Mortgage Lending

Federal laws play an important role in addressing discriminatory practices in mortgage loan origination. The Equal Credit Opportunity Act and the Fair Housing Act establish personal characteristics that are protected by federal law and may not play a role in making a lending decision. This course will review these laws.

The continued health and growth of the mortgage market depends greatly on the ethical conduct of those engaging in mortgage loan transactions. Honesty, awareness, and compliance with the law are key to ensuring that the mortgage business is conducted according to a sufficient ethical standard. With regulators making consumer protection in the mortgage market a renewed priority, it is important to understand how ethical principles can be applied in the practice of loan origination. This course will explore concepts related to ethical behavior in loan origination. Topics addressed include company compliance, consumer complaints, homebuyer education, and more.

Though federal and state measures in place do a great deal to deter unscrupulous conduct on the part of mortgage professionals and consumers alike, there may be some individuals who feel compelled to take advantage of access to the financial marketplace. This course will briefly discuss the impact of unethical behavior by consumers and how it may be detected.

The appraisal of real estate used as collateral for a mortgage loan is one of the most critical components of the entire transaction, as the loan amount is directly tied to the value of the property. Appraisals are also the component of mortgage lending transactions with which unethical actions are most commonly associated. This course will review the importance of ethical conduct in the appraisal process.

Ethical considerations are the basis for most federal lending laws. The importance of ethical lending practices cannot be understated. This course will focus on an overview of the relationship between ethical business and federal mortgage laws, as well as a review of the Real Estate Settlement Procedures Act.

Ethical considerations are the basis for most federal lending laws. The importance of ethical lending practices cannot be understated. This course will focus on an overview of two federal laws that are important to ethical mortgage business: the Truth-in-Lending Act and the Gramm-Leach-Bliley Act.

The concept of financial responsibility as it relates to mortgage origination refers to both the individual loan originator's qualifications and his or her handling of loan transactions. Financial responsibility can also refer to the loan originator's compliance with regulations such as the ATR Rule and the Loan Originator Compensation Rule. Showing regard for the consumer's ability to afford a mortgage loan, and ensuring loan suitability, also demonstrate the loan originator's ability to make sound financial judgments. This course will review the importance of financial responsibility as a mortgage professional.

Loan originators are in a strong position to detect the unethical behavior of borrowers, including attempts to complete fraudulent mortgage transactions. A mortgage professional can often detect and address issues of mortgage fraud with a thorough analysis of the loan file. There are many indicators a mortgage professional can use to become alert to the possibility of fraud. This course will review a variety of indicators of fraud on everything from applications to income documentation and more.

Mortgage professionals are in a unique position when they engage in loan transactions with consumers. They have the opportunity to complete transactions for hundreds of thousands of dollars, and they have access to personal consumer information. Mortgage professionals in this position, however, may also be tempted to use this for nefarious means and engage in fraud. Conversely, these individuals are also able to detect attempts at fraud by consumers. This course will review methods of how fraud may be attempted, detected, and penalized.

Mortgage fraud costs lenders and consumers alike billions of dollars each year. These losses ultimately result in higher costs for potential homeowners and the need for tougher regulation and control over the industry to prevent further loss. Ethical principles are a vital part of avoiding fraud and ensuring that consumers are protected. This course will review important information about mortgage fraud, as well as the importance of maintaining ethical principles in conducting loan origination activities.

When Congress adopted the Dodd-Frank Act in 2010, it adopted a provision that prohibits all providers of consumer financial products and services from engaging in unfair, deceptive, or abusive acts or practices (UDAAP). This course will review provisions related to UDAAP, including how these practices are defined and how risks can be appropriately managed.

The Ability to Repay (ATR) and Qualified Mortgage (QM) Rules became effective in January 2014. These rules were established to ensure that creditors are making reasonable, good faith efforts to ensure a borrower's repayment ability before making a mortgage loan. The Rules came about in response to the many "creative" loans that were difficult for borrowers to afford in the long-term and ultimately contributed to the mortgage market crash. By enacting these rules, the CFPB hopes to curb previous dangerous lending practices, and ensure a safer, more responsible lending market. This course provides an overview of the Ability to Repay and Qualified Mortgage Rules, including provisions related to assessing borrower repayment ability and presumptions of compliance.

Waves of defaults on subprime home loans and the rapid unraveling of the market began in March 2007, and the impact of these losses is still determining the economic forecast. Congress addressed the crisis with the enactment of new legislation, specifically the passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-Frank Act). The law addresses a broad range of issues that relate to financial and investment activities, including mortgage lending and investing. This course provides an overview of the Dodd-Frank Act, including a look at some of the most pertinent titles and subtitles within the Act.

The Electronic Signatures in Global and National Commerce Act (E-Sign Act) is a federal law enacted to address the validity of documents, records, and signatures that are in electronic form. The E-Sign Act applies to interstate and foreign commerce, and allows for the use of electronic records to satisfy any law, regulation, or rule that requires information to be provided in writing, as long as the consumer affirmatively consents to electronic delivery. This course will explore the E-Sign Act and its provisions.

In 1974, Congress enacted the Equal Credit Opportunity Act (ECOA) to eliminate discriminatory treatment of credit applicants. The primary reason for the enactment of ECOA was anecdotal evidence that women were not treated on an equal basis with men when applying for credit. ECOA and its regulations, known as Regulation B, are intended to promote the availability of credit to all creditworthy applicants regardless of gender, race, color, religion, national origin, marital status, age, and regardless of the fact that the applicant receives income from a public assistance program or has exercised his or her rights under the Consumer Credit Protection Act. This course provides an overview of ECOA, including important definitions, information related to required disclosures, and prohibited lending practices.

In 2003, Congress added provisions to the Fair Credit Reporting Act with the enactment of the Fair and Accurate Credit Transactions Act (FACTA). Congress adopted these additional provisions in order to address the problem of identity theft, to facilitate consumers' access to the information retained by consumer reporting agencies (CRAs), and to improve the accuracy of consumer reports. The Red Flags Rule, a measure included in FACTA, was adopted in 2010 to further address identity theft. This course provides an overview of FACTA, including important definitions, required disclosures and notifications, and provisions related to the Red Flags Rule.

The Fair Credit Reporting Act (FCRA) is a federal law that was enacted in 1970 as an amendment to the Consumer Credit Protection Act. Its purpose is to improve accuracy, impartiality, privacy, and fairness in credit reporting by imposing special requirements on consumer reporting agencies, companies that supply information to consumer reporting agencies, and companies that use consumers' personal information. This course provides an overview of FCRA, including important definitions, required disclosures and notifications, prohibited practices, and penalties for violations.

Privacy rights are a significant concern for mortgage professionals who are involved in the processing, closing, and servicing of mortgage loans. The Gramm-Leach-Bliley Act (GLB Act) protects the privacy of nonpublic personal information that is provided by individual consumers and customers. It is vital for mortgage professionals to understand this Act in order to properly protect an individual's privacy during the loan process. This course provides an overview of the GLB Act, including important definitions, required disclosures, and prohibited practices.

Congress enacted the Home Mortgage Disclosure Act (HMDA) in 1975 to discourage creditors from denying loans to qualified applicants because of the applicants' race, a practice also known as "redlining," and to encourage lending institutions to provide loans to the consumers in their communities. HMDA requires covered lending institutions to submit reports about their mortgage lending activities in order to help citizens and public officials determine whether institutions are serving the housing needs of the communities in which they are located and to assist public officials to determine how to best use public sector investments in order to encourage private sector investment. This course provides an overview of HMDA, including important definitions, data collection and reporting requirements, and penalties for violations of HMDA.

Private mortgage insurance (PMI) protects the lender in the event that a borrower defaults on a loan, and it is required when a borrower makes a down payment of less than 20% and the loan-to-value ratio is high. Congress passed the Homeowners Protection Act (HPA) in 1998 to facilitate the cancellation of private mortgage insurance. The Homeowners Protection Act provides for the automatic termination of PMI as borrowers build equity, and the risk of loss from default decreases. This course provides an overview of the HPA, including important definitions, required disclosures, and prohibited practices under the law.

In 1994, Congress adopted the Home Ownership and Equity Protection Act (HOEPA) in response to the growing use of abusive mortgage lending terms and practices in the subprime market. In 2008, the Federal Reserve Board attempted to make protections available to more borrowers in the subprime market by writing a new set of regulations that apply to "higher-priced mortgage loans." This course provides an overview of the loans covered by HOEPA, as well as those considered higher-priced under the law.

Ensuring that advertisements to consumers are clear, accurate, and understandable is an important part of compliance enforcement for regulatory agencies overseeing the mortgage industry. While many advertising provisions are already in place under the federal Truth-in-Lending Act, another rule, called the Mortgage Acts and Practices Rule (the MAP Rule), further regulates the advertisement of mortgage products. It is essential for mortgage professionals to be aware of all areas of federal and state law that regulate advertising practices, and to comply with those regulations at all times. This course provides an overview of the MAP Rule, including its background, scope, and applicability, as well as prohibitions under the Rule.

The Do-Not-Call Implementation Act was signed into law in 2003 as part of earlier legislation “ the Telemarketing Consumer Fraud and Abuse Prevention Act and the Telemarketing Sales Rule. The Do-Not-Call Implementation Act authorized the Federal Trade Commission (FTC) to implement and enforce the Do-Not-Call Registry. Under the original provisions of the Telemarketing Act, consumers were required to renew their entry in the registry every five years. Following amendments made by the Do-Not-Call Improvement Act of 2007, phone numbers added to the registry become permanent. This course provides an overview of the Do-Not-Call provisions, as well as prohibitions of the Telemarketing Sales Rule.

The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to provide protection for consumers throughout the loan origination process and during and after closing. RESPA assists consumers in selecting appropriate settlement services, and eliminates fraudulent costs associated with settlement services, such as kickbacks and referral fees. RESPA deals with loans secured by mortgages on one- to four-family residential properties, including most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. This course provides an overview of RESPA, including an explanation of transactions subject to and exempt from the law, important definitions, and information related to required disclosures.

The Real Estate Settlement Procedures Act (RESPA) was enacted in 1974 to provide protection for consumers throughout the loan origination process and during and after closing. RESPA assists consumers in selecting appropriate settlement services, and eliminates fraudulent costs associated with settlement services, such as kickbacks and referral fees. RESPA deals with loans secured by mortgages on one- to four-family residential properties, including most purchase loans, assumptions, refinances, property improvement loans, and equity lines of credit. This course provides an overview of RESPA, including prohibited lending practices, mortgage servicing rules, and penalties for RESPA violations.

The enactment of the Dodd-Frank Act brought about many changes that greatly altered the face of the mortgage industry. One of the most significant of these changes was the creation of the Consumer Financial Protection Bureau (CFPB), which became the primary entity in charge of implementing and enforcing most of the provisions of federal lending and consumer protection laws, many of which were previously overseen by the Department of Housing and Urban Development (HUD). This course provides a review of the authority of the CFPB, as well as the functions and remaining authority of HUD.

The Loan Originator (LO) Compensation Rule became effective in 2014, and is intended to discourage harmful practices, such as basing compensation on the terms of a loan, dual compensation, and steering. This course provides an overview of the Loan Originator Compensation Rule, including permissible and prohibited forms of compensation for mortgage licensees.

In 2008, and in response to the mortgage lending crisis, the federal government sought to ensure minimum licensing standards for all mortgage loan originators with the enactment of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act). The S.A.F.E. Act attempts to make licensing requirements for state-regulated mortgage professionals more uniform by requiring every state to meet minimum standards for all loan originators. This course provides an overview of the S.A.F.E. Act, including specific requirements related to licensure and registration.

The Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) require numerous disclosures to ensure consumer protection in mortgage loan transactions. On October 3, 2015, the Loan Estimate and the Closing Disclosure replaced previously-used disclosure forms for most mortgage loan transactions. These disclosures resulted from several years of testing, public comment, and legislative revision, and are intended to provide consumers with more clear, accurate, and easy-to-understand disclosure of transaction-related information. This course will review introductory information about the TILA-RESPA Integrated Disclosure (TRID) Rule, and includes a step-by-step review of the Loan Estimate, including completion requirements, details related to timing and accuracy, and examples of each page of the disclosure.

The Truth-in-Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA) require numerous disclosures to ensure consumer protection in mortgage loan transactions. On October 3, 2015, the Loan Estimate and the Closing Disclosure replaced previously-used disclosure forms for most mortgage loan transactions. These disclosures resulted from several years of testing, public comment, and legislative revision, and are intended to provide consumers with more clear, accurate, and easy-to-understand disclosure of transaction-related information. This course will explore a step-by-step review of the Closing Disclosure, including completion requirements, details related to timing and accuracy, and examples of each page of the disclosure.

Congress enacted the Truth-in-Lending Act (TILA) as Title I of the Consumer Credit Protection Act (CCPA). TILA is a law that is intended to protect consumers in the financial marketplace by providing them with disclosures that will help them to understand the financial products that they are purchasing. The stated purpose of the law is to encourage the "informed use of credit" by assuring that consumers are able to compare more readily the various credit terms available to them. This course provides an overview of TILA, including an explanation of which types of loans are covered under the law, important definitions, and provisions of TILA related to the finance charge and annual percentage rate.

Congress enacted the Truth-in-Lending Act (TILA) as Title I of the Consumer Credit Protection Act (CCPA). TILA is a law that is intended to protect consumers in the financial marketplace by providing them with disclosures that will help them to understand the financial products that they are purchasing. The stated purpose of the law is to encourage the "informed use of credit" by assuring that consumers are able to compare more readily the various credit terms available to them. This course provides an overview of disclosures required by TILA, specifically those required for closed-end adjustable-rate mortgage transactions and transactions for home equity plans.

Congress enacted the Truth-in-Lending Act (TILA) as Title I of the Consumer Credit Protection Act (CCPA). TILA is a law that is intended to protect consumers in the financial marketplace by providing them with disclosures that will help them to understand the financial products that they are purchasing. The stated purpose of the law is to encourage the "informed use of credit" by assuring that consumers are able to compare more readily the various credit terms available to them. This course provides a review of TILA's provisions related to rescission and advertising, as well as penalties for violations of the law.

The USA PATRIOT Act (the PATRIOT Act) was enacted in response to the September 11, 2001 terrorist attacks. The portions of the PATRIOT Act that impact mortgage lending transactions are contained in Title III, which is called the International Money Laundering Abatement and Anti-Terrorist Financing Act of 2001. The PATRIOT Act strengthens the U.S. government's ability to take action to address money laundering. This course provides an overview of the PATRIOT Act, including which entities are required to comply with the law and the specific requirements for such entities.

There are various mortgage programs currently available in the industry. Generally, mortgages may be categorized as conventional or non-conventional. Conventional mortgages may be either conforming, meaning they meet loan limits and other standards to qualify for purchase by Fannie Mae and Freddie Mac, or they may be non-conforming, meaning they do not meet such standards. This course provides an overview of conventional mortgages.

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.

Reverse mortgage loans are available only to people who meet a certain age threshold and other requirements. They are popular among consumers who have built equity in their homes and are looking to finance living expenses or home improvement projects. This course will review reverse mortgage loans, including the types of products available, standards for borrower eligibility, and program options.

VA loans are a type of non-conventional loan available to veterans in the United States. The U.S. Department of Veterans Affairs (the VA) does not make these loans “ it establishes standards for eligibility and guarantees the loans made. The USDA makes mortgage loans more accessible for consumers in rural and agricultural areas of the country. This course will review concepts about VA and USDA lending, including current requirements, eligibility standards, and more.

The Ability to Repay Rule and the Qualified Mortgage Rule have greatly altered the standards by which many mortgage loan transactions are conducted. The primary goal of these rules is to enhance and ensure consumer protection in the mortgage industry by establishing guidelines for what constitutes a safe mortgage loan transaction. It is important for mortgage professionals to be familiar with these standards, to ensure compliance with the law and the continuation of a sound, safe mortgage market. This course will review the Ability to Repay Rule and the Qualified Mortgage Rule and their influence on mortgage loan transactions. In addition, the concept and importance of tangible net benefit will be discussed.

Adjustable-rate mortgages are a nontraditional mortgage product available for qualified borrowers. These loans come in several forms, and allow certain homeowners to take advantage of interest rate changes to save money. Adjustable-rate mortgages may also be qualified mortgages. This course will review adjustable-rate mortgages types, common features, and information about the index and margin, as well as details of how the Qualified Mortgage Rule applies to calculating monthly payments.

The process of ensuring an applicant is qualified for a loan begins with analyzing the borrower's assets and liabilities, income, credit, and other characteristics related to his or her financial condition. Various calculations may need to be performed, specifically those related to the potential borrower's income, which will vary depending upon whether the applicant is self-employed or a salaried, hourly, or commissioned employee. This course provides an overview of the analysis performed in order to determine whether a loan applicant is fit for a loan, which includes a review of income, assets, and liabilities. This course will also review income calculations, including examples.

Because the collateral for a mortgage loan is the subject property, the appraised value of the property is an important consideration in loan approval. The lender must have a high level of confidence in the documentation presented by the appraiser. It is essential for appraisals to be accurate, and overvaluation is a significant problem in the industry. This course provides an overview of the appraisal process, including a look at the Uniform Residential Appraisal Report and the various approaches used by appraisers in evaluating property. In addition, this course briefly explores additional appraisal requirements for higher-priced mortgage loans.

The process of ensuring an applicant is qualified for a loan begins with analyzing the borrower's assets and liabilities, income, credit, and other characteristics related to his/her financial condition. Essential to assessing a loan applicant's suitability for a loan is an examination of his/her credit report. This course provides an overview of how borrower credit is analyzed, including detailed information relating to the credit report.

The Uniform Residential Loan Application (Form 1003) is the standard form used by loan applicants applying for a mortgage. Applicants must present documentation to show the veracity of the information provided in the application. Both loan applicants and those assisting applicants in completion of the 1003, such as mortgage lenders, brokers, and loan originators, have legal and ethical responsibilities. The 1003 is a fairly extensive document and is used to compile a broad range of personal information, so understanding each section of the form is vital. This course provides an overview of each section of the Uniform Residential Loan Application, including graphics to enhance understanding. This course will also discuss the documentation required to support information disclosed on the application.

Providing disclosures to consumers is essential in ensuring they stay informed throughout the loan process. Some disclosures are intended to educate consumers, particularly when risky lending terms are involved, while others are meant to inform consumers about specific information regarding the loan they have already obtained or the loan they are about to obtain. Regardless of their intention, disclosures are closely regulated by state and federal law, and those mortgage professionals that do not adhere to disclosure requirements are likely to face enforcement action. This course provides an overview of disclosures required throughout the loan process, including those disclosures intended to inform consumers about certain information related to their loan, as well as disclosures intended to inform consumers of certain rights.

Generally, funding occurs after the recordation of documents with purchase transactions and refinances involving investment properties. Funding practices vary from state to state. After closing and funding, a mortgage loan goes into servicing. The servicer may be either the lender that made the loan or a third party; often, servicing rights may be transferred to another entity at some point during the life of the loan. This course reviews basics of the funding and servicing processes.

There are many calculations that go into a successful mortgage transaction. These include calculating interest rates, income, payment amounts, rate caps, insurance premiums, and more. Many of these can be completed using a calculator, but a professional who takes the time to learn how each formula works will have a stronger grasp and be better equipped to answer borrower questions.

There are many different types of insurance which may be required in conjunction with the origination of a mortgage loan. Hazard, flood, and mortgage insurance are three common types. This course will review these types of insurance, when they would be required for a loan, and more.

The process of ensuring an applicant is qualified for a loan begins with analyzing the borrower's assets and liabilities, income, credit, and other characteristics related to his or her financial condition. Once the initial information is obtained, the lender will use various formulas to determine the amount for which the borrower will qualify. Such formulas will ensure that the borrower is matched with an appropriate product for his/her financial condition so that the loan is likely to be repaid in accordance with the terms of the lending agreement. This course provides an overview of qualifying ratios, including the front end ratio, the back end ratio, the loan-to-value ratio, the combined loan-to-value ratio, and the high loan-to-value ratio. Students will have an opportunity to review an example of each calculation presented.

Once all loan and title conditions have been satisfied, closing may be scheduled. It is vital that all of the parties to the transaction know the time, date, and location of the loan closing. The first step in the post-closing process is funding, and once the file is returned to the lender by the closing agent, loan servicing begins. This course provides an overview of the closing and post-closing processes, including information related to title and title insurance, the duties of the closing agent, funding, and servicing.

Title insurance is defined as an "agreement to indemnify against loss arising from a defect in title to real property, usually issued to the buyer of the property by the title company that conducted the title search." Lenders require title insurance in order to protect themselves from risks that arise when securing a loan with a property. This course provides an overview of title insurance and information related to liens.

An underwriter's principal responsibility is to ensure that the proposed loan meets the requirements set forth by the investor who will purchase the mortgage. This includes assessing a borrower's ability and willingness to repay the mortgage debt and examining the property being offered as security for the mortgage. This course will review the basics of underwriting, from evaluation of borrower qualifications to analysis of the subject property and more.

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.