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 via a live feed of an instructor presenting course material and is designed to allow the student to communicate in real time with the instructor as well as fellow students.
All information and material for your NMLS approved live webinar course will be sent to you one business day before your scheduled start day. The information sent to you will include step-by-step instructions for how to register for your webinar, as well as a syllabus providing a brief outline of your course and background information on your instructor. You must be present and attentive for the full length of the webinar. If you are unable to complete any section of the class, you will be required to reschedule. You will be required to check in at random points during the course to confirm attendance. 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 sign your Rules of Conduct document (ROC), which will be made available to you before your scheduled start time.