Mortgage Broker Certification

Topic #1 Federal Laws                                                                                             150 min

    A.    Equal Credit Opportunity Act

            1. Regulations

            2. Related acts

    B.    Real Estate Settlement Procedures Act

            1. HUD-Congressional findings and purpose

            2. Final rules and regulations

    C.    Truth-in-lending Act

            1. Regulation and amendments

            2. Proposed amendments

    D.    Home Mortgage Disclosure Act

            1. Definitions

            2. Findings and purpose

    E.    Fair Credit Reporting Act

            1. Privacy laws

            2. Regulations and policies

    F.    Home Ownership Equity Protection Act

            1. Definitions

            2. Rules and regulations

    G.    Fair Housing Act

            1. Declaration of policy

            2. Discrimination

    H.    Federal Reserve Board regulations

Topic #2 General Mortgage programs                                          150 min

    A.    Conventional/conforming

            1. Non-conforming

            2. Commercial

    B.    Government

            1. FHA and VA programs and requirements

                    a. Qualifications

                    b. Requirements

            2.    Role of government sponsored enterprises in mortgage lending

                    a. Bail-out

                    b. Federal rates

            3.    Federal National Mortgage Association (Fannie Mae) guidelines

                    a. Definition

                    b. Guidelines

            4.    Government National Mortgage Association (Ginnie Mae) guidelines

                    a. Definition

                    b. Guidelines

            5.    Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines

                    a. Definition

                    b. Guidelines

    C.     Mortgage loan products

            1.    Fixed

                    a. Rates

                    b. Terms

            2.    Adjustable

                    a. Rates

                    b. Terms

            3.    Balloon

                    a. How it works

                    b. Terms

            4.    Sub prime loans

                    a. Definition

                    b. New market conditions

    D.    Terms used in the operation of the loan market

            1. Private sector

            2. Government sector

Topic #3 Mortgage loan process                                                   150 min

    A.    Loan origination procedures

            1. Borrower qualification

                   a. Credit

                           1. Credit scoring

                           2. Open-end credit

                           3. Closed-end credit

                    b. Income

                    c. Ratios

                    d. Assets

            2. Residential loan applications

            3. Loan documentation

            4. Fraud detection and prevention

    B.    Additional topics

            1. Appraisal analysis, review and standards

            2. Underwriting standards

            3. Loan closings and HUD closing statements

            4. Loan servicing

            5. Prepayment penalties

            6. Predatory lending

Topic #4 WI statutes & rules pertaining to mortgage banking     100 min

    A.    Ch. 138, ss. 138.052 and 138.056: Money & Rates of Interest

            1. Definitions

            2. Guidelines

    B.    Ch. 224, Subchapter III: Mortgage Bankers, Loan Originators& Mortgage Brokers

            1. Definitions

            2. Roles and purpose

    C.    Ch. 428, Subchapter II: Responsible High Cost Mortgage

    D.    Rules

            1.    DFI-Bkg Ch 40: Definitions and applicability requirements for mortgage                                                         banking regulations

            2.    DFI-Bkg Ch. 41: Fees and registrations for mortgage bankers, loan                                                                       originators and mortgage brokers

            3.    DFI-Bkg Ch. 42: Mortgage banking audit reports and trust accounts

            4.    DFI-Bkg Ch. 43: Ethical and competent practice by mortgage bankers, loan                                                          originators and loan solicitors

            5.    DFI-Bkg Ch. 45: Education and Examination

            6.    DFI-Bkg Ch. 46: Responsible high-cost mortgage lending

   E.   Reverse mortgage

   F.   New developments in law, practice and procedure                                   100 min

   G.   Ethics                                                                                                               150 min