8-Hour SAFE Comprehensive CE Exam Preparatory
SAFE Passage 2010
NMLS Course Numbers 1427 & 1428
| Section I: Federal Laws - Our New Duties
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| Part A:
| The SAFE Act
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| Objectives:
| The learning objectives for Part A of Section I are to know how to register with the NMLS, obtain and maintain a state license, interact with the NMLS and the proper usage of the unique identifier. Each student will be expected to fully understand:
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| The purpose of the SAFE Act
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| Various key definitions and who needs licensing and who requires only registration
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| State licensing, background checks, education requirements
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| Testing and proper reporting to the NMLS
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| Renewal and education requirements
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| Part B:
| The Fair Credit Reporting Act and the Red Flags Rule
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| Objectives:
| The learning objectives for part B of Section I are to under stand the FCRA and a originator’s duties in regard to managing and preventing credit fraud.
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| The purpose and authority of the FTC
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| Proper reasons for and usage of borrower’s credit reports
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| Consumer’s rights under the FCRA / FACTA
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| Proper disposal of sensitive personal information
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| How to deal with address and identity discrepancies
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| Penalties for noncompliance
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| Guidelines for creating a Identity Theft Prevention “Program”
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| How to deal with address change requests and discrepancies
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| Responsible Information Management
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| Part C:
| Federal Law Flash Review and Quiz
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| Objectives:
| In Part C of Section I we will review the Federal Laws for the purposes of test preparation and complete an in-class quiz.
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| Group 1: Early Disclosure Laws
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| Group 2: The Fair Lending Laws
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| Group 3: Privacy Protection Laws
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| Complete an in-class quiz
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| Discuss the quiz and ask any questions they have about the federal laws in terms of what understanding they need to study for the national test component
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| Section II: Nontraditional Mortgage Products Overview
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| Part A:
| Nontraditional Mortgage Products
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| Objectives:
| The learning objectives of Part A of Section II are to know how the nontraditional mortgage market is evolving, how it is being reformed and to update the student on the latest changes regarding various government sponsored loans. The student will be expected to understand:
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| The history and evolution of the traditional and nontraditional mortgage product marketplace
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| The rise and fall of nontraditional products and the disappearance of sub-prime products
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| Various types of nontraditional products
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| The housing agencies Guidance on Nontraditional Mortgage Products
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| How to minimize risk and maximize consumer protections
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| Subprime lending and the Interagency Policy Statement on Subprime Lending
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| The importance of creating and maintaining proper control systems
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| Part B:
| Nontraditional Mortgage Products Review and Quiz
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| Objectives:
| The objective of Section II, Part B is to give a brief overview of Nontraditional mortgage products for the purposes of gauging readiness to take the SAFE MLO National Component Test. Students will take and in-class quiz to help them assess their knowledge and:
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| Review the nontraditional mortgage products featured on the SAFE MLO Test National Component content outline
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| Complete an in-class quiz
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| Discuss the quiz questions, results and any questions they have about nontraditional mortgage products, in terms of their comprehension for the purposes of studying for the SAFE MLO Test National Component
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| Section III: Ethics and Consumer Protections
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| Objectives:
| The learning objectives of Section III are to comprehend the failings of our mortgage industry, explore the new responsibilities the industry must embrace, differentiate between what ethics is and what it is not to improve ethical decision making, adopt new standards of responsible lending and incorporate new duties of care into daily origination practices. Students will learn ethical behaviors as defined/expected by RESPA, TILA, HOEPA, GLBA, ECOA, FCRA, HVCC and the appraisal process. The student will be expected to participate in discussion, answer personal ethical questions, resolve an ethical dilemma, recognize mortgage fraud and understand:
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| How to build a new responsibility culture
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| Ethics as addressed in federal laws and penalties for noncompliance
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| How to recognize and prevent unethical behaviors
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| How to avoid deceptive marketing practices
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| The scourge of discrimination and how this unethical practice effects our industry
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| The role of the appraiser and their new rules of ethical conduct
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| How technology can help us track unethical patterns of fraud
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| How good ethics is good business
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