Professional Documents
Culture Documents
Course Syllabus
Welcome to our SAFE Comprehensive Mortgage Loan Originator Course for 2017. We are
excited to assist you in furthering your mortgage career and are pleased you chose Praedo
Institute to satisfy your continuing education requirements.
Course Purpose
This course is meant to satisfy the NMLS eight hour mortgage loan originator continuing
education requirement for 2017. This course does not contain any state-specific continuing
education.
Course Description
Our comprehensive course meets the NMLS Comprehensive CE requirement 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 elective education.
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 new HMDA rule;
Review the Mortgages Acts and Practices Advertising Rule;
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;
Gain a better understanding of agency requirements regarding mortgage program
comparisons;
Develop the ability to better serve the consumer through increased knowledge of program
limitations and opportunities;
Improve the ability to recognize the lowest-cost home-buying option for borrowers with very
limited assets for down payment;
Prepare for immediate application of the course information by analyzing various case studies
on the different topics; and
Review best practices for cybersecurity.
Grading Policy
The course consists of slides mixed with comprehension questions. Each individual quiz
question is timed. If you do not answer the quiz question within the allotted time, the course
will time out. At this point, you will be redirected to your dashboard and upon re-opening the
course, you will be required to repeat the section prior to the quiz question.
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 exams 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 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 and email,
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 support@praedo.com.
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 Cybersecurity.
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 Home Mortgage Disclosure Act. It consists of the
following sections:
HMDA Review
New HMDA Rule
Data Points
HMDA Data
Chapter Quiz
Fair Lending Chapter 2: Chapter Two reviews the Fair Housing and Equal Opportunity Acts. It
consists of the following sections:
Why is Fair Lending Important?
Consumer Financial Protection Bureau
Fair Housing Act
Equal Credit Opportunity Act
When you apply for credit
When deciding to grant credit
When evaluating your income
You also have the right to
If a creditor has discriminated against you
Types of Discrimination
Overt Discrimination
Disparate Treatment
Disparate Impact
Chapter Quiz
Fair Lending Chapter 3: Chapter Three reviews Fair Lending case studies and recent cases. It
consists of the following sections:
Case Study #1
Case Study #2
Case Study #3
Recent Cases
Fair Lending Course Final
Advertising Review: This chapter reviews enforcement actions surrounding reverse mortgages
and advertising. It consists of the following sections:
Advertising Review
Consent Order: American Advisors
Consent Order: Reverse Mortgage Solutions
Consent Order: Aegean Financial
MAP Rule or Regulation N
Loan Fraud 2017 Chapter 1: Chapter One discusses different types of loan fraud. It consists of
the following sections:
Who Cares?
So What?
Fraud for Housing
Fraud for Profit
Specific Schemes
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
Application Fraud Case Study
Chapter Quiz
Loan Fraud 2017 Chapter 2: Chapter Two will review Anti Money Laundering and the Bank
Secrecy Act. It consists of the following sections:
Suspicious Activity Reporting
Anti-Money Laundering Rule
SARs Rule Reporting Requirements
Bank Secrecy Act
Loan Fraud 2017 Chapter 3: Chapter three presents 2016 Loan Fraud Statistics. It consists of
the following sections:
Loan Fraud Statistics
Mortgage Fraud Case Studies
Loan Fraud 2017 Course Final
Program Puzzle: This course will help loan originators determine which loan programs
borrowers may be eligible for based on their credit, available assets, income level and sources,
and property choice. It consists of the following sections:
Introduction
Overview
First-Level Program Comparisons
Benefit Eligibility Requirements
Credit Score Minimum
Income Restrictions
Geographic Restrictions
Assets
Minimum Borrower Contribution on Purchase Transaction Using Gift Funds
Seller/Interested Party Contributions Limit
Credit
Judgements Federal Tax Liens Other Liens
Wait Periods After Derogatory Credit Events
Wait Period Charge off of a Mortgage Account
Wait Period Deed-in-Lieu of Foreclosure
Wait Period Foreclosure
Wait Period Chapter 7 Bankruptcy
Wait Period Multiple Bankruptcy Filings
Income
Allowable Gross up % of Non-Taxable Income
Commission Income History of Receipt
Mandatory Deduction of Employee Business Expense (IRS Form 2106) from Commission
Income
Non-Occupant Co-Borrower Income
Rental Income Allowance on Retained Current Primary Residence That will be Vacated
by the Borrower
Liabilities
Property
FHA New Construction Documentation: This course reviews the 3 classifications of new
construction properties and the documentation requirements of each classification based on
structure type and loan-to-value (LTV). It consists of the following sections:
Definitions
General Documents Required for all Structure Types
Form HUD-92541
Form HUD-92544
Wood Infestation Report
Documents to be Provided to Appraiser at Assignment for all Structure Types
Additional Appraisal Report Considerations for New Construction
Sales Comparison Approach: Comparable Selection
Environmental
Operating Oil of Gas Wells
Special Airport Hazards
Flood Hazard Areas
Individual Water Supply Systems (Wells)
Shared Well
Inspections or Warranties Required for Site Build, Modular and Condominium Properties
Inspections or Warranties Required for Manufactured Housing
SAFE CE 2017 Part 4: Cybersecurity
Cybersecurity: This course reviews cybersecurity best practices for companies and employees.
It consists of the following sections:
This is the Real World
Who is at Risk?
What is at Risk?
Back Up Data Regularly
Education and Training
Vendor Management
Incident Response Plan and Team
Passwords!
Develop and Enforce Policies on Mobile Devices
Involve Executives
Create Policies for working Remotely
No Public Networks!!!
Dont Fall for Scams
Maintain Awareness of Vulnerabilities
Test Your System
Case Study
SAFE CE 2017 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
Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Loan Fraud Chapter 1 Introduction Quiz Question 5
Loan Fraud Chapter 1 Types of Fraud Quiz Questions 31
Application Fraud Case
Loan Fraud Chapter 1 Quiz Question 7
Study
Loan Fraud Chapter 1 N/A Chapter Quiz 5
Loan Fraud Chapter 2 Loan Fraud Statistics Quiz Question 4
Loan Fraud Chapter 2 Types of Fraud Quiz Question 4
Mortgage Fraud Case
Loan Fraud Chapter 2 Quiz Question 7
Studies
Loan Fraud Chapter 2 SARs Reporting Quiz Questions 14
Anti-Money
Loan Fraud Chapter 2 Quiz Questions 7
Laundering Rule
SARs Rule Reporting
Loan Fraud Chapter 2 Quiz Questions 9
Requirements
Loan Fraud Chapter 2 Bank Secrecy Act (BSA) Quiz Question 3
Loan Fraud Chapter 3 Loan Fraud Statistics Quiz Question 6
Mortgage Fraud Case
Loan Fraud Chapter 3 Quiz Question 7
Studies
Loan Fraud Chapter 3 N/A Course Final 10
SAFE CE 2017 Part 3: Nontraditional Lending
Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Program Puzzle Introduction Quiz Question 5
Credit Score
Program Puzzle Quiz Question 2
Minimum
Program Puzzle Income Restrictions Quiz Question 1
Geographic
Program Puzzle Quiz Question 1
Restrictions
Program Puzzle Assets Quiz Question 3
Seller/Interested Party
Program Puzzle Quiz Question 4
Contributions Limit
Judgments Federal
Program Puzzle Quiz Question 2
Tax Liens - Other Liens
Wait Periods After
Program Puzzle Derogatory Credit Quiz Question 4
Events
Wait Period Charge
Program Puzzle off of a Mortgage Quiz Question 1
Account
Wait Period Deed-in-
Program Puzzle Quiz Question 2
Lieu of Foreclosure
Wait Period
Program Puzzle Quiz Question 2
Foreclosure
Wait Period Chapter
Program Puzzle Quiz Question 2
7 Bankruptcy
Wait Period Chapter
Program Puzzle Quiz Question 1
13 Bankruptcy
Wait Period Multiple
Program Puzzle Quiz Question 4
Bankruptcy Filings
Program Puzzle Income Quiz Question 1
Allowable Gross Up %
Program Puzzle of Non-Taxable Quiz Question 2
Income
Commission Income
Program Puzzle Quiz Questions 2
History of Receipt
Mandatory Deduction
Program Puzzle of Employee Business Quiz Question 1
Expense
Non-Occupant Co-
Program Puzzle Quiz Question 2
Borrower Income
Rental Income
Program Puzzle Quiz Question 6
Allowance
Program Puzzle Liabilities Quiz Question 5
Program Puzzle Property Quiz Question 4
FHA New
Construction Scope Quiz Question 3
Documentation
FHA New
Construction Definitions Quiz Question 13
Documentation
FHA New General Documents
Construction Required for all Quiz Question 1
Documentation Structure Types
FHA New
Construction Form HUD 92541 Quiz Question 2
Documentation
FHA New
Construction Form HUD 92544 Quiz Question 2
Documentation
FHA New
Wood Infestation
Construction Quiz Question 7
Report
Documentation
Documents to be
FHA New
Provided to Appraiser
Construction Quiz Question 2
at Assignment for All
Documentation
Structure Types
FHA New Sales Comparison
Construction Approach: Quiz Question 2
Documentation Comparable Selection
FHA New
Special Airport
Construction Quiz Question 1
Hazards
Documentation
FHA New
Construction Flood Hazard Areas Quiz Question 2
Documentation
FHA New
Individual Water
Construction Quiz Question 6
Supply Systems (Wells)
Documentation
Inspections or
FHA New Warranties Required
Construction for Site Built, Modular, Quiz Question 2
Documentation and Condominium
Properties
Inspections or
FHA New
Warranties Required
Construction Quiz Question 5
for Manufactured
Documentation
Housing
Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Cybersecurity Introduction Quiz Question 1
Cybersecurity This is the Real World Quiz Question 3
Cybersecurity Who is at Risk? Quiz Question 3
Cybersecurity What can you do? Quiz Question 1
Back Up Data
Cybersecurity Quiz Question 1
Regularly
Cybersecurity Education and Training Quiz Question 2
Cybersecurity Vendor Management Quiz Question 1
Incident Response
Cybersecurity Quiz Question 4
Plan and Team
Cybersecurity Passwords! Quiz Question 3
Develop and Enforce
Cybersecurity Policies on Mobile Quiz Question 1
Devices
Cybersecurity Involve Executives Quiz Question 1
Create Policies for
Cybersecurity Quiz Question 1
Working Remotely
NO PUBLIC
Cybersecurity Quiz Question 1
NETWORKS!!!
Cybersecurity Dont Fall for Scams! Quiz Question 2
Maintain Awareness
Cybersecurity Quiz Question 1
of Vulnerabilities
Cybersecurity Test Your System Quiz Question 1
Cybersecurity Conclusion Quiz Question 2
Cybersecurity Case Study Quiz Question 9
SAFE CE 2017 Course Comprehensive Final
N/A 20
Final Exam
Course Evaluation N/A Evaluation 5