Pastorela Comica
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Publicado: 17 de diciembre de 2012
Mortgage Lending Industry Overview and Products
NMLS National Exam Topics in this Lesson
II. D. SAFE Act II. A. Mortgage programs 1 Conventional 2 Government II. B. Mortgage loan products 1 Fixed 2 Adjustable 3 Balloon 4 Other II. C. Terms 1 Loan 2 Disclosure 3 Financial 4 General
Overview This lesson begins with a discussion of the primary and secondary mortgage markets. It
continueswith a discussion of mortgage products, including a review of the characteristics of conventional and government-backed loans. Loan features in relation to types of rates and methods of amortization conclude the lesson.
Objectives At the conclusion of this lesson, the student will be able to:
1. Describe the differences between retail, correspondent and wholesale lenders. 2. Describe thedifferences between mortgage brokers, mortgage lenders and mortgage loan originators. 3. Explain the role of the secondary mortgage market. 4. Explain how the Federal Reserve can control inflation. 5. Distinguish between a land contract, mortgage and note. 6. Identify the characteristics of conventional loans. 7. Recite the requirements of FHA and VA loans. 8. Compare the features of fixed- andadjustable-rate mortgages, as well as interestonly, balloon and fully amortized mortgages.
Page 1
Copyright © ProSchools, Inc. Version 2.2 032211
Mortgage Lending Industry Overview
At the heart of the residential mortgage lending industry is the mortgage loan originator, the individual who, as a mortgage broker or as the individual working for a mortgage broker, mortgage banker or mortgagelender, is able to match a consumer with the right loan at the right time. His job may include: • meeting with consumers by phone and in person. • providing information about available loan options and credit terms. • gathering full and accurate information to assist in determining the consumer’s ability to repay the proposed loan. • providing required disclosures. • ensuring that any loan applicationand every accompanying document is accurate and complete before it is signed by the applicant. • explaining provisions and other material facts about the loan. • attending closings leading to the actual exchange of property and funds. To successfully perform his job, the originator must be able to comprehend and comply with numerous federal and state mortgage lending laws, complex mortgageproducts, multiple-page forms, and detailed consumer protection disclosure requirements. This coursework provides a good overview of these elements.
----- THE SAFE ACT ----The Housing and Economic Recovery Act of 2008, was enacted to modernize the Federal Housing Administration (FHA), prevent foreclosures, reduce fraud and enhance consumer protections. A key component of this law is the Secure and FairEnforcement for Mortgage Licensing Act of 2008 (the SAFE Act). The SAFE Act requires the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain a Nationwide Mortgage Licensing System and Registry (NMLS or NMLSR) for the residential mortgage industry so as to achieve the following objectives: • Provide uniformlicense applications and reporting requirements for state licensed mortgage loan originators • Provide a comprehensive licensing and supervisory database in which each licensee and registrant is given a unique identifier by the NMLS. • Aggregate and improve the flow of information to and between regulators • Provide increased accountability and tracking of mortgage loan originators • Streamline thelicensing process and reduce regulatory burden
Page 2
Copyright © ProSchools, Inc. Version 2.2 032211
• •
• • •
Enhance consumer protections and support anti-fraud measures Provide consumers with easily accessible information, offered at no charge, utilizing electronic media, including the Internet, regarding the employment history of, and publicly adjudicated disciplinary and...
NMLS National Exam Topics in this Lesson
II. D. SAFE Act II. A. Mortgage programs 1 Conventional 2 Government II. B. Mortgage loan products 1 Fixed 2 Adjustable 3 Balloon 4 Other II. C. Terms 1 Loan 2 Disclosure 3 Financial 4 General
Overview This lesson begins with a discussion of the primary and secondary mortgage markets. It
continueswith a discussion of mortgage products, including a review of the characteristics of conventional and government-backed loans. Loan features in relation to types of rates and methods of amortization conclude the lesson.
Objectives At the conclusion of this lesson, the student will be able to:
1. Describe the differences between retail, correspondent and wholesale lenders. 2. Describe thedifferences between mortgage brokers, mortgage lenders and mortgage loan originators. 3. Explain the role of the secondary mortgage market. 4. Explain how the Federal Reserve can control inflation. 5. Distinguish between a land contract, mortgage and note. 6. Identify the characteristics of conventional loans. 7. Recite the requirements of FHA and VA loans. 8. Compare the features of fixed- andadjustable-rate mortgages, as well as interestonly, balloon and fully amortized mortgages.
Page 1
Copyright © ProSchools, Inc. Version 2.2 032211
Mortgage Lending Industry Overview
At the heart of the residential mortgage lending industry is the mortgage loan originator, the individual who, as a mortgage broker or as the individual working for a mortgage broker, mortgage banker or mortgagelender, is able to match a consumer with the right loan at the right time. His job may include: • meeting with consumers by phone and in person. • providing information about available loan options and credit terms. • gathering full and accurate information to assist in determining the consumer’s ability to repay the proposed loan. • providing required disclosures. • ensuring that any loan applicationand every accompanying document is accurate and complete before it is signed by the applicant. • explaining provisions and other material facts about the loan. • attending closings leading to the actual exchange of property and funds. To successfully perform his job, the originator must be able to comprehend and comply with numerous federal and state mortgage lending laws, complex mortgageproducts, multiple-page forms, and detailed consumer protection disclosure requirements. This coursework provides a good overview of these elements.
----- THE SAFE ACT ----The Housing and Economic Recovery Act of 2008, was enacted to modernize the Federal Housing Administration (FHA), prevent foreclosures, reduce fraud and enhance consumer protections. A key component of this law is the Secure and FairEnforcement for Mortgage Licensing Act of 2008 (the SAFE Act). The SAFE Act requires the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) to establish and maintain a Nationwide Mortgage Licensing System and Registry (NMLS or NMLSR) for the residential mortgage industry so as to achieve the following objectives: • Provide uniformlicense applications and reporting requirements for state licensed mortgage loan originators • Provide a comprehensive licensing and supervisory database in which each licensee and registrant is given a unique identifier by the NMLS. • Aggregate and improve the flow of information to and between regulators • Provide increased accountability and tracking of mortgage loan originators • Streamline thelicensing process and reduce regulatory burden
Page 2
Copyright © ProSchools, Inc. Version 2.2 032211
• •
• • •
Enhance consumer protections and support anti-fraud measures Provide consumers with easily accessible information, offered at no charge, utilizing electronic media, including the Internet, regarding the employment history of, and publicly adjudicated disciplinary and...
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