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
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 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
SAFE Part One:
Consumer
Protection
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
Learning Activity
Instructions
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
Review information
on FTC's website
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








SAFE Part Two:
Federal Law
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
Report findings to
instructor
15
Day 5
SAFE Part Three:
Industry Basics
Industry
Chapters 1 & 2
Complete Chapter
Quizzes and Test
100
Loan Process:
Qualification
Chapters 1, 2, & 3
Complete Chapter
Quizzes and Test
100
FICO Scores Case
Study
Review credit scores Complete Quiz 10
Learning Activity
Credit Report
Review credit scores
Post a comment on
the Discussion
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
Chapters 1, 2, & 3
Complete Chapter
Quizzes and Test
100
Learning Activity
Loan Process: Part II
Review types of loan
products
Post a comment on
the Discussion
Forum and comment
on another student's
post
10
Math

Chapters 1 & 2

Complete Chapter
Quizzes and Test
100
Loan Payment Case
Study
Complete math
calculations
Submit math
answers to
instructor
15
Day 7
SAFE Part Five:
Texas Mortgage Law
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
SAFE Part One:
Consumer
Protection
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
Learning Activity
Instructions
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
Review information
on FTC's website
Post remarks on the
Discussion Forum
10
Days 3-4
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



Days 5-6








SAFE Part Two:
Federal Law
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




Days 7-8
TILA Chapters 1, 2, 3, & 4
Complete Chapter
Quizzes and Test
110
Learning Activity
TILA
Internet search for
trigger terms
Report findings to
instructor
15
Days 9-10
SAFE Part Three:
Industry Basics
Industry
Chapters 1 & 2
Complete Chapter
Quizzes and Test
100
Loan Process:
Qualification
Chapters 1, 2, & 3
Complete Chapter
Quizzes and Test
100
FICO Scores Case
Study
Review credit scores Complete Quiz 10
Learning Activity
Credit Report
Review credit scores
Post a comment on
the Discussion
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
Chapters 1, 2, & 3
Complete Chapter
Quizzes and Test
100
Learning Activity
Loan Process: Part II
Review types of loan
products
Post a comment on
the Discussion
Forum and comment
on another student's
post
10
Math

Chapters 1 & 2

Complete Chapter
Quizzes and Test
100
Loan Payment Case
Study
Complete math
calculations
Submit math
answers to
instructor
15
Days 13-14
SAFE Part Five:
Texas Mortgage Law
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