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Course Title
20-Hour SAFE Comprehensive Mortgage Origination Essentials


This course is approved by the Nationwide Mortgage Licensing System (NMLS) to meet the federal mortgage loan originator pre-licensing education requirement and prepare students to take the federal licensing exam component. To become a N.C. licensed mortgage loan originator, MTG 7204 is also required.


Students will be able to

  • Apply the requirements of the SAFE Mortgage Licensing Act and the Nationwide Mortgage Licensing System to all loan files
  • Originate a mortgage loan


I. Introduction/Originator Licensing Requirements per the SAFE    Mortgage Act and the Nationwide Mortgage Licensing System and Registry (NMLS): 30 minutes

  • Registration and Licensing Requirements
  • Pre-Licensing Education
  • Testing and Re-testing
  • Application Process
  • Annual Education Requirements

II.  A Brief History of Mortgage Lending Regulations: 20 minutes

III. Basic Mortgage Lending Terms: 90 minutes

  • Introduction
  • Primary Mortgage Markets
  • Tablefunding
  • Yield Spread Premiums
  • Retail Versus Wholesale Lending
  • Secondary and Capital Markets
  • Service Providers and Industry Partners
  • The Loan Process
  • Diagram: An Overview of the Mortgage Process

IV.      Introduction to Credit: 60 minutes  

  • Introduction
  • Important Federal Legislation Regarding Credit

V.  Traditional and Non-traditional Mortgage Loan Products: 150 minutes.

  • Introduction
  • The Traditional Mortgage Loan Product
  • Non-traditional Mortgage Loan Products
  • Interest Buy Down
  • VA Loans
  • FHA Loans
  • USDA/Rural Housing Loans
  • Conventional Loans
  • Other Loan Types

VI.  Mortgage Math: 150 minutes

  • Introduction
  • Monthly Payments
  • Income
  • Qualifying Ratios
  • Maximum Housing and Debt Allowed (in dollars)
  • Residual Income
  • Loan-To-Value
  • Calculating Funds to Close
  • Discount & Origination Fees
  • Interest
  • Amortization
  • Mortgage Rates, Discount Points, and Break-even
  • Rate Sheets

VII.  Origination and Application Review: 90 minutes

  • Introduction
  • The Application Review
  • Disclosures
  • The Pre-Qualification and Pre-Approval Process
  • Possible Red Flags during the Application Process

VIII.  Loan Processing: 20 minutes

  • Introduction
  • Processor Checklist

IX.  Underwriting: 60 minutes

  • Introduction
  • The Purpose of Underwriting
  • Income
  • Credit
  • Contract and Appraisal
  • Automated Underwriting
  • Risk Layering
  • Underwriting Requirements
  • Underwriting Approval
  • Denied Files

X.  Closing, Post-Closing, and Servicing: 60 minutes

  • Introduction
  • Closing Terms

XI.  Mortgage Fraud and Ethics: 180 minutes

  • Introduction
  • Mortgage Fraud
  • Ethics
  • Fraud Awareness
  • Possible Red Flags for Fraud
  • Brief History of Mortgage Banking Issues from 1999-2008
  • Ethical Issues within the Mortgage Banking Industry

XII.  Federal Laws and Regulations: 240 minutes

  • Introduction
  • Important Regulatory Agencies
  • Important Legislation:  
  • Dodd-Frank Wall Street Reform and Consumer Protection Act
  • The SAFE Mortgage Licensing Act of 2008 (SAFE)                                                
  • Truth in Lending (Regulation Z)                                                       
  • Home Owners Equity Protection Act (HOEPA)      
  • Mortgage Disclosure Improvement Act of 2008 (MDIA)
  • Fair Credit Billing Act (FCBA)
  • Real Estate Settlement Procedures Act (RESPA) 
  • Fair Credit Reporting Act (FCRA)
  • Fair and Accurate Credit Transaction Act (FACTA)
  • Equal Credit Opportunity Act (ECOA)        
  • Fair Housing Act (FHA)        
  • The Housing Financial Discrimination Act of 1977  
  • Home Mortgage Disclosure Act (HMDA)                                        
  • Community Reinvestment Act (CRA)          
  • Privacy Act of 1974 & Computer Matching and Privacy Protection Act of 1988
  • Right to Financial Privacy Act of 1978                    
  • Gramm-Leach-Bliley Act (GLB)                                                       
  • Telemarketing Sales Rule (TSR)                                                        
  • Homeowners’ Protection Act of 1998                                               
  • National Flood Insurance Act of 1968 (NFIA) & The Flood Disaster Protection Act of 1973 (FDPA)                       
  • USA Patriot Act (USPA)
  • The S.AFE Mortgage Licensing Act of 2008 (SAFE)
  • Statement on Subprime Mortgage Lending
  • Interagency Guidance on Nontraditional Mortgage Product Risks

XIII. Course Quiz



Method of Instruction

Lecture and class discussion/exercises


100% attendance required.