Oregon Bankers Association - Independent Community Banks of Oregon

Introduction to Mortgage Lending

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AIB Course Code: 7820

Course Length: 16 weeks

Course Description:
Mortgage lending is a staple product and chief opportunity for banks. And 28% of bankers recently polled in the Financial Services Executive Forum named mortgages as the best opportunity - more than any other product line. Banks have a proud history of prudent lending, extending the benefit of homeownership to credit-worthy borrowers. Many creditworthy borrowers are in the market for mortgages and for refinancing options and mortgage lending can fill a hole created by a pullback from construction and development loans. Because of the renewed demand, and because of their record as responsible lenders, banks and thrifts have an opportunity to gain more market share in the mortgage lending sector as the American economy improves. AIB's course Introduction to Mortgage Lending provides loan officers, underwriters, loan processors, and loan servicing professionals the solid background they need to help their customers borrow responsibly, which benefits the customers, the bank, the banking industry, and the nation's economy.

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
  • Describe ways to detect and prevent fraud

Textbook: An electronic copy of Introduction to Mortgage Lending,3rd Edition is provided to students in the course.

Course Credits: AIB: 3.0

ACE College Credit Recommendation:
In the lower division baccalaureate/associate degree category, 3 semester hours in Mortgage Lending or Finance

Prerequisites: None

Required Software:
Adobe Acrobat Reader; Microsoft Internet Explorer Browser 7.0 or Mozilla Firefox 2.0 or higher