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 three sections and an end-of-course final exam:
- Federal Mortgage Related Laws
- Ethical Treatment of Consumers
- The VA Home Loan Program
- Final Exam
Total study time: 7 hours
Module 1: Federal Mortgage Related Laws
Study Time: 3 clock hours (150 minutes of federal law)
- TILA-RESPA Integrated Mortgage Disclosures Rule (TRID)
- Other TILA Requirements for Mortgage Loans
- RESPA Section 8 Summary
- The Equal Credit Opportunity Act (ECOA)
In the first module of this course we'll review the TILA-RESPA Integrated Disclosure (TRID), covering the loan disclosure requirements of the Truth in Lending Act (TILA, 12 CFR 1026) and the Real Estate Settlement Procedures Act (RESPA, 12 CFR 1024). We'll review the types of loans the regulations are applicable to, the rate tolerances and permitted fees allowed by the rules, and changes that can be made to the Loan Estimate and Closing Disclosure. We'll also review Marketing Service Arrangements (MSAs) and the Equal Credit Opportunity Act (ECOA, 12 CFR 1002).
Module 1 Objectives
When you have completed this module, you will be able to:
- review the permissible fees and finance charges permitted under the Truth In Lending Act (TILA), codified as Regulation Z, and the Real Estate Procedures Act (RESPA), codified as Regulation X.
- explain actions that must be taken when when finance charges on the initial Loan Estimate are overstated or understated.
- outline the types of loans that are applicable to complying with the Integrated Disclosure Rules.
- list additional Regulation Z regulations regarding open-ended and closed-ended credit.
- recognize the risks associated with Marketing Services Agreements (MSAs) and potential RESPA violations.
- examine the Equal Credit Opportunity Act, codified as Regulation B, and its rules relating to requesting information, evaluating applications, and extending credit.
Module 2: Ethical Treatment of Consumers
Study Time: 2 clock hours (100 minutes of ethics, fraud, and consumer protection)
- Identity Theft Rules
- Telemarketing Sales Rules
- BSA/AML Suspicious Activity Report Filing Requirements
The second module is written with a focus on consumer protection. We'll outline the Identity Theft Rules, 16 CFR 681, and the requirements covered entities have with protecting their customer's accounts. Then we'll examine the Telemarketing Sales Rules, 16 CFR 310, outlining deceptive and abusive practices when soliciting for business by cold-calling consumers. Finally, we'll summarize the BSA/AML Suspicious Activity Report filing requirements.
Module 2 Objectives
When you have completed this module, you will be able to:
- describe the FTC's Identity Theft Rules, which entities are required to comply with the rules, and the requirements for covered entities to establish an identity theft prevention program.
- summarize the prohibited deceptive and abusive acts as outlined in the Telemarketing Sales Rules.
- describe the information that should be included on a preliminary suspicious activity report.
- recognize the penalties for failing to comply with Suspicious Activity Report filing requirements.
Module 3: The VA Home Loan Program
Study Time: 2 clock hours (100 minutes of non-traditional mortgage)
The third module covers unique mortgage product solutions for unique customers. This year we will examine the Department of Veteran Affairs VA home loan guaranty program, covering topics such as eligibility, occupancy requirements, refinances, underwriting, and how the guaranty benefits lenders.
Module 3 Objectives
When you have completed this module, you will be able to:
- Outline people, property and purposes that are eligible for VA loans.
- Describe the various aspects of VA loans, including entitlement, guaranty, IRRRLs, and funding fees.
- Explain what a lender must consider when underwriting a VA loan.
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
