Syllabus SAFE 20 Hour Arizona Comprehensive PE Combined

7/28/2019 Syllabus SAFE 20 Hour Arizona Comprehensive PE Combined

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20 Hour Mortgage Loan Originator Arizona SAFE Comprehensive Course

Course Syllabus -- 7 Day

(14 Day Schedule included at the bottom of this document)

Welcome to our Arizona SAFE Comprehensive Course. We are excited to assist you in

furthering or beginning your mortgage career and are pleased you chose Praedo Institute to

satisfy your education requirements.

Course Purpose

This course is meant to satisfy the 20 hour SAFE education requirement for mortgage loan

originator licensure for the state of Arizona. This course will also help prepare you for the

National Component of the SAFE Mortgage Loan Originator Exam, including the UST portion, as

well as the Arizona component of the SAFE exam.

Course Description

Along with the SAFE required education, this course includes 4 hours of Arizona Law as well as

information related to loan qualification and the loan process. This course satisfies the Arizona

SAFE requirement. Included in this course are: discussion forums, interactive content, practice

exams, and live instructor support.

Course Dates and Times

This course begins on Tuesday at 8:00am mountain time and must be completed by midnight

on the session end date.

Instructor Contact Information

Once you register for the course, you will receive an email from the instructor assigned to your

course. The email will introduce your instructor as well as explain contact methods and

expected response times. All of our instructors are required to respond to student questions

within one business day of the receipt of your question. Your instructors personal email will be

included in the introduction email.

Course ObjectivesEach of the individual modules in this course include learning objectives applicable to the

individual module itself. Our course is meant to give you an introduction to the mortgage

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

Define basic mortgage terms; Perform mathematical calculations common to the mortgage industry;


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Explain certain mortgage concepts to potential borrowers; Comply with applicable federal laws related to the mortgage industry. You should also be able to pass the National Component of the SAFE Mortgage Loan

Originator Exam including the UST portion.

You should be prepared to pass the AZ component of the SAFE Exam.Grading Policy

Most of the sections in this course consist of slides mixed with comprehension questions. Each

chapter includes a chapter quiz, and most sections include a course final. You may view the

slides at your own pace, but you must answer all of the comprehension questions correctly and

score 80 percent on all quizzes to receive credit for the course. You must also pass the course

section final exams with a score of 80 percent in order to receive credit for the course. Please

remember, your course does include a completion deadline.

Several of the modules also include case studies, which involve the completion of a certain

project. The details for the individual case studies are found in the course.

Our course also includes 8-10 learning activities. In each of the learning activities, you will be

required to either post comments on our discussion forum or email an assignment to your

instructor for grading. Instructions for the learning activities are included in the course.

Your course consists of four parts. At the end of each part, you will be required to submit an

assignment to your instructor. Your instructor will grade your assignment within one businessday of assignment submission. Once your instructor grades the assignment, your instructor will

allow you access to the next part of your course. The instructor reserves the right to delay your

advancement to the next part in the event you are progressing substantially faster than the

other students in that part.

Course Policies

Each student is required to submit an Identity Affidavit. By confirming this 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 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


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

Please note, our technical support staff will often be unable to answer content questions whichare more appropriately directed to your instructor.

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, each covering different aspects of the Secure and Fair

Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).

SAFE 20 Hour Pre-licensing Course 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.

SAFE Part One: Consumer Protection (7 Hours)

Learning Activity Welcome: The student will follow the instructions to make a post about

themselves.

Consumer Protection Chapter 1: Chapter One covers the Gramm-Leach-Bliley Act. It consists of

the following sections:

Privacy Rule Safeguard Rule Pre-texting

Consumer Protection Chapter 2: Chapter Two covers the Do Not Call Rules. It consists of the

following sections:

Do Not Call Registry Do Not Fax Rules

Consumer Protection Chapter 3: Chapter Three covers the Red Flags Rule. It consists of the

following sections:

Definitions Red Flag Rule Requirements Identifying Red Flags
mailto:[email protected]:[email protected]:[email protected]:[email protected]


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Learning Activity Consumer Protection: The student will follow instructions to post

information on the discussion forum regarding consumer protection.

Identity Theft Case Study: The student will review information on the Federal Trade

Commission's web site and answer related questions.

Learning Activity Identity Theft: After reviewing the information from the case study, the

student will follow instructions to post remarks on the discussion forum.

Fair Lending & Housing Chapter 1: Chapter One covers the Fair Housing Act, the Equal Credit

Opportunity Act, and the Home Mortgage Disclosure Act. It consists of the following sections:

Fair Housing Act Equal Credit Opportunity Act

Home Mortgage Disclosure ActFair Lending & Housing Chapter 2: Chapter Two covers the Fair Credit Reporting Act and the

Fair and Accurate Credit Transaction Act. It consists of the following sections:

Fair Credit Reporting Act Fair and Accurate Credit Transaction Act

Fair Lending & Housing Chapter 3: Chapter Three covers the governmental agencies who

participate in regulating the mortgage industry. It consists of the following sections:

Role of the Federal Reserve Role of the Federal Trade Commission Role of the Department of Housing and Urban Developments

Hud Case Study: The student will review information on the HUD web site and answer related

questions with regard to Fair Housing.

Learning Activity Fair Housing: After completing the HUD case study, the student will follow

instructions to post a scenario on the discussion forum.

Loan Fraud & Ethics Chapter 1: Chapter One will introduce you to the definition of loan fraudand different types of loan fraud. It consists of the following sections:

Introduction to Loan Fraud Definition of Loan Fraud Consequences of Loan Fraud Types of Fraud


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Loan Fraud and Ethics Chapter 2: Chapter Two will review popular loan fraud schemes and

loan fraud statistics. This chapter also discusses ways to detect fraud and licensee obligations

when it comes to loan fraud. It consists of the following sections:

Common Loan Fraud Schemes

Short Sale Fraud MARI Fraud Index

Loan Fraud Case Study: The student will review information on the FBI's web site and answer

related questions with regard to fraud.

Learning Activity Loan Fraud & Ethics: The student will search the Internet for two examples of

loan fraud and report their findings to their instructor through the internal email system.

SAFE Part Two: Federal Law (5 Hours)

Non-Traditional Mortgage Products Chapter 1: Chapter One introduces the student to non-

traditional mortgage products. It consists of the following sections:

Introduction to the Industry Definition of the Industry Product Overviews

Non-Traditional Mortgage Products Chapter 2: Chapter Two covers federal guidance of the

non-traditional mortgage industry. It consists of the following sections:

Interagency Guidance on Nontraditional Mortgage Product Risks Loan Terms and Underwriting Standards Portfolio and Risk Management Practices Consumer Protection Issues Statement on Sub-prime Mortgage Lending Predatory Lending Prepayment Penalties Reduced Documentation Payment Shock Workout Arrangements Consumer Protection Principles

RESPA Chapter 1: Chapter One introduces RESPAs provisions regarding disclosure of costs and

record keeping. It consists of the following sections:

Purposes of the Real Estate Settlement Procedures Act


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Scope of RESPA Exempt Transactions Definitions Advance Disclosure of Costs - Good Faith Estimate

RESPA Chapter 2: Chapter Two explains RESPAs kickbackand referral fee provisions. Itconsists of the following sections:

Eliminate Kickbacks and Referral Fees Common RESPA Violations

RESPA Chapter 3: Chapter Three covers affiliated business arrangements and servicing

requirements set forth in RESPA. It consists of the following sections:

Affiliated Business Arrangements Servicing Issues

Learning Activity RESPA: The student will follow the instructions to post a comment on thediscussion forum regarding RESPA.

TILA Chapter 1: Chapter One introduces the Truth in Lending Act and includes definitions as

well as information on APR and advertising. It consists of the following sections:

Definitions Annual Percentage Rate Advertising Rules Trigger Terms Required Disclosures

TILA Chapter 2: Chapter Two covers disclosure and the right to cancel. It consists of the

following sections:

Disclosure Requirements Early Disclosures Early Disclosure and Closing Collecting Fees Changes During the Transaction Right of Rescission High-Cost Loans Additional Disclosures Higher-priced Loans

TILA Chapter 3: Chapter Three covers loan officer compensation. It consists of the following

sections:

LO Compensation Rule


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Payments Based on Transaction Terms Reducing LO Compensation on a Transaction Other Compensation Issues Final Rule and Official Staff Commentary Safe Harbor Presenting Loan Options

TILA Chapter 4: Chapter Four Covers the ability to repay and QM rule. It consists of the

following section:

Ability to Repay and QM RuleLearning Activity TILA: The student will follow the instructions to search the Internet to find

mortgage ads which include trigger terms. They will complete an assignment and submit it to

their instructor through the internal email system.

SAFE Part Three: Industry Basics (4 Hours)

Industry Chapter 1: Chapter One reviews the structure of the mortgage industry. It consists of

the following sections:

Structure of the Mortgage Industry The Primary Market The Secondary Market Mortgage Brokers Mortgage Lenders/Bankers Secondary Market Transactions The Capital Market

Industry Chapter 2: Chapter Two discusses the basic mortgage categories. It consists of the

following sections:

Mortgage Industry Overview Purchase Transactions Rate/Term Refinance Cash-Out Refinance Mortgage Categories Conventional/Conforming FHA - Federal Housing Administration Advantages of FHA Lending Higher Debt to Income Ratios Non-occupant Co-borrowers


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Disadvantages of FHA Lending VA Loans Rural Housing Construction Loans Jumbo/Non-Conforming Second Mortgage/HELOC Reverse Equity/HECM

Loan Process: Qualification Chapter 1: Chapter One covers pre-qualification. It consists of the

following sections:

Pre-qualification Down Payment Income Debts Credit

Loan Process: Qualification Chapter 2: Chapter Two explores file documentation. It consists

of the following sections:

Assembling the File Income Documentation Acceptable Assets

Loan Process: Qualification Chapter 3: Chapter Three reviews credit reports. It consists of the

following sections:

Credit Reports Credit Scores

FICO Scores Case Study: The student will review credit scores and answer questions related to

FICO.

Learning Activity Credit Report: The student will follow the instructions to post a comment on

the discussion forum regarding credit scores.

Learning Activity Loan Process: Qualification: The student will complete an assignment based

on qualification calculations and submit their work to their instructor through the internal email

system.


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Arizona Licensing Case Study: The student will identify and evaluate different scenarios

regarding and individual's ability to obtain a Mortgage Loan Originator license in Arizona.

The student will submit their completed assignment through the internal email system to their

instructor for grading.

Arizona DFI Learning Activity: The student will read through dockets on the Arizona

Department of Financial Institutions website. They will choose two dockets and write a

summary about what statute or rules the mortgage loan originator violated. They will then

explain how they could protect themselves from similar situations.

The student will submit their completed assignment through the internal email system to their

instructor for grading.

Course Final: 125 question course final covering all of the material 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. The scheduled days are

approximate as well, you are not required to follow the prescribed outline, but doing so would

allow you to complete the course in the allotted time frame. This course meets the minimum

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

is approved as a 20 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 any assistance at any time. Enjoy the course!


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Course Outline and Schedule - 7 Day

Schedule Topics and Activities Reading Due Assignments DueInstruction Time

Allocation (in minutes)

Day 1

SAFE 20 Hour Pre-

licensing CourseIntroduction

Introduction andSyllabus Submit OnlineAffidavit 15

SAFE Part One:

Consumer

Protection

Learning Activity

Welcome

Learning Activity

Instructions

Post an introduction

on the Discussion

Forum

10

Consumer Protection Chapters 1, 2, & 3Complete Chapter

Quizzes and Test100

Learning Activity

Consumer Protection

Learning Activity

Instructions

Post Information

regarding consumer

protection on theDiscussion Forum

10

Identity Theft Case

Study

Review information

on FTC's websiteComplete Quiz 10

Learning Activity

Identity Theft

Review information

on FTC's website

Post remarks on the

Discussion Forum10

Day 2

Fair Lending &

HousingChapters 1, 2, & 3

Complete Chapter

Quizzes and Test100

HUD Case StudyReview information

on HUD's websiteComplete Quiz 10

Learning Activity Fair

Housing

Review information

on HUD's website

Post a scenario on

the DiscussionForum

10

Loan Fraud & Ethics Chapters 1 & 2Complete Chapter

Quizzes and Test100

Loan Fraud Case

Study

Review Information

on FBI's websiteComplete Quiz 10

Learning Activity

Loan Fraud & Ethics

Internet search for

loan fraud examples

Report findings to

instructor20

Day 3

SAFE Part Two:

Federal Law

Non-traditional

Mortgage Products

Chapters 1 & 2Complete Chapter

Quizzes and Test90

RESPA Chapters 1, 2, & 3Complete Chapter

Quizzes and Test100

Learning Activity

RESPAN/A

Post a comment on

the Discussion

Forum regarding

RESPA

10


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Day 4

TILA Chapters 1, 2, 3 & 4Complete Chapter

Quizzes and Test110

Learning Activity

TILA

Internet search for

trigger terms

Report findings to

instructor 20

Day 5

SAFE Part Three:

Industry Basics

Industry


Quizzes and Test100

Loan Process:

QualificationChapters 1, 2, & 3

Complete Chapter

Quizzes and Test100

FICO Scores Case

StudyReview credit scores Complete Quiz 10

Learning Activity

Credit ReportReview credit scores

Post a comment on

the Discussion

Forum regarding

credit scores

10

Learning Activity

Loan Process:

Qualification

N/A

Complete an

assignment based on

qualification

calculations and

submit to instructor

20

Day 6

SAFE Part Four:

Arizona Law

Arizona Loan

Originator Licensing

Law

Chapter 1Complete Chapter

Quizzes and Test60

Arizona MortgageLaw: Laws and

Regulations

Chapters 1, 2, & 3 Complete ChapterQuizzes and Test

100

Day 7

Arizona Licensing

Case StudyRead scenarios

Complete evaluation

assignment and


20

Arizona DFI Learning

Activity

Read dockets on

DFI website

Complete review

of infractions and

submit to

instructor

20

Course Final N/A Complete Exam 20

Evaluation N/A Complete evaluation 5


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Course Outline and Schedule - 14 Day

Schedule Topics and Activities Reading Due Assignments DueInstruction Time

Allocation (in minutes)

Days 1-2

SAFE 20 Hour Pre-

licensing CourseIntroduction

Introduction andSyllabus Submit OnlineAffidavit 15

SAFE Part One:

Consumer

Protection

Learning Activity

Welcome

Learning Activity

Instructions

Post an introduction

on the Discussion

Forum

10

Consumer Protection Chapters 1, 2, & 3Complete Chapter

Quizzes and Test100

Learning Activity

Consumer Protection

Learning Activity

Instructions

Post Information

regarding consumer

protection on theDiscussion Forum

10

Identity Theft Case

Study

Review information

on FTC's websiteComplete Quiz 10

Learning Activity

Identity Theft

Review information

on FTC's website

Post remarks on the

Discussion Forum10

Days 3-4

Fair Lending &

HousingChapters 1, 2, & 3

Complete Chapter

Quizzes and Test100

HUD Case StudyReview information

on HUD's websiteComplete Quiz 10

Learning Activity Fair

Housing

Review information

on HUD's website

Post a scenario on

the DiscussionForum

10

Loan Fraud & Ethics Chapters 1 & 2Complete Chapter

Quizzes and Test100

Loan Fraud Case

Study

Review Information

on FBI's websiteComplete Quiz 10

Learning Activity

Loan Fraud & Ethics

Internet search for

loan fraud examples

Report findings to

instructor20

Days 5-6

SAFE Part Two:

Federal Law

Non-traditional

Mortgage Products


Quizzes and Test90

RESPA Chapters 1, 2, & 3Complete Chapter

Quizzes and Test100

Learning Activity

RESPAN/A

Post a comment on

the Discussion

Forum regarding

RESPA

10


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Days 7-8

TILA Chapters 1, 2, 3, & 4Complete Chapter

Quizzes and Test110

Learning Activity

TILA

Internet search for

trigger terms

Report findings to

instructor 20

Days 9-10

SAFE Part Three:

Industry Basics

Industry


Quizzes and Test100

Loan Process:

QualificationChapters 1, 2, & 3

Complete Chapter

Quizzes and Test100

FICO Scores Case

StudyReview credit scores Complete Quiz 10

Learning Activity

Credit ReportReview credit scores

Post a comment on

the Discussion

Forum regarding

credit scores

10

Learning Activity

Loan Process:

Qualification

N/A

Complete an

assignment based on

qualification

calculations and


20

Days 11-12

SAFE Part Four:

Arizona Law

Arizona Loan

Originator Licensing

Law

Chapter 1Complete Chapter

Quizzes and Test60

Arizona MortgageLaw: Laws and

Regulations

Chapters 1, 2, & 3 Complete ChapterQuizzes and Test

100

Days 13-14

Arizona Licensing

Case StudyRead scenarios

Complete evaluation

assignment and


20

Arizona DFI Learning

Activity

Read dockets on

DFI website

Complete review

of infractions and

submit to

instructor

20

Course Final N/A Complete Exam 20

Evaluation N/A Complete evaluation 5

Documents

Syllabus SAFE 20 Hour Arizona Comprehensive PE Combined