8 Hour SAFE Comprehensive Mortgage Loan Originator Course 2013 Course Syllabus

Welcome to our SAFE Comprehensive Mortgage Loan Originator Course for 2013. We are excited to assist you in furthering your mortgage career and are pleased you chose Praedo Institute to satisfy your education requirements. Course Purpose This course is meant to satisfy the NMLS eight hour mortgage loan originator continuing education requirement for 2013. Course Description Our comprehensive course meets the NMLS Comprehensive CE requirement by covering the following topics: four hours of Federal Law, two hours of Ethics and Loan Fraud, and two hours of the History of Nontraditional Lending and Current Trends. Course Dates and Times This course is offered for the 2013 license renewal period. In order to ensure proper reporting to NMLS before all mortgage loan originator licenses expire on December 31, 2013, this course must be completed by December 20, 2013. Course Objectives Upon completing this course, you should be able to do the following: Explain the Final Rule on Mortgage Loan Originator Qualification and Compensation Practices Understand the Qualified Mortgage Rule Apply lessons learned from the advertising enforcement activities Analyze situations and properly evaluate them in the context of fair lending compliance Understand what constitutes loan fraud Explain the anti-money laundering and Suspicious Activity Report requirements Recognize when a mortgage lender or broker would be required to file a Suspicious Activity Report Understand the history of subprime loans as well as the state of the market now Explain predatory lending and how to avoid it Recognize current trends in the demand and market for subprime loans

Grading Policy The course consists of slides mixed with comprehension questions. Each chapter includes a chapter quiz. At the end of the final part, you will be required to take and pass a final exam. This course is timed as an eight hour course. You must complete the parts in order to progress through the course. You must answer all of the comprehension questions correctly and score 80 percent on all quizzes and tests to receive credit for the course. Course Policies Each student is required to submit an Identity Affidavit. By confirming the 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 support@praedo.com. 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 three parts, covering the following subjects: Federal Law, Loan Fraud, and Nontraditional Mortgage. SAFE CE 2013 Part 1: Federal Law (4 Hours) 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. (5 minutes) 2013 Federal Law Review Chapter 1: Chapter One explains the basic requirements of the LO Compensation Rule. It consists of the following sections: LO Compensation Rule (20 minutes) Payments Based on Transaction Terms (15 minutes) Reducing LO Compensation on a Transaction (5 minutes) Other Compensation Issues (10 minutes) Case Study (10 minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter One. (5 minutes) 2013 Federal Law Review Chapter 2: Chapter Two covers how to advertise in a compliant manner. It consists of the following sections: Advertising (5 minutes) Commercial Communication (5 minutes) Prohibited Representations (25 minutes) Record Keeping Requirements (5 minutes) Case Study (10 Minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter Two. (5 minutes) 2013 Federal Law Review Chapter 3: Chapter Three reviews the Ability-to-Repay and Qualified Mortgage Rule. It consists of the following sections: Ability to Repay and QM Rule (35 minutes) Case Study (10 minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter Three. (5 minutes) 2013 Federal Law Review Chapter 4: Chapter Four covers the complicated Fair Lending federal statutes and rules. It consists of the following sections:

Why do we care about Fair Lending (5 minutes) Department of Justice (10 minutes) Consumer Financial Protection Bureau (5 minutes) Fair Housing Act (10 minutes) Equal Credit Opportunity Act (15 minutes) Types of Discrimination (15 minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter One. (5 minutes)

SAFE CE 2013 Part 2: Ethics and Loan Fraud (2 Hours) Ethics and Loan Fraud 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 (5 minutes) Definition of Loan Fraud (5 minutes) Consequences of Fraud (10 minutes) Types of Fraud (20 minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter One. (5 minutes) Ethics and Loan Fraud Chapter 2: Chapter Two will review the new requirements for mortgage lenders and brokers regarding money laundering and loan fraud reporting. It consists of the following sections: SARs Reporting (15 minutes) Anti-Money Laundering Rule (5 minutes) SARs Rule Reporting Requirements (10 Minutes) How to File a SAR (5 minutes) SARs Statistics (15 minutes) SAR Scenarios (10 minutes) Case Study (10 minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter Two. (5 minutes) SAFE CE 2013 Part 3: Nontraditional Mortgage (2 Hours) History of Nontraditional Lending and Current Trends Chapter 1: Chapter One introduces the history of subprime loans. It consists of the following sections: History (10 minutes) Examples (10 minutes) Predatory Lending (15 minutes)

Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter One. (5 minutes) History of Nontraditional Lending and Current Trends Chapter 2: Chapter Two covers the current state of the market with regard to subprime lending and nontraditional mortgages. It consists of the following sections: Types of Nontraditional Loans (5 minutes) Non 30-year Fixed (5 minutes) Adjustable Rate Mortgage (10 minutes) Your Responsibility (20 minutes) Balloon Loans (10 minutes) Chapter Quiz: 5 question quiz covering all of the material discussed in Chapter Two. (5 minutes) SAFE CE 2013 Course Final: 25 question final exam covering all of the material discussed in the course (20 minutes) Course Evaluation: Students will be allowed to give feedback regarding the course. (5 minutes) Course Schedule This course consists of the three parts outlined below. The requirements for each part are listed with the approximate time needed to complete each learning module. Please note that the times are estimated, it may take you more or less time to complete the course material than specified in this outline. Regardless of the time it takes you to complete this course, it is approved as an eight 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 any assistance at any time. Enjoy the course!

Course Outline and Schedule

Module SAFE CE 2013 Part 1: Federal Law Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 3 Chapter 3 Chapter 3 Chapter 4 Chapter 4 Chapter 4 Chapter 4 Chapter 4 Chapter 4 Chapter 4 SAFE CE 2013 Part 2: Ethics and Loan Fraud Reading Introduction LO Compensation Rule Payments Based on Transaction Terms Reducing LO Compensation on a Transaction Other Compensation Issues Case Study N/A Advertising Commercial Communication Prohibited Representations Record Keeping Requirements Case Study N/A Ability to Repay and QM Rule Case Study N/A Why do we care about Fair Lending Department of Justice Consumer Financial Protection Bureau Fair Housing Act Equal Credit Opportunity Act Types of Discrimination N/A Assignments Due Attestation Quiz Questions Quiz Questions Quiz Question Quiz Questions Quiz Questions Chapter Quiz Quiz Question Quiz Question Quiz Questions Quiz Question Quiz Questions Chapter Quiz Quiz Questions Quiz Questions Chapter Quiz Quiz Question Quiz Questions Quiz Question Quiz Questions Quiz Questions Quiz Questions Chapter Quiz Instruction Time Allocation (Minutes) 5 20 15 5 10 10 5 5 5 25 5 10 5 35 10 5 5 10 5 10 15 15 5

Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 SAFE CE 2013 Part 3: Nontraditional Mortgage Chapter 1 Chapter 1 Chapter 1 Chapter 1 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 Chapter 2 SAFE CE 2013 Course Final Course Evaluation

Introduction to Loan Fraud Definition of Loan Fraud Consequences of Fraud Types of Fraud N/A SARs Reporting Anti-Money Laundering Rule SARs Rule Reporting Requirements How to File a SAR SARs Statistics SARs Scenarios Case Study N/A

Quiz Question Quiz Question Quiz Questions Quiz Questions Chapter Quiz Quiz Questions Quiz Question Quiz Questions Quiz Question Quiz Questions Quiz Questions Quiz Questions Chapter Quiz

5 5 10 20 5 15 5 10 5 15 10 10 5

History Examples Predatory Lending N/A Types of Nontraditional Loans Non 30-year Fixed Adjustable Rate Mortgage Your Responsibility Balloon Loans N/A N/A N/A

Quiz Questions Quiz Questions Quiz Questions Chapter Quiz Quiz Question Quiz Question Quiz Questions Activity 3 - Written Submission & Quiz Questions Quiz Questions Chapter Quiz Course Final Evaluation

10 10 15 5 5 5 10 20 10 5 20 5