STANDARD COMPETENCIES:

 

 I.      Demonstrate a knowledge of Federal legislation that effects the Mortgage Industry including; ECOA, FCRA, FACT, RESPA, Reg X, TILA, HMDA, CRA, GLBA, Fair Housing Act, Sherman Antitrust, Telemarketing and Consumer Fraud Act, Patriot Act, Anti-Wire/Mail Fraud and any recent laws

 II.     Demonstrate a knowledge of Colorado state process for creation of laws including:  Sunrise Review process, Legislative process, Executive branch elected positions, State Government department and agencies, Colorado Divisions, Boards, Commissions and Director model for Colorado

 III.    Demonstrate a knowledge of Colorado Statutes that effect the mortgage industry including; Titles 5,6,10,12, and 38

 IV.     Understand the liability laws that effect Mortgage brokers and Mortgage broker rules

 V.      Demonstrate a knowledge of the essential elements of a Colorado Buy-Sell Contract

 VI.     Understand the Federal and Colorado Foreclosure process and regulation

 VII.    Know how to file a complaint and other resources available to a mortgage broker

 VIII.   Demonstrate a knowledge of the fundamental roles in lending including; loan origination, sources of funds, processing, underwriting and closing and post closing

 IX.     Know the mortgage terms specific to the mortgage, real estate and title industries

 X       Understand all standard Mortgage forms

 XI.     Demonstrate a knowledge of mortgage mathematics including Time value of money calculations and hybrid calculations

 XII.    Calculate Debt to income and Loan to value ratios, and Annual Percentage Rate

 XIII.   Demonstrate a knowledge of all mortgage types: fixed rate, adjustable rates, home equity lines, conventional, government programs (FHA, VA, Bond program), Jumbo, Expanded criteria, Sub-prime, Niche and Portfolio and Affordable Housing Program.

 XIV.    Understand the Secondary Market and traditional and non-traditional secondary sources

 XV.     Demonstrate a knowledge of the qualification process including; application, ability to repay, creditworthiness, credit reports

 XVI.    Demonstrate a knowledge of Closing costs and Prepaid expaenses

 XVII.   Understand Mortgage the types of mortgage fraud and fraud participants

 TOPICAL OUTLINE:

 

 I.      Federal Legislation

         A.      Equal Credit Opportunity Act (ECOA)

         B.      Fair Credit Reporting Act (FCRA)

         C.      Fair & Accurate Credit Transactions Act (FACT)

         D.      Real Estate Settlement Procedures Act (RESPA)

         E.      Truth In Lending Act (TILA) of 1968

         F.      Home Mortgage Disclosure Act (HMDA)

         G.      Community Reinvestment Act (CRA)

         H.      Gramm-Leach-Bliley Act (GLBA) (aka Financial Modernization Act)

         I.      Fair Housing Act

         J.      Sherman Antitrust Act

         K.      Telemarketing and Consumer Fraud and Abuse Prevention Act

         L.      U.S. Patriot Act

         M.      Anti-Wire Fraud and Mail Fraud (Title 18 U.S.C.), and COCCA

         N.      Federal Trade Commission Act

         O.      What¿s New ¿ Recent Laws and Regulations

 II.     Colorado State Law and Regulations

         A.      Creation of law

                 1.      Sunrise Review Process

                 2.      Legislative Process

                 3.      State Government Department Agencies

                 4.      Divisions

 III.    Boards, Commissions and Director Model

 IV.     Laws and Regulations

         A.      Colorado Revised Statutes (C.R.S) 43 titles

         B.      Mortgage Broker Rules ¿ To teach entire rule    

         C.      Rules on the Horizon:

         D.      Mortgage broker is required to keep records of the disclosures for a period of four years

         E.      Director Position Statements

         F.      Colorado Real Estate Commission Rules

 V.      Essential Elements of a Colorado Buy-Sell Contract

         A.      Section 1-Mutual Assent

         B.      Section 2-Names and signatures of the Parties

         C.      Section 2.3-Dates and Deadlines

         D.      Section 2.2-Description of the Property

         E.      Section 4-Sale Price and Payment Provisions

         F.      Section 4.1-Consideration

         G.      Section 4.3-Seller Concessions

         H.      Section 5-Financing Conditions and Obligations

         I.      Section 6-Appraisal Provisions

         J.      Section 7-Evidence of Title

         K.      Section 8-Title Survey Review

         L.      Section 9-Lead Based Paint

         M.      Section10-Property Disclosure Inspection, Insurability and Buyer Disclosures

         N.      Section 11-Methamphetamine Laboratory Disclosure

         O.      Section 12-Closing

         P.      Section 13-Transfer of Title

         Q.      Section 14-Payment of Encumbrances

         R.      Section 15-Closing Costs, Documents and Services

         S.      Section 16-Prorations

         T.      Section 17-Possession Date

         U.      Section 19-Insurance; Conditions of, Damage to Property and Inclusions

         V.      Section 25-Additional Provisions

         W.      Section 30-Notice of Acceptance, Counterparts

         X.      Section 31-Counter; Rejection

         Y.      Broker¿s Acknowledgments and Compensation Disclosures

         Z.      Closing Instructions

 VI.     Foreclosure Process & Regulations  

         A.      Foreclosure action-procedure C.R.S. 38-20-108  thru 116

         B.      Colorado Foreclosure Protection Act

         C.      Short Sale Addendum

 VII.    Resources for Federal and State Laws and Regulations

         A.      RESPA

         B.      TILA

         C.      DORA  www.dora.state.co.us/real-estate

         D.      Colorado Revised Statutes  www.michie.com/colorado

         E.      Colorado Mortgage Broker Forms  http://www.dora.state.co.us/real-estate/mortgage/MBForms.htm

         F.      Colorado Foreclosure Hotline 1-800-601-HOPE and Coloradoforeclosurehotline.org

         G.      Sign up for Newsletters and E-Mail updates  www.dora.state.co.us

 VIII.   How to File a Complaint

         A.      The Division of Real Estate requires a complaint form be completed

         B.      You can file on-line or print off form and submit a physical package to the Division

 IX.     Updates

 X       Mortgage Broker 101

         A.      Fundamental Roles in Lending

                 1.      Introductory discussion of mortgage brokers¿ role in the process of originating loans.

                 2.      Relationship between mortgage broker and source of funds

                 3.      Processing

                 4.      Underwriting

                 5.      Closing

                 6.      Post-closing

         B.      Definitions and Mortgage Terms

                 1.      Glossary of standard industry terms

                 2.      Standard Mortgage Forms

         C.      Basic Mortgage Mathematics

                 1.      Principal and Income calculation

         D.      Debt to income ratios and Loan To Value

                 1.      Front End Ratio

                 2.      Back End Ratio

                 3.      LTV

                 4.      CLTV

                 5.      Understanding various ratio calculations.  How to perform them and how to explain the calculations

         E.      Annual Percentage Rate (APR)

         F.      Basic Mortgage Program ¿ Overview

                 1.      A complete working knowledge of all mortgage types, their specific uses and how to properly explain the benefits of each to the applicant

         G.      Secondary Market

                 1.      Overview of the Secondary market including traditional secondary sources

                 2.      Significance to loan origination and documentation

                 3.      Yield Spread Premium (YSP)

                 4.      Rate Sheets

                 5.      Cycle of Money

         H.      Qualification Process

                 1.      Understanding of how to effectively counsel an applicant and how to obtain the necessary information to begin the loan process

         I.      Closing Costs and Pre-Paid Expenses

                 1.      Distinction and handling in disclosure

                 2.      Good Faith Estimate

                 3.      Review of protocols to project costs accurately

         J.      Miscellaneous Categories

                 1.      Underwriting

                 2.      Real estate appraisals

                 3.      Title Insurance

                 4.      Closing Process

 XI.     Business and Trade Practices

         A.      Mortgage Fraud Introduction

         B.      Types of Mortgage Fraud   Types of Fraud

                 1.      Fraud for profit

                 2.      Fraud for property

                 3.      The result of mortgage fraud

         C.      Fraud Participants

                 1.      Tile & Escrow Companies

                 2.      Appraisers & Real Estate Brokers

                 3.      Mortgage Brokers

         D.      Fraud Case Studies

         E.      Additional Appraisal Provisions - USPAP

                 1.      Uniform Standards of Appraisal Practice ¿ Purpose

                 2.      Provisions Relevant to Mortgage Broker Compliance AO- Refers to ¿Advisory Opinion¿

                 3.      Uniform Standards of Professional Appraiser Practice (USPAP)Ethics Rule Position on predetermined values.  Conduct, management and Confidentiality