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Mortgage Loan Originator Pre-licensing: Mortgage Loan Originator SAFE Comprehensive Course ID #14022

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Course Purpose

Mortgage Loan Originator Pre-licensing: Mortgage Loan Originator SAFE Comprehensive Course satisfies the requirements set forth by the Secure and Fair Enforcement Mortgage Licensing Act for a comprehensive 20-hour pre-licensing course for mortgage loan originators.

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This course covers topics required by the SAFE Act: Federal lending legislation (3 hrs), ethics (3 hrs), and nontraditional mortgage products (2 hrs). Also included are 12 hours of electives on key concepts, including financial disclosure, privacy protection, consumer I.D., and predatory lending protection laws; government loan programs; the SAFE Act; financial calculations; conventional loans and financing; loan processes, products, and finance instruments; and the Uniform State Test.

Course Objectives

Upon completion of this Mortgage Loan Originator Pre-licensing course, students will be able to:

  • Describe historical events that significantly impacted the mortgage industry.
  • Identify the role of former and current agencies in regulating financial institutions.
  • Contrast the role of different entities in the primary and secondary mortgage market.
  • Explain how events led to an economic crisis that impacted the mortgage industry.
  • Describe the purpose of the Dodd-Frank Act and legislation that passed as part of the Act.
  • Recognize laws and regulations under the Consumer Financial Protection Bureau.
  • Define the various roles mortgage professional’s play.
  • Distinguish between pre-approval and pre-qualification.
  • Identify the steps in the loan process.
  • Discuss the information necessary to complete a standard loan application.
  • Identify criteria for evaluating borrowers.
  • Calculate housing and debt-to-income ratios.
  • Explain credit scoring.
  • Contrast a financing instrument with a security instrument.
  • Describe advantages and disadvantages of mortgages and trust deeds.
  • Identify typical mortgage clauses.
  • Identify the characteristics of a conventional loan.
  • Define amortization.
  • Identify different types of conventional loans.
  • Recognize the use of private mortgage insurance.
  • Contrast conforming and nonconforming loans.
  • Describe methods of secondary financing.
  • Identify basic qualifying standards for FHA-insured loans.
  • Define the use of upfront mortgage insurance premiums.
  • Recognize different FHA loan programs.
  • Identify basic qualifying standards for VA-guaranteed loans.
  • Define eligibility and entitlement for veterans.
  • Recognize different USDA loan programs.
  • Describe the advantages and disadvantages of buydown plans.
  • Identify the elements that make up an adjustable-rate mortgage.
  • Describe the purpose of construction loans, including the three most common disbursement plans.
  • Identify the characteristics of a reverse mortgage.
  • Identify the factors that define a subprime loan.
  • Describe the agency guidelines on lending and subprime loans.
  • Contrast the various types of alternative financing.
  • Describe the purpose of the Real Estate Settlement Procedures Act and the Truth in Lending Act.
  • Identify how to comply with advertising disclosure requirements set forth in the Truth in Lending Act and Regulation Z.
  • Explain when and what disclosures need to be provided during the different stages of mortgage loan origination to comply with the Real Estate Settlement Procedures Act and the Truth in Lending Act as set forth in Regulation X and Z.
  • Differentiate between the Business Day Rule and the More Precise Business Day Rule as the rules apply to the delivery time requirements of required federal mortgage disclosures and the right of rescission.
  • Describe rules set forth in Regulation Z specific to providing the Loan Estimate and Closing Disclosure, including disclosure content, delivery time requirements, waiting periods, revisions and corrections, and allowed tolerances for change.
  • Identify disclosure requirements for right of rescission set forth in Regulation Z.
  • Identify PMI disclosure requirements set forth in the Homeowners Protection Act.
  • Explain how key provisions of RESPA sections 6, 8, 9, 10, as implemented by Regulation X, impact disclosures to borrowers during all stages of mortgage loan origination and servicing.
  • Recognize limitations on lenders’/MLOs’ use of consumer credit information.
  • Describe control of credit reporting information.
  • Describe requirements for recording consumer credit information.
  • Describe regulations designed to address predatory lending.
  • Describe the rules for compensation for an MLO and a registered MLO.
  • Discuss the rules regarding seller financing of owner-occupied residences.
  • Identify licensing requirements and procedures for mortgage loan professionals.
  • Recognize education requirements for MLOs.
  • Define ethics and discuss the purpose of the codes of ethics.
  • Recognize material facts in an advertisement.
  • Define the bait and switch advertising strategy.
  • List classes that are protected from illegal discrimination.
  • Identify scenarios that violate RESPA’s prohibition against kickbacks.
  • Recognize indicators of mortgage fraud.
  • Identify the participants and their roles in mortgage fraud schemes.
  • Identify predatory lending practices.
  • Identify the elements that affect the Uniform State Test.
  • Recognize the regulatory authority of federal and state mortgage entities.
  • Recognize the definitions of components and concepts in the mortgage industry.
  • Identify licensing laws and requirements that regulate MLOs and other mortgage professionals.
  • Describe compliance conditions and practices that apply to the mortgage industry.
  • Identify regulations that prohibit illicit mortgage lending practices.
  • Recognize federal requirements for anti-money laundering and recordkeeping by financial institutions.
  • Recognize regulations that address mortgage assistance programs and financial records.
  • Identify different types of financial payments.
  • Recognize mortgage loan-to-value conditions.
  • Determine mortgage closing costs and prepaid items.
  • Identify the components and requirements of a successful loan closing.
  • Describe appropriate and effective methods of dealing with challenging scenarios in the MLO’s daily routine.