| The Mortgage Industry and its Players |
- Differences between Brokers/Bankers
- Strengths and weaknesses of Portfolio Lenders, Institutional Lenders and
Wholesale Mortgage Bankers
- Secondary Market
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| The Life of a Loan |
- The process or life of a loan from prequalification to payoff.
- Includes brief explanations of all the steps including processing,
underwriting, title clearance, closing, servicing and payoff
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| Introduction to Compliance |
- RESPA and its requirements including GFE, ARM Disclosures,
HUD-1, and post closing requirements.
- Reg B including ECOA and Notice of Adverse Action.
- Reg C (HMDA)/ Why the items are required on the 1003.
- Truth-in-Lending Act including initial and final TIL,
Rescission and Section 32.
- CRA
- Fair Lending and Predatory Lending Practices
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| Basic Mortgage Calculations |
- Introduction to ratios
- LTV and CLTV (Refinance and PMM)
- Calculating mortgage payments
- Qualifying ratios (What is included in the front and back
ratio)
- Examples and in class exercises.
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| Introduction to Terms of Mortgages |
- 1st Mortgages
- 2nd Mortgages (Fixed Rate, HELOC and Piggybacks)
- ARM’s including the components of an ARM, Types
and Neg Am
- Qualifying ratios (What is included in the front and back
ratio)
- Balloon Mortgages
- Step Mortgages 3/27 etc.
- Benefits of selling an ARM and convertibility.
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| Introduction to Mortgage Pricing |
- YSP/back end points
- How are those points disclosed?
- How to read a Wholesale rate sheet.
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| The 1003 |
- How to complete it
- Why all the items must be completed and how they tell the story
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| Types of Loans |
- Full income verification loans
- Who uses it and why
- Documentation required and why
- Use of alternative documentation
- No Income Verification
- Why were no-income loans designed
- Who uses them and why
- Stated Income Loans
- Who uses them
- What does it mean
- How do they work
- The positive and negatives of stated loans
- No Ratio Loans
- Who uses them
- What you need to know (example if using bank statements for assets)
- Positives and negatives
- No-Doc/NINA
- Who uses them
- What you need to know
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| Calculating Income |
- How to calculate income for salaried borrower
- Hourly borrower
- Commissioned borrower
- Bonus income/overtime
- Bank Statements to calculate income
- Self Employed borrower (Sole Proprietor or 1099)
- Partnership income
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| PMI |
- What is PMI?
- The reason for PMI
- When is it used
- How to get rid of PMI
- How to calculate PMI
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| Reading and Interpreting Credit Reports |
- Types of Credit
- Credit Supplements
- How to properly read a credit report
- Overview of credit scoring
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| Understanding Appraisals |
- Definition of an appraisal
- Types of Appraisals
- Components of an appraisal
- Looking for "Red Flags" in an appraisal
- Fraud, Flips, Artificial Markets and Straw Buyers
- Understanding the appraisal review process
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| Conforming Guidelines and Documentation |
- FNMA/FHLMC basics
- Alternative credit
- Documentation requirements
- Jumbo loans
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| Sub-Prime and B/C Lending |
- Who uses sub-prime lenders
- General guidelines
- Typical documentation
- Mortgage only loans
- Credit Blending
| Title |
- What is title
- Why is it needed/required
- Elements of title
- How to calculate the cost of title
- Common title issues
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| Prequalifying the Borrower |
- What is a Prequal
- When do you prequal a borrower
- How do you prequal a borrower
- Prequal vs. Precommitment
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| Underwriting Theory |
- How to prepare a loan for underwriting
- The thought patterns of an underwriter
- The Four C's of Credit
- How to use compensating factors to sell a deal
- Automated Underwriting
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