Hi Loan Originator Exam Prep Students,

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

There was a request for more information on HOEPA/Section 32 loans. For a brief overview of the loan features that would trigger HOEPA, see page 43 of the main course packet.  You can also visit the FTC website and read to your heart’s content. Remember, HOEPA loans have higher triggers than “high cost” loans which are described in the MDIA packet.

Remember the sad facts I shared with you on how to get all your ethics questions correct?  Then after that there was a request for a brush up on the three normative moral theories. If you’ve taken ANY ethics class from me this will all come back you.

There was a question regarding TILA’s madate that the broker/lender be sure the borrower can repay the loan. Go to this page and scroll down to prohibited acts:

“(4)  Repayment ability.  Extend credit subject to § 226.32 to a consumer based on the value of the consumer’s collateral without regard to the consumer’s repayment ability as of consummation, including the consumer’s current and reasonably expected income, employment, assets other than the collateral, current obligations, and mortgage-related obligations.”

I googled the phrase “RESPA marketing agreement” and many links popped up that lead to attorney websites talking about lawsuits all over the place.  Wow. This might make for a good case study for your continuing ed in 2011. 

One student was not sure that the “authorized user” changes were already in effect regarding ppl letting others use their tradelines to bump up your credit score.  Here you go.

There was a question about why ECOA favors ppl who are age 62 and older. Here’s more from the FTC on that topic.

Here’s a link to the Seattle PI’s article on Shawn Portman.  “Feds to Portman: We want our Giant Bag of Money Back.”

Here’s the link to the Neighborhood Watch website where you too can check the FHA deliquency rate of your own firm.

I think that’s it!  Thanks for a fun class today…keep studying and schedule your exam NOW.

Day 3
Congrats to Stephanie who passed the national test today!

Here are some links from our conversation this afternoon.

There was a question as to whether or not FINRA is a government agency or independent. Looks like they’re independent BUT I’d argue that this looks like a quasi-governmental agency.

There was a question about whether or not it’s possible to create a list of values that all humans hold in high regard that can cross all cultures.  I read many of these studies in grad school. It’s easiest to just google “universal values survey” and take a look at the scholarly articles or wiki for a quick background.

and here’s an article I wrote about how we define a professional compared to a non-professional.