industry standards and expectations in course content and delivery methods to those who seek to enter a new profession and those engaged in a profession.