About This Course Underwriting is the risk assessment step of a residential mortgage transaction. It gives lenders that make home loans and the investors that purchase them the opportunity to complete an analysis of the risks associated with offering mortgage credit to a particular loan applicant. This course will review the underwriting tools and practices used by loan originators in the early stages of a lending transaction to evaluate a consumer's loan eligibility, as well as underwriting requirements established by federal lending laws and other guidelines followed by lenders known as credit overlays.
What You'll Learn
- Loan originators' use of automatic underwriting systems to perform preliminary underwriting
- General underwriting standards created by federal lending laws and the Ability to Repay rule
- Specific underwriting standards for qualified mortgages
- Regulation Z's Appendix Q and the underwriting guidelines that it creates for evaluating debt-to-income ratios for qualified mortgages
- Underwriting standards established by GSEs which lenders must follow in order to sell their loans in the secondary mortgage market
- Quality control tools that the GSEs and lenders can use to uncover underwriting deficiencies
- The use of credit overlays and their potential for violating fair lending laws, including considerations related to disparate treatment and disparate impact theories
How it Works This course is delivered in a face to face format in which the student and instructor will occupy and interact in the same physical location.
All materials for your NMLS-approved Live CE Courses will be handed to you on the scheduled day of class. Materials will include textbook(s), assessment(s), syllabi, Rules of Conduct (ROC) and a survey. At the beginning of class you will need to provide a valid photo ID during the time of registration in order to attend class. For all Live CE courses, you must be present and attentive for the full length of class. If you are unable to complete any section of the class, you will be required to reschedule. Any missed check-in will prevent you from receiving credit, and you will be required to reschedule. Before you are able to receive credit, you must also initial on the roster that you have read and understand the Rules of Conduct Document (ROC), which will be made available to you when you arrive to the class.