2016 Loan Originator Continuing Ed Courses

Hi Everyone!
Loan Originator CE course schedule can be found here.

6088This classroom course meets the requirements set forth in the SAFE Mortgage Licensing Act for loan originator license renewal.
The 8 Hour Course is good for LO CE in all 50 states

This course ALSO includes the required 1 Hour of Washington State CE

Note: If you took the CE course from me last year, this is a completely new course. There is no rule against using the same course provider every year. Instead, LOs may not take the same course year after year.

The 2016 courses are all new with new course numbers!

Course Outline:
3 Hours Federal Law
2 Hours Ethics, Consumer Protection, Fraud, Fair Housing
2 Hours Non-Traditional Lending
1 Hour Undefined: SARS/AML
also included at no extra cost:
1 Hour WA State Law
_______________
For 2016 we will cover the following and more:
The minimum requirements for appraisal management companies
New HMDA rules under Dodd Frank
We will deconstruct a deceptive radio ad
Learn about the diversity standards in the Dodd Frank Act
Review a loan originator compensation case study
Learn the elements of a RESPA-compliant marketing services agreement
Discuss the re-emergence of non-traditional loans
Know the red flags that trigger a SARS/AML report
Compare how other industries approach self-regulation of ethical conduct
Review four Fair Housing cases; and,
Understand how conflicts of interest can spiral into in a mortgage fraud conviction.
Some End of Course Evaluations from past classes:

“This fast-paced course was very enjoyable.”
“Jillayne does a fantastic job keeping everyone engaged and moves quickly through the material.”
“Case studies were relevant and interesting.”
“Jillayne provoked thought and reflection throughout the class.”
“Love hearing about the mortgage fraud cases”
“Great energy from the instructor means the time goes by fast–way better than other instructors.”
“This is my second CE taken w/you and I am SO GLAD I came back. Very good info.”
“Your stories help me learn and grow v. just reading something online.”
“You engage everyone in the class. I was never bored.”
“The examples you gave helped me easily figure out how to apply the laws.”

 

Visit the Events page for our 2016 schedule.

2015 Loan Originator Continuing Ed Courses

Hi Everyone!
Loan Originator CE course schedule can be found here.

This classroom course meets the requirements set forth in the SAFE Mortgage Licensing Act for loan originator license renewal.
The 8 Hour Course is good for LO CE in all 50 states
This course ALSO includes the required 1 Hour of Washington State CE

Note: If you took the CE course from me last year, this is a completely new course.  There is no rule against using the same course provider every year. Instead, LOs may not take the same course year after year. The 2015 courses are all new with new course numbers!

Course Outline:
3 Hours Federal Law
2 Hours Ethics, Consumer Protection, Fraud, Fair Housing
2 Hours Non-Traditional Lending
1 Hour Undefined: SARS/AML
also included at no extra cost:
1 Hour WA State Law
_______________
For 2015 we will cover the following and more:
  • The TRID transition: Loan Estimate and Closing Disclosure
  • The new definition of “an application”
  • Good faith requirement and loan tolerances
  • Intent to proceed and imposing fees
  • New restrictions on “fee worksheets” issued before the Loan Estimate
  • New consumer booklet: Your Home Loan Toolkit
  • CFPB consumer complaint details become public
  • CFPB nails deceptive advertisers
  • How to avoid a non-compliant Marketing Service Agreement
  • Non-QM products
  • Local Anti-Money Laundering cases
  • Applied Professional Ethics…in Action
  • New Fair Housing cases
  • New mortgage fraud trends from the IRS

Some End of Course Evaluations:

“This fast-paced course was very enjoyable.”
“Jillayne does a fantastic job keeping everyone engaged and moves quickly through the material.”
“Case studies were relevant and interesting.”
“Jillayne provoked thought and reflection throughout the class.”
“Love hearing about the mortgage fraud cases”
“Great energy from the instructor means the time goes by fast–way better than other instructors.”
“This is my second CE taken w/you and I am SO GLAD I came back. Very good info.”
“Your stories help me learn and grow v. just reading something online.”
“You engage everyone in the class. I was never bored.”
“The examples you gave helped me easily figure out how to apply the laws.”

Did you find this course to be of value as you work to achieve your continuing ed goals?

YES: (100% of students answered yes to this question)

Would you recommend this course to a friend?
YES: 100%

All things considered, were you satisfied with the course and course provider?
YES: 100%

Did you find the instructor to be knowledgeable?
YES: 100%

Did you find the course materials informative and useful?
YES: 100%

Visit the Events page for our 2015 schedule. 

WA State DFI Slaps “Cash Call” for Multiple Consumer Protection Violations

In 2011 I posted this article about the deceptive advertising practices of Cash Call.  Washington State DFI went after Cash Call for their deceptive and abusive acts and practices towards WA State Consumers and here is the result:

$14875 Investigation fee to be paid to WA DFI

$244,100 Fine

$6,131,694. RESTITUTION ordered to be paid back to consumers

Cash Call tried to defend itself in an interesting way, but that failed.  Please warn consumers about this company’s history of blatant violation of state and federal law.

 

2014 Loan Originator CE Courses

Hi Everyone!
Loan Originator CE course schedule can be found here.

This classroom course meets the requirements set forth in the SAFE Mortgage Licensing Act for loan originator license renewal.
The 8 Hour Course is good for LO CE in all 50 states
This course ALSO includes the required 1 Hour of Washington State CE

Note: If you took the CE course from me last year, this is a completely new course.  There is no rule against using the same course provider every year. Instead, LOs may not take the same course year after year. The 2014 courses are all new with new course numbers!

Course Outline:
3 Hours Federal Law
2 Hours Ethics, Consumer Protection, Fraud, Fair Housing
2 Hours Non-Traditional Lending
1 Hour Undefined: CFPB Proposed Rules on LO Compensation
also included at no extra cost:
1 Hour WA State Law
For 2014 we will cover the following and more:
  • Dodd Frank Appendix Q
  • 3% Points and Fees Calculation In The Qualified Mortgage Rule
  • Ability to Repay Exemptions
  • Expanded Definition of a Loan Originator
  • Three New Qualification Duties of Non-Licensed (Registered) LOs
  • Seven Permissible LO Compensation Methods Plus Profits-Based Comp Methods
  • New Rules for Seller Financing
  • ECOA Rules Regarding Written Valuations
  • SARS/AML Trends
  • The 2014 Draft of a Professional Code of Ethics Written and Edited By LOs
  • Fair Housing Case Studies, and a Local Mortgage Fraud Case

To the Students from the Dec 10, 2013 LO CE class at Rockwell Bellevue

Hi Everyone,

Here’s the follow up from the LO CE class you attended.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2015 GFE/TIL changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

Here  is a link to the website from our non-traditional lending case study: Net Life Financial.

I was skeptical when hearing about WalMart taking out life insurance policies on its employees.  But you were right.  It’s toward the bottom under “Taxes.” Seems they did so to exploit a tax loophole.  “Dead Peasant Insurance.”

There was a request for a link to HUD/RESPA on the rule that requires title insurance to be the choice of the home buyer (and not the seller.) Here you go.

Someone asked for the press release on U.S. v. Luther Burbank S&L, our Fair Housing Case Study for some light evening reading.

And finally  on our Mortgage Fraud module:

Emiel Kandi (The Loan Wolf)

Shawn Portmann 

The drug money case

Strong and Waldren

Thanks for coming to class everyone!

To the Students from the Dec 3-4-5, 2013 LO Pre-Licensing Class at Rainier Title Bellevue

There was a question on Day 1: Is an Army Reservist able to obtain a VA loan?
Answer is “it depends.” Go to this document and do a keyword search on the word “loan” and it will take you right to the page.

During our mortgage fraud review we mentioned the sentencing of a local mortgage fraud ring lead by Shawn Portmann. <That  link leads to a scathing article on what it was like to work at that company under Shawn.

Slide deck for the full 3-day class can be found on Slideshare. The most recent version of the slides will be dated December, 2013.

For those seeking additional reading material for studying, here’s a hint. The NMLS publishes a list of all the content that is covered in the exam along with links to the content.  It is heavy reading but here you go. Scroll to the very end of this document for all the links.

If you’d like to see a list of and links to all the federal laws governing mortgage lending go here and scroll down to the bottom of the page:

Here’s one of many HUD memos on Maternity Leave from our Fair Housing discussion during Day 2.

There was a question about how late you can call a person at home under the Do Not Call rules:  9PM. Read more here.

Thanks for coming to class! I enjoyed meeting all of you! Keep Studying!

And when it’s time for a study break, please enjoy this public service message from Chris Farley, Motivational Speaker. I can’t find “motivational santa.” I think Saturday Night Live takes them down sometimes. They own all the copyrights on Chris’ SNL skits.

 

 

to the students from the Oct 24, 2013 LO CE class

Hi Everyone,

Here’s the follow up from the LO CE class you attended.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

Here  is a link to the website from our non-traditional lending case study: Net Life Financial.

There was a question: How is buying leads similar/different than a Section 8 RESPA kickback? I found a great article published in a Bar Association magazine. Unfortunately there are no page numbers on the document so the best way to get right to the legal explanation of the author is to just do a keyword search for the word “lead” and it will bring you right to the section.

“…a mortgage originator can buy leads if the person selling the leads does not mention the name of, or do anything to influence the consumer to contact, the broker, lender or other settlement service provider. No endorsements, no hints, no nothing. The broker or lender does all the soliciting of the lead. There are several important caveats to buying leads, such as the requirement that financial institutions must maintain the confidentiality and security of non-public consumer information (with certain exceptions)….

There was a question about what is/is not included in the points/fees calculation for a QM. The CFPB continues to make revisions to the rules. Here is a good article summarizing their decision thus far.

To the Students from the October Loan Originator CE Classes

Hi Everyone,

Here’s the follow up from the LO CE class you attended.

I mentioned a news story about ethics and emotion. Interesting that cheaters feel good when they cheat.

There was a question: What does Texas OCCC stand for?
Answer: Texas Office of Consumer Credit Commissioner

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

Here  is a link to the website from our non-traditional lending case study: Net Life Financial.

and can you teach me how to recover real slow….This is a great video by student Chris from Guild. WOW!

To the Loan Originators Attending Sept 2013 LO CE Classes

Hi Everyone,

Here’s the follow up from the LO CE class you attended in Sept:

There is a new case against a company for violating the steering provisions of the FRB Rule on LO Comp. Here’s the scoop.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a request for information on how the UST will be scored. Here is a link to the main UST pagewithin the NMLS Resource center. And here’s the direct link to the scoring method.

Thanks for coming to class!

 

To the Loan Originators attending CE Classes in August, 2013

Hi Everyone,

Here’s the follow up from the LO CE class you attended in August:

There is a new case against a company for violating the steering provisions of the FRB Rule on LO Comp. Here’s the scoop.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a request for information on how the UST will be scored. Here is a link to the main UST pagewithin the NMLS Resource center. And here’s the direct link to the scoring method.

I mentioned Seattle hip-hop artist Macklemore in class today…. This is the event I attended with my teenage daughter on Aug 12th.
http://www.acttheatre.org/Tickets/OnStage/CRWNAconversationwithElliottWilsonandMacklemore

Thanks for coming to class!

 

To the Students from the Mortgage LO Pre-Licensing class on Aug 5-6, 2013 at Sterling Savings Seattle

During our mortgage fraud review I mentioned a great article on Shawn Portmann.

Slide decks for FHA loans and also the full 2-day class can be found on Slideshare.

For those seeking additional reading material for studying, here’s a hint. The NMLS publishes a list of all the content that is covered in the exam along with links to the content.  It is heavy reading but here you go. Scroll to the very end of this document for all the links.

If you’d like to see a list of and links to all the federal laws governing mortgage lending go here and scroll down to the bottom of the page:

Here’s one of many HUD memos on Maternity Leave

Thanks for coming to class! I enjoyed meeting all of you! Keep Studying!

To the Students from the July 24, 2013 LO CE class at Old Republic Title Lynnwood

Hi Everyone,

Here’s the follow up from the LO CE class you attended last week:

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a request for information on how the UST will be scored. Here is a link to the main UST pagewithin the NMLS Resource center. And here’s the direct link to the scoring method.

I mentioned Macklemore in class yesterday. Did anyone go watch Mackelmore and Ryan Lewis film their new music video last night? They were at Dicks on Broadway and apparently there were 2000+ people who showed up! Exciting times for Seattle!

http://mynorthwest.com/871/2321145/Macklemore-shuts-down-Capitol-Hill-Dicks-DriveIn

Thanks for coming to class today!

 

To the Students from the July 18, 2013 Cornerstone LO CE Class in Bellevue, WA

Hi Everyone,

Here’s the follow up from the LO CE class you attended last week:

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a request for information on how the UST will be scored. Here is a link to the main UST page within the NMLS Resource center. And here’s the direct link to the scoring method.

And here’s a link to the Macklemore/Ryan Lewis website. Bret says we should watch The Town video. I just watched the whole thing. He’s right. Amazing. A real Seattle home grown success story. One of the reasons I like this hip/hop group is because of his back-story.

Thanks for coming to class today! You all were awesome!

 

To the Students from the SAFE Mortgage LO Pre-Licensing Class on July 1-2, 2013

There was a request for a link to see what the 2014 Combined TIL/GFE disclosure form will look like next January

Here’s the official FTC Memo on the MARS Rules

During our mortgage fraud review I mentioned a great article on Shawn Portmann.

Slide decks for FHA loans and also the full 2-day class can be found on Slideshare.

For those seeking additional reading material for studying, here’s a hint. The NMLS publishes a list of all the content that is covered in the exam along with links to the content.  It is heavy reading but here you go. Scroll to the very end of this document for all the links.

If you’d like to see a list of and links to all the federal laws governing mortgage lending go here and scroll down to the bottom of the page:

Here’s one of many HUD memos on Maternity Leave

Thanks for coming to class! I enjoyed meeting all of you! Keep Studying!

To the Students from the mid-June LO CE Classes

Hi Everyone,

Here’s the follow up from the LO CE class you attended last week:

Here’s the news story about predatory lender Emeil Kandi, from the Tacoma area.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

Here  is a link to the website from our non-traditional lending case study: Net Life Financial.

 

To the Students from the LO CE class at TPCAR/Guild on June 14, 2013

Hi Everyone,

Here’s the follow up from today’s class.

Here’s the news story about predatory lender Emeil Kandi, from the Tacoma area.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Here’s a link to the CFPB website with more info on all the Dodd-Frank rules and when they will go into effect.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

This is as close as I could get to a news story on the electric company scam. 

Here  is a link to the website from our non-traditional lending case study: Net Life Financial.

 

To the Students from the June 3-4, 2013 Loan Originator Pre-Licensing Class at Rockwell/Bellevue

There was a request for a link to see what the 2014 Combined TIL/GFE disclosure form will look like next January

Here’s the official FTC Memo on the MARS Rules

During our mortgage fraud review I mentioned a great article on Shawn Portmann.

Slide decks for FHA loans and also the full 2-day class can be found on Slideshare.

Question: MDIA re-disclosure. How many days must be between the day the borrower receives the re-disclosures and signing?  Here is the TILA/MDIA. Do a document search on the term MDIA and the second one goes through the disclosure/re-disclosure rules step by step that we covered in class.

Question: Why is doc prep fee excluded from APR calc?
A: BC it is paid to a third party. If the documentation preparation is done by the lender then it would be considered a lender fee and would be included in the APR calculation

MDIA If signing on the 12th when must the borrower receive their revised disclosures?

And for those seeking additional reading material for studying, here’s a hint. The NMLS publishes a list of all the content that is covered in the exam along with links to the content.  It is heavy reading but here you go. Scroll to the very end of this document for all the links.

Thanks for coming to class! I enjoyed meeting all of you! Keep Studying!

To the Students from the May 31, 2013 LO CE class at Best Mortgage Bellevue

Hi Everyone,

Here’s the follow up from Friday’s class.

Q: Where can I get more info on the liability of originating QMs v. non-QMs?
A: Here is the CFPB Compliance Guide. Go to page 26 for the Safe Harbor explanation on the two types of QMs, regular and higher priced.

Lenders are strongly dis-incentivized to originate non-QMs in the new rule though the reports and articles I’m reading don’t specifically state that our liability is higher when we originate non-QMs it is implied everywhere.  This article in the WSJ gives some insight.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

There was a request for NACA’s default rate. Although there are many articles all over the web quoting their low default rate, I can’t find one source for it on their website. The event I attended had several NACA reps there and they answered my question live.  Here is the article I wrote for anyone who did not have a chance to read it.

Q: Can mortgage brokers pay their LOs commission under the new LO Comp plan coming in 2014?
A: Here is the CFPB compliance guide. Go to the bottom of page 4. The old FRB rules on LO comp from 2011 are still in place—no steering consumers into lesser-quality loans or steering consumers to loans only to be given higher compensation (the old YSP or overage.)  <–All of that is still prohibited.

RE the Shawn Portmann case, I had thought the FDIC was going after PC bank’s board but I was wrong….Instead the FDIC is going after the executives from CityBank in Lynnwood, one of Shawn’s former employers before he went on down to Tacoma.

To the Students from the LO CE class on May 21, 2013 at Guild Mortgage Kent

Hi Everyone,

Here’s the follow up from today’s class.

Here’s the article I wrote about NACA as published on Seattle Bubble. NACA is the org that’s bringing their zero down loan to town soon.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages”

For branch managers, here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

If anyone is interested in using these upcoming 2014 changes to be a trusted advisor w/your Realtors, here’s the new 2014 combined GFE/ TILA and also the new HUD 1. I think it would be helpful to Realtors to know about this change.

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a question about the stand alone UST:
Q: If I take the UST can I just let those test results sit there on the shelf as having “passed” and then make up my mind to activate my license in one or all of those states (that recognize the UST) at a later date?

A: I answered that you’d have to license right away….but I was only 98% sure of my answer and I like to be 100% sure so I asked the NMLS this question last night and they responded. here is her response:

“Hi Jillayne Per the 5 Year Test Retake rule in the SAFE Act: Test results do not expire, unless an MLO fails to maintain (or achieve) a valid license in at least one state or Federal registration for a period of five years or more.  More on this will be coming next year as that is when this rule will be become relevant.”

So that means after you pass the stand-alone UST you will need to activate the license in at least one additional state within 5 years of having passed the test. This matches the 5 year test-retake rule in the SAFE Act.

To the Students from the May 15, 2013 Guild Mortgage LO CE class in Bellevue

Hi Everyone,

Here’s the follow up from today’s class.

Here’s the article I wrote about NACA as published on Seattle Bubble. NACA is the org that’s bringing their zero down loan to town soon.

Here is a link to the CFPB Consumer Compliant database. There’s a menu running across the page, not at the top but near the top. It’s inside a gray table.  It says “Data By Product.”  For the dbase we played around with, click on “mortgages” and have fun geeking out with the data!

Here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

Here’s the new 2014 combined GFE/ TILA and also the new HUD 1

Q: How is the Total Interest Percentage on page 3 of the new GFE calculated?
A: The Total Interest Percentage disclosure is mandated under Section 1419 of the Dodd Frank Act so the CFPB does not have the option to exclude it.

First figure out the total interest paid over the life of the loan as follows:
Principal and Interest x the loan term
761.78 x 360 = $274,241.

Now take the total interest paid over the life of the loan and subtract out the principal amount of the loan:
$274,241. – 162,000 = $112,241.

$112, 241 represents the total interest paid over the life of the loan.
Now take the total interest paid over the life of the loan and divide by the principal loan amount:

112,241 / 162,000 = 69.28%

This doesn’t quite match the GFE example given to us by the CFPB. So what’s missing? Prepaid interest. Add that in as part of the interest and your math should match.

There was a request for an update on the local real estate fraud case against Michael Mastro. There are so many interesting news stories I think it might be fun for you to scan the headlines so just google “Michael Mastro” fraud crime seattle 2013″ and you’ll see several interesting headlines

There was also a request for an update on what’s happening, if any to build a case against Kerry Kilinger of failed bank WaMu. This is the latest story I could find.

Statement by Jillayne: Mortgage closing costs actually decreased since the introduction of the 2011 GFE, replacing the old 1974 form.  Here is the link to one of several different articles that explained just what one you said….lenders got more accurate with their GFEs.

To the Students from the May 14, 2013 LO CE Class at Rockwell

Hi Everyone,

Here’s the follow up from today’s class.

Here’s the article I wrote about NACA as published on Seattle Bubble. NACA is the org that’s bringing their zero down loan to town soon.

Here’s the link to the proposed Social Media Guidelines. See the link at the bottom of the press release.

Here’s the new 2014 combined GFE/ TILA and also the new HUD 1

I have asked the powers that be about the dedicated mortgage fraud prosecution account and where that money went….when I hear back I will post the answer.

Q: Who pays for the cost of the counseling on a HPML?
A: Consumer must receive initial GFE or open-end plan disclosure before counseling…

• Counselor must not be affiliated with creditor

• Certification must state that (1) consumer counseled on loan advisability based on terms in GFE, and (2) counselor verified consumer’s receipt of required HOEPA 3-day “cooling off” notice or RESPA disclosures

Creditor may not “steer” consumers to a particular counselor

• Creditor may pay for counseling, but may not condition payment on extension of credit

• Creditor may finance (bona fide 3rd party) counselor fee paid by consumer

All New 2013 Loan Originator CE Classes Now Available!

NAMF has received approval for the 2013 LO CE class!

Note: If you took the CE course from me last year, this is an all new course.  There is no rule against using the same course provider every year. Instead, LOs may not take the same course year after year. The 2013 course is all new with a new course number!
Course Outline:
3 Hours Federal Law
2 Hours Ethics, Consumer Protection, Fraud, Fair Housing
2 Hours Non-Traditional Lending
1 Hour Undefined: CFPB Proposed Rules on LO Compensation
also included at no extra cost:
1 Hour WA State Law

For 2013 we will cover ability to repay and the Qualified Mortgage Rule, homeownership counseling for high cost loans, appraisal rules for high priced mortgage loans, finalization of loan originator compensation rules under the Dodd Frank Act, a review of the final new Good Faith Estimate, prohibited advertising practices, Mortgage Assistance Relief Service Provider Rules, The CFPB Consumer Complaint Database, zero-down loans, reverse mortgage lending case study, Fair Housing “disparate impact” case study, a local mortgage fraud case study, your annual required SARS/AML education, and a new draft model code of ethics for the industry, written by loan originators for loan originators.

NAMF is an NMLS Approved Course Provider

Provider ID: 1400068
8 Hr SAFE Comprehensive NMLS Approved Course Number C-3464
(approved in all 50 states)
1 Hr WA State Law CE NMLS Approved Course Number C-3441
(this is for LOs who are licensed in WA State and is taught along with the all day 8 hour class)

Read more here

Schedule of upcoming classes

To the Students from the April 1-2, 2013 Loan Originator Pre-Licensing Class

Hi Everyone,

Here’s the follow up Q&A from our time together:

Q: Why does HMDA (Home Mortgage Disclosure Act) require a breakdown as to ethnicity–specifically hispanic/non-hispanic?

A: From this article, HMDA has separate categories for race and ethnicity.  Do a keyword search on the word “Hispanic.” There are seven matches and then jus scroll to each match.  Hispanic and non-Hispanic fall into the ethnicity category. Some ppl identify as caucasian for their race but might have a Hispanic ethnicity. Here is a brief article about the difference between race and ethnicity.

Q: Is buying leads (the business of lead generation) a violation of Section 8 of RESPA?
A: From this Bar Assoc article:

“… a mortgage originator can buy leads if the person selling the leads does not mention the name of, or do anything to influence the consumer to contact, the broker, lender or other settlement service provider. No endorsements, no hints, no nothing.  The broker or lender does all the soliciting of the lead. There are several important caveats to buying leads, such as the requirement that financial institutions must maintain the confidentiality and security of non-public consumer information…”

There was a question on the Gramm Leach Bliley Privacy Act regarding when/how to deliver the privacy disclosure. GLB Act says “in person or by mail.”

I promised the scathing expose from 60 Minutes segment on the Fair Credit Reporting Act.  Makes me not so proud of the Credit Reporting Industry.

There was a request for a link to see what the 2014 Combined TIL/GFE disclosure form will look like next January

There was a question on the Do-Not-Call registry—how late at night can you call a consumer? Here is a great resource page to review from the FCC….with the answer that contains a morning and also an evening time limit!

During our mortgage fraud review I mentioned a great article on Shawn Portmann.

Slide decks for FHA loans and also the full 2-day class can be found on Slideshare.

We were all so tired and ready to jet at the end that I failed to mention I had three handouts on the counter by the door that I wanted you to pick up to use for extra study material so here are links to all three:

RESPA FAQs

Red Flag Rules

SAFE Act

And for those seeking additional reading material for studying, here’s a hint. The NMLS publishes a list of all the content that is covered in the exam along with links to the content.  It is heavy reading but here you go. Scroll to the very end of this document for all the links.

Thanks for coming to class! I enjoyed meeting all of you! Keep Studying!

4 Hour Washington State Law Pre-Licensing Class Is Now Approved

Hi Everyone,

Just wanted to let everyone know that I have received approval from the NMLS for my new 4 Hour WA State Law Pre-Licensing class which means when April 1, 2013 rolls around, I am ready to help all loan originator candidates who need the 20 Hour Loan Originator Pre-Licensing Class along with the new, updated requirement to also take 4 hours of education on Washington State Law.  YES this class will help loan originator candidates prepare for the new Uniform State Test.

Call or email me with questions!
Jillayne Schlicke
206-931-2241
jillayne@ceforward.com

NMLS Approved Course Provider 1400068

20Hr SAFE LO Pre-Licensing Course Number: C-1167

4 Hr Wa Law Pre-Licensing Course Number: C-3430

 

To the Students from the March 11-12 Pre-Licensing class at Rockwell Bellevue

Hi Everyone,

Here’s the follow up Q&A from our time together:

There was a request for more definitions and acronyms.  I like this page for definitions. And this link for basic mortgage acronyms.

I promised the scathing expose from 60 Minutes segment on the Fair Credit Reporting Act.  Makes me not so proud of the Credit Reporting Industry.

There was a request for a link to see what the 2014 Combined TIL/GFE disclosure form will look like next January

There are a lot of websites that refer to the Good Faith Estimate’s “Shopping Chart” as the “Shopping CART.” However HUD is still referring to it as the Shopping Chart.  Hopefully your test question won’t have both of those as possible answers. If so, I’d go with what HUD is calling it: a CHART.

Here is our federal regulator warning mortgage companies that are currently advertising in a deceptive way. I’m sure Double Secret Probation is next.

There was a request for more information on the FTC’s ruling on predatory loan mod scammers, which was the MARS rule. Here you go.

Slide decks for FHA loans and also the full 2-day class can be found on Slideshare.

Thanks for coming to class! What a fun group we had!! Keep studying 🙂