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 Business Oversight (DBO), 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:
- Federal Mortgage-Related Laws
- Ethical Practices and Common Fraud Schemes
- The Fannie Mae HomeStyle® Renovation Loan
- Fair Housing in Today's Market
Total study time: 8 hours
Module 1: Federal Mortgage Related Laws
Study Time: 3 credit hours (150 minutes of federal law)
- The Truth in Lending Act (55 minutes)
- The Real Estate Settlement Procedures Act (20 minutes)
- The Equal Credit Opportunity Act (ECOA) (45 minutes)
- Privacy of Consumer Financial Information (GLBA) (20 minutes)
- E-Sign Act (10 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. 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.
When you have completed this section, you will be able to:
- identify the required disclosures to be given to consumers under the Truth in Lending Act.
- define the fees that qualify or are exempt from the TILA definition of finance charges.
- describe the delivery time requirements for the Loan Estimate and the Closing Disclosure.
- list the tolerance limitations on certain fees and whether those charges are made in good faith by the creditor.
- identify advertisement trigger terms that require additional disclosures
- explain the steps a creditor will take to ensure the consumer has the ability to repay the transaction.
- paraphrase RESPA's regulations on prohibited kickbacks and unearned fees.
- reproduce the categories that creditors may and may not consider when evaluating the creditworthiness of an applicant.
- outline what actions under ECOA will require an adverse action notification disclosure to be sent to an applicant.
- describe a consumer's right to receive written items of valuation that were created in connection with their loan application.
- recognize a financial institution's responsibility to provide a clear and conspicuous notice to costumers regarding their privacy policies and practices.
- outline how consumers must give their consent to receive electronic versions of their records.
Module 2: Ethical Practices and Common Fraud Schemes
Study Time: 2 credit hours (100 minutes of ethics, fraud, and consumer protection)
- Ethical Mortgage Lending Practices (50 minutes)
- Mortgage Fraud (50 minutes)
In this section we will review ethics in mortgage lending and how they affect the mortgage industry. We'll discusses ethical practices and consumer protection responsibilities of the mortgage loan originator, and outline various ethical standards as they relate to a compliance approach of ethical lending. This section will provide you with checklists of possible red flags of mortgage fraud.
The second half of this section will outline a variety of mortgage fraud schemes. Many of the cases outlined in this section cost millions of dollars in losses for lenders, resulted in property foreclosures, and caused stress for those who were victims of these schemes. Some of these dubious plans involved mortgage loan originators and others in the industry, while others were perpetrated by loan applicants who recruited unsuspecting buyers. Reviewing various types of fraud that occurred in our industry may help you recognize it if a suspicious application ever crosses your desk.
When you have completed this section, you will be able to:
- list and explain the fiduciary duties of a loan originator.
- recognize unethical behavior in mortgage advertising, daily business, and processing of loans.
- list the various red flags to potential money laundering or fraud.
- identify specific types of mortgage fraud from case studies and examples.
Module 3: The Fannie Mae HomeStyle® Renovation Loan
Study Time: 2 credit hours (100 minutes of non-traditional mortgage)
In this module, we are going to explore mortgage rehabilitation loan products. This includes the FHA 203(k) Rehab Loan, the Fannie Mae HomeStyle® Rehab loan, and alternatives. We will discuss aspects of each program and how they compare to each other.
At the end of this module, you will be able to:
- recognize the HSR qualifications for borrowers and property types.
- describe how a lender can apply with Fannie Mae to offer the HomeStyle Renovation loan.
- outline the steps necessary for a HomeStyle Renovation loan, from beginning to final inspection.
- utilize the Maximum Mortgage Worksheet to apply for a HomeStyle Renovation loan.
- compare the HSR loan to the FHA's 203(k), Streamlined 203(k), and Energy Efficient Mortgage.
Module 4: Fair Housing in Today's Market
Study Time: 1 credit hour (50 minutes of elective topics)
In this module, we will cover fair housing laws designed to protect consumers, your company, and yourself from discriminatory lending practices. Specifically, we are going to explore relevant provisions of fair housing and take a look at a few issues found in fair housing Law.
At the conclusion of this module, you will be able to:
- identify discriminatory practices in the mortgage industry.
- list the protected classes of individuals protected by fair housing.
- define what is required to comply with fair lending in the mortgage industry.
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: 2020 Originator Essentials
- Authors: Sorg & Spaan, LLC
- Copyright date: 2005-2020
- Pages: 158
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.