8 Hour MA Mortgage Law Update 2016 Syllabus Revised

8 Hour MA SAFE Comprehensive Mortgage Loan Originator Course 2016

Course Syllabus

Welcome to our Massachusetts SAFE Comprehensive Mortgage Loan Originator Course for

2016. We are excited to assist you in furthering your mortgage career and are pleased you

chose Praedo Institute to satisfy your education requirements.

Course Purpose

This course is meant to satisfy the 2016 NMLS eight hour mortgage loan originator continuing

education requirement for the state of Massachusetts.

Course Description

Our comprehensive course meets the NMLS Comprehensive CE requirement for Massachusetts

by covering the following topics: three hours of Federal Law, two hours of Ethics and Loan

Fraud, two hours of Nontraditional Lending, and one hour of Massachusetts Mortgage Law.

Course Dates and Times

This course is offered for the 2016 license renewal period. In order to ensure proper reporting

to NMLS before all mortgage loan originator licenses expire on December 31, 2016, this course

must be completed by December 21, 2016.

Course Objectives

Upon completing this course, you should be able to do the following:

Explain why fair lending is an important compliance issue for mortgage companies;

Understand the federal laws related to fair lending;

Apply lessons learned in fair lending cases to your mortgage practice;

Analyze situations and properly evaluate them in the context of fair lending compliance;

Understand the definition of an MSA;

Apply the CFPB's stance on MSAs to real life situations;

Identify a non-compliant MSA according to RESPA And CFPB guidance;

Understand what constitutes loan fraud;

Explain the anti-money laundering and Suspicious Activity Report requirements;

Recognize when a mortgage lender or broker would be required to file a Suspicious Activity Report;

Better understand the VA Home Loan Benefit;

Understand the differences in loan authority granted to lenders;

Learn to identify eligible veterans;

Learn the general process options for obtaining a Certificate of Eligibility;

Review unique VA policies and guidelines;

Understand the scope and applicability of Massachusetts mortgage laws;

Comply with the requirements for licensees under the applicable laws and rules; and

Protect the public by following the requirements set forth in the laws and rules. Grading Policy

The course consists of slides mixed with comprehension questions. Each chapter includes a

chapter quiz. At the end of the final part, you will be required to take and pass a final exam.

This course is timed as an eight hour course. You must complete the parts, in order, to progress

through the course. You must answer all of the comprehension questions correctly and score

80 percent on all quizzes and tests to receive credit for the course. You may retake course quiz

questions until you pass, but you are allowed only 10 retakes of the course final.

Course Policies

Each student is required to submit an Identity Affidavit. By confirming the attestation, the

student certifies that the course work was or will be completed by the person for whom the

certificate will be issued. The student further certifies that they did not or will not receive any

assistance in completing the course. The submission of a completion certificate for a course

they did not complete themselves may constitute fraud on the students part and is subject to

prosecution and/or discipline.

Technical Support

As our course is entirely online, we do offer live technical support via telephone, email, and

chat from 8:30am to 5:00pm Mountain Time on regular business days. After hours, holiday,

and weekend support is available 365 days a year via email from 9:00am to 10:00pm Mountain

Time. Our mailing address is 42 North, 200 East, Ste. 3, American Fork, UT 84003. Our

telephone number is 801-492-9933 and our support email is [email protected].

Using our System

Once you purchase the course and are logged into our system, you should see a link to the

course on your home page. This link will launch the course. Please carefully review the

introduction module for instructions on using our online system.

Course Outline

This course consists of four parts, covering the following subjects: Federal Law, Loan Fraud,

Nontraditional Mortgage, and Massachusetts Mortgage Law.

MA Comprehensive SAFE CE 2016 Part 1: Federal Law

Introduction: This module will introduce you to our system. Adherence to the advice and

instructions offered in this module will greatly improve your online education experience.

Fair Lending Chapter 1: Chapter One reviews fair lending. It consists of the following sections:

Department of Justice

Consumer Financial Protection Bureau

Fair Housing Act

Equal Credit Opportunity Act

When You Apply for Credit

When Deciding to Grant Credit

You Also Have the Right to

If a Creditor has Discriminated Against you

Types of Discrimination

Overt Discrimination

Disparate Treatment

Disparate Impact

Fair Lending Chapter 2: Chapter Two reviews the Home Mortgage Disclosure Act. It consists of

the following sections:

Home Mortgage Disclosure Act

HMDA Case Study

HMDA Data

Tips for Compliance

Case Study #1

Case Study #2

Case Study #3

Recent Cases

RESPA Enforcement Chapter 1: Chapter One reviews cases involving Wells Fargo/Chase and

Lighthouse Title. It consists of the following sections:

Introduction

Wells Fargo/Chase CFPB Settlement

Lighthouse Title CFPB Settlement

RESPA Enforcement Chapter 2: Chapter 2 reviews the CFPB Compliance Bulletin and several

hypothetical examples that apply. It consists of the following sections:

CFPB Compliance Bulletin

Case Study

MA Comprehensive SAFE CE 2016 Part 2: Ethics and Loan Fraud

Loan Fraud 2016 Chapter 1: Chapter One will introduce you to the definition of loan fraud and

different types of loan fraud. It consists of the following sections:

Introduction

Fraud for Housing

Fraud for Profit

Air Loan

Appraisal/Valuation

Assets

Employment

Identity Theft

Income

Non-Arms Length Transaction

Occupancy Fraud

Settlement Agent

Short Sale

Shot-Gunning

Straw Borrower

Undisclosed Debt

Affinity Fraud

Builder Bail-Out

Foreclosure Rescue

Loan Modification Scams

Reverse Mortgage Fraud

Case Study

Loan Fraud 2016 Chapter 2: Chapter Two will review loan fraud statistics and SARS reporting.

It consists of the following sections:

Loan Fraud Statistics

Types of Fraud

Mortgage Fraud Case Studies

SARs Reporting

Anti-Money Laundering Rule

SARs Rule Reporting Requirements

MA Comprehensive SAFE CE 2016 Part 3: Nontraditional Lending

VA Home Loans: This part covers the origination of mortgage loans that are to be guaranteed

by the Veterans Administration (VA) on 1-4 unit Single Family Residences. It consists of the

following sections:

What is a VA Home Loan?

VA Loan Features

Eligible Loan Purposes

Property Eligibility

Occupancy Requirements

Who has Jurisdiction over the Lender?

Types of Approval Authority Granted to Lenders

Basic Entitlement and the Amount of Loan Guaranty

Who is Eligible for a VA Home Loan

How to Document Eligibility and Entitlement

VA Lender Resources

What is Restoration of Entitlement?

Clearing Loans Listed as Unpaid on the COE

Back-to-Back Closings

VA Guaranty Calculation

Joint Loans

Case Study

Maximum Loan-To-Value

Maximum Loan Amount

Funding Fee

Appraisals

Minimum Property Requirements

Refinances

Energy Efficient Mortgage

Credit

Income

Reservists, National Guard & Active Duty Applicants

Helpful Hints for Reviewing the Military LES

VA Education Benefits

Rental Income for 2-4 Unit Properties

Debt to Income Ratio (DTI)

Residual Income

Special Instructions for using Tables

Residual Income Calculation

Power of Attorney (POA)

Alive and Well Status

VA Loan Fees

Seller Concessions

Purchase Agreement Escape Clause

Case Study

MA Comprehensive SAFE CE 2016 Part 4:

Massachusetts Mortgage Law Update 2016

MA Mortgage Law Update 2016 consists of the following sections:

Licensing Requirements

Prohibited Acts and Practices

Disciplinary Proceedings

License Misrepresentation

Customer Files

License Number

Exclusive Boss

Working with Unlicensed Agents

Fraud

Best Efforts

Advertising

False Statements and Omissions

Fees

Property Insurance

Funds

Agreements with the Commissioner

Prohibitions

The Challenge Process

Case Study

MA Comprehensive SAFE CE 2016 Course Final: 25 question final exam covering all of the

material discussed in the course.

Course Evaluation: Students will be allowed to give feedback regarding the course.

Course Schedule

This course consists of the four parts outlined below. The requirements for each part are listed

with the approximate time needed to complete each learning module. This course meets the

minimum time requirement of 50 seat minutes for each clock hour the course is approved.

This course is approved as an eight hour course and must be completed in its entirety in order

for you to receive credit.

Good Luck

Once again, thank you for choosing Praedo Institute. Your success is extremely important to us.

Please let us know if we can be of assistance at any time. Enjoy the course!

Course Outline and Schedule

Module Reading Assignments Due Instruction Time

Allocation (Minutes)

MA Comprehensive SAFE CE 2016 Part 1: Federal Law

Introduction Instructions ROC & Attestation 10

Fair Lending Chapter 1

Department of Justice Quiz Question 7


Consumer Financial Protection Bureau

Quiz Question 2


Fair Housing Act Quiz Questions 9


Equal Credit Opportunity Act

Quiz Question 2


When You Apply for Credit

Quiz Question 2


When Deciding to Grant Credit

Quiz Question 4


You Also Have the Right to

Quiz Question 2


If a Creditor has Discriminated Against

you Quiz Question 2


Types of Discrimination

Quiz Question 1


Overt Discrimination Quiz Question 2


Disparate Treatment Quiz Questions 6


Disparate Impact Quiz Questions 6


Home Mortgage Disclosure Act

Quiz Question 4


HMDA Case Study Quiz Question 3


HMDA Data Quiz Question 1


Tips for Compliance Quiz Question 3


Case Study #1 Quiz Questions 9






Recent Cases Quiz Questions 24

RESPA Enforcement Chapter 1

Introduction Quiz Question 3


Wells Fargo/Chase CFPB Settlement

Quiz Questions 25


Lighthouse Title CFPB Settlement

Quiz Questions 17


CFPB Compliance Bulletin

Quiz Questions 9


Case Study Quiz Question 32

MA Comprehensive SAFE CE 2016 Part 2: Ethics and Loan Fraud

Loan Fraud Chapter 1 Introduction Quiz Question 6

Loan Fraud Chapter 1 Types of Fraud Quiz Questions 27

Loan Fraud Chapter 1 Case Study Quiz Questions 11

Loan Fraud Chapter 2 Loan Fraud Statistics Quiz Question 4

Loan Fraud Chapter 2 Types of Fraud Quiz Question 4

Loan Fraud Chapter 2 Mortgage Fraud Case

Studies Quiz Question 7

Loan Fraud Chapter 2 SARs Reporting Quiz Questions 12

Loan Fraud Chapter 2 Anti-Money

Laundering Rule Quiz Questions 6

Loan Fraud Chapter 2 SARs Rule Reporting

Requirements Quiz Questions 17

MA Comprehensive SAFE CE 2016 Part 3: Nontraditional Lending

VA Home Loans What is a VA Home

Loan? Quiz Question 4

VA Home Loans VA Loan Features Quiz Question 1

VA Home Loans Eligible Loan Purposes Quiz Question 1

VA Home Loans Property Eligibility Quiz Question 2

VA Home Loans Occupancy

Requirements Quiz Question 1

VA Home Loans Who has Jurisdiction

over the Lender? Quiz Question 1

VA Home Loans Types of Approval

Authority Granted to Lenders

Quiz Question 1

VA Home Loans Basic Entitlement and the Amount of Loan

Guaranty Quiz Question 2

VA Home Loans Who is Eligible for a

VA Home Loan? Quiz Question 4

VA Home Loans How to Document

Eligibility and Entitlement

Quiz Question 2

VA Home Loans VA Lender Resources Quiz Question 5

VA Home Loans What is Restoration

of Entitlement? Quiz Question 2

VA Home Loans Clearing Loans Listed as Unpaid on the COE

Quiz Question 1

VA Home Loans Back-to-Back Closings Quiz Question 1

VA Home Loans VA Guaranty Calculation

Quiz Question 6

VA Home Loans Joint Loans Quiz Question 1

VA Home Loans Case Study Quiz Questions 5

VA Home Loans Maximum Loan-To-

Value Quiz Question 1

VA Home Loans Maximum Loan

Amount Quiz Question 1

VA Home Loans Funding Fee Quiz Question 1

VA Home Loans Appraisals Quiz Question 1

VA Home Loans Minimum Property

Requirements Quiz Question 5

VA Home Loans Refinances Quiz Question 1

VA Home Loans Energy Efficient

Mortgage Quiz Question 2

VA Home Loans Credit Quiz Question 2

VA Home Loans Income Quiz Question

VA Home Loans Reservists, National Guard & Active Duty

Applicants Quiz Question 2

VA Home Loans Helpful Hints for

Reviewing the Military LES

Quiz Question 1

VA Home Loans VA Education Benefits Quiz Question 1

VA Home Loans Rental Income for 2-4

Unit Properties Quiz Question 1

VA Home Loans Debt to Income Ratio

(DTI) Quiz Question 1

VA Home Loans Residual Income Quiz Question 2

VA Home Loans Special Instructions for

using Tables Quiz Question 2

VA Home Loans Residual Income

Calculation Quiz Question 1

VA Home Loans Power of Attorney

(POA) Quiz Question 1

VA Home Loans Alive and Well Status Quiz Question 1

VA Home Loans VA Loan Fees Quiz Question 3

VA Home Loans Seller Concessions Quiz Question 1

VA Home Loans Purchase Agreement

Escape Clause Quiz Question 1

VA Home Loans Case Study Quiz Questions 5

MA Comprehensive SAFE CE 2016 Part 4: Massachusetts Mortgage Law Update 2016

MA Mortgage Law Update 2016

Licensing Requirements

Quiz Question 3


Prohibited Acts and Practices

Quiz Question 2


Disciplinary Proceedings

Quiz Questions 2


License Misrepresentation

Quiz Questions 2


Customer Files Quiz Question 2


License Number Quiz Question 2


Exclusive Boss Quiz Question 2


Working with Unlicensed Agents

Quiz Question 2


Fraud Quiz Question 3


Best Efforts Quiz Question 2


Advertising Quiz Question 3


False Statements and Omissions

Quiz Questions 3


Fees Quiz Questions 2


Property Insurance Quiz Questions 2


Funds Quiz Question 2


Agreements with the Commissioner

Quiz Question 3


Prohibitions Quiz Question 2


The Challenge Process Quiz Question 3


Case Study Quiz Question 4

Course Final N/A Comprehensive Final

Exam 20

Course Evaluation N/A Evaluation 5

Documents

8 Hour MA Mortgage Law Update 2016 Syllabus Revised