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.

 

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 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 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 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 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.

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

LATE CE Classes are now available for 2012-2013 license renewal

3247Late CE Classes are now available for loan originators who did not renew their license at the end of 2012 and need to take the required CE class in order to renew.

NAMF Approved Course Provider 1400068

LATE CE 8 Hr SAFE LO CE #3247
LATE CE 1 Hr Wa Law CE #3246

This is a live, instructor lead class. There is no end-of-course test required in order to earn your continuing education certificate.  Attending the class and participating is the only requirement.  Read more about the course content here

2013 schedule

Jan 7
Jan 17
Jan 24
Feb 1
Feb 13
Feb 26

To register click through from the schedule page
OR
call Jillayne 206-931-2241
OR
email Jillayne:
jillayne at ceforward dot com

 

To the Students from the Nov 2, 2012 LO CE class at Alaska USA Mortgage, Everett

here are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here is a link to our new federal mortgage regulator the Consumer Financial Protection Bureau.

Here’s the new Wells Fargo lawsuit accusing FHA of mortgage fraud with their FHA loan program.

…and the Morgan Stanley lawsuit alleging racial discrimination in their subprime lending practices during the bubble.

Somebody asked for information on the National Mortgage Settlement.

Here’s the story about Wa Fed asking BOA to buy back bad Countrywide loans.

Here’s an example of how to properly disclose your LO licensing info on facebook.

Here’s the Indictment of Shawn Portmann.

To the Students from the Oct 23, 2012 LO CE class at Rockwell Bellevue

here are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here is a link to our new federal mortgage regulator the Consumer Financial Protection Bureau.

Here’s the new Wells Fargo lawsuit accusing FHA of mortgage fraud with their FHA loan program.

…and the Morgan Stanley lawsuit alleging racial discrimination in their subprime lending practices during the bubble.

Somebody asked for information on the National Mortgage Settlement.

Here’s the story about Wa Fed asking BOA to buy back bad Countrywide loans.

Here’s an example of how to properly disclose your LO licensing info on facebook.

Pat asked for more reading material on real estate commission rebates as a business model.  This is protected as a form of doing business. Read more here at the DOJ website.

 

To the Students from the Oct 17, 2012 LO CE Class at ORT Lynnwood

here are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here is a link to our new federal mortgage regulator the Consumer Financial Protection Bureau.

Here’s the Seattle Weekly story on the local Shawn Portmann mortgage fraud case. And here’s the latest: Shawn Portmann Pleads Guilty.

Here’s the new Wells Fargo lawsuit accusing FHA of mortgage fraud with their FHA loan program.

…and the Morgan Stanley lawsuit alleging racial discrimination in their subprime lending practices during the bubble.

Here is the press release posted on 40 companies served w/consent orders for harming homeowners in WA State via foreclosure rescue fraud scams.

I’ve been looking for USDA delinquency stats….and I think I found them here. 

—–
Google Translate link 

Here’s the Language Line link.

To the Students from the Oct 10, 2012 LO CE Class at Rockwell Bellevue

There are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

Here is a link to our new federal mortgage regulator the Consumer Financial Protection Bureau.

There was a request for more info on China buying residential mortgage backed securities. I couldn’t find any articles from 2012 on this topic but I DID find one from 2007.  Wow. If we were pushing RMBS in 2007, I’m sure China has many reasons to not be very happy with us right now.  You saw the FHA default rates from loans originated during that time. Yikes!

Here is an article I wrote a year ago titled “Stop Blaming the CRA for the Meltdown.” You, too can wow your relatives at Thanksgiving with the facts when they try to blame the government for forcing banks to make loans to minorities.  WRONG 🙂

Alright….now it’s time for the various and assorted local legal cases.

Michael Hellickson lost his real estate license for the next 10 years.

I was unable to find a local fraud case in the name of Tom Love. If whoever asked about this one has more info….does he go by a different name?…let me know and I’ll keep searching.

Here’s the Seattle Weekly story on the local Shawn Portmann mortgage fraud case. And here’s the latest: Shawn Portmann Pleads Guilty.

Escrow closer behaving badly…..Hartman Escrow taken down by DFI.

Here is the press release posted late yesterday on 40 companies served w/consent orders for harming homeowners in WA State via foreclosure rescue fraud scams.

And here is Jim Siwek’s local HUD OIG website page w/his contact info.

THANKS for a great class today everyone! I know you have a choice where you take your CE class. Thank you all so much for choosing my company.  🙂

To the Students from the Sept 26, 2012 SAFE LO CE Class at Rockwell Bellevue

Here’s the quote from the Mortgage Bankers Association:  “We have caused extraordinary damage.”

There are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

Here are a couple of articles on the differences between financial planners and the duties they owe to clients.

There was a question about how mortgage company branch managers are paid and will their compensation change under Dodd Frank. Here’s a PPT slide deck in PDF form that runs through the changes.

Here’s a link to amazon describing the Malcom Gladwell book “Outliers.”

To the Students from the Sept 20, 2012 LO CE class at Guild Mortgage/Centerpoint Kent

Hi Everyone,

Here’s the follow up from class today.

Here’s the Seattle Weekly story on the local Shawn Portmann mortgage fraud case. And here’s the latest: Shawn Portmann Pleads Guilty.

Here’s the quote from the Mortgage Bankers Association:  “We have caused extraordinary damage.”

There are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

There were questions on why the new GFE is requiring a “lender cost of funds” disclosure. All the comments that I’m reading are asking the CFPB to eliminate this requirement.

Great film recommendations:

A Separation

Gone Baby Gone

Hotel Rwanda

An Education

Margin Call

Inside Job

Inglorious Bastards

Here’s the NYTimes story on the local maternity leave Fair Housing case. though the new mom was on paid maternity leave, HUD makes it clear that even if the maternity leave is unpaid….”The Fair Housing Act protects borrowers from being discriminated against based on maternity leave if the borrower can demonstrate that she intends to return to work and can otherwise continue to meet the income requirements to qualify for a loan.”

And here’s the latest mortgage fraud report from the FBI.

 

To the Students from the Sept 18, 2012 class at ORTC Lynnwood

Hi Everyone,

Here’s the follow up from class today.

Here’s the Seattle Weekly story on the local Shawn Portmann mortgage fraud case. And here’s that story where the Feds are asking Shawn for that giant bag of money.

Here’s the quote from the Mortgage Bankers Association:  “We have caused extraordinary damage.”

There are always two bottoms to a housing market. Here’s a great article that explains the first (new construction home starts) and the second bottom (home values.

Here’s the article on FHA’s solvency. What’s the plan if the FHA mortgage insurance fund runs out of money?

Here’s a great 60 Minutes episode on the Countrywide Whistleblower. It will only take you about 10 min to watch it. It’s a good segment.

Here’s a link to where I get all my cool graphs and charts.  Many thanks to Bill McBride who runs Calculated Risk.

There was a great question on how many loans a person can make if that person does not hold an LO license? The question is in regards to a person who owns a lot of real estate and wants to sell the real estate and do owner financing, maybe selling all the investment property at the same time.  The answer is not completely clear. For example, under the Consumer Loan Act, see number (3).This only talks about a homeowner making a loan on his/her individual residence. Under the MBPA, the answer is  similar.

Great film recommendations:

A Separation

Gone Baby Gone

Hotel Rwanda

An Education

Margin Call

Inside Job

Inglorious Bastards

Here’s the NYTimes story on the local maternity leave Fair Housing case. though the new mom was on paid maternity leave, HUD makes it clear that even if the maternity leave is unpaid….”The Fair Housing Act protects borrowers from being discriminated against based on maternity leave if the borrower can demonstrate that she intends to return to work and can otherwise continue to meet the income requirements to qualify for a loan.”

And here’s the latest mortgage fraud report from the FBI.

Here’s the case we were trying to think of right at the end of class…someone running for public office that got into trouble at a former employer/title company.  Here it is. 

UPDATE:
Shawn Portmann Pleads Guilty...this news broke as I was driving out of the parking lot today.

To the Students from the Sept 10, 2012 LO CE class at Yakima Assoc of Realtors

Hi Everyone,

Thanks for coming to class today! Here are the follow up Q&As.

We talked about a website where we can look at the various lenders in our state and their FHA default rate. It’s called Neighborhood Watch. Click on “early warnings” in the upper left hand side to get started.

Here’s the news story that talks about how women end up paying more for their mortgage loan because we tend to not shop (What? Not shop????LOL.)  Instead we’re more trusting.

Here’s more info on how to send your own comments and feedback about the proposed new Good Faith Estimate/TIL form.

Here is Rhonda Porter’s Facebook Page. Go to the ABOUT section to see how she properly discloses her licensing information.

Thanks for coming to class!