Introduction to Mortgage Lending
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AIB Course Code: 7820
Course Length: 16 weeks
Course Description:
Mortgage lending by America's banks is one of the greatest success stories in the history of financial services. Particularly in the area of home mortgage lending, the creativity of our country's financial services sector has delivered enormous benefits to the average American. As a result, our county has a homeownership rate among the highest in the world. And our banking industry, in the course of providing credit to homeowners, has created jobs for thousands of loan officers, underwriters, loan processors, and loan servicing professionals. Both banks and their customers have benefited greatly from the innovation and growth in the mortgage lending sector.
Audience:
Financial service professionals who want a broad overview of mortgage lending including those who intend to pursue a career in mortgage lending (business development, underwriting, processing) and those individuals who recently joined a mortgage lending department.
Learning Objectives:
After completing this course, the reader will be able to:
- Discuss the involvement of commercial banks and other financial institutions in the real estate industry
- Explain how property is transferred from one owner to another and the legal implications of transfer of property
- Identify the principle federal laws that apply to origination of home mortgage loans
- Explain the cost approach, market data approach, and income capitalization approach to real estate lending
- Describe the basic procedures involved in purchasing and selling residential property
- Understand the various functions and responsibilities of the loan servicing department
- Describe the organization, principal participants, and basic operations of the secondary mortgage market
- Identify government agencies and government-sponsored agencies that interact to further home ownership
- Explain why banks loan money on the security of income-producing property
Textbook: Introduction to Mortgage Lending, 2nd edition, 2006, ABA
Topics:
- The Business of Mortgage Lending
- Introduction to Real Estate and Mortgage Law
- The Law of Residential Real Estate Lending
- Determining Property Values
- Financing Residential Real Estate
- Servicing Residential Mortgage Loans
- The Secondary Mortgage Market
- Government Involvement in Mortgage Lending
- Construction Lending and Land Development Lending
- Investing in Residential Real Estate
Course Credits: AIB: 3.0; ICB: 45
ACE College Credit Recommendation:
In the lower division baccalaureate/associate degree category, 3 semester hours in Mortgage Lending or Finance
Prerequisites: None
Required Software:
Microsoft Internet Explorer Browser 6.0 or higher or Netscape Browser 6.2 or higher; Microsoft Excel
