Southeast Regional Center for
Financial Training, Inc.
AIB
Introduction to Mortgage Lending (AIB-7820)
HOME
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:
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Know
why mortgage lending has become important for financial services companies
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Understand the legal aspects of mortgage lending and how lenders should
document mortgage loans
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How a
lender determines if a mortgage loan application should be approved
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Understand the advantages and disadvantages of residential real estate as an
investment
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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. |
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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:
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Why has
mortgage lending become so important for financial service
companies, particularly commercial bans?
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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?
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|
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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.
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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.
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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."
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| 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.
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Recommended Instruction Hours:
15-30-45
Recommended AIB Credit: 1-2-3
Softbound, (c) 2006
Catalog #3003284
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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
