20 Hour Mortgage Loan Originator Idaho SAFE Comprehensive Course Course Syllabus -- 7 Day (14 Day Schedule included

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Welcome to our Idaho SAFE Comprehensive Course. We are excited to assist you in furthering or beginning your mortgage career and are pleased you chose Praedo Institute to satisfy your education requirements. Course Purpose This course is meant to satisfy the 20 hour SAFE education requirement for mortgage loan originator licensure for the state of Idaho. This course will also prepare you for the National Component of the SAFE Mortgage Loan Originator including the UST portion of the SAFE exam. Course Description Along with the 18 hours of SAFE required education, this course includes 2 hours of Idaho Law as well as information related to loan qualification and the loan process. This course satisfies the Idaho SAFE requirement. Included in this course are: discussion forums, interactive content, practice questions, and live instructor support. Course Dates and Times This course begins on Tuesday at 8:00am mountain time and must be completed by midnight on the session end date. Instructor Contact Information Once you register for the course, you will receive an email from the instructor assigned to your course. The email will introduce your instructor as well as explain contact methods and expected response times. All of our instructors are required to respond to student questions within one business day of the receipt of your question. Your instructors personal email will be included in the introduction email. Course Objectives Each of the individual modules in this course include learning objectives applicable to the individual module itself. Our course is meant to give you an introduction to the mortgage industry. Upon completing this course, you should be able to do the following: Define basic mortgage terms; Perform mathematical calculations common to the mortgage industry; Explain certain mortgage concepts to potential borrowers; Comply with applicable federal laws related to the mortgage industry.

You should also be able to pass the National component of the SAFE Mortgage Loan including the UST portion of the SAFE exam.

Grading Policy Most of the sections in this course consist of slides mixed with comprehension questions. Each chapter includes a chapter quiz, and most sections include a course final. You may view the slides at your own pace, but you must answer all of the comprehension questions correctly and score 80 percent on all quizzes to receive credit for the course. You must also pass the course section final exams with a score of 80 percent in order to receive credit for the course. Please remember, your course does include a completion deadline. Several of the modules also include case studies, which involve the completion of a certain project. The details for the individual case studies are found in the course. Our course also includes 8-10 learning activities. In each of the learning activities, you will be required to either post comments on our discussion forum or email an assignment to your instructor for grading. Instructions for the learning activities are included in the course. Your course consists of four parts. At the end of each part, you will be required to submit an assignment to your instructor. Your instructor will grade your assignment within one business day of assignment submission. Once your instructor grades the assignment, your instructor will allow you access to the next part of your course. The instructor reserves the right to delay your advancement to the next part in the event you are progressing substantially faster than the other students in that part. Course Policies Each student is required to submit an Identity Affidavit. By confirming this attestation, the student certifies that the course work was or will be completed by the person for whom the certificate will be issued. The student further certifies that they did or will not receive any assistance in completing the course. The submission of a completion certificate for a course they did not complete themselves may constitute fraud on the student s part and is subject to prosecution and/or discipline. Technical Support As our course is entirely online, we do offer live technical support via telephone, email, and chat from 8:30am to 5:00pm mountain time on regular business days. After hours, holiday, and weekend support is available 365 days a year via email from 9:00am to 10:00pm mountain time. Our telephone number is 801-492-9933 and the support email is support@praedo.com.

Please note, our technical support staff will often be unable to answer content questions which are more appropriately directed to your instructor. Using our System Once you purchase the course and are logged into our system, you should see a link to the course on your home page. This link will launch the course. Please carefully review the introduction module for instructions on using our online system. Course Outline This course consists of four parts, each covering different aspects of the Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (SAFE Act). SAFE 20 Hour Pre-licensing Course Introduction: This module will introduce you to our system. Adherence to the advice and instructions offered in this module will greatly improve your online education experience. SAFE Part One: Consumer Protection (7 Hours) Learning Activity Welcome: The student will follow the instructions to make a post about themselves. Consumer Protection Chapter 1: Chapter One covers the Gramm-Leach-Bliley Act. It consists of the following sections: Privacy Rule Safeguard Rule Pre-texting Consumer Protection Chapter 2: Chapter Two covers the Do Not Call Rules. It consists of the following sections: Do Not Call Registry Do Not Fax Rules Consumer Protection Chapter 3: Chapter Three covers the Red Flags Rule. It consists of the following sections: Definitions Red Flag Rule Requirements Identifying Red Flags Learning Activity Consumer Protection: The student will follow instructions to post information on the discussion forum regarding consumer protection.

Identity Theft Case Study: The student will review information on the Federal Trade Commission's web site and answer related questions. Learning Activity Identity Theft: After reviewing the information from the case study, the student will follow instructions to post remarks on the discussion forum. Fair Lending & Housing Chapter 1: Chapter One covers the Fair Housing Act, the Equal Credit Opportunity Act, and the Home Mortgage Disclosure Act. It consists of the following sections: Fair Housing Act Equal Credit Opportunity Act Home Mortgage Disclosure Act Fair Lending & Housing Chapter 2: Chapter Two covers the Fair Credit Reporting Act and the Fair and Accurate Credit Transaction Act. It consists of the following sections: Fair Credit Reporting Act Fair and Accurate Credit Transaction Act Fair Lending & Housing Chapter 3: Chapter Three covers the governmental agencies who participate in regulating the mortgage industry. It consists of the following sections: Role of the Federal Reserve Role of the Federal Trade Commission Role of the Department of Housing and Urban Developments

Hud Case Study: The student will review information on the HUD web site and answer related questions with regard to Fair Housing. Learning Activity Fair Housing: After completing the HUD case study, the student will follow instructions to post a scenario on the discussion forum.

Loan Fraud & Ethics Chapter 1: Chapter One will introduce you to the definition of loan fraud and different types of loan fraud. It consists of the following sections: Introduction to Loan Fraud Definition of Loan Fraud Consequences of Loan Fraud Types of Fraud Loan Fraud and Ethics Chapter 2: Chapter Two will review popular loan fraud schemes and loan fraud statistics. This chapter also discusses ways to detect fraud and licensee obligations when it comes to loan fraud. It consists of the following sections:

Common Loan Fraud Schemes Short Sale Fraud MARI Fraud Index

Loan Fraud Case Study: The student will review information on the FBI's web site and answer related questions with regard to fraud. Learning Activity Loan Fraud & Ethics: The student will search the Internet for two examples of loan fraud and report their findings to their instructor. SAFE Part Two: Federal Law (5 Hours) Non-Traditional Mortgage Products Chapter 1: Chapter One introduces the student to nontraditional mortgage products. It consists of the following sections: Introduction to the Industry Definition of the Industry Product Overviews Non-Traditional Mortgage Products Chapter 2: Chapter Two covers federal guidance of the non-traditional mortgage industry. It consists of the following sections: Interagency Guidance on Nontraditional Mortgage Product Risks Loan Terms and Underwriting Standards Portfolio and Risk Management Practices Consumer Protection Issues Statement on Sub-prime Mortgage Lending Predatory Lending Prepayment Penalties Reduced Documentation Payment Shock Workout Arrangements Consumer Protection Principles RESPA Chapter 1: Chapter One introduces RESPAs provisions regarding disclosure of costs and record keeping. It consists of the following sections: Purposes of the Real Estate Settlement Procedures Act Scope of RESPA Exempt Transactions Definitions

 Advance Disclosure of Costs - Good Faith Estimate RESPA Chapter 2: Chapter Two explains RESPAs kickback and referral fee provisions. It consists of the following sections: Eliminate Kickbacks and Referral Fees Common RESPA Violations RESPA Chapter 3: Chapter Three covers affiliated business arrangements and servicing requirements set forth in RESPA. It consists of the following sections: Affiliated Business Arrangements Servicing Issues Learning Activity RESPA: The student will follow the instructions to post a comment on the discussion forum regarding RESPA. TILA Chapter 1: Chapter One introduces the Truth in Lending Act and includes definitions as well as information on APR and advertising. It consists of the following sections: Definitions Annual Percentage Rate Advertising Rules Trigger Terms Required Disclosures TILA Chapter 2: Chapter Two covers disclosure and the right to cancel. It consists of the following sections: Disclosure Requirements Early Disclosures Early Disclosure and Closing Collecting Fees Changes During the Transaction Right of Rescission High-Cost Loans Additional Disclosures Higher-priced Loans TILA Chapter 3: Chapter Three covers loan officer compensation. It consists of the following sections: LO Compensation Rule Payments Based on Transaction Terms Reducing LO Compensation on a Transaction Other Compensation Issues

 Final Rule and Official Staff Commentary Safe Harbor Presenting Loan Options TILA Chapter 4: Chapter Four Covers the ability to repay and QM rule. It consists of the following section: Ability to Repay and QM Rule Learning Activity TILA: The student will follow the instructions to search the Internet to find mortgage ads which include trigger terms. They will complete an assignment and submit it to their instructor. SAFE Part Three: Industry Basics (4 Hours) Industry Chapter 1: Chapter One reviews the structure of the mortgage industry. It consists of the following sections: Structure of the Mortgage Industry The Primary Market The Secondary Market Mortgage Brokers Mortgage Lenders/Bankers Secondary Market Transactions The Capital Market Industry Chapter 2: Chapter Two discusses the basic mortgage categories. It consists of the following sections: Mortgage Industry Overview Purchase Transactions Rate/Term Refinance Cash-Out Refinance Mortgage Categories Conventional/Conforming FHA - Federal Housing Administration Advantages of FHA Lending Higher Debt to Income Ratios Non-occupant Co-borrowers Disadvantages of FHA Lending VA Loans Rural Housing

Construction Loans Jumbo/Non-Conforming Second Mortgage/HELOC Reverse Equity/HECM

Loan Process: Qualification Chapter 1: Chapter One covers pre-qualification. It consists of the following sections: Pre-qualification Down Payment Income Debts Credit Loan Process: Qualification Chapter 2: Chapter Two explores file documentation. It consists of the following sections: Assembling the File Income Documentation Acceptable Assets Loan Process: Qualification Chapter 3: Chapter Three reviews credit reports. It consists of the following sections: Credit Reports Credit Scores FICO Scores Case Study: The student will review credit scores and answer questions related to FICO. Learning Activity Credit Report: The student will follow the instructions to post a comment on the discussion forum regarding credit scores. Learning Activity Loan Process: Qualification: The student will complete an assignment based on qualification calculations and submit their work to their instructor. SAFE Part Four: Loan Process Part II & Idaho Law (4 Hours) Loan Process: Part II Chapter 1: Chapter One covers mortgage products. It consists of the following sections: Fixed Rate Mortgages Adjustable Rate Mortgages

 Balloons HELOC - Home Equity Line of Credit Reverse Mortgages Loan Process: Part II Chapter 2: Chapter Two covers appraisals. It consists of the following sections: Types of appraisals Cost Approach Income Approach Market Approach Loan Process: Part II Chapter 3: Chapter Three covers the closing process. It consists of the following sections: Hazard Insurance Flood Insurance Mortgage Insurance Dropping Mortgage Insurance Title, Escrow and Closing Mortgages, Notes and Liens Title Insurance Policies Learning Activity Loan Process: Part II: The student will review the types of loan products discussed and follow the instructions to post a comment on the discussion forum and respond to another student's post. Idaho Mortgage Law Chapter 1: Chapter One covers the Residential Mortgage Practices Act. It consists of the following sections: Licensing Law Introduction Rule vs. Law Who is covered? Department of Finance Mortgage Recovery Fund Idaho Mortgage Law Chapter 2: Chapter Two covers individual licensing requirements. It consists of the following sections: Loan Originator Requirements: Definitions Scope of licensing requirements License application requirements

Education and testing requirements License renewal Enforcement

Idaho Mortgage Law Chapter 3: Chapter Three covers entity licensing and other industry restrictions. It consists of the following sections: Lender/Broker Licensing: Prohibited practices Idaho Financial Fraud Prevention Act Enforcement Actions Case Study: The student will review newsletters posted on the Department of Finance's web site. To complete the assignment, the student will write a short review about four different disciplinary actions described in the newsletter. They will explain what they have learned from the newsletter examples and what could have been done for the individuals to avoid disciplinary action. The student will submit their completed assignment to their instructor for grading. Course Final: 100 question course final covering all of the material in the course. Course Evaluation: Students will be allowed to give feedback regarding the course. Course Schedule This course consists of the four parts outlined below. The requirements for each part are listed with the approximate time needed to complete each learning module. The scheduled days are approximate as well, you are not required to follow the prescribed outline, but doing so would allow you to complete the course in the allotted time frame. This course meets the minimum time requirement of 50 seat minutes for each clock hour the course is approved. This course is approved as a 20 hour course and must be completed in its entirety in order for you to receive credit. Good Luck Once again, thank you for choosing Praedo Institute. Your success is extremely important to us. Please let us know if we can be of any assistance at any time. Enjoy the course!

Course Outline and Schedule - 7 Day Schedule Topics and Activities SAFE 20 Hour Prelicensing Course Introduction SAFE Part One: Consumer Protection Learning Activity Welcome Day 1 Consumer Protection Learning Activity Consumer Protection Identity Theft Case Study Learning Activity Identity Theft Fair Lending & Housing HUD Case Study Learning Activity Fair Housing Loan Fraud & Ethics Loan Fraud Case Study Learning Activity Loan Fraud & Ethics SAFE Part Two: Federal Law Non-traditional Mortgage Products RESPA Reading Due Introduction and Syllabus Assignments Due Submit Online Affidavit Post an introduction on the Discussion Forum Complete Chapter Quizzes and Test Post Information regarding consumer protection on the Discussion Forum Complete Quiz Post remarks on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Post a scenario on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Post a comment on the Discussion Forum regarding RESPA Instruction Time Allocation (in minutes) 10

Learning Activity Instructions

10

Chapters 1, 2, & 3 Learning Activity Instructions Review information on FTC's website Review information on FTC's website Chapters 1, 2, & 3 Review information on HUD's website Review information on HUD's website Chapters 1 & 2 Review Information on FBI's website Internet search for loan fraud examples Chapters 1 & 2

100

10

10 10 100 10 10 95 10 15

Day 2

100

Day 3

Chapters 1, 2, & 3

100

Learning Activity RESPA

N/A

10

TILA Day 4 Learning Activity TILA SAFE Part Three: Industry Basics Industry Loan Process: Qualification FICO Scores Case Study Learning Activity Credit Report

Chapters 1, 2, 3, & 4 Internet search for trigger terms Chapters 1 & 2 Chapters 1, 2, & 3 Review credit scores

Complete Chapter Quizzes and Test Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Complete Quiz Post a comment on the Discussion Forum regarding credit scores Complete an assignment based on qualification calculations and submit to instructor Complete Chapter Quizzes and Test Post a comment on the Discussion Forum and comment on another student's post Complete Chapter Quizzes and Test Submit review of disciplinary actions to instructor Complete Exam Complete evaluation

110 15 90 100 10

Day 5

Review credit scores

10

Learning Activity Loan Process: Qualification SAFE Part Four: Loan Process & Idaho Law Loan Process: Part II Day 6 Learning Activity Loan Process: Part II

N/A

15

Chapters 1, 2, & 3

100

Review types of loan products

10

Idaho Mortgage Law

Chapters 1, 2, & 3

100

Day 7

Enforcement Actions Case Study Course Final Evaluation

Department of Finance's newsletter N/A N/A

15

20 5

Course Outline and Schedule - 14 Day Schedule Topics and Activities SAFE 20 Hour Prelicensing Course Introduction SAFE Part One: Consumer Protection Learning Activity Welcome Days 1-2 Consumer Protection Learning Activity Consumer Protection Identity Theft Case Study Learning Activity Identity Theft Fair Lending & Housing HUD Case Study Learning Activity Fair Housing Loan Fraud & Ethics Loan Fraud Case Study Learning Activity Loan Fraud & Ethics SAFE Part Two: Federal Law Non-traditional Mortgage Products RESPA Reading Due Introduction and Syllabus Learning Activity Instructions Chapters 1, 2, & 3 Learning Activity Instructions Review information on FTC's website Review information on FTC's website Chapters 1, 2, & 3 Review information on HUD's website Review information on HUD's website Chapters 1 & 2 Review Information on FBI's website Internet search for loan fraud examples Chapters 1 & 2 Assignments Due Submit Online Affidavit Post an introduction on the Discussion Forum Complete Chapter Quizzes and Test Post Information regarding consumer protection on the Discussion Forum Complete Quiz Post remarks on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Post a scenario on the Discussion Forum Complete Chapter Quizzes and Test Complete Quiz Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Post a comment on the Discussion Forum regarding RESPA Instruction Time Allocation (in minutes) 10

10

100

10

10 10 100 10 10 95 10 15

Days 3-4

100

Days 5-6

Chapters 1, 2, & 3

100

Learning Activity RESPA

N/A

10

TILA Days 7-8 Learning Activity TILA SAFE Part Three: Industry Basics Industry Loan Process: Qualification FICO Scores Case Study Learning Activity Credit Report

Chapters 1, 2, 3, & 4 Internet search for trigger terms Chapters 1 & 2 Chapters 1, 2, & 3 Review credit scores

Complete Chapter Quizzes and Test Report findings to instructor Complete Chapter Quizzes and Test Complete Chapter Quizzes and Test Complete Quiz Post a comment on the Discussion Forum regarding credit scores Complete an assignment based on qualification calculations and submit to instructor Complete Chapter Quizzes and Test Post a comment on the Discussion Forum and comment on another student's post Complete Chapter Quizzes and Test Submit review of disciplinary actions to instructor Complete Exam Complete evaluation

110 15 90 100 10

Days 9-10

Review credit scores

10

Learning Activity Loan Process: Qualification SAFE Part Four: Loan Process & Idaho Law Loan Process: Part II Days 11-12 Learning Activity Loan Process: Part II

N/A

15

Chapters 1, 2, & 3

100

Review types of loan products

10

Idaho Mortgage Law

Chapters 1, 2, & 3

100

Days 13-14

Enforcement Actions Case Study Course Final Evaluation

Department of Finance's newsletter N/A N/A

15

20 5