8 Hours of 2019 North Carolina MLO Continuing Education

The North Carolina Commissioner of Banks (NCCOB) requires mortgage licensees in this state to take a one-hour course on North Carolina mortgage lending rules as part of the licensees' annual continuing education requirement for license renewal. This course covers four North Carolina mortgage topics for licensee continuing education.

The first module of this course reviews conduct and behavior that is prohibited by North Carolina laws. This includes the fees that can be charged on a mortgage loan transactions and the limits for those fees.

The second module describes the various disciplinary actions the Commissioner of Banks may issue against licensees who violate state law.

The third module outlines the North Carolina Reverse Mortgage Act, found in NCGS Chapter 53, Article 21. We'll review how a reverse mortgage is defined, how a lender is granted authority by the Commissioner to issue reverse mortgages, the state limitations on this type of loans, and at what point a borrower is required to repay the reverse mortgage.

The last module of this course explains the North Carolina Residential Mortgage Fraud Act (RMFA), NCGS Chapter 14, Article 20A. We'll learn about the definition of mortgage fraud and identify various tasks that would qualify as mortgage fraud.

Topics and Learning Objectives

This course is broken down into several learning topics. At the end of the course a 15-question final exam will be given. The topics included in this course are:

1. Module 1: Required Conduct and Prohibited Conduct (10 minutes)
2. Module 2: Disciplinary Action (15 minutes)
3. Module 3: The North Carolina Reverse Mortgage Act (10 minutes)
4. Module 4: The North Carolina Residential Mortgage Fraud Act (5 minutes)
5. Final exam (10 minutes)

This course will prepare North Carolina-licensed MLOs to:

• Outline the duties required of mortgage brokers when working with consumers.
• List conduct that is prohibited by the Commissioner during the practice of mortgage loan origination.
• Describe the limitations on fees, interest, late payments, and other financial payments.
• State how the Commissioner initiates disciplinary hearings against licensees and the possible penalties.
• Explain the state laws to comply with when working with applicants for reverse mortgages.
• Paraphrase the definition of mortgage fraud and the penalties for fraud convictions.

Total study time: 1 clock hour

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.

This NMLS continuing education 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 California NMLS continuing education course consists of three sections and an end-of-course final exam:

1. Federal Mortgage Related Laws
2. Ethical Treatment of Consumers
3. The VA Home Loan Program
4. 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