After completing a loan application, the consumer must provide documentation to support the information disclosed. This documentation is used to determine and verify the consumer's ability to afford the mortgage loan obligation they will be offered. The federal Ability to Repay Rule provides underwriting factors that must be considered when making these determinations.

This course will explore the types of verification and documentation needed to support a borrower's ability to repay.

The Interagency Guidance on Nontraditional Mortgage Product Risks and the Statement on Subprime Mortgage Lending were developed by the federal banking regulatory agencies in response to the decline of the mortgage market. While these guidances did not have the effect of law, they were vital to re-establishing common-sense lending practices. The standards outlined in the guidances have now been codified in new and revised mortgage laws and regulations aimed at ensuring responsible lending practices.

This course provides an overview of the guidances, including the reasoning behind their issuance and the recommendations contained within each. This course will also discuss the current and future relevance of the guidances.

High-cost mortgage loans are a category of loans identified and protected under the federal Home Ownership and Equity Protection Act (HOEPA).

This course will review the features of high-cost mortgage loans, including how they are identified, special disclosure requirements, prohibited practices, and more.

Higher-priced mortgage loans are a category of loans identified according to standards set forth under the federal Higher-Priced Mortgage Loan Rule (HPML Rule). The Rule imposes requirements and prohibitions for these mortgage loans.

This course will review thresholds for identifying HPMLs, requirements for origination, appraisal standards, prohibitions, and more.

A fixed-rate mortgage is one in which the interest rate is set from the time the loan is closed and does not change during the life of the loan. Fixed-rate mortgages are the most common loan product in today's marketplace, specifically the 30-year fixed-rate mortgage; in fact, any loan other than a 30-year fixed-rate is considered nontraditional under federal mortgage lending standards. An adjustable-rate mortgage (ARM) is one in which the interest rate may change one or more times during the life of the loan. Consequently, payment amounts may change.

This course provides an overview of fixed- and adjustable-rate mortgages, including payment strategies, rate increase calculations, available products, and more.

This course provides an overview of industry terms which are important to understand in conducting mortgage-related business. Ranging from loan features to disclosures and other financial terms, the definitions included in this course may prove invaluable information for any person hoping to better understand the workings of the mortgage industry.

There are various mortgage programs currently available in the industry. Generally, mortgages may be categorized as conventional or non-conventional. Non-conventional mortgages are insured or guaranteed by the Federal Housing Administration (FHA), the Department of Veterans Affairs (VA), or the Rural Housing Service (RHS) of the U.S. Department of Agriculture (USDA), while conventional mortgages are not.

This course provides an overview of non-conforming loans, including FHA loans.

While today's market is largely populated by "traditional" loan products and qualified mortgages, loan originators are permitted to make other types of loans that fit the needs of borrowers who need less conventional loan features. While not as popular, these loan products have their advantages – particularly to consumers who have a short or troubled credit history, irregular or seasonal income, or otherwise do not fit the mold of the everyday loan applicant. These loans still have their place in today's market, and an awareness of such products and their features is valuable information for a mortgage professional.

This course provides an overview of second mortgages, home equity lines of credit, and balloon mortgages, among others.

While today's market is largely populated by "traditional" loan products and qualified mortgages, loan originators are permitted to make other types of loans that fit the needs of borrowers who need less-conventional loan features. While not as popular, these loan products have their advantages – particularly to consumers who have a short or troubled credit history, irregular or seasonal income, or otherwise do not fit the mold of the everyday loan applicant. These loans still have their place in today's market, and an awareness of such products and their features is valuable information for a mortgage professional.

This course provides an overview of construction loans, bridge loans, interest-only loans, and more.

The Ability to Repay/Qualified Mortgage Rule provides that when creditors make "qualified mortgages," they may presume that the loans have met the requirements for establishing the borrower's repayment ability. Since the law creates a "safe harbor" from liability for loan originators who make loans that meet the characteristics of a qualified mortgage, there is incentive for loan originators to make such loans. Even so, loan originators are permitted to make other types of loans that may not necessarily meet the requirements of a qualified mortgage.

This course provides an overview of qualified mortgages and their applicable rules and regulations. In addition, features and regulations pertinent to non-qualified mortgages will be discussed.