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 SAFE LO CE Course Now Available for 2012!

NAMF’s LO CE course for 2012 has received approval from the NMLS.

8 Hr SAFE Comprehensive NMLS Approved Course Number C-2904

1 Hr WA State Law CE NMLS Approved Course Number C-2901
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 2012 course is all new with a new course number!
All course providers are required to develop courses that meet the following criteria under the SAFE Mortgage Licensing Act:

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 2012 we will cover the following topics:

CFPB whistleblower hotline, unfair-deceptive-abusive acts, QRMs, proposed new Good Faith Estimate/TILA disclosure, risks in originating non-traditional loans, CFPB criteria for advertising and counseling borrowers who select non-traditional loans such as ARMs. During the Ethics section we will learn how LOs are at legal risk of violating consumer protection laws by when providing an inferior standard of care, we will tackle the dilemma of purchasing leads from companies that advertise unethically, we will also learn about recent Fair Housing case studies, mortgage fraud trends and the new SARS reporting requirements for non-bank lenders.

But wait! There’s more! We will ALSO cover the new proposed new CFPB rules on loan originator compensation methods including:

Proposed rules on creditor paid compensation v. broker paid
Compensation in relation to steering
Pricing concession loopholes
Three proposed permissible point bank rules
Compensation based on proxy
Higher standards for depository bank LOs to become “qualified” under Dodd-Frank.

For a schedule of upcoming classes visit this page.

If you’d like to arrange for small or large group CE classes at your office or in your city, call Jillayne at 206-931-2241 or email: Jillayne at