STANDARD COMPETENCIES:

 

 I.      Demonstrate awareness of FHA concepts and the proper use of FHA loans

 II.     Demonstrate a knowledge of the Act covering FHA loans and how this applies to the FHA application process.

 III.    Analyze the different mortgage loan products including adjustable rate loans, no-income verification loans, negative amortization loans and balloon loans.

 IV.     Understand the Energy Efficient Mortgage Program guidelines along with corresponding mortgagee letters.

 V.      Calculate the maximum loan limits and MIP refunds

 VI.     Analyze a loan file understanding the four C¿s to effective underwriting.

 VII.    Calculate and analyze qualifying ratios and loan to values for the underwriting process.

 VIII.   Demonstrate the ability to counsel consumers on the type of loan product that will fit their needs.

 IX.     Manifest the ability to review loan application support documentation and processing, how to price different loans, how to read rate sheets and how to work with add ons.

 TOPICAL OUTLINE:

 

 I.      Proper Use of FHA loans for loan officers

 II.     FHA terminology is reviewed

 III.    Descriptions of the Sections of the Act and how they apply

 IV.     Calculate maximum loan limits and MIP refunds

 V.      The differences in ¿high¿ and ¿low¿ closing cost states

 VI.     FHA requirements for Identity of interest.

 VII.    Non-occupant borrowers sales concessions

 VIII.   Allowable closing costs, cash to close and acceptable sourcs of funds

 IX.     Energy Efficient Mortgage program guidelines

 X       Alternative documentation requirements and acceptable credit

 XI.     All support documents and required disclosures

 XII.    Fixed rate and adjustable rate FHA loans