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 exchange for money to purchase a home.
At a loan closing, the borrower signs documents pledging the property as security (collateral) for the funds used to purchase the home, in addition to signing a promissory note. The promissory note is a legal document that outlines the terms in which the borrower will repay the borrowed funds. This process is the essence of mortgage banking.
Mortgage Banking Basics examines the basics concepts of mortgage banking. It examines the business of mortgage banking, including how capital is obtained and money is made. Next, it covers some key points of history on the mortgage banking timeline, showing how these events shaped the industry we work in today. It then moves into the four functional areas of a mortgage banker and how they complete the mortgage banking cycle. From there the course delves into other players in the mortgage finance world and how they relate to one another. Finally, the course gives an overview of some of the key federal, state, and local mortgage regulations; the agencies that enforce these regulations; and the reasons that these regulations are vital to the industry.
This is a single-family/residential course.
Seat time approximately 2.5 hours.