20 Hour Mortgage Loan Originator Hawaii Comprehensive Course

Course Syllabus - 10 Day

Aloha, welcome to our Hawaii 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 20 hour SAFE education requirement for mortgage originator

licensure for the state of Hawaii.

Course Description

Along with the 17 hours of SAFE required education, this course includes 3 hours of Hawaii Law

as well as information related to loan qualification and the loan process. This course satisfies

the Hawaii 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 Wednesday's at 8:00am Mountain Time and must be completed by

midnight on the session end date. Please note: In this session, you will be required to

complete course work and assignments over the weekend.

Please pay close attention to the course schedule found on the slide following this syllabus.

You are required by NMLS to complete assignments and progress through the course with the

other students in your session. If you do not submit your assignments by the required time

and fall behind in the course, you will automatically fail the course. At that point, you may

choose a different session date and re-start the course from the beginning.

NMLS has made it quite clear that courses must be completed in a timely manner. Please

consider the following from Functional Specifications for all NMLS Approved Courses: Version

6.

"Note: The availability of Online Instructor-Led courses is intended to ensure an option exists

for individuals where attending a classroom course may be problematic due to geography or

lack of availability of a local course provider. The scheduling of these courses is not intended to

be a “convenience” option whereby a student can causally work at their own pace or when their

schedule allows. Students taking these courses are required to allocate personal/professional

time and put forth the same level of effort as would be required to complete a classroom or

classroom equivalent course. During the time period in which the course is being offered,

instructors are required to hold students accountable for attendance and work, and must be

responsive to student’s assignments and questions just as they would be in a physical

classroom. "

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. Once your course session opens, you will be able to contact your

instructor via the "Contact Instructor" button on your home page.

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;

Understand the scope and applicability of Hawaii mortgage laws;

Comply with the requirements for licensees under the applicable laws and rules; and

Protect the public by following the requirements set forth in the laws and rules.

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.

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 also 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 four parts. At the end of each part, you will be required to submit an

assignment to your instructor. You must submit your assignment to your instructor by

midnight MT on the day the assignment is due. If you fail to submit your assignment by this

time, you will fail the course and be required to reschedule your course and start from the

beginning.

Your instructor will grade your assignment by 10am MT the following day. Once your

assignment has been graded and passed, your instructor will allow you access to the next part

of your course. Assignments will ONLY be graded between midnight on the submission date

and 10am MT the following day to ensure that all students progress through the course as a

cohort.

If your assignment is rejected by your instructor, you will need to re-do and re-submit the

assignment. Once the assignment has been re-submitted, you will also need to email

support@praedo.com to inform us of the re-submission. Your instructor will grade it in a timely

manner and if you pass, you will be allowed to continue with the course. Please be sure to

check your course email for your instructor's approval.

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 student’s 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 and email 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 four parts, each covering different aspects of the Secure and Fair

Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).

SAFE Part One: Consumer Protection

SAFE 20 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.

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.

This assignment must be completed and submitted by midnight MT on the date indicated in

the course schedule.

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 RESPA’s 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 RESPA’s 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.

This assignment must be completed and submitted by midnight MT on the date indicated in

the course schedule.

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.

This assignment must be completed and submitted by midnight MT on the date indicated in

the course schedule.

SAFE Part Four: Loan Process Part II & Hawaii Law

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.

HI Mortgage Law Chapter 1: Chapter One includes an overview of Acts and state code as well

as definitions and explanations. It consists of the following sections:

Regulatory Authority

Department/Agency Structure

Responsibilities

Definitions and Explanations

Loan Originator Licensing

Exemptions

Case Study

HI Mortgage Law Chapter 2: Chapter Two covers loan originator licensing. It consists of the

following sections:

Licensee Qualifications and Application Process

Financial Responsibility/Mortgage Loan Recovery Fund

Background Check and Fingerprints

Pre-licensing Education and Experience

Testing and Retesting

Sponsorship/Control

Grounds for Denying a License

Case Study

License Maintenance

Record Keeping

HI Mortgage Law Chapter 3: Chapter Three covers compliance and disciplinary actions and

unique Hawaii test areas. It consists of the following sections:

Compliance

Fees and Charges

Disclosures and Agreements

Advertising

Case Study

Disciplinary Action

Notifications, Hearings, and Appeals

Suspension, Revocation, and Rescission of Licenses

Civil and Criminal Liability

Regular System and Land Court System

Principal Place of Business

Condos

HI Mortgage Definitions Learning Activity: The student will review terms in the Secure and Fair

Enforcement for Mortgage Licensing Act. They will follow instructions to make a post

explaining terms and answer questions regarding the terms. They will also comment on

another student’s post.

HI Licensing Case Study: The student will use information they have learned in the first part of

the course to distinguish between qualified and unqualified licensing candidates.

This assignment must be completed and submitted by midnight MT on the date indicated in

the course schedule.

Course Final: The student is required to take and pass a 25 question comprehensive final exam

with a score of 80% or higher. You have 10 attempts to pass the exam.

Course Evaluation: Students will be allowed to give feedback regarding the course.

The course final and evaluation must be completed and submitted by midnight MT on the

date indicated in the course schedule.

Course Schedule

This course consists of the four parts outlined above. The requirements for each part are listed

in the course schedule with the time allowed to complete each learning module. You must

follow this schedule and progress through the course with the other students in your session

in order to receive credit for the course. Per NMLS regulations, if you do not complete the

course as outlined in the course schedule, you will automatically fail the course. At that

point, you may choose a different session date and re-start the course from the beginning.

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 20 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!