CC_GO_100.1 Commercial/Multifamily Fundamentals

Servicers play a key role in the commercial/multifamily lending cycle. As liaison between the borrower and lender/investor sides of the real estate finance industry, servicers are required to have an understanding of the key concepts related to commercial/multifamily real estate finance.Commercia...

CC_GO_100.2 Commercial/Multifamily Origination and Underwriting

The commercial/multifamily loan cycle begins when a property owner or prospective borrower approaches a loan originator seeking financing for a new property, or for an existing property. The prospective borrower submits required documentation to the loan originator or potential lender for underwr...

CC_GO_100.3 Commercial/Multifamily Loan Documentation and Closing

The agreements, documents, and promises made and executed at the loan closing flow through to the commercial mortgage loan servicer. Nearly all of the actions to be taken over the life of the loan are governed by the terms memorialized in the documents executed at or in connection with the loan c...

CC_GO_100.4 Commercial/Multifamily Sale and Securitization and Commercial/Multifamily Servicing

The servicing process begins immediately after a loan is closed and continues until the loan is paid off and the related lien is released. Servicing is the process of enforcing and overseeing loan document terms and conditions to protect the designated interested parties and the property. Among o...

CC_S_200.1 Asset Management in Commercial/Multifamily Loan Servicing

Asset Management in Commercial/Multifamily Loan Servicing takes a broad look at asset management. It begins with a discussion of the goals of asset management and keys to successful attainment of those goals. Next, it looks at the roles of various industry participants in asset management: the se...

CC_S_200.2 Monitoring Commercial/Multifamily Property Operations

Property surveillance is a preemptive effort used in protecting the value of the loan collateral and the return for the investor. Most property surveillance efforts are the responsibility of the servicer's asset management team.This course examines property surveillance efforts. It begins by defi...

CC_S_200.3 Common Commercial/Multifamily Borrower Requests

One of servicer's primary responsibilities is to handle various requests from the borrower. These requests usually originate from some business need regarding the upkeep or maintenance of the property or are related to various tenant issues. The servicer possesses extensive knowledge of real esta...

CC_S_200.4 Special Commercial/Multifamily Borrower Requests

The servicer may receive specialized borrower requests that require an in-depth understanding of current market conditions and the implications of approving the requests to the mortgage and to the lender. The borrower may request certain changes to the original mortgage contract that may or may n...

CC_S_200.5 Commercial/Multifamily Default Management

Servicers must act to identify early warning signs of default. They perform annual inspections and either quarterly or annual reviews of financial reports to try to identify potential problems early in the process. Effective communication with the borrower is essential in determining the underlyi...

CC_S_201.2 Commercial/Multifamily Servicing Relationships

Although contracts define the rights and obligations of the various parties in a commercial/multifamily real estate transaction, the relationship among them is extremely complex. Servicers play a central role in the cycle, working with borrowers, lenders, investors, and others. Successful servici...

CC_S_201.3 Commercial/Multifamily Sources of Funds

Mortgage bankers, brokers, and direct lenders have a choice of capital funding sources. These sources compete for business based on price, service, loan terms, and relationship.CMF Sources of Funds examines funding sources in commercial/multifamily real estate finance. It begins with a look at t...

CC_S_201.4 Commercial/Multifamily Financing Vehicles

The commercial/multifamily (CMF) servicer's obligations for a particular loan depend in part on the way in which the loan is financed. The financing vehicle also determines which parties will be involved after the loan closes and their relationships to the other parties. Since the servicer acts a...

CC_S_201.5 How Commercial/Multifamily Servicers Make Money

Servicing profitability is a concern to lenders, investors, and servicers alike. Without a strategic plan, servicers would be unable to cover their own costs, invest in technological improvements, or meet their contractual obligations. Servicing income is primarily generated from compensation pro...

CC_S_202.1 Benchmarking in Commercial/Multifamily Loan Servicing

Benchmarking is the process by which servicers measure their operational performance. By measuring their performance against standard benchmarks, servicers are able to determine where they are operationally successful, where there is room for improvement, and how they compare to other servicing o...

CC_S_202.2 External Commercial/Multifamily Benchmarking Requirements

MBA Education is dedicated to accommodating today's busy professional by offering short, accessible learning programs that can be completed in less than an hour. Content in this course is derived from Benchmarking CMF Servicer Performance, which is no longer available for retail purchase.The firs...

CC_S_202.3 Internal Commercial/Multifamily Benchmarking Requirements

The benchmarking process involves the development of internal requirements which serve as standards, as well as testing for compliance with those standards.Internal CMF Benchmarking Requirements looks at some of the critical factors that influence the setting of internal standards. The course beg...

CC_S_202.4 Measuring Performance of Commercial/Multifamily Loans

Once servicers identify external requirements and develop internal processes, they are able to assess their performance by measuring compliance against these requirements and processes.Measuring Performance of CMF Loans addresses the monitoring and measuring of servicing compliance in commercial/...

CC_S_202.5 Risks and Consequences of Commercial/Multifamily Loans

Risks and Consequences of CMF Loans explores the possible consequences of a servicer's non-compliance with loan documents, servicing agreements, policies and procedures, and more. It begins with a look at the most common pitfalls that may result in non-compliance. It then describes the different ...

CC_S_203.2 Commercial/Multifamily Pooling and Servicing Agreements

Pooling and servicing agreements (PSAs) govern commercial mortgage-backed securities (CMBS) and are unique to each deal. The PSA sets forth specific servicing requirements of key loans comprising the deal, consistent with accepted standard servicing practices or requirements. The favorable tax st...

CC_S_203.3 Commercial/Multifamily Agency and GSE Servicing Agreements

Unlike CMBS pooling and servicing agreements (PSAs), which are specific to each pool of loans, servicing agreements for agency loans are typically a single contract that covers all of the loans or pools of loans serviced for the agency/GSE. This is possible because the loan and securitization doc...

CC_S_203.4 Commercial/Multifamily Portfolio Servicing Agreements

Compared to agency/GSE and CMBS servicing requirements and agreements, which tend to be more standardized across the industries, portfolio lender servicing requirements and agreements may be as unique as the individual lenders. Typically, a portfolio lender determines the amount of servicer invol...

CC_S_204.1 Commercial/Multifamily Surveillance Fundamentals

Commercial/multifamily surveillance is all about information. Servicers are the borrower and property contact as well as the focal point for gathering the information that is used to monitor loan or pool performance.Loan documents, servicing agreements, and third-party information providers all p...

CC_S_204.2 Commercial/Multifamily Loan Surveillance

Commercial/multifamily loan surveillance involves the enforcement of loan document terms. In addition to basic loan terms such as outstanding balance, interest rate, amortization, and maturity, the loan documents contain requirements related to tax and insurance escrows, reserve amounts, letters ...

CC_S_204.3 Commercial/Multifamily Property Surveillance

Servicer surveillance of commercial/multifamily collateral real estate is provided for in the borrower's loan documents and detailed in the servicing agreement.The level of property surveillance may vary based on such characteristics as the property type, loan size, leverage, and market condition...

CC_S_204.4 Commercial/Multifamily Performance Surveillance

Commercial/multifamily performance surveillance involves monitoring the performance of the loan and property using various methods and measures and responding to performance findings as appropriate. The servicer's surveillance responsibilities related to loan performance are set out in the servic...

CC_S_204.5 Communicating Commercial/Multifamily Surveillance Findings

The servicer is responsible for reporting commercial/multifamily surveillance findings to investors as set forth in the servicing agreement. The servicer may also be responsible for taking steps to minimize loss when a loan goes into default. This may involve either a workout or a liquidation of ...

CC_S_205.1 Commercial/Multifamily Insurance Compliance Fundamentals

In the commercial/multifamily mortgage marketplace, insurance coverage is critical to investors to mitigate certain risks that investors assume when investing in commercial/multifamily mortgage loans. Insurance terminology, like mortgage terminology, must be understood when conversing with borrow...

CC_S_205.2 Types of Commercial/Multifamily Insurance

A borrower's company, organization, partnership, etc., can be very successful and structured in a way that makes the borrower suitable for a commercial/multifamily mortgage deal. However, without the proper insurance coverage, unforeseen losses can seriously impact the property value and lender i...

CC_S_205.3 Essential Commercial/Multifamily Insurance Considerations

There are many challenges that servicers face when dealing with commercial/multifamily insurance coverage in mitigating the risk of loss to lenders. In some instances the course of action is clear, but in other instances the insurance professionals may disagree about what is required for adequate...

CC_S_205.4 Commercial/Multifamily Insurance Compliance Review

It is the duty of the servicer to ensure that the borrower is in compliance with the various insurance coverage requirements set forth in the loan documents, servicing agreement, or other applicable documents (such as the particular agency guide or, if applicable, the organization's standards).CM...

CC_S_206.1 Commercial/Multifamily Loan Document Fundamentals

Servicers for commercial/multifamily real estate mortgage loans must be able to understand the requirements in the loan documents. There is no substitute for checking the loan documents whenever an issue arises, even if a loan's key terms have been set up on the servicing database.CMF Loan Docume...

CC_S_206.2 The Commercial/Multifamily Promissory Note

The promissory note is the loan document that contains the borrower's acknowledgement of the debt and agreement to repay in accordance with documented requirements. Although the basic information contained within the promissory note may be set up in the servicer's database, the promissory note, a...

CC_S_206.3 Security Instruments in Commercial/Multifamily Lending

While the promissory note sets forth repayment terms, the security instrument sets forth most other loan terms, conditions, restrictions, and covenants for a commercial/multifamily loan and property. Servicers must understand the terms described in the security instrument, particularly the rights...

CC_S_206.4 Commercial/Multifamily Loan File and Supporting Documents

Beyond the promissory note and the security instrument, there are several other loan documents that are significant in the documentation of a commercial/multifamily mortgage loan and the secured property. Documents such as loan agreements, modifications, leasing agreements, monetary agreements, a...

CC_S_207.1 Commercial/Multifamily Servicing Operations Fundamentals

Within every commercial/multifamily servicing organization, there are various operational duties that are essential to the successful management of loan portfolios. These duties involve cash management, processing loan transactions and events on a servicing system, reporting to investors, tax adm...

CC_S_207.2 System Processing in Commercial/Multifamily Servicing

Within every commercial/multifamily servicing organization, there are various operational duties that are essential to the successful management of loan portfolios. Servicing operations utilize servicing systems and other ancillary systems to board loans, issue billing statements, process payment...

CC_S_207.3 Commercial/Multifamily Tax and Insurance Escrow Administration

The timely and efficient monitoring of tax and insurance escrows by the commercial/multifamily servicer is critical for protecting the lender/investor's security interest in the property. When taxes are not paid on the property, there is a high risk of liens or possible sale of the property by ta...

CC_S_207.4 Critical Commercial/Multifamily Servicing Operations and Duties

Beyond loan boarding, servicing system updates, and tax and insurance escrow administration, there are several other critical duties that are essential to the successful management of a commercial/multifamily servicing operation.Critical CMF Servicing Operations and Duties explores a number of cr...

RC_GO_100.1 Mortgage Banking Basics

Generally speaking, Americans cannot afford to pay cash to purchase a new home. To facilitate homeownership and its associated economic and societal benefits, long-term mortgage loans were created. A mortgage is security interest in a property; it is given by a homeowner to a mortgage lender in e...

RC_GO_100.2 Loan Production Basics

Loan Production Basics presents an overview of the loan production process. It begins with a review of the three main goals of loan production: creating investor acceptable loans, protecting the consumer, and ensuring compliance.After taking a broad look at the functions of loan production, the c...

RC_GO_100.3 Funding, Warehousing, Shipping, and Quality Control Basics

The Funding, Warehousing, Shipping, and Quality Control Basics course examines the funding, warehousing, shipping and delivery, and quality control (QC) processes in mortgage lending. It begins by describing the various financing methods available, sources of the funds that are lent, and types of...

RC_GO_100.4 Secondary Marketing Basics

In the primary mortgage market, interactions are between the lender and the borrower. Conversely, in the secondary market, the interaction is between the lender and the investor that buys loans and servicing rights from the lender.The secondary market provides a platform for lenders to fund a con...

RC_GO_100.5 Loan Administration Basics

Mortgage bankers generate substantial income by servicing loans on behalf of investors. In this course, we will learn about the various functions of servicing and how loan servicing can be a valuable revenue-generating asset. We will also learn about the goals and structure of a loan administrati...

RC_GO_F_200.1 Mortgage Loan Fraud Overview and Current Trends

Mortgage fraud is defined as the intentional misstatement, misrepresentation, or omission by an applicant or other interested party of information that is relied on by a lender or underwriter in approving or purchasing a mortgage loan. Fraud is a challenging issue for many lenders. There are many...

RC_GO_F_200.2 Mortgage Loan Fraud for Profit

Fraud for profit schemes have become quite complex. Fraud perpetrators have developed expertise in taking a variation from one type of scheme and adding it to another.Mortgage Loan Fraud for Profit provides an overview of the most prevalent types of fraud for profit schemes: collusion, straw buye...

RC_GO_F_200.3 Mortgage Loan-Level Misrepresentation

Whether a loan applicant decides to commit fraud for property or for profit, the majority of misrepresentations can be tracked back to documentation found in the individual loan file. Misrepresentations may include fabricated or altered employment, income, and asset documentation. There may be de...

RC_GO_F_200.4 Mortgage Loan Fraud Best Practices and Resources

In order to deter, uncover, and minimize losses associated with mortgage fraud, lenders should have a comprehensive fraud detection and deterrence plan in place that covers all aspects of the production cycle (origination, processing, underwriting, and closing) and all areas of the servicing func...

RC_LA_100.1 Servicing in the Mortgage Lending Process

Servicing in the Mortgage Lending Process begins with an overview of the functions and players in mortgage lending, examining the role of servicing within the overall lending process. Next, it examines participants in the mortgage lending industry, looking at types of mortgage specialists and var...

RC_LA_100.2 Loan Administration Concepts

Loan administration (servicing) is a critical component of the lending cycle since it contributes so heavily to the overall profitability of mortgage banking.Loan Administration Concepts takes a look at the critical concepts related to loan administration. It begins with an overview of the major ...

RC_LA_100.3 Loan File Documents

The process of real estate lending results in collecting a number of documents used to create a mortgage loan. Most of these documents are associated with the origination and underwriting functions and are dictated by the standard processes imposed by secondary marketing investors. Anyone working...

RC_LA_100.4 Loan Administration Functions

Loan administration is made up of an array of different functions, divided into similar work categories, yet overlapping and reliant on one another. There are different names given to these functions, as well as different organization structures linking them together.Loan Administration Functions...

RC_LA_CM_200.2 Exceptions Processing

In an ideal mortgage payment situation, funds from a payment are applied directly to the different payment elements such as the principal, interest, escrow, and insurance accounts, and the whole process is very routine. Often, however, there are additional funds (and sometimes short funds) that m...

RC_LA_CM_200.3 Electronic Payments

One of the most widely automated activities in mortgage payment processing is electronic payment drafting, in which a mortgagor allows a servicer to draft his or her monthly payment from a checking/savings account. The use of automated payment drafting provides advantages for borrowers and servic...

RC_LA_CM_200.4 Types of Cash Movement

The intake of mortgage loan payments by the servicer marks the beginning of the cashiering department's role in mortgage servicing. The cash received must be divided and applied to the proper accounts in a timely manner. The how, when, and where of cash movement is dictated by the mortgage note, ...

RC_LA_CM_200.5 Payment Automation

In the past, making and posting monthly mortgage loan payments was a time-consuming process. Each month the borrower had to remember to write a check, put it in a special envelope, add a postage stamp, and mail the envelope in time to meet the all-important due date. The payment would take severa...

RC_LA_CM_200.6 Cash Processing

Every month the servicer receives mortgage payments that are calculated based on the terms in the mortgage note. The payments may be tendered electronically or in the form of paper checks. The funds provided by a mortgagor's payment are then posted to the proper accounts on the servicer's loan se...

RC_LA_CR_200.1 Mortgage Banking Concepts for Customer Service Representatives

The loan administration function begins immediately after a mortgage loan has been closed. Loan administration processes are a vital part of any mortgage banking company, since a large part of a company's net income is derived from the loan administration (servicing) operation. To understand your...

RC_LA_CR_200.2 Loan Administration Concepts for Customer Service Representatives

Loan administration is a large, complex array of functions that comprises one of the three primary disciplines necessary to the business of mortgage banking: loan production, secondary marketing, and loan administration. Together, loan production and secondary marketing create the loan servicing ...

RC_LA_CR_300.1 Customer Service Basics

Providing quality customer service is incredibly important to every servicer's organization. One call resolution helps a customer service team to maximize efficiency, well trained and knowledgable customer service representatives allow that to happen. Borrowers are also more likely to refinance w...

RC_LA_CR_300.2 Laws and Regulations for Customer Service Representatives

The federal government believes that the consumer should be protected from discrimination and other unfair lending practices. In order to ensure that these rights are upheld, the government passed several acts related to the financing of housing.Federal, state, and local governments regulate the ...

RC_LA_CR_300.3 Accounting for Customer Service Representatives

Borrowers often call with a question about their payments, fees, or late charges. Many times these questions arise after they receive their year-end and Form 1098 statements. To answer these questions, a customer service representative (CSR) may need information about the following:The borrower's...

RC_LA_CR_300.4 Escrow Operations for Customer Service Representatives

Customer service representatives (CSRs) often get questions related to escrow or escrow components (such as taxes and insurance).Escrow Operations for Customer Service Representatives reviews the primary components of an escrow account. After providing thorough coverage of mortgage insurance, haz...

RC_LA_CR_300.5 Servicing Transfers for Customer Service Representatives

The rights to servicing loans are transferred from one mortgage banking company to another for various reasons. It is important for customer service representatives (CSRs) to understand the company's role both when selling the servicing and when receiving the servicing.Servicing Transfers for Cus...

RC_LA_DA_200.1 Working in Default Administration

Working in Default Administration provides a high-level overview of concepts related to working in the default administration group within a typical mortgage servicing operation. It begins by describing the role of servicing within the lending process and the role of the default administration de...

RC_LA_DA_200.2 Default Administration Functional Areas

Unfortunately, some borrowers will experience difficulty meeting their payment obligations. In extreme instances, this may lead to a foreclosure, which generally results in a loss for all parties: borrower, lender/investor, and servicer. Default and foreclosure losses are one of the leading risk ...

RC_LA_DA_205.1 Introduction to REO

Before a property becomes real estate owned (REO), there are a number of potential loss mitigation solutions that should be explored to assist a distressed homeowner to retain ownership while minimizing loss for the mortgage servicer and investor. Unfortunately, some borrowers continue to experie...

RC_LA_DA_300.1 Managing Delinquency for Loan Counselors

This course introduces the role of the collections loan counselor. It provides the foundational knowledge and context necessary to understand the specifics of the collection loan counselor's responsibilities.Managing Delinquency for Loan Counselors begins by providing context for the loan counsel...

RC_LA_DA_300.2 Collection Tools for Loan Counselors

Proactive outreach by loan servicers can help reduce the number of delinquent loans and ensure successful loan performance. There are a variety of cost-effective collection tools available to loan servicers, each with pros and cons. Collections loan counselors should be familiar with all collecti...

RC_LA_DA_300.3 Telephone Skills for Loan Counselors

A loan counselor must possess strong communication skills in order to handle the sensitive and sometimes tense conversations that are encountered each day. Most of the communication with the borrower is done by telephone. Communicating on the telephone can be difficult because a phone conversatio...

RC_LA_DA_300.4 Meeting Collection Goals for Loan Counselors

Meeting Collection Goals for Loan Counselors addresses how to meet collections goals by determining the cause of delinquent payments and obtaining realistic promises to pay. The course provides an overview of common reasons for delinquency and explores two types of issues: lack of ability to pay ...

RC_LA_DA_301.1 Loss Mitigation Concepts

The verb "to mitigate" means to cause something to become less harsh, hostile, severe, or painful. Loss mitigation in mortgage lending involves activities that reduce or eliminate credit losses (pain) to lenders, servicers, investors, and borrowers. In the broadest view, loss mitigation can inclu...

RC_LA_DA_301.2 Loss Mitigation Processes

The loss mitigation counselor's role has become central to any discussion about the industry's role in the stability of the housing market. Federal regulations, investor controls, insurer requirements, and individual state statutes strive to regulate the activities of loss mitigation staff and in...

RC_LA_DA_301.3 Loss Mitigation Options

Servicers have a number of tools and programs available to help borrowers in distress and to mitigate losses for all parties involved in a loan transaction. Ideally, options may allow borrowers to keep their home, but even in cases where this is not possible, there are solutions to help better ma...

RC_LA_DA_301.4 Math for Loss Mitigation

Many of the loan counselor's decisions are based on financial calculations. These calculations answer questions about the borrower's ability to continue making monthly payments, while providing direction as to the most appropriate solution. Although technology is generally used to crunch the numb...

RC_LA_DA_301.5 GSE and Agency Loss Mitigation Options

Fannie Mae, Freddie Mac, the Federal Housing Administration (FHA) and the Veterans Administration (VA) are key players in the mortgage market. Fannie Mae and Freddie Mac are both government-sponsored enterprises (GSEs) that provide liquidity through their purchase and securitization of mortgage l...

RC_LA_DA_302.1 Bankruptcy Basics

Bankruptcy is a legal process through which individuals or businesses that are unable to pay accumulated debt may seek to obtain a reasonable resolution, including possible release from specific financial obligations or debts.Bankruptcy Basics presents highlights from Title 11 of the U.S. Code, a...

RC_LA_DA_302.2 Processing the Bankruptcy Loan

Bankruptcy cases generally last between three months and five years. Accurate and timely management of bankruptcy cases during this time is critical to the mortgage servicer. Missed filing dates or incorrect reporting can result in lost time and revenue on an account undergoing a bankruptcy. The ...

RC_LA_DA_303.1 Conventional Loan Recovery Essentials

Although lenders strive to avoid foreclosure through workout and loss mitigation efforts, there are some circumstances in which foreclosure is the only remaining option for the lender.Conventional Loan Recovery Essentials provides an introduction to the steps that servicers take when a convention...

RC_LA_DA_303.2 Foreclosure Essentials

There are many situations that can lead to foreclosure. A homeowner may become unemployed due to company layoffs or may become unable to work due to medical conditions. Struggling to make ends meet, the homeowner may ultimately no longer have the money needed to pay the monthly mortgage. The mort...

RC_LA_DA_303.3 Claims Essentials

The best outcome of a foreclosure for a servicer is to have a third-party purchase the property at the foreclosure sale. This eliminates or reduces losses by the investor and the servicer. At times, however, the sale of the property does not cover the costs incurred by the investor or servicer in...

RC_LA_DA_303.4 Corporate Advance Essentials

Servicers incur significant expenses during the course of handling a foreclosure, including legal fees, appraisal fees, taxes, maintenance costs, and even advertising costs. These expenses add up quickly. In most instances, a portion of these foreclosure expenses can be recovered from the borrowe...

RC_LA_DA_304.2 REO Acquisition and Boarding

Management of real estate owned (REO), as a servicing function, begins with the acquisition and boarding of REO assets. The sourcing and acquisition of REO assets is typically handled by a separate department or team of people who will subsequently communicate with the boarding team to begin the ...

RC_LA_DA_304.3 REO Pre-Marketing

Assessing the value of real estate owned (REO) is a critical task, as all future strategy decisions will be driven by the current value of the asset. For this purpose, REO managers rely on the two professionals best suited to evaluate a new property: the appraiser and the real estate agent. The f...

RC_LA_DA_304.4 REO Marketing and Sale

REO Marketing and Sale explores the marketing and sale phase of a real estate owned (REO) property. It addresses the key components of an offer and their overall effect on the sale of REO properties. Some of the most important components in the closing process are also covered. This course also e...

RC_LA_EA_200.1 Escrow in Loan Administration

Escrow in Loan Administration describes the escrow administration function within the loan administration department. The course begins with a look at the three major components of the lending cycle: loan production, secondary marketing, and loan administration. It then outlines three primary ris...

RC_LA_EA_200.2 The Escrow Department

The Escrow Department examines the roles, responsibilities, resources, and tools of the escrow group. The course begins by describing where the obligations of the lender and borrower regarding escrow are defined. Next, it examines the basic functions performed by the escrow department: establishi...

RC_LA_EA_300.1 Escrow Analysis

Escrow Analysis examines the process lenders use to determine whether monthly escrow deposits will provide sufficient funds to pay taxes, insurance, and other bills when due. The course begins with a description of the two basics types of escrow analysis: the initial escrow analysis and the annu...

RC_LA_EA_300.2 Escrowing Property and Flood Insurance

The three major components of most escrow accounts are property insurance, mortgage insurance, and real estate taxes. Property insurance protects the borrower and lender against losses due to property damage or destruction. The mortgage servicer is responsible for assuring that adequate insurance...

RC_LA_EA_300.3 Escrowing Mortgage Insurance

The three major components of most escrow accounts are property insurance, mortgage insurance, and real estate taxes. In this course, we will look at various types of mortgage insurance which protect mortgage lenders against loss in the event of default or foreclosure.Escrowing Mortgage Insurance...

RC_LA_EA_300.4 Escrowing Real Estate Taxes

The three major components of most escrow accounts are property insurance, mortgage insurance, and real estate taxes. Lenders face tremendous risks associated with unpaid tax bills: the property can be sold at a tax sale, and the lender can lose the security and have no recourse.Escrowing Real Es...

RC_LA_EA_300.5 Escrow for New and Transferred Loans

Escrow for New and Transferred Loans examines escrow concerns when new loans are acquired or when loans are transferred. The course begins with a discussion of how the correct monthly payment and initial deposit are established for new loans. Next, it examines escrow-related issues and functions ...

RC_LA_EA_301.1 Insurance Servicing Foundations

Insurance Servicing Foundations presents the fundamentals of insurance servicing. It begins by providing context for the discussion of insurance in loan servicing. It defines insurance and explores the history of insurance. It then describes insurance underwriting and the use of insurance scores....

RC_LA_EA_301.2 Property Insurance Requirements

Property Insurance Requirements examines the general requirements for various types of property insurance, including the obligations of the borrower and lender. The course distinguishes between a deed of trust and a mortgage and describes how those differences impact a servicer’s ability to enfor...

RC_LA_EA_301.3 The Insurance Department

The Insurance Department describes some of the keys to successful insurance servicing. It also examines the specific tasks performed by the insurance department. It then looks at the events that trigger exceptions in the process and explores the actions servicers can take when the lender does not...

RC_LA_EA_301.4 Processing Insurance Claims

Processing Insurance Claims describes what happens in the event of damage or destruction to an insured property and compares the obligations of the borrower, the servicer, and the insurance company in handling a loss. It presents the different types of claims adjusters and their services and then...

RC_LA_EA_301.5 Insurance Policies and Coverage

Insurance Policies and Coverage provides an overview of the various insurance policies that may be issued to provide insurance for properties. It explores the different types of coverages, costs, and application of the different policies, including their typical uses and restrictions. Policies di...

RC_LA_EA_301.6 Insurance Documents

Insurance providers issue documents related to each policy on a frequent basis, as well as documentation summarizing each transaction related to insuring a property. Associates within the insurance servicing team must become familiar with the various forms and documents and be able to distinguish...

RC_LA_FM_200.1 Financial Categories for Loan Administration

The role of the corporate accounting department is to provide an accurate description of a company's financial activities. Using financial statements (i.e., the balance sheet and income statement), the corporate accounting department paints a financial picture of each functional area within a com...

RC_LA_FM_200.2 Government Financial Agencies

The corporate accounting department is responsible for ensuring that the company's financial activities are accurately reported in accordance with company and governmental agency guidelines.Government Financial Agencies reviews the various government agencies that impact corporate accounting. The...

RC_LA_FM_200.3 Financial Statement Analysis

Financial Statement Analysis introduces the financial reconciliation and analysis of the balance sheet and the income statement. It begins by examining the reconciliation of various asset accounts: the principal balance account, accrued interest receivable, escrow advance, P&I advances, and c...

RC_LA_FM_200.4 Mortgage Servicing Portfolio Valuation

Mortgage Servicing Portfolio Valuation provides a high-level overview of the process of mortgage servicing portfolio valuation. It begins with a look at how various loan characteristics affect the servicing value of a portfolio. Next, it discusses the four steps of the valuation process. Finally,...

RC_LA_FM_301.1 Bank Reconciliation Concepts

Bank reconciliation is an essential step in confirming the accuracy of financial data among the various parties. A successful reconciliation ensures that the servicer's financial records correspond with the investor's records and the bank's records.Bank Reconciliation Concepts begins with a look ...

RC_LA_FM_301.2 Investor Requirements in Bank Reconciliation

Large agency investors — Fannie Mae, Freddie Mac, and Ginnie Mae — each have unique requirements for reconciling custodial accounts. Private investors have their own sets of requirements.Investor Requirements in Bank Reconciliation examines the special requirements for reconciling accounts with e...

RC_LA_IR_200.1 Investor Reporting Concepts

Servicing a mortgage loan involves many functional areas, one of which is investor reporting.Investor Reporting Concepts begins with an introduction to investor reporting-related terms and the variety of investor-related activities that mortgage loan servicers must perform. It explains key concep...

RC_LA_IR_200.2 Investor Reporting Requirements

Each investor has different reporting guidelines that must be followed. Failure to follow investor guidelines could result in a penalty for the servicer.Investor Reporting Requirements outlines reporting requirements of various investors, including Fannie Mae, Freddie Mac, Ginnie Mae, and others....

RC_LA_IR_200.3 Freddie Mac Investor Reporting Requirements

Servicing Freddie Mac mortgage loans involves unique information data and reporting requirements for the investor reporting specialist. Investor Reporting Requirements: Freddie Mac introduces terms and specific data requirements for successful monthly Freddie Mac reporting and reconciliation.The ...

RC_LA_IR_200.4 Fannie Mae Investor Reporting Requirements

MBA Education is dedicated to accommodating today's busy professional by offering short, accessible learning programs that can be completed in less than an hour. Content in this course is derived from Essentials of Investor Reporting, which is no longer available for retail purchase.This course e...

RC_LA_IR_200.5 Ginnie Mae Investor Reporting Requirements

This course focuses on Ginnie Mae's investor reporting requirements. It will introduce you to terms and specific data requirements to ensure successful monthly reporting and reconciliation to Ginnie Mae.The Ginnie Mae Investor Reporting Requirements course begins by explaining how servicers comm...

RC_LA_IR_200.6 Private Investor Reporting Requirements

This course focuses on private investor reporting and remitting guidelines. It will introduce you to new terms and specific data requirements for successful private investor reporting, which will include remitting and reconciliation.The Private Investor Reporting Requirements course begins with ...

RC_LA_PLA_200.1 Mortgage Payoff Concepts

Mortgage Payoff Concepts details the steps involved in the mortgage payoff process. The course begins with an overview of the payoff process, including the terms of the mortgage, the overall payoff process, and the Uniform Residential Mortgage Satisfaction Act. Next it goes through the requiremen...

RC_LA_PLA_200.2 Lien Release Concepts

When a residential mortgage loan is granted, the property is pledged as security for the debt. This is done by publicly recording a lien on the property at the county recorder's office which a public record of the debt. When that lien is paid off, it must be released, proving the borrower is free...

RC_LA_PLA_200.3 Mortgage Assumption Concepts

Mortgage Assumption Concepts focuses on defining assumptions, the advantages of assumptions, and the documentation necessary to complete an assumption. It also explains the approval and closing process for an assumption loan. The course begins with a look at the different types of assumptions and...

RC_LA_SS_200.1 Introduction to Equity Products

Thanks to home equity loans and home equity lines of credit, many Americans have been able to unlock the wealth stored in their homes. The growth in popularity of these home equity products has brought about great changes for borrowers and servicers alike.Introduction to Equity Products discusses...

RC_LA_SS_200.2 Servicing Implications of Equity Products

The servicing of home equity products experienced exceptional growth from 2000 to 2008. Production slowed dramatically in the wake of the financial crisis and is only now starting to recover. Many new regulations limit production in home equity loans and lenders are being very cautious in the HEL...

RC_LA_SS_300.1 Special Loan Basics

MBA Education is dedicated to accommodating today's busy professional by offering short, accessible learning programs that can be completed in less than an hour. Content in this course is derived from Special Loan Administration I, which is no longer available for retail purchase.Special loan pro...

RC_LA_SS_300.2 Special Loan Products

Homebuyers come to the mortgage market with many different financial circumstances and goals. Often a fixed-rate conventional loan is not the best choice for a specific situation. To meet the needs of as many potential mortgagors as possible, mortgage bankers now offer a wide variety of mortgage ...

RC_LA_SS_300.3 Special Loan Features

Special Loan Features offer prospective borrowers creative financing tools to modify various loan products. Special loan features include items such as different rate options and interest-only payment options. The terms of these loans are generally more complicated, which makes servicing them int...

RC_LA_SS_300.4 Special Loan Market

Special loan products offer alternatives to the traditional fixed-rate and adjustable-rate loans. Financial entities offer combination or hybrid loan products in order to stay competitive in the market. To accomplish this, lenders often create new loan products by combining loans and features int...

RC_LA_ST_200.1 Servicing Transfers Concepts

Servicing, also known as loan administration, is the performance of the administrative duties associated with a loan from the time it closes until it is paid off. The right to service a loan is an important source of income for most mortgage lenders. These rights are often sold several times duri...

RC_LA_ST_300.1 Servicing Transfers Process

Servicing transfers affect both the buyer and the seller. The seller is responsible for producing several notifications, preparing files for transfer to the buyer, and completing escrow-related functions. The buyer forms an acquisition team and may add staff and office space, perform additional t...

RC_LA_ST_300.2 Investor Requirements for Servicing Transfers

An investor is any person or institution that invests in mortgages or mortgage-backed securities. When discussing mortgage loan servicing, the term investor commonly refers to government agencies such as Ginnie Mae; government-sponsored enterprises (GSEs), including Fannie Mae and Freddie Mac; an...

RC_LP_O_200.3 Generating Purchase Business for Mortgage Loan Originators

Generating Purchase Business for Mortgage Loan Originators provides mortgage loan originators (MLOs) with marketing strategies used to stimulate purchase money business. This course provides training on the various avenues for creating referrals and provides specific techniques for generatin...

RC_LP_P_200.1 Processing Fundamentals

In preparing a loan file for submission to the underwriting team, the processor plays a vital role in the loan production process. In essence, the processor is the "traffic light" that keeps the flow of information moving down the highway to loan approval. The loan file tells the story of the loa...

RC_LP_P_200.2 The Loan Application for Processors

One of the processor's primary responsibilities is to ensure that the loan application forms are complete and accurate. The loan application is the foundation both for documenting the loan file and for assessing the ability of the borrower to qualify for the proposed mortgage. It includes detail...

RC_LP_P_200.3 Verification and Supporting Documentation

Verification is an important part of the loan application process. One of its purposes is to ensure that the borrower is able to cope financially with the responsibility of a home mortgage. While there is little to indicate that applicants regularly and intentionally provide false information on ...

RC_LP_P_200.4 Property Appraisal for Processors

An appraisal is an estimate or an opinion of the fair market value of a property. The purpose of the appraisal is to establish the current market value of the property and to determine if it is adequate collateral for the loan amount being requested. For this reason, the appraisal is perhaps the ...

RC_LP_P_200.5 File Review and Submission

Simply stated, loan processing is the gathering of documents that verify information provided on the loan application. This verified information allows the underwriter or automated underwriting system (AUS) to perform an accurate risk assessment. The submission of a file to underwriting may be ha...

RC_LP_U_200.1 Eligibility in Residential Underwriting

Underwriting conventional mortgage loans involves applying requirements and guidelines that have been established by secondary market investors or lenders. Specific eligibility requirements are applied to loans based on any number of factors. This course will help you to understand and use eligib...

RC_LP_U_200.2 Income Review in Residential Underwriting

A borrower's capacity to repay a mortgage loan is primarily measured by the applicant's employment and income. Proper calculation of qualifying income is key to arriving at an accurate set of qualifying ratios. Therefore, it is critical that an underwriter evaluates income and income sources in t...

RC_LP_U_200.3 Credit Review in Residential Underwriting

In addition to making certain that the credit score fits the product eligibility parameters, an underwriter needs to perform a thorough analysis of the credit report.Credit Review in Residential Underwriting walks through the steps of analyzing the credit report: confirming the report information...

RC_LP_U_200.4 Asset Review in Residential Underwriting

In Asset Review in Residential Underwriting, we describe how to analyze an applicant's assets to ensure that there are sufficient funds to close and that the applicant meets program guidelines with respect to the minimum borrower contribution and reserve requirements.The course begins with a look...

RC_LP_U_200.5 Collateral Review in Residential Underwriting

In mortgage lending, the appraisal is an important document that enables the underwriter to decide whether the property offers sufficient collateral for the loan amount being requested. If a borrower defaults on a mortgage loan, the investor or lender who owns the mortgage may foreclose on the pr...

RC_LP_U_200.6 Final Review in Residential Underwriting

The underwriting function encompasses the final review of the loan for eligibility and approval. After working through the individual components of a file (eligibility, income, credit, assets, and collateral), the underwriter should evaluate how all the pieces fit together before determining whet...

RC_LP_U_301.1 Analyzing the Appraisal

Appraisals are integral to the lending process because they ensure that the collateral pledged as security for the loan is adequate relative to the value of the loan. They ensure the collateral really does secure the mortgage obligation. Since inflated appraisals make it possible to obtain a loan...

RC_LP_U_301.2 Property Valuation and Reporting Using Desktop Underwriter

Streamlined property valuation and reporting processes are available in Fannie Mae’s automated Desktop Underwriter (DU) system. DU allows lenders to take advantage of property valuation and reporting features that can ultimately save time and money. DU’s proprietary risk assessment models provide...

RC_LP_U_301.3 Property Valuation and Reporting Using Loan Product Advisor

A collateral evaluation processes is available for loan applications entered into Freddie Mac's Loan Product Advisor (LPA) automated underwriting system (AUS). Depending on the risk classification of the loan application, assessment feedback is provided, enabling lenders to waive certain represen...

RC_LP_U_302.1 Origin of Credit Scores in Lending

A credit score is a statistical summary of a consumer's credit information at a specific point in time. Lenders benefit greatly from credit scores because of their ability to predict credit risk fairly and accurately. The credit score is a valuable tool when assessing the overall risk in a loan a...

RC_LP_U_302.2 Credit Scoring Basics

Credit Scoring Basics covers fundamental concepts of the credit scores that are used in mortgage lending. First it will look at credit scores themselves, exploring how credit scoring models are developed and how individual credit scores are generated. From there, the course reviews the factors th...

RC_LP_U_303.1 Defining Automated Underwriting Systems

Defining Automated Underwriting Systems provides a high-level overview of automated underwriting and an introduction to the two primary automated underwriting systems in use today: Fannie Mae's Desktop Underwriter (DU) and Freddie Mac's Loan Product Advisor (LPA).The course begins with an introdu...

RC_LP_U_303.2 Evaluating Loans with Desktop Underwriter

Desktop Underwriter (DU) is an automated underwriting system developed by Fannie Mae to help mortgage lenders make informed credit decisions on conventional and government loans.Evaluating Loans with Desktop Underwriter focuses on how Fannie Mae's automated underwriting system can be used to eval...

RC_LP_U_303.3 Evaluating Loans with Loan Product Advisor

Loan Product Advisor (LPA) is an automated loan evaluation system that makes a purchase decision for Freddie Mac, eliminating many of the manual processing and underwriting requirements of traditional mortgage processing. LPA can assess almost any type of mortgage application, including conventio...

RC_LP_U_304.1 Underwriting Methodology

Fannie Mae and Freddie Mac provide guidance about how various loans must be underwritten—whether they must be run through the agency's automated underwriting system (AUS) or underwritten manually. This course reviews agency guidelines for which loans may or must be reviewed either through the age...

RC_LP_U_304.2 Fannie Mae Manually Underwritten Loans

The manual underwriting process involves detailed analysis and documentation of various components within the loan application according to standard guidelines published in the Fannie Mae Selling Guide. For loans that require a manual review, each of these components must be evaluated for risk of...

RC_LP_U_304.3 Freddie Mac Manually Underwritten Loans

Freddie Mac Manually Underwritten Loans presents underwriting requirements and risk evaluation principles for manually underwritten mortgages that will be sold to Freddie Mac.Participants will examine standard Freddie Mac guidelines for manually underwriting: Loan applications never submitted to...

RC_LP_U_305.1 Tax Return Basics

Reviewing a borrower's personal tax return can be a daunting task. Forms and schedules abound, each one connected to the other, with numbers that are counted as income, losses, exemptions, and deductions. It is easy to become overwhelmed! In the Tax Return Basics course, participants learn when i...

RC_LP_U_305.2 Income and Loss on Tax Returns

When a taxpayer files yearly income tax returns, income and losses are reported on a variety of different forms. Form 1040, U.S. Individual Income Tax Return is a summary of those forms and offers an underwriter a starting point to perform a self-employed income analysis.Income and Loss on Tax Re...

RC_LP_U_305.3 Supporting Income and Loss on Tax Returns

This course discusses using tax returns to determine qualifying income for self-employed borrowers when underwriting mortgage loans. The course examines Schedule C, Schedule D, and Schedule F of Form 1040 and how these types of income are adjusted using Freddie Mac's Form 91 Income Calculations (...

RC_LP_U_305.4 Supplemental Income and Loss on Tax Returns

This course explains how to analyze income reported on Schedule E (Form 1040) and Schedule K-1 (Form 1065) for mortgage lending underwriting. It discusses how income reported on these tax returns is adjusted using Freddie Mac's Form 91 Income Calculations (Schedule Analysis Method) and Form 92 Ne...

RC_LP_U_306.1 Business Structures for Self-Employed Borrowers

Understanding the different business classifications and methods used to report income for tax purposes is key to deriving a stable monthly income figure for self-employed customers applying for mortgage loans. Sole proprietorships, partnerships, corporations, and S corporations all report taxes ...

RC_LP_U_306.2 Evaluating Sole Proprietorships

Determining qualifying income for self-employed borrowers can be more challenging than for their salaried counterparts. It involves careful review of sometimes complex tax returns and analysis of what income reported can be used to qualify for a mortgage loan. This course examines how to perform ...

RC_LP_U_306.3 Evaluating Partnerships

The Evaluating Partnerships course discusses how to evaluate income from partnerships reported on business tax returns, including Schedule E (Form 1040), Form 1065, and Schedule K-1 (Form 1065). To determine allowable qualifying income, the underwriter must analyze income and expenses r...

RC_LP_U_306.4 Evaluating Corporations

The Evaluating Corporations course discusses how to analyze corporation tax returns using the Fannie Mae Cash Flow Analysis (Form 1084) to determine a borrower's allowable qualifying income. The course begins with a review of characteristics of corporations. Next, it looks at how to determine all...

RC_LP_U_307.1 Underwriting Jumbo Loans

This is a single-family/residential course.Jumbo mortgage loans provide customers a financing opportunity to purchase or refinance a home when the first mortgage loan amount exceeds conforming loan limits. Industry statistics report an increase in jumbo loans in recent years. This increase is due...

RC_LP_U_307.2 Underwriting Freddie Mac A-Minus Loans

Mortgage loan products are segmented in different ways:By loan size: Conforming and non-conforming. By government backing: FHA, VA, and USDA/Rural Housing. By government backing: FHA, VA, and USDA/Rural Housing. Interest rates, fees, and prepayment penalties are proportionally based on a mor...

RC_LP_U_307.3 Appraisal Issues: Beyond the Basics

Evaluating collateral is an important part of an underwriter's task of examining overall risk assessment. To this end, underwriters must be able to evaluate different types of properties and appraisals.The mortgage application may indicate the collateral will be a two-unit property, or the subjec...

RC_LP_U_308.1 The Construction Process at a Glance

Construction-to-permanent loans are mortgage loans used to finance both the building and the purchasing of a new home. This type of financing has specific guidelines pertaining to loan approval, loan amounts, disbursement to the builder, and inspections. In order to understand these financing opt...

RC_LP_U_308.2 Fannie Mae Construction-to-Permanent Guidelines

Fannie Mae Construction-to-Permanent Guidelines examines Fannie Mae's guidelines for underwriting construction-to-permanent loans. The course begins with a discussion of transaction types, including the criteria for determining whether the transaction is considered by Fannie Mae to be a single-cl...

RC_LP_U_308.3 Freddie Mac Construction-to-Permanent Guidelines

Freddie Mac Construction-to-Permanent Guidelines examines Freddie Mac construction-to-permanent guidelines, including the criteria for determining whether the transaction is considered by Freddie Mac to be a construction conversion or renovation mortgage and requirements for construction-to-perma...

RC_LP_U_308.4 Acquisition Costs for Construction-to-Permanent Loans

In Acquisition Costs for Construction-to-Permanent Loans, we examine the process of calculating total acquisition costs on a construction loan and review Fannie Mae and Freddie Mac documentation criteria for allowable expenses.This is a single-family/residential course.Topics:Qualifying Acquisiti...

RC_LP_U_309.1 Introduction to Manufactured Housing

A manufactured home is one that is factory-built. Manufactured housing plays an important role in the US housing market. Today's manufactured housing industry includes mid-range and high-cost homes, in addition to lower-cost alternatives. Often, manufactured homes provide an affordable housing al...

RC_LP_U_309.2 Fannie Mae Guidelines for Manufactured Homes

Fannie Mae Guidelines for Manufactured Homes reviews Fannie Mae's credit and collateral underwriting guidelines along with Desktop Underwriter (DU) criteria for manufactured home loans.The course begins with a discussion of property eligibility criteria. Next, it addresses equity requirements for...

RC_LP_U_309.3 Freddie Mac Guidelines for Manufactured Homes

Freddie Mac Guidelines for Manufactured Homes reviews Freddie Mac's credit and collateral underwriting guidelines along with Loan Product Advisor (LPA) criteria for manufactured home loans.The course begins with a discussion of property eligibility criteria. Next, it addresses equity requirements...

RC_LP_U_310.1 Underwriting Properties with Marketability Issues

The marketability and value of a property can rise or fall depending on many factors which must be considered carefully when the loan is being presented as collateral for a mortgage loan. Underwriting Properties with Marketability Issues addresses some of the common considerations and issues that...

RC_LP_U_310.2 Underwriting Properties with Structural Issues

Underwriting Properties with Structural Issues identifies concerns related to the property structure. Physical, functional, or design characteristics in unique home styles, including some types of exterior finishing systems and functional obsolescence, may hinder a borrower's ability to maintain ...

RC_LP_U_310.3 Underwriting Properties with Environmental Issues

There are a number of environmental factors that can affect a property’s value, the marketability of the loan, and the borrower's likelihood to default. Issues of health and safety can be particularly detrimental, since they can force a family to move to a safer location and default on the mortga...

RC_LP_U_311.1 Underwriting Affordable Solutions

Owning a home means so much more than the purchase of a structure. In addition to the tax and financial benefits, there is a vast amount of data highlighting the many positive social aspects as well. A Harvard University study titled "The State of the Nation's Housing" states that homeownership s...

RC_LP_U_311.2 Underwriting Reduced Payment Products and Piggyback Loans

The landscape of the mortgage lending industry has changed dramatically over the past few decades. Prior to the financial crisis of the late 2000s, mortgage lenders offered a variety of products that provided alternatives to standard, fixed-rate mortgages. During the crisis, lenders tightened the...

RC_RC_GO_100.1 Introduction to Regulatory Compliance

The Introduction to Regulatory Compliance course introduces foundational information that a regulatory compliance professional needs to be successful in his or her role in a mortgage lender's compliance function.The course discusses the compliance function and day-to-day responsibilities of the r...

RC_RC_GO_100.2 Regulatory Compliance in the Residential Lending Cycle

The Regulatory Compliance in the Residential Lending Cycle course provides background about the business of mortgage lending that a compliance professional needs to be successful in his or her role. Understanding key concepts in mortgage lending, such as the flow of money between the primary mark...

RC_RC_GO_200.1 Consumer Financial Protection Laws

The Consumer Financial Protection Laws course covers statutes and regulations that seek to protect consumers' financial interests when they obtain mortgage loans. The Truth in Lending Act of 1968 (TILA) and Real Estate Settlement Procedures Act of 1974 (RESPA) have protected consumers for decades...

RC_RC_GO_201.1 Fair Lending and Equal Opportunity Laws

The Fair Lending and Equal Opportunity Laws course provides an overview of the legislation that shapes fair lending and equal opportunity compliance rules for the mortgage industry. This course covers the purpose and main provisions of the Equal Credit Opportunity Act (ECOA), the Fair Housing Act...

RC_RC_GO_203.1 Privacy and Credit-Reporting Laws

Applying for a mortgage (or any other type of consumer credit) requires the exchange and retention of many elements of a consumer's personal and financial data, including credit report information. Today, people are acutely aware of the damage that can be done to privacy, finances, and credit rep...

RC_RC_GO_204.1 Anti-Money Laundering Laws

Banks and mortgage lenders, as well as other legitimate businesses, can be a means of laundering money obtained through crime. The Anti-Money Laundering Laws course focuses on laws and regulations that banks and mortgage lenders must follow to help combat both money laundering and terrorist finan...

RC_RC_GO_205.1 Communication Laws

Over the years, Congress has enacted a number of laws that regulate how businesses can communicate with consumers. The Communication Laws course reviews laws that impact how businesses can communicate with consumers using various types of technology.The course begins with a look at two laws that ...

RC_RC_GO_206.1 Residential Loan Servicing Laws

The Residential Loan Servicing Laws course provides an overview of regulatory compliance in residential mortgage loan servicing, introducing the key laws that regulate the business and providing context for why each of the laws is important. This course covers the purpose and provisions of the Re...

RC_RC_GO_300.1 TRID Compliance Basics

The goal of this course is to describe the TILA-RESPA Integrated Disclosure (TRID) rule and its requirements. TRID Compliance Basics begins with an overview of the TRID rule, explaining the background and scope of the rule and introducing the related disclosures. The course then presents the Loan...

RC_RC_GO_301.1 ECOA Compliance Basics

The Equal Credit Opportunity Act (ECOA) is an important anti-discrimination statute that is implemented by Regulation B. The ECOA Compliance Basics course provides an overview of ECOA, including a discussion of its history and in-depth detail on the rules and regulations that govern the taking an...

RC_RC_GO_302.1 RESPA Compliance Basics

The Real Estate Settlement Procedures Act (RESPA) is one of the most important laws regulating mortgage lending in the United States. Since its enactment in 1974, it has governed disclosure of settlement costs, prohibited certain practices that could lead to hidden and inappropriate costs, requir...

RC_RC_GO_303.1 TILA Compliance Basics

The Truth in Lending Act (TILA), implemented by Regulation Z, is one of the most important laws governing consumer credit in the United States and has a tremendous impact on mortgage lending. TILA's requirements affect the entire loan life cycle: business development, origination, underwriting, c...

RC_RC_GO_304.1 HMDA Compliance Basics

Passed by Congress in 1975, the Home Mortgage Disclosure Act (HMDA) was established to provide financial regulators, the public, and other stakeholders with data about mortgage lending in the United States. Congress’s goal was that this data be used to inform decision-makers, residents, and othe...

RC_RC_GO_306.1 UDAP, UDAAP, and the MAP Rule Compliance Basics

There are many federal and state statutes and implementing regulations designed to protect consumers in many types of financial transactions. Some of them, such as the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA), for example, restrict financial institutions a...

RC_RC_GO_400.1 Reviewing Loan Files for Compliance Professionals

This course introduces the concepts related to reviewing a closed loan file for regulatory compliance, a critical element of any lender's compliance management system. Loan File Review for Compliance Professionals is an overview course that familiarizes the learner with the forms and information ...

RC_RC_GO_401.1 Reviewing Marketing for Compliance Professionals

Marketing compliance in mortgage lending is more critical today than at any other time. There are more ways to advertise through different delivery channels than ever, and regulators are focused on the ways lenders communicate with consumers through their marketing. Because of the regulatory and ...

RC_RC_GO_402.1 Working the Help Desk for Compliance Professionals

A dedicated compliance help desk can help a lender to mitigate risk by supporting compliant production, reinforcing lender policies and procedures, and educating staff on regulatory compliance. The help desk can play an important role in strengthening the compliance management system (CMS) by pro...

RC_RC_GO_403.1 Reviewing Business Processes for Compliance Professionals

This course follows the review of a marketing piece, using a case study, to consider reviewing business processes more broadly. The course provides guidance on several specific questions involved with advertising and marketing compliance in the review of the case study; and, through the progressi...

RC_RC_GO_404.1 Reviewing LO Comp Plans for Compliance Professionals

The 2013 Loan Originator Rule covers a variety of elements, but is of particular importance to regulation of loan originator compensation ("LO Comp"). Understanding the definitions and requirements of the Rule helps compliance professionals to manage risk at their companies, providing input on ho...

RC_RC_GO_405.1 Managing Vendors for Compliance Professionals

Financial companies like mortgage bankers often rely on third party vendors in the normal course of doing business. When utilized thoughtfully, vendors can provide great benefits for the company. For example, vendors can help a company realize operational or financial efficiencies, focus finite i...

RC_RC_GO_406.1 Answering Advanced TRID FAQs for Compliance Professionals

In the Answering Advanced TRID FAQs for Compliance Professionals course, legal experts in mortgage lending regulatory compliance respond to frequently-asked questions about how to comply with the TRID rule. The course speaks to several challenging situations lenders face in the practical aspects ...

RC_RC_GO_407.1 Mastering HMDA Data for Compliance Professionals

Because of the nature and breadth of HMDA data today, HMDA compliance is uniquely important to a financial institution. HMDA data tells the story of what loan products the institution provides, who it serves, and on what terms. It tells this story to government regulators, community members, and ...

RC_RC_GO_408.1 Understanding Data Security for Compliance Professionals

Keeping customer and business data secure is a necessity for business and compliance reasons. Mortgage lenders depend on a vast array of systems and technology to support the end-to-end lending process, and the trend toward online origination continues to grow. At the same time, consumer privacy ...

RC_RC_GO_409.1 Managing an Effective CMS for Compliance Professionals

As supervised entities, institutions that originate and service mortgages must maintain compliance with a number of consumer protection and safety and soundness laws at both the state and federal level. In order to maintain legal compliance, institutions should develop and sustain a robust compli...

RC_RC_GO_410.1 Managing Consumer Complaints for Compliance Professionals

Consumer complaints are an important compliance concern for many reasons. The Consumer Financial Protection Bureau (CFPB) and other regulators use complaint data to identify issues that could result in consumer harm, and concerns related to compliance with laws such as the Truth-in-Lending Act an...

RC_RC_GO_411.1 Preparing for Regulatory Exams for Compliance Professionals

The Preparing for Regulatory Exams for Compliance Professionals course helps prepare students for a CFPB examination by covering topics from the CFPB Supervision and Examination Manual that are relevant to residential lending, as well as providing information on how the CFPB prepares for and cond...

RC_RC_LP_200.1 Introduction to Compliance in Loan Origination

It is important to understand lending and regulatory compliance laws, why they were established, and their impact on the mortgage industry. The mortgage industry is heavily regulated and compliance requirements affect how day-to-day business operations must be conducted. It is essential that all ...

RC_RC_LP_200.2 Licensing Laws in Loan Origination

Licensing laws are designed to enhance consumer protection and reduce fraud by requiring states to establish minimum standards for companies and individuals in the mortgage lending business. With enforcement of more stringent licensing requirements and increasing oversight of licensees, consumers...

RC_RC_LP_200.3 Disclosure Laws in Loan Origination

Disclosure laws are designed to require mortgage lenders to provide borrowers with specific, accurate, and timely information regarding the cost involved in obtaining a mortgage loan so that borrowers can make informed decisions. They also inform borrowers about their rights as consumers in the m...

RC_RC_LP_200.4 Consumer Protection in Loan Origination

Consumer Protection Laws in Loan Origination takes an in-depth look at some of the major fair lending, privacy, and predatory lending laws that have shaped the landscape of regulatory compliance in mortgage lending.We will first review three fair lending laws -- the Fair Housing Act, the Equal Cr...

RC_RC_LP_201.1 Introduction to Fair Lending

To have a full understanding of the nature and purpose of today’s fair lending regulations, it is important to understand the origin of fair lending laws. It is equally important to have the practical skills and understanding necessary to serve a culturally diverse group of consumers.Introduction...

RC_RC_LP_201.2 Fair Lending During Inquiries

As an employee of a mortgage banking firm, mortgage brokerage firm or lending institution, you will be contacted by existing or potential customers regarding loan services and general lending information. Often the inquiries are for rate information from "rate shopping" consumers. At other times ...

RC_RC_LP_201.3 Fair Lending During Processing

Fair Lending During Processing explores the role of fair lending during processing. First it looks at document tracking and how it can prevent the perception of unfair treatment. Then the course closes with a review of the importance of timeliness during processing and how carefully tracking time...

RC_RC_LP_201.4 Fair Lending During Loan Disposition

The potential borrower has been interviewed, an application completed, and a credit investigation performed. Based on this information, the underwriter must now make the loan decision. Several laws and regulations speak directly to credit evaluation, denial, and settlement.Fair Lending During Loa...

RC_RC_LP_201.5 Evaluating Fair Lending Compliance

Fair lending laws are designed to prevent inappropriate discrimination, protect the consumer, and promote access to credit opportunities. Mortgage lenders are required to adhere to these laws and are monitored by their supervisory agencies for compliance.Evaluating Fair Lending Compliance begins ...

RC_SM_100.1 Fundamentals of Secondary Marketing

Unlike the primary market, which concerns the processes required to bring a mortgage into existence, the secondary market is the portion of the mortgage market in which lenders and investors buy, sell, and trade existing mortgages. The secondary market plays a very important role in the national ...

RC_SM_100.2 How Secondary Marketing Works

How Secondary Marketing Works begins with an overview of the major products sold in the secondary market and provides an in-depth discussion of mortgage-backed securities (MBS). It then describes how secondary marketing works by exploring its relationship to other segments of the mortgage market ...

SC_M_100.1 MISMO Fundamentals

MISMO Fundamentals Self StudyInstructor-Guided Course Please scroll down to read important discount information for MISMO members and government employees.This self study course is designed for business and technology professionals who are currently (or who may soon be) involved in the conside...

SC_M_200.1 MISMO Implementation Framework: Part I

MISMO Implementation Framework - Case Study Part 1 - Self StudyInstructor-Guided Course Discount for MISMO Members and Government EmployeesPlease note there is $200 discount for MISMO memmbers and government employees. To obtain the promo code (to be used when you check out), send an email to ...

SC_M_200.2 MISMO Implementation Framework: Part II

MISMO Implementation Framework - Case Study Part I - Self StudySelf-Study Discount for MISMO Members and Government EmployeesPlease note there is $200 discount for MISMO members and government employees. To obtain the promo code (to be used when you check out), send an email to INFO@MISMO.org...

SC_M_300.1 MISMO XML Primer

MISMO Implementation Framework - Case Study Part I - Self StudySelf-Study Discount for MISMO Members and Government EmployeesPlease note there is $200 discount for MISMO members and government employees. To obtain the promo code (to be used when you check out), send an email to INFO@MISMO.org...