syllabus safe 23 hour tx-sml comprehensive pe revised 2

23 Hour Mortgage Loan Originator Texas-SML SAFE Comprehensive Course

Course Syllabus -- 7 Day

(14 Day Schedule included at the bottom of this document)

Welcome to our Texas-SML SAFE Comprehensive Course. We are excited to assist you in

furthering or beginning your mortgage career and are pleased you chose Praedo Institute to

satisfy your education requirements.

Course Purpose

This course is meant to satisfy the 23 hour SAFE education requirement for mortgage originator

licensure for the state of Texas-SML. This course will also prepare you for the National

Component of the SAFE Mortgage Loan Originator Exam including the UST.

Course Description

Along with the 20 hours of SAFE required education, this course includes 3 hours of Texas

Mortgage Law as well as information related to loan qualification and the loan process. This

course satisfies the Texas-SML SAFE requirement. Included in this course are: discussion

forums, interactive content, practice questions, and live instructor support.

Course Dates and Times

This course begins on Tuesday at 8:00am Mountain Time and must be completed by midnight

on the session end date.

Instructor Contact Information

Once you register for the course, you will receive an email from the instructor assigned to your

course. The email will introduce your instructor as well as explain contact methods and

expected response times. All of our instructors are required to respond to student questions

within one business day of the receipt of your question. Your instructors personal email will be

included in the introduction email.

Course Objectives

Each of the individual modules in this course include learning objectives applicable to the

individual module itself. Our course is meant to give you an introduction to the mortgage

industry. Upon completing this course, you should be able to do the following:

Define basic mortgage terms;

Perform mathematical calculations common to the mortgage industry;

Explain certain mortgage concepts to potential borrowers;

Comply with applicable federal laws related to the mortgage industry.

Have a solid understanding of TX-SML requirements including: home equity mortgages,

reverse mortgages, judicial vs. non-judicial foreclosures, savings and mortgage lending

department operations and administration, and department exam procedures;

You should also be able to pass the National Component of the SAFE Mortgage Loan

Originator Exam including the UST.

Grading Policy

Most of the sections in this course consist of slides mixed with comprehension questions. Each

chapter includes a chapter quiz, and most sections include a course final. You may view the

slides at your own pace, but you must answer all of the comprehension questions correctly and

score 80 percent on all quizzes to receive credit for the course. You must also pass the SAFE

practice exam with a score of at least 80 percent. Please remember, your course does include a

completion deadline.

Several of the modules also include case studies, which involve the completion of a certain

project. The details for the individual case studies are found in the course.

Our course includes 8-10 learning activities. In each of the learning activities, you will be

required to either post comments on our discussion forum or email an assignment to your

instructor for grading. Instructions for the learning activities are included in the course.

Your course consists of five parts. At the end of each part, you will be required to submit an

assignment to your instructor. Your instructor will grade your assignment within one business

day of assignment submission. Once your instructor grades the assignment, your instructor will

allow you access to the next part of your course. The instructor reserves the right to delay your

advancement to the next part in the event you are progressing substantially faster than the

other students in that part.

Course Policies

Each student is required to submit an Identity Affidavit. By confirming this attestation, the

student certifies that the course work was or will be completed by the person for whom the

certificate will be issued. The student further certifies that they did or will not receive any

assistance in completing the course. The submission of a completion certificate for a course

they did not complete themselves may constitute fraud on the students part and is subject to

prosecution and/or discipline.

Technical Support

As our course is entirely online, we do offer live technical support via telephone, email, and

chat from 8:30am to 5:00pm Mountain Time on regular business days. After hours, holiday,

and weekend support is available 365 days a year via email from 9:00am to 10:00pm

Mountain Time. Our telephone number is 801-492-9933 and the support email is

[email protected]. Please note, our technical support staff will often be unable to answer

content questions which are more appropriately directed to your instructor.

Using our System

Once you purchase the course and are logged into our system, you should see a link to the

course on your home page. This link will launch the course. Please carefully review the

introduction module for instructions on using our online system.

Course Outline

This course consists of five parts, each covering different aspects of the Secure and Fair

Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).

SAFE 23 Hour Pre-licensing Course Introduction: This module will introduce you to our

system. Adherence to the advice and instructions offered in this module will greatly improve

your online education experience.

SAFE Part One: Consumer Protection

Learning Activity Welcome: The student will follow the instructions to make a post about

themselves.

Consumer Protection Chapter 1: Chapter One covers the Gramm-Leach-Bliley Act. It consists of

the following sections:

Privacy Rule

Safeguard Rule

Pre-texting

Consumer Protection Chapter 2: Chapter Two covers the Do Not Call Rules. It consists of the

following sections:

Do Not Call Registry

Do Not Fax Rules

Consumer Protection Chapter 3: Chapter Three covers the Red Flags Rule. It consists of the

following sections:

Definitions

Red Flag Rule Requirements

Identifying Red Flags

Learning Activity Consumer Protection: The student will follow instructions to post

information on the discussion forum regarding consumer protection.

Identity Theft Case Study: The student will review information on the Federal Trade

Commission's web site and answer related questions.

Learning Activity Identity Theft: After reviewing the information from the case study, the

student will follow instructions to post remarks on the discussion forum.

Fair Lending & Housing Chapter 1: Chapter One covers the Fair Housing Act, the Equal Credit

Opportunity Act, and the Home Mortgage Disclosure Act. It consists of the following sections:

Fair Housing Act

Equal Credit Opportunity Act

Home Mortgage Disclosure Act

Fair Lending & Housing Chapter 2: Chapter Two covers the Fair Credit Reporting Act and the

Fair and Accurate Credit Transaction Act. It consists of the following sections:

Fair Credit Reporting Act

Fair and Accurate Credit Transaction Act

Fair Lending & Housing Chapter 3: Chapter Three covers the governmental agencies who

participate in regulating the mortgage industry. It consists of the following sections:

Role of the Federal Reserve

Role of the Federal Trade Commission

Role of the Department of Housing and Urban Developments

Hud Case Study: The student will review information on the HUD web site and answer related

questions with regard to Fair Housing.

Learning Activity Fair Housing: After completing the HUD case study, the student will follow

instructions to post a scenario on the discussion forum.

Loan Fraud & Ethics Chapter 1: Chapter One will introduce you to the definition of loan fraud

and different types of loan fraud. It consists of the following sections:

Introduction to Loan Fraud

Definition of Loan Fraud

Consequences of Loan Fraud

Types of Fraud

Loan Fraud and Ethics Chapter 2: Chapter Two will review popular loan fraud schemes and

loan fraud statistics. This chapter also discusses ways to detect fraud and licensee obligations

when it comes to loan fraud. It consists of the following sections:

Common Loan Fraud Schemes

Short Sale Fraud

MARI Fraud Index

Loan Fraud Case Study: The student will review information on the FBI's web site and answer

related questions with regard to fraud.

Learning Activity Loan Fraud & Ethics: The student will search the Internet for two examples of

loan fraud and report their findings to their instructor through the internal email system.

SAFE Part Two: Federal Law

Non-Traditional Mortgage Products Chapter 1: Chapter One introduces the student to non-

traditional mortgage products. It consists of the following sections:

Introduction to the Industry

Definition of the Industry

Product Overviews

Non-Traditional Mortgage Products Chapter 2: Chapter Two covers federal guidance of the

non-traditional mortgage industry. It consists of the following sections:

Interagency Guidance on Nontraditional Mortgage Product Risks

Loan Terms and Underwriting Standards

Portfolio and Risk Management Practices

Consumer Protection Issues

Statement on Sub-prime Mortgage Lending

Predatory Lending

Prepayment Penalties

Reduced Documentation

Payment Shock

Workout Arrangements

Consumer Protection Principles

RESPA Chapter 1: Chapter One introduces RESPAs provisions regarding disclosure of costs and

record keeping. It consists of the following sections:

Purposes of the Real Estate Settlement Procedures Act

Scope of RESPA

Exempt Transactions

Definitions

Advance Disclosure of Costs - Good Faith Estimate

RESPA Chapter 2: Chapter Two explains RESPAs kickback and referral fee provisions. It

consists of the following sections:

Eliminate Kickbacks and Referral Fees

Common RESPA Violations

RESPA Chapter 3: Chapter Three covers affiliated business arrangements and servicing

requirements set forth in RESPA. It consists of the following sections:

Affiliated Business Arrangements

Servicing Issues

Learning Activity RESPA: The student will follow the instructions to post a comment on the

discussion forum regarding RESPA.

TILA Chapter 1: Chapter One introduces the Truth in Lending Act and includes definitions as

well as information on APR and advertising. It consists of the following sections:

Definitions

Annual Percentage Rate

Advertising Rules

Trigger Terms

Required Disclosures

TILA Chapter 2: Chapter Two covers disclosure and the right to cancel. It consists of the

following sections:

Disclosure Requirements

Early Disclosures

Early Disclosure and Closing

Collecting Fees

Changes During the Transaction

Right of Rescission

High-Cost Loans

Additional Disclosures

Higher-priced Loans

TILA Chapter 3: Chapter Three covers loan officer compensation. It consists of the following

sections:

LO Compensation Rule

Payments Based on Transaction Terms

Reducing LO Compensation on a Transaction

Other Compensation Issues

Final Rule and Official Staff Commentary

Safe Harbor

Presenting Loan Options

TILA Chapter 4: Chapter Four Covers the ability to repay and QM rule. It consists of the

following section:

Ability to Repay and QM Rule

Learning Activity TILA: The student will follow the instructions to search the Internet to find

mortgage ads which include trigger terms. They will complete an assignment and submit it to

their instructor through the internal email system.

SAFE Part Three: Industry Basics

Industry Chapter 1: Chapter One reviews the structure of the mortgage industry. It consists of

the following sections:

Structure of the Mortgage Industry

The Primary Market

The Secondary Market

Mortgage Brokers

Mortgage Lenders/Bankers

Secondary Market Transactions

The Capital Market

Industry Chapter 2: Chapter Two discusses the basic mortgage categories. It consists of the

following sections:

Mortgage Industry Overview

Purchase Transactions

Rate/Term Refinance

Cash-Out Refinance

Mortgage Categories

Conventional/Conforming

FHA - Federal Housing Administration

Advantages of FHA Lending

Higher Debt to Income Ratios

Non-occupant Co-borrowers

Disadvantages of FHA Lending

VA Loans

Rural Housing

Construction Loans

Jumbo/Non-Conforming

Second Mortgage/HELOC

Reverse Equity/HECM

Loan Process: Qualification Chapter 1: Chapter One covers pre-qualification. It consists of the

following sections:

Pre-qualification

Down Payment

Income

Debts

Credit

Loan Process: Qualification Chapter 2: Chapter Two explores file documentation. It consists

of the following sections:

Assembling the File

Income Documentation

Acceptable Assets

Loan Process: Qualification Chapter 3: Chapter Three reviews credit reports. It consists of the

following sections:

Credit Reports

Credit Scores

FICO Scores Case Study: The student will review credit scores and answer questions related to

FICO.

Learning Activity Credit Report: The student will follow the instructions to post a comment on

the discussion forum regarding credit scores.

Learning Activity Loan Process: Qualification: The student will complete an assignment based

on qualification calculations and submit their work to their instructor through the internal email

system.

SAFE Part Four: Loan Process Part II & Math

Loan Process: Part II Chapter 1: Chapter One covers mortgage products. It consists of the

following sections:

Fixed Rate Mortgages

Adjustable Rate Mortgages

Balloons

HELOC - Home Equity Line of Credit

Reverse Mortgages

Loan Process: Part II Chapter 2: Chapter Two covers appraisals. It consists of the following

sections:

Types of appraisals

Cost Approach

Income Approach

Market Approach

Loan Process: Part II Chapter 3: Chapter Three covers the closing process. It consists of the

following sections:

Hazard Insurance

Flood Insurance

Mortgage Insurance

Dropping Mortgage Insurance

Title, Escrow and Closing

Mortgages, Notes and Liens

Title Insurance Policies

Learning Activity Loan Process: Part II: The student will review the types of loan products

discussed and follow the instructions to post a comment on the discussion forum and respond

to another student's post.

Math Chapter 1: Chapter One covers the types of problems contained on the S.A.F.E. national

exam outline. It consists of the following sections:

Interest Calculations

Monthly Payments

Interest Only Payments

Down Payment Calculations

Math Chapter 2: Chapter Two covers loan to value ratios, debt to income ratios, and ARM

adjustments. It consists of the following sections:

LTV Calculations

Debt to Income Ratios

ARM Adjustments

Loan Payment Case Study: The student will complete a series of math calculations.

The student will submit their completed assignment through the internal email system to their

instructor for grading.

SAFE Part Five: Texas Mortgage Law

TX Mortgage Law Chapter 1: Chapter One includes information on homestead protection,

home equity loans, and reverse mortgages. It consists of the following sections:

Acts and Code

Protection of the Homestead

Debts for Which a House can be Foreclosed Upon

Home Equity Loans

Reverse Mortgages

TX Mortgage Law Chapter 2: Chapter Two covers foreclosures. It consists of the following

sections:

Additional Regulations

Judicial vs Nonjudicial Foreclosures

Definitions

Contract Liens

What Constitutes Notice?

Judicial Foreclosure Required

TX Mortgage Law Chapter 3: Chapter Three covers examination procedures. It consists of the

following sections:

Purpose of Examinations

Risk Focusing

Contents of Loan Files and Required Disclosures

Evaluating the Compliance Management System

Role of the Examiner

Stages of Examination

TX Mortgage Law Chapter 4: Chapter Four covers advertising, loan forms, disclosures,

administrative hearings, books and records, enforcement, recovery fund and licensing. It

consists of the following sections:

Advertising

Loan Status Forms

Required Disclosures

Administrative Hearings

Books and Records

Minimum Contents of a Mortgage File

General Business Records

Enforcement

Recovery Fund

Licensing

Exemptions

TX Mortgage Contract Liens Case Study: The student will review Texas Property Code Title 5,

Section 51.002. To complete the assignment, the student will compose a letter explaining the

requirements for selling a property at public auction.

The student will submit their completed assignment to their instructor for grading. Once the

assignment is graded by their instructor, the student will be allowed to access Part 2 of the

course.

Course Evaluation: Students will be allowed to give feedback regarding the course.

Course Final: 125 question course final covering all of the material in the course.

Course Schedule

This course consists of the five parts outlined below. The requirements for each part are listed

with the approximate time needed to complete each learning module. The scheduled days are

approximate as well, you are not required to follow the prescribed outline, but doing so would

allow you to complete the course in the allotted time frame. This course meets the minimum

time requirement of 50 seat minutes for each clock hour the course is approved. This course

is approved as a 23 hour course and must be completed in its entirety in order for you to

receive credit.

Good Luck

Once again, thank you for choosing Praedo Institute. Your success is extremely important to us.

Please let us know if we can be of assistance at any time. Enjoy the course!

Course Outline and Schedule - 7 Day

Schedule Topics and Activities Reading Due Assignments Due Instruction Time

Allocation (in minutes)

Day 1

TX SAFE 23 Hour Pre-licensing Course

Introduction

Introduction and Syllabus

Submit Online Affidavit

10


Learning Activity Welcome

Learning Activity Instructions

Post an introduction on the Discussion

Forum 10

Consumer Protection Chapters 1, 2, & 3 Complete Chapter Quizzes and Test

100

Learning Activity Consumer Protection


Post Information regarding consumer protection on the Discussion Forum

10

Identity Theft Case Study

Review information on FTC's website

Complete Quiz 10

Learning Activity Identity Theft


Post remarks on the Discussion Forum

10

Day 2

Fair Lending & Housing

Chapters 1, 2, & 3 Complete Chapter Quizzes and Test

100

HUD Case Study Review information on HUD's website

Complete Quiz 10

Learning Activity Fair Housing

Review information on HUD's website

Post a scenario on the Discussion

Forum 10

Loan Fraud & Ethics Chapters 1 & 2 Complete Chapter Quizzes and Test

100

Loan Fraud Case Study

Review Information on FBI's website

Complete Quiz 10

Learning Activity Loan Fraud & Ethics

Internet search for loan fraud examples

Report findings to instructor

15

Day 3


Non-traditional Mortgage Products

Chapters 1 & 2 Complete Chapter Quizzes and Test

90

RESPA Chapters 1, 2, & 3 Complete Chapter Quizzes and Test

100

Learning Activity RESPA

N/A

Post a comment on the Discussion

Forum regarding RESPA

10

Day 4

TILA Chapters 1, 2, 3, & 4 Complete Chapter Quizzes and Test

110

Learning Activity TILA

Internet search for trigger terms


15

Day 5


Industry Chapters 1 & 2

Complete Chapter Quizzes and Test

100

Loan Process: Qualification


100

FICO Scores Case Study

Review credit scores Complete Quiz 10

Learning Activity Credit Report

Review credit scores


Forum regarding credit scores

10

Learning Activity Loan Process: Qualification

N/A

Complete an assignment based on

qualification calculations and

submit to instructor

15

Day 6

SAFE Part Four: Loan Process II &

Math Loan Process Part II


100

Learning Activity Loan Process: Part II

Review types of loan products


Forum and comment on another student's

post

10

Math

Chapters 1 & 2


100

Loan Payment Case Study

Complete math calculations

Submit math answers to instructor

15

Day 7


Chapters 1, 2, 3, & 4

Complete Chapter Quizzes and Course

Final 155

TX Mortgage Contract Liens

Case Study

TX Property Code Title 5, Section

51.002

Submit letter for review by instructor

20

Course Final N/A Complete Exam 20

Evaluation N/A Complete evaluation 5

Course Outline and Schedule - 14 Day

Schedule Topics and Activities Reading Due Assignments Due Instruction Time

Allocation (in minutes)

Days 1-2

TX SAFE 23 Hour Pre-licensing Course

Introduction

Introduction and Syllabus

Submit Online Affidavit

10


Learning Activity Welcome


Post an introduction on the Discussion

Forum 10

Consumer Protection Chapters 1, 2, & 3 Complete Chapter Quizzes and Test

100

Learning Activity Consumer Protection


Post Information regarding consumer protection on the Discussion Forum

10

Identity Theft Case Study


Complete Quiz 10

Learning Activity Identity Theft


Post remarks on the Discussion Forum

10

Days 3-4

Fair Lending & Housing


100

HUD Case Study Review information on HUD's website

Complete Quiz 10

Learning Activity Fair Housing

Review information on HUD's website

Post a scenario on the Discussion

Forum 10

Loan Fraud & Ethics Chapters 1 & 2 Complete Chapter Quizzes and Test

100

Loan Fraud Case Study

Review Information on FBI's website

Complete Quiz 10

Learning Activity Loan Fraud & Ethics

Internet search for loan fraud examples


15

Days 5-6


Non-traditional Mortgage Products

Chapters 1 & 2 Complete Chapter Quizzes and Test

90

RESPA Chapters 1, 2, & 3 Complete Chapter Quizzes and Test

100

Learning Activity RESPA

N/A


Forum regarding RESPA

10

Days 7-8

TILA Chapters 1, 2, 3, & 4 Complete Chapter Quizzes and Test

110

Learning Activity TILA

Internet search for trigger terms


15

Days 9-10


Industry Chapters 1 & 2


100

Loan Process: Qualification


100

FICO Scores Case Study

Review credit scores Complete Quiz 10

Learning Activity Credit Report

Review credit scores


Forum regarding credit scores

10

Learning Activity Loan Process: Qualification

N/A

Complete an assignment based on

qualification calculations and

submit to instructor

15

Days 11-12

SAFE Part Four: Loan Process II &

Math Loan Process Part II


100

Learning Activity Loan Process: Part II

Review types of loan products


Forum and comment on another student's

post

10

Math

Chapters 1 & 2


100

Loan Payment Case Study

Complete math calculations

Submit math answers to instructor

15

Days 13-14


Chapters 1, 2, 3, & 4

Complete Chapter Quizzes and Course

Final 155

TX Mortgage Contract Liens

Case Study

TX Property Code Title 5, Section

51.002

Submit letter for review by instructor

20

Course Final N/A Complete Exam 20

Evaluation N/A Complete evaluation 5

syllabus safe 23 hour tx-sml comprehensive pe revised 2

Documents

course objectives

course dates

course final

course description

course purpose

mortgage industry

mortgage career

mortgage originator