syllabus safe 20 hour arizona comprehensive 2014 renewal
TRANSCRIPT
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 instructor’s personal email will be
included in the introduction email.
Course Objectives
Each 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;
Explain certain mortgage concepts to potential borrowers;
Comply with applicable federal laws related to the mortgage industry.
Understand the basic requirements of Arizona mortgage law;
Recognize the Arizona law provisions related to the regulation of mortgage lending;
Describe the different types of licenses available in Arizona;
Comply with the provisions of Arizona mortgage law as it applies to you.
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 business
day 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 student’s 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, 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 is [email protected].
Please note, our technical support staff will often be unable to answer content questions which
are 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
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
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 Act
Fair 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 fraud
and 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
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
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 RESPA’s provisions regarding disclosure of costs and
record keeping. It consists of the following sections:
Purposes of the Real Estate Settlement Procedures Act
Scope of RESPA
Exempt Transactions
Definitions
Advance Disclosure of Costs - Good Faith Estimate
RESPA Chapter 2: Chapter Two explains RESPA’s kickback and referral fee provisions. It
consists 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 the
discussion 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
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 Rule
Learning 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
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
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.
SAFE Part Four: Arizona Law
Arizona Law Loan Originator Licensing Law: This chapter covers the laws and regulations which
directly affect individual loan originators. It consists of the following sections:
Loan Originator Licensing Requirements
Definitions
Scope of Licensing Requirements
Exemptions
License Application Requirements
License Renewal
Inactive Licenses
Denial, Suspension or Revocation of Licenses
Licensee Conduct
Arizona Mortgage Law: Laws and Regulations Chapter 1: Chapter One covers mortgage
broker licensing requirements. It consists of the following sections:
Mortgage Brokers
Depository Institutions
License Requirements
Arizona Mortgage Law: Laws and Regulations Chapter 2: Chapter Two covers the
requirements imposed upon mortgage brokers in maintaining or keeping their licenses. It
consists of the following sections:
License Maintenance
Record Keeping Requirements
Non-Institutional Investors
Prohibited Acts
Arizona Mortgage Law: Laws and Regulations Chapter 3: Chapter Three covers the licensing
requirements for mortgage bankers and commercial mortgage bankers. It consists of the
following sections:
Mortgage Bankers
Commercial Mortgage Bankers
Mortgage Law
Mortgages
Trust Deeds
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 assistance at any time. Enjoy the course!
Course Outline and Schedule - 7 Day
Schedule Topics and Activities Reading Due Assignments Due Instruction Time
Allocation (in minutes)
Day 1
SAFE 20 Hour Pre-licensing Course
Introduction
Introduction and Syllabus
Submit Online Affidavit
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, & 3 Complete Chapter Quizzes and Test
100
Learning Activity Consumer Protection
Learning Activity Instructions
Post Information regarding consumer protection on the Discussion Forum
10
Identity Theft Case Study
Review information on FTC's website
Complete Quiz 10
Learning Activity Identity Theft
Review information on FTC's website
Post remarks on the Discussion Forum
10
Day 2
Fair Lending & Housing
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
HUD Case Study Review information on HUD's website
Complete Quiz 10
Learning Activity Fair Housing
Review information on HUD's website
Post a scenario on the Discussion
Forum 10
Loan Fraud & Ethics Chapters 1 & 2 Complete Chapter Quizzes and Test
100
Loan Fraud Case Study
Review Information on FBI's website
Complete Quiz 10
Learning Activity Loan Fraud & Ethics
Internet search for loan fraud examples
Report findings to instructor
20
Day 3
SAFE Part Two: Federal Law
Non-traditional Mortgage Products
Chapters 1 & 2 Complete Chapter Quizzes and Test
90
RESPA Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
Learning Activity RESPA
N/A
Post a comment on the Discussion
Forum regarding RESPA
10
Day 4
TILA Chapters 1, 2, 3 & 4 Complete Chapter Quizzes and Test
110
Learning Activity TILA
Internet search for trigger terms
Report findings to instructor
20
Day 5
SAFE Part Three: Industry Basics
Industry Chapters 1 & 2
Complete Chapter Quizzes and Test
100
Loan Process: Qualification
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
FICO Scores Case Study
Review credit scores Complete Quiz 10
Learning Activity Credit Report
Review 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 1 Complete Chapter Quizzes and Test
60
Arizona Mortgage Law: Laws and
Regulations Chapters 1, 2, & 3
Complete Chapter Quizzes and Test
100
Day 7
Arizona Licensing Case Study
Read scenarios
Complete evaluation assignment and
submit to instructor 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
Course Outline and Schedule - 14 Day
Schedule Topics and Activities Reading Due Assignments Due Instruction Time
Allocation (in minutes)
Days 1-2
SAFE 20 Hour Pre-licensing Course
Introduction
Introduction and Syllabus
Submit Online Affidavit
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, & 3 Complete Chapter Quizzes and Test
100
Learning Activity Consumer Protection
Learning Activity Instructions
Post Information regarding consumer protection on the Discussion Forum
10
Identity Theft Case Study
Review information on FTC's website
Complete Quiz 10
Learning Activity Identity Theft
Review information on FTC's website
Post remarks on the Discussion Forum
10
Days 3-4
Fair Lending & Housing
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
HUD Case Study Review information on HUD's website
Complete Quiz 10
Learning Activity Fair Housing
Review information on HUD's website
Post a scenario on the Discussion
Forum 10
Loan Fraud & Ethics Chapters 1 & 2 Complete Chapter Quizzes and Test
100
Loan Fraud Case Study
Review Information on FBI's website
Complete Quiz 10
Learning Activity Loan Fraud & Ethics
Internet search for loan fraud examples
Report findings to instructor
20
Days 5-6
SAFE Part Two: Federal Law
Non-traditional Mortgage Products
Chapters 1 & 2 Complete Chapter Quizzes and Test
90
RESPA Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
Learning Activity RESPA
N/A
Post a comment on the Discussion
Forum regarding RESPA
10
Days 7-8
TILA Chapters 1, 2, 3, & 4 Complete Chapter Quizzes and Test
110
Learning Activity TILA
Internet search for trigger terms
Report findings to instructor
20
Days 9-10
SAFE Part Three: Industry Basics
Industry Chapters 1 & 2
Complete Chapter Quizzes and Test
100
Loan Process: Qualification
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
FICO Scores Case Study
Review credit scores Complete Quiz 10
Learning Activity Credit Report
Review 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
Days 11-12
SAFE Part Four: Arizona Law Arizona Loan
Originator Licensing Law
Chapter 1 Complete Chapter Quizzes and Test
60
Arizona Mortgage Law: Laws and
Regulations Chapters 1, 2, & 3
Complete Chapter Quizzes and Test
100
Days 13-14
Arizona Licensing Case Study
Read scenarios
Complete evaluation assignment and
submit to instructor 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