GENERAL INFORMATION PAGE
This California Real Estate Originator License Course provides 8 hours of credit for both:
- Mortgage loan originator license renewal through the NMLS, and
- Real estate license renewal through the California Department of Real Estate (DRE).
This course does NOT provide the 1-hour elective required of persons licensed through the California Department of Financial Protection and Innovation (DFPI), however this is available as a separate package for those that need it.
Please read the included syllabus / general information page for full details before making your purchase.
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).
Topics and Learning Objectives
This course consists of four sections and a final exam
Federal Mortgage-Related Laws
Ethical Mortgage Advertisement Practices
Non-traditional Mortgage Products
The Redesigned Universal Residential Loan Application (URLA)
Total study time: 8 credit hours (6 hours, 40 minutes)
Module 1: Federal Mortgage Related Laws
Study Time: 3 clock hours (150 minutes of federal law)
Equal Credit Opportunity Act (45 minutes)
Truth in Lending Act (70 minutes)
Miscellaneous Provisions (35 minutes)
Each year, the NMLS receives feedback from various agencies on problems and errors occurring in the mortgage industry. This feedback is then incorporated into your annual continuing education requirements as mandated by the NMLS. This module will cover a variety of conduct issues related to federal laws that are among the most frequently cited by examiners as industry problems.
We'll start this module covering the adverse action notice requirements of the Equal Credit Opportunity Act, 12 CFR 1002. Examiners are discovering that applicants are not receiving proper notification of adverse actions taken based on the information on their loan applications.
Next, we'll review several provisions of the the Truth in Lending Act. Specifically, we'll cover 12 CFR 1026.19 regarding proper disclosure of fees on the Loan Estimate and Closing Disclosure; 12 CFR 1026.25 regarding record keeping requirements; 12 CFR 1026.36 regarding the delivery of the special information booklet and NMLS ID disclosure requirements; and 12 CFR 1026.38 regarding proper disclosure of settlement costs.
Lastly, we'll review several miscellaneous NMLS topics: adverse action notices under the Fair Credit Reporting Act (15 USC 1681(m)), the Department of Veterans Affairs VA Circular 26-14-10, consumer consent to receiving digital records under the ESIGN Act (15 USC 7001), and the reporting requirements under the Home Mortgage Disclosure Act (12 CFR 1003).
Module 2: Ethical Mortgage Advertisement Practices
Study Time: 2 clock hours (100 minutes of ethics, fraud, and consumer protection)
The Mortgage Acts and Practices Advertising Rule (45 minutes)
TILA and RESPA Advertising Rules (20 minutes)
FTC Advertising Rules and Case Study (35 minutes)
This module is written with a focus on consumer protection. Most, if not all of the regulations of the mortgage and banking industry are implemented to protect the consumer. In this module you'll be provided with a better understanding of laws that protect consumers from untruthful mortgage advertising. Understanding what you can and cannot do in regard to advertising loan products is vital when dealing with the public and promoting your services. As an advocate for your customer it is up to you to be diligent in your understanding of the laws and regulations affecting our industry, how they affect you in your business, and how to adhere to them for compliance and consumer protection.
Module 3: Non-traditional Mortgage Products
Study Time: 2 clock hours (100 minutes of non-traditional mortgage)
The FHA 203(k) – A Program for Property Rehabilitation (30 minutes)
Energy Efficient Mortgage Programs (45 minutes)
Fannie Mae's HomeReady® Loan Program (25 minutes)
Besides a traditional conventional loan product, there are other options available when it comes to rehabilitating a home for purchase and refinance that may more perfectly fit the rehab loan needs of the borrower. This module will explain several non-traditional mortgage products, exploring other options available to borrowers such as the Federal Housing Administration's 203(k) property rehabilitation loan, four types of energy efficient mortgage products, and the Fannie Mae HomeReady® rehab loan product.
Module 4: The Redesigned Uniform Residential Loan Application
Study Time: 1 clock hour (50 minutes of elective topics)
As you’re presumably aware, the Uniform Residential Loan Application (URLA), referred to as Fannie Mae form 1003 and Freddie Mac form 65, has been redesigned to better fit today's consumers' needs. The purpose of this module is to familiarize the mortgage loan originator with the new forms.
NMLS ID Required
You must have an NMLS ID to receive credit for this course. You will need this number before you begin the course.
If you already have an NMLS ID but don't remember what it is:
- Login into NMLS
- Click on the Composite View tab.
- Click View Individual on the sub-header row.
- The number that appears in parentheses after your name is your NMLS ID number.
If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center
Method of Course Presentation
- Presentation: Internet
- Course Category: Consumer Protection
- Credit Hours: 8
Course fees consist of the initial enrollment fee and a NMLS credit banking fee of $1.50 per credit hour.
- Title: 8 Hour SAFE Comprehensive: 2021 Originator Essentials
- Authors: Sorg & Spaan, LLC
- Copyright date: 2005-2021
- Pages: 180
Course must be completed within one year of enrollment.
All tuition and fees paid for the course are refundable when: (a) the course of instruction is discontinued by OnlineEd and such discontinuation has prevented a student from completing the course; or (b) the enrollment of the student was procured as a result of any misrepresentation in promotion materials of the school, or representation made by an owner or employee of the school. All refunds will be completed within 30 days after the effective date of enrollment termination. Refunds will not be given to any student after the student has successfully registered in a course or courses, as once registered, student has access to the registered courses. In hardship cases, OnlineEd may issue a refund at its sole discretion. OnlineEd does not issue retroactive partial refunds for courses that are subsequently discounted or put on sale after a student makes a purchase.
Final Examination Criteria
- Number of questions: 25
- Types of questions: multiple choice
- Time: 25 minutes
- How many final exam attempts are allowed: 2
- Minimum passing score: 70%
This course is approved for continuing education credit by the California Department of Real Estate. However, this approval does not constitute an endorsement of the views or opinions which are expressed by the course sponsor, instructor, authors or lecturers.
Correspondence Course Identification Statement
In order to verify your identity, you will be asked to provide at the time of enrollment and again prior to taking the final examination certain information to verify your identity. Among the types of identification that may be asked for are your current California driver's license, current identification permitted under the California Vehicle Code, or any identification issued to you by a governmental agency or a recognized real estate related trade organization that was issued within the immediately preceding five years that bears your photograph, signature, and identification number. In addition, you will also be asked to provide answers to additional security questions, the answers to which are unique to you.
Online Evaluation Statement
After completing this course you are encouraged to complete the California Department of Real Estate's online course evaluation form. You can access this evaluation at http://www.dre.ca.gov/files/pdf/forms/re318a.pdf.
Course Provider Complaint Statement
A course provider complaint form is available on the California Department of Real Estate (DRE) website at www.dre.ca.gov. Access this form by typing in "RE 340" in the search box located in the upper right corner of the home page. An informational form regarding course provider complaints, "RE 340A" is also available.
The California Department of Real Estate does not approve nor endorse any of the forms used in this course with the exception of those prescribed by State and Federal Law. While this publication is designed to be accurate information about the subject matter it covers, it is sold with the understanding that the distributor, author, and publisher are not engaged in rendering legal, accounting, or other professional advice. If such advice or other expert assistance is required, the services of a competent professional should be sought. The recipient is cautioned to check with their managing supervisor before acting on any suggestion or recommendation, or before using any sample form contained herein.