Southeast Regional Center for Financial Training, Inc. 

 

 

AIB Introduction to Mortgage Lending (AIB-7820)

 

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Course Information (Textbook Information Below)

 

This AIB course introduces students who are new to the mortgage lending process, and discuss loans to individuals for the purchase of a residence, loans for apartment buildings and loans for real estate developers and builders. It covers construction and permanent financing for residential property; real estate law; documentation; mortgage loan servicing; the secondary mortgage market; the role of government in mortgage lending; and residential real estate as an investment. The discussion of underwriting, processing, and servicing will give participants a framework for learning the mortgage lending business and refining their existing knowledge. In addition, the coverage of laws and regulations affecting mortgage lending provides an understanding of the role of compliance in the mortgage lending business.

 

Delivery Options

 

In-Person, Instructor-Led Online, Assisted Self-Study

 

Audience

 

Personnel who want a broad overview of mortgage lending, including those who intend to pursue a career in mortgage lending (business development, underwriting, processing), and those individuals who recently joined a mortgage lending department.

 

Learning Objectives

 

   At the conclusion of the program participants will be able to:

Mortgage lending has long been a foundational product offered by America's banks, and despite the current upheaval in the mortgage industry, it still is.  Banks have a proud history of  prudent lending, extending the benefit of homeownership to credit-worthy borrowers.  Despite the current rise in defaults and foreclosures on home mortgages, many credit-worthy borrowers are in the market for mortgages and for refinancing options.

AIB's course Introduction to Mortgage Lending provides loan officers, underwriters, loan processors, and loan servicing professionals the solid background they need to help their customers borrow responsibly, which  benefits the customers, the bank, the banking industry, and the nation's economy.

Introduction to Mortgage Lending, developed by Andrea Lee Negroni, Esq. and Jeremiah S. Buckley, Esq. of Buckley Kolar LLP, is written for financial service professionals or those who seek to advance their knowledge and expertise in the various aspects of mortgage lending.  This publication covers construction and permanent financing for residential property, real estate and mortgage law, appraisals, financing residential real estate, servicing residential mortgage loans, the secondary mortgage market, construction lending and land development lending, and investing in residential real estate. The publication provides a broad overview of mortgage lending while focusing on salient points that are necessary for any individual to function successfully in the mortgage lending business today.
 

Learning Objectives:  After completing this book, the reader will have answers to such questions as:

  • Why has mortgage lending become so important for financial service companies, particularly commercial bans?
  • What are the legal aspects of mortgage lending and how should lenders document mortgage loans?
  • How does a lender determine if a mortgage loan application should be approved?
  • What is the secondary mortgage market and how does it affect mortgage lenders?
  • What are the advantages and disadvantages of residential real estate as an investment?
  • Discuss the significance of homeownership and the contributions the housing sector of the economy makes to the U.S. economy as a whole and describe the involvement of commercial banks and other financial institutions in the real estate lending industry.

  • Describe the most common types of real property ownership in the United States and the benefits of each type, and explain how property is transferred from one owner to another and the legal implications in the transfer of ownership.

  • Identify the principle federal laws that apply to origination of home mortgage loans and how they are applied, their significance to both the financial institution and the consumer, and appreciate the new legal developments pertinent to mortgage lending, such as financial data privacy and electronic signature laws.

  • Define "market value" as the term applies to real estate; explain the cost, market data, and income capitalization approaches to real estate appraising; explain how estimates of value derived by the three approaches are reconciled into a final opinion; discuss the functions and limits of appraisal reports; describe appraiser qualifications; explain the various parts of the appraisal report; and explain the distribution and use of the appraisal report.

  • Describe the basic procedures involved in the purchase and sale of residential property; describe the significance of fair housing regulations; identify the major residential loan origination laws, including  RESPA, ECOA, and TILA; describe the essential steps of credit underwriting for residential real estate loans; and discuss the basic procedures for closing a residential mortgage loan.

  • List the payment processing steps within a bank's real estate loan department; describe the duties of the insurance area in a bank's real estate loan department; discuss how and why a loan's escrow account is analyzed; outline the components of an effective real estate loan collection procedure; summarize various loss mitigation alternatives; and explain how payoffs and satisfactions are handled.

  • Describe the process of structuring and marketing mortgage-backed securities; describe the organization of the secondary mortgage market, identify its principal participants, and outline the basic operations of secondary mortgage marketing; discuss the primary reasons that lending institutions sell mortgage loans into the secondary mortgage market; and identify and describe the two primary methods for selling mortgage loans in the secondary mortgage market.

  • List and describe the numerous national, state, and local government initiatives employed to further housing and home ownership in the United States; identify the government agencies and government-sponsored agencies that interact to further home ownership; describe the methods that commercial banks use to monitor their compliance with the letter and spirit of  CRA; explain how commercial banks can use both private and publicly sponsored initiatives in their communities to further home ownership by low-and-moderate income families; and name several methods commercial banks use to work with community groups to achieve CRA objectives.

  • Identify some of the policy issues involved in a bank's decision whether or not to offer construction loans; identify the information needed to evaluate an application for a residential construction loan or land development financing; describe how lenders process disbursements to fund construction and development loans; and identify the unique risks and legal aspects of construction lending.

  • Appreciate why people invest in real estate; understand why banks and other lenders loan money on the security of investment real estate; learn how to evaluate the return on a potential real estate investment; learn about real estate tax benefits; understand the importance of management skill and expertise in owning and operating income-producing real estate; understand the risks associated with real estate investment and why these risks prevent some people from investing in real estate; and appreciate the current national dialogue about the "housing bubble."

Introduction to Mortgage Lending supports the AIB Online course - Introduction Mortgage Lending  and may be used to teach Introduction to Mortgage Lending in the classroom.
Recommended Instruction Hours: 15-30-45
Recommended AIB Credit: 1-2-3

Softbound, (c)  2006
Catalog #3003284
 

For further information, call Southeast Regional CFT (904) 354-4830 or send an e-mail to lisaphillipscft@bellsouth.net

Enrollment Form

Download and print an enrollment form from here, complete and fax to 904-354-1834. www.cft-flsc.org