12 Hour NJ SAFE Comprehensive Mortgage Loan Originator Course 2017

Course Syllabus

Welcome to our New Jersey SAFE Comprehensive Mortgage Loan Originator Course for 2017.
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 2017 NMLS twelve hour mortgage loan originator continuing
education requirement for the state of New Jersey.

Course Description
Our comprehensive course meets the NMLS Comprehensive CE requirement for New Jersey by
covering the following topics: three hours of Federal Law, two hours of Ethics and Loan Fraud,
two hours of Nontraditional Lending, one hour of elective (Cybersecurity), two hours of RESPA
Enforcement, and two hours of New Jersey Mortgage Law.

Course Dates and Times

This course is offered for the 2017 license renewal period. In order to ensure timely reporting
to NMLS, this course must be completed by December 19, 2017 to meet their smart renewal
deadline. If you complete this course after December 19, 2017, we cannot ensure that it will be
reported in time for an on time renewal. PLEASE NOTE: This course expires on December 31,
2017 and will not be available to complete after this date.

Course Objectives
Upon completing this course, you should be able to do the following:

Explain why fair lending is an important compliance issue for mortgage companies;
Understand the federal laws related to fair lending;
Apply lessons learned in fair lending cases to your mortgage practice;
Analyze situations and properly evaluate them in the context of fair lending compliance;
Understand the new HMDA rule;
Review the Mortgages Acts and Practices Advertising Rule;
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;
 Gain a better understanding of agency requirements regarding mortgage program
comparisons;
Develop the ability to better serve the consumer through increased knowledge of
program limitations and opportunities;
Improve the ability to recognize the lowest-cost home-buying option for borrowers
with very limited assets for down payment;
Prepare for immediate application of the course information by analyzing various case
studies on the different topics;
Review best practices for cybersecurity;
Understand the definition of an MSA;
Apply the CFPB's stance on MSAs to real life situations;
Identify a non-compliant MSA according to RESPA and CFPB guidance;
Understand the scope and applicability of New Jersey mortgage laws and rules;
Comply with the requirements for licensees under the applicable laws and rules; and
Protect the public by following the requirements set forth in the rules and laws.

Grading Policy
The course consists of slides mixed with comprehension questions. Each individual quiz
question is timed. If you do not answer the quiz question within the allotted time, the course
will time out. At this point, you will be redirected to your dashboard and upon re-opening the
course, you will be required to repeat the section prior to the quiz question.

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 12 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. You may
retake course quiz questions until you pass, but you are allowed only 10 retakes of the course
final.

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 mailing address is 42 North, 200 East, Ste. 3, American Fork, UT 84003. Our
telephone number is 801-492-9933 and our support email is support@praedo.com.

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 six parts, covering the following subjects: Federal Law, Loan Fraud,
Nontraditional Mortgage, Cybersecurity, RESPA Enforcement, and New Jersey Mortgage Law

NJ Comprehensive SAFE CE 2017 Part 1: Federal Law

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.

Fair Lending Chapter 1: Chapter One reviews Home Mortgage Disclosure Act. It consists of the
following sections:
HMDA Review
New HMDA Rule
Data Points
HMDA Data
Chapter Quiz
Fair Lending Chapter 2: Chapter Two reviews the Fair Housing and Equal Opportunity Acts. It
consists of the following sections:
Why is Fair Lending Important?
Consumer Financial Protection Bureau
Fair Housing Act
Equal Credit Opportunity Act
When you apply for credit
 When deciding to grant credit
When evaluating your income
You also have the right to
If a creditor has discriminated against you
Types of Discrimination
Overt Discrimination
Disparate Treatment
Disparate Impact
Chapter Quiz
Fair Lending Chapter 3: Chapter Three reviews Fair Lending case studies and recent cases. It
consists of the following sections:
Case Study #1
Case Study #2
Case Study #3
Recent Cases
Fair Lending Course Final
Advertising Review: This chapter reviews enforcement actions surrounding reverse mortgages
and advertising. It consists of the following sections:
Advertising Review
Consent Order: American Advisors
Consent Order: Reverse Mortgage Solutions
Consent Order: Aegean Financial
MAP Rule or Regulation N

NJ Comprehensive SAFE CE 2017 Part 2: Ethics and Loan Fraud

Loan Fraud 2017 Chapter 1: Chapter One discusses different types of loan fraud. It consists of
the following sections:
Who Cares?
So What?
Fraud for Housing
Fraud for Profit
Specific Schemes
Air Loan
Appraisal/Valuation
Assets
Employment
 Identity Theft
Income
Non-Arms Length Transaction
Occupancy Fraud
Settlement Agent
Short Sale
Shot-Gunning
Straw Borrower
Undisclosed Debt
Affinity Fraud
Builder Bail-Out
Foreclosure Rescue
Loan Modification Scams
Reverse Mortgage Fraud
Application Fraud Case Study
Chapter Quiz
Loan Fraud 2017 Chapter 2: Chapter Two will review Anti Money Laundering and the Bank
Secrecy Act. It consists of the following sections:
Suspicious Activity Reporting
Anti-Money Laundering Rule
SARs Rule Reporting Requirements
Bank Secrecy Act
Loan Fraud 2017 Chapter 3: Chapter three presents 2016 Loan Fraud Statistics. It consists of
the following sections:
Loan Fraud Statistics
Mortgage Fraud Case Studies
Loan Fraud 2017 Course Final

NJ Comprehensive SAFE CE 2017 Part 3: Nontraditional Lending

Program Puzzle: This course will help loan originators determine which loan programs
borrowers may be eligible for based on their credit, available assets, income level and sources,
and property choice. It consists of the following sections:
Introduction
Overview
First-Level Program Comparisons
Benefit Eligibility Requirements
 Credit Score Minimum
Income Restrictions
Geographic Restrictions
Assets
Minimum Borrower Contribution on Purchase Transaction Using Gift Funds
Seller/Interested Party Contributions Limit
Credit
Judgements Federal Tax Liens Other Liens
Wait Periods After Derogatory Credit Events
Wait Period Charge off of a Mortgage Account
Wait Period Deed-in-Lieu of Foreclosure
Wait Period Foreclosure
Wait Period Chapter 7 Bankruptcy
Wait Period Multiple Bankruptcy Filings
Income
Allowable Gross up % of Non-Taxable Income
Commission Income History of Receipt
Mandatory Deduction of Employee Business Expense (IRS Form 2106) from Commission
Income
Non-Occupant Co-Borrower Income
Rental Income Allowance on Retained Current Primary Residence That will be Vacated
by the Borrower
Liabilities
Property

FHA New Construction Documentation: This course reviews the 3 classifications of new
construction properties and the documentation requirements of each classification based on
structure type and loan-to-value (LTV). It consists of the following sections:
Definitions
General Documents Required for all Structure Types
Form HUD-92541
Form HUD-92544
Wood Infestation Report
Documents to be Provided to Appraiser at Assignment for all Structure Types
Additional Appraisal Report Considerations for New Construction
Sales Comparison Approach: Comparable Selection
Environmental
 Operating Oil of Gas Wells
Special Airport Hazards
Flood Hazard Areas
Individual Water Supply Systems (Wells)
Shared Well
Inspections or Warranties Required for Site Build, Modular and Condominium Properties
Inspections or Warranties Required for Manufactured Housing

NJ Comprehensive SAFE CE 2017 Part 4: Cybersecurity

Cybersecurity: This course reviews cybersecurity best practices for companies and employees.
It consists of the following sections:
This is the Real World
Who is at Risk?
What is at Risk?
Back Up Data Regularly
Education and Training
Vendor Management
Incident Response Plan and Team
Passwords!
Develop and Enforce Policies on Mobile Devices
Involve Executives
Create Policies for working Remotely
No Public Networks!!!
Dont Fall for Scams
Maintain Awareness of Vulnerabilities
Test Your System
Case Study

NJ Comprehensive SAFE CE 2017 Part 5: RESPA Enforcement

RESPA Enforcement Chapter 1: Chapter One reviews cases involving Wells Fargo/Chase and
Lighthouse Title. It consists of the following sections:
Introduction
Wells Fargo/Chase CFPB Settlement
Lighthouse Title CFPB Settlement
Chapter Quiz
RESPA Enforcement Chapter 2: Chapter 2 reviews the CFPB Compliance Bulletin and several
hypothetical examples that apply. It consists of the following sections:
CFPB Compliance Bulletin
Case Study
Chapter Quiz

NJ Comprehensive SAFE CE 2017 Part 6:

New Jersey Mortgage Law Update 2017

NJ Mortgage Law Update 2017 Chapter 1: Chapter One contains an overview of NJ acts and
state code. It consists of the following sections:
Overview of Acts and State code
Definitions and Explanations
Licensing Requirements
License Regulations
Insurance Requirements for Borrowers
Records
Examinations
Permitted Fees
Chapter Quiz

NJ Mortgage Law Update 2017 Chapter 2: Chapter Two covers prohibited practices. It consists
of the following sections:
Prohibited Practices
Prohibited Wording
Prohibited Acts with Secondary Mortgages
Investigations
Applicability
Application Process
Case Study
Chapter Quiz

NJ Comprehensive SAFE CE 2017 Course Final: 25 question final exam covering all of the
material discussed in the course.

Course Evaluation: Students will be allowed to give feedback regarding the course.
Course Schedule
This course consists of the six parts outlined below. The requirements for each part are listed
with the approximate time needed to complete each learning module. 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 twelve 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

Instruction Time
Module Reading Assignments Due
Allocation (Minutes)

NJ Comprehensive SAFE CE 2017 Part 1: Federal Law

Introduction Instructions ROC & Attestation 10

Fair Lending Chapter
HMDA Review Quiz Questions 7
1
Fair Lending Chapter
New HMDA Rule Quiz Questions 7
1
Fair Lending Chapter
Data Points Quiz Questions 4
1
Fair Lending Chapter
HMDA Data Quiz Questions 9
1
Fair Lending Chapter
N/A Chapter Quiz 3
1
Fair Lending Chapter Why is Fair Lending
Quiz Question 4
2 Important?
Fair Lending Chapter Consumer Financial
Quiz Question 2
2 Protection Bureau
Fair Lending Chapter
Fair Housing Act Quiz Questions 10
2
Fair Lending Chapter Equal Credit
Quiz Question 3
2 Opportunity Act
Fair Lending Chapter When you apply for
Quiz Question 3
2 credit
Fair Lending Chapter When deciding to
Quiz Question 2
2 grant credit
Fair Lending Chapter When evaluating your
Quiz Question 2
2 income
Fair Lending Chapter You also have the right
Quiz Question 2
2 to
If a creditor has
Fair Lending Chapter
discriminated against Quiz Question 3
2
you
Fair Lending Chapter Types of
Quiz Question 1
2 Discrimination
Fair Lending Chapter
Overt Discrimination Quiz Question 2
2
Fair Lending Chapter
Disparate Treatment Quiz Questions 10
2
Fair Lending Chapter
Disparate Impact Quiz Question 7
2
Fair Lending Chapter
N/A Chapter Quiz 3
2
Fair Lending Chapter
Case Study #1 Quiz Questions 14
3
Fair Lending Chapter
Case Study #2 Quiz Questions 12
3
Fair Lending Chapter
Case Study #3 Quiz Questions 14
3
Fair Lending Chapter
Recent Cases Quiz Questions 13
3
Fair Lending Chapter
N/A Course Final 5
3
Consent Order:
Advertising Review Quiz Questions 10
American Advisors
Consent Order:
Advertising Review Reverse Mortgage Quiz Questions 5
Solutions
Consent Order:
Advertising Review Quiz Question 3
Aegean Financial
MAP Rule or
Advertising Review Quiz Questions 12
Regulation N
 NJ Comprehensive SAFE CE 2017 Part 2: Ethics and Loan Fraud

Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Loan Fraud Chapter 1 Introduction Quiz Question 5
Loan Fraud Chapter 1 Types of Fraud Quiz Questions 31
Application Fraud Case
Loan Fraud Chapter 1 Quiz Question 7
Study
Loan Fraud Chapter 1 N/A Chapter Quiz 5
Loan Fraud Chapter 2 Loan Fraud Statistics Quiz Question 4
Loan Fraud Chapter 2 Types of Fraud Quiz Question 4
Mortgage Fraud Case
Loan Fraud Chapter 2 Quiz Question 7
Studies
Loan Fraud Chapter 2 SARs Reporting Quiz Questions 14
Anti-Money
Loan Fraud Chapter 2 Quiz Questions 7
Laundering Rule
SARs Rule Reporting
Loan Fraud Chapter 2 Quiz Questions 9
Requirements
Loan Fraud Chapter 2 Bank Secrecy Act (BSA) Quiz Question 3
Loan Fraud Chapter 3 Loan Fraud Statistics Quiz Question 6
Mortgage Fraud Case
Loan Fraud Chapter 3 Quiz Question 7
Studies
Loan Fraud Chapter 3 N/A Course Final 10
 NJ Comprehensive SAFE CE 2017 Part 3: Nontraditional Lending

Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Program Puzzle Introduction Quiz Question 5
Credit Score
Program Puzzle Quiz Question 2
Minimum
Program Puzzle Income Restrictions Quiz Question 1
Geographic
Program Puzzle Quiz Question 1
Restrictions
Program Puzzle Assets Quiz Question 3
Seller/Interested Party
Program Puzzle Quiz Question 4
Contributions Limit
Judgments Federal
Program Puzzle Quiz Question 2
Tax Liens - Other Liens
Wait Periods After
Program Puzzle Derogatory Credit Quiz Question 4
Events
Wait Period Charge
Program Puzzle off of a Mortgage Quiz Question 1
Account
Wait Period Deed-in-
Program Puzzle Quiz Question 2
Lieu of Foreclosure
Wait Period
Program Puzzle Quiz Question 2
Foreclosure
Wait Period Chapter
Program Puzzle Quiz Question 2
7 Bankruptcy
Wait Period Chapter
Program Puzzle Quiz Question 1
13 Bankruptcy
Wait Period Multiple
Program Puzzle Quiz Question 4
Bankruptcy Filings
Program Puzzle Income Quiz Question 1
Allowable Gross Up %
Program Puzzle of Non-Taxable Quiz Question 2
Income
Commission Income
Program Puzzle Quiz Questions 2
History of Receipt
 Mandatory Deduction
Program Puzzle of Employee Business Quiz Question 1
Expense
Non-Occupant Co-
Program Puzzle Quiz Question 2
Borrower Income
Rental Income
Program Puzzle Quiz Question 6
Allowance
Program Puzzle Liabilities Quiz Question 5
Program Puzzle Property Quiz Question 4
FHA New
Construction Scope Quiz Question 3
Documentation
FHA New
Construction Definitions Quiz Question 13
Documentation
FHA New General Documents
Construction Required for all Quiz Question 1
Documentation Structure Types
FHA New
Construction Form HUD 92541 Quiz Question 2
Documentation
FHA New
Construction Form HUD 92544 Quiz Question 2
Documentation
FHA New
Wood Infestation
Construction Quiz Question 7
Report
Documentation
Documents to be
FHA New
Provided to Appraiser
Construction Quiz Question 2
at Assignment for All
Documentation
Structure Types
FHA New Sales Comparison
Construction Approach: Quiz Question 2
Documentation Comparable Selection
FHA New
Special Airport
Construction Quiz Question 1
Hazards
Documentation
FHA New
Construction Flood Hazard Areas Quiz Question 2
Documentation
FHA New
Individual Water
Construction Quiz Question 6
Supply Systems (Wells)
Documentation
 Inspections or
FHA New Warranties Required
Construction for Site Built, Modular, Quiz Question 2
Documentation and Condominium
Properties
Inspections or
FHA New
Warranties Required
Construction Quiz Question 5
for Manufactured
Documentation
Housing

NJ Comprehensive SAFE CE 2017 Part 4: Cybersecurity

Instruction Time
Module Reading Assignments Due
Allocation (Minutes)
Cybersecurity Introduction Quiz Question 1
Cybersecurity This is the Real World Quiz Question 3
Cybersecurity Who is at Risk? Quiz Question 3
Cybersecurity What can you do? Quiz Question 1
Back Up Data
Cybersecurity Quiz Question 1
Regularly
Cybersecurity Education and Training Quiz Question 2
Cybersecurity Vendor Management Quiz Question 1
Incident Response
Cybersecurity Quiz Question 4
Plan and Team
Cybersecurity Passwords! Quiz Question 3
Develop and Enforce
Cybersecurity Policies on Mobile Quiz Question 1
Devices
Cybersecurity Involve Executives Quiz Question 1
Create Policies for
Cybersecurity Quiz Question 1
Working Remotely
NO PUBLIC
Cybersecurity Quiz Question 1
NETWORKS!!!
Cybersecurity Dont Fall for Scams! Quiz Question 2
Maintain Awareness
Cybersecurity Quiz Question 1
of Vulnerabilities
Cybersecurity Test Your System Quiz Question 1
Cybersecurity Conclusion Quiz Question 2
Cybersecurity Case Study Quiz Question 9
 NJ Comprehensive SAFE CE 2017 Part 5: RESPA Enforcement

Instruction Time
Module Reading Assignments Due Allocation
(Minutes)
RESPA Enforcement Introduction
Quiz Question 3
Chapter 1
RESPA Enforcement Wells Fargo/Chase CFPB
Quiz Questions 25
Chapter 1 Settlement
RESPA Enforcement Lighthouse Title CFPB
Quiz Questions 17
Chapter 1 Settlement
RESPA Enforcement
N/A Chapter Quiz 3
Chapter 1
RESPA Enforcement CFPB Compliance Bulletin
Quiz Questions 9
Chapter 2
RESPA Enforcement Case Study
Quiz Question 32
Chapter 2
RESPA Enforcement
N/A Chapter Quiz 3
Chapter 2
RESPA Enforcement Complete Course
N/A 10
Chapter 2 Final
 NJ Comprehensive SAFE CE 2017 Part 6: New Jersey Mortgage Law Update 2017

Instruction Time
Module Reading Assignments Due Allocation
(Minutes)
Overview of Acts and State
Chapter 1 Quiz Question 4
Code
Definitions and
Chapter 1 Quiz Questions 9
Explanations
Chapter 1 Licensing Requirements Quiz Question 4
Chapter 1 License Regulations Quiz Question 3
Insurance Requirements
Chapter 1 Quiz Question 3
for Borrowers
Chapter 1 Records Quiz Question 3
Chapter 1 Examinations Quiz Question 4
Chapter 1 Permitted Fees Quiz Question 4
Chapter 1 N/A Chapter Quiz 3
Chapter 2 Prohibited Practices Quiz Questions 12
Chapter 2 Prohibited Wording Quiz Questions 13
Prohibited Acts with
Chapter 2 Quiz Question 4
Secondary Mortgages
Chapter 2 Investigations Quiz Question 5
Chapter 2 Applicability Quiz Question 3
Chapter 2 Application Process Quiz Question 5
Chapter 2 Case Study Quiz Question 6
Chapter 2 N/A Chapter Quiz 3
12 Hour NJ SAFE CE Comprehensive Final
N/A 20
2017 Course Final Exam
Course Evaluation N/A Student Feedback 5