After completing this course, you will be able to:

Transcription

1 ONLINE COURSE SYLLABUS 1 Hour AZ SAFE: Law in Action Course Description and Purpose This course satisfies the annual 1 hour state-specific continuing education for mortgage loan originators set forth by the SAFE Act (Secure and Fair Enforcement Mortgage Licensing Act of 2008). The course reviews key Arizona state laws and includes review topics on required actions, prohibited acts, short sales and mortgage fraud in Arizona. This course also includes interactive exercises and case studies to apply your knowledge of Arizona laws. Course Learning Objectives After completing this course, you will be able to: Identify key Arizona law including Arizona Administrative Code, Article 13 and section(s) of the Arizona Revised Statutes (ARS) that apply to mortgage loan originators. Recognize situations that require a mortgage loan originator license. Describe how compensation is defined under Arizona law. Describe loan requirements for mortgage brokers, mortgage bankers, mortgage loan originators, and consumer lenders. Discuss employment requirements for mortgage originator licensees under Arizona law. Discuss rules and guidelines related to dual roles and dual licensure of loan originators and real estate agents/brokers. Identify the acts that Arizona law prohibits mortgage loan originators from undertaking. Identify licensing and employment requirements for mortgage loan originators, including exemption. Describe the requirements for advertising a loan originator s services. Discuss rules for handling compensation, fees, and disbursement of monies. Recognize illegal or improper business practices. Explain the relationship of loan modification to short sale under Arizona law. Discuss the issue of scope and compensation related to real estate and loan origination services. Identify Arizona ranks in relation to mortgage fraud. List the types of mortgage fraud that are prevalent. Course Materials and Expectations The core instructional text and assessments for this course are the online modules. A Student Workbook is provided as a printable.pdf document. Page 1 of 8

2 Active participation is required in this course. Students are expected to be actively engaged with the online material and follow the directions for completing all offline Student Workbook activities as assigned. Course Completion Before your completion status can be transmitted to the Nationwide Mortgage Licensing System & Registry (NMLS), you are required to: Spend the minimum required amount of time in the course. Complete all the required activities. Pass the module quizzes with a score of 70%. Pass the course final exam with a score of 70%. Course Availability System Requirements Your course will be available for six months from the date you purchased it, or December 31, whichever comes first. System Requirements and Support Although you may use the minimal requirements shown below, we recommend using a faster system and faster internet connection. Some courses may take time to download on 56k modem. If your computer is not up to par, the local library should have on-site computers available and connected to the internet free of charge. Operating System: Windows XP, 2000, or higher Resolution: 800 x 600 (1024 x 768 recommended) Color Quality: High Color (16 bit) or True Color (32 bit). Note: On Windows XP, these settings are called Medium (16 bit) and Highest (32 bit). Sound card (required for courses that include audio/video. If you do not have a sound card, transcripts are available) Browser Requirements Internet Explorer Version 6 or higher Cookies Enabled or set to Medium Disable Pop-up blockers Flash Player Plug-in, available as a free download from Connection Speed Page 2 of 8

3 Course Evaluation Course Contributor 56 kbps Modem (high speed connection recommended) Additional Software Acrobat Reader (or any.pdf reader), available as a free download from Technical Support If you have technical support questions or content-related questions, Technical Support Associates are available to assist you by calling toll-free: during these times: Monday-Friday, 9:00 am - 7:00 pm ET Saturday, 10:00 am - 3:00 pm ET Closed Sunday and major holidays *Please note you may not be able to access your courses on Saturdays from 3:00am - 5:00am EST. This regular maintenance will allow us to better serve you. At the conclusion of the course, you will be asked to complete a Course Evaluation. If you do not complete all of the requirements, including the course evaluation, you will not get credit for this course and no results will be communicated to NMLS. Hondros Learning thanks the following experts for their valuable contributions and assistance in developing this workbook: Jim Hogan, DREI Page 3 of 8

4 Course Outline Course Introduction Estimated Time NA Topics Course Introduction Module 1: Arizona Key Law and Prohibited Acts Estimated Time 20 minutes Module Topics Unit 1 Arizona Key Law and Definitions Page 4 of 8 Unit 2 Prohibited Acts and Key Concepts Review and Module Quiz ACTIVITY Pre-Test Student Workbook Activity Unit 1 Topics Arizona Key Law and Definitions Key Law Arizona Administrative Code (AAC) Arizona Revised Statutes Key Definition: Mortgage Loan Originator Who Must Be Licensed? Key Concept: Sponsorship Case Study: Heather s Dilemma Key Concept: Compensation Key Concept: Anything of Value Issue: Compensation in Dual Roles Dual Role: Loan Originators Dual Role: Real Estate Licensee Key Concept: Dual Role Dual Role: Compensation Guidelines Dual Licensure Case Study: John s Actions ACTIVITIES Matching Activity Apply Your Knowledge Activity Case Study: Heather s Dilemma

5 Unit 2 Topics Prohibited Acts and Key Concepts Activities End of Module ACTIVITIES Case Study: John s Actions Quick Check Activities Key Law: Prohibited Acts (ARS ) Accepting Fees Directly Employment Requirements Unlicensed Origination Activities Advertising Loan Requirements: Mortgage Loan Originators Loan Requirements: Mortgage Brokers Loan Requirements: Mortgage Bankers Loan Requirements: Consumer Lenders Exemption of Real Estate Agents Key Concept: Exemption Compensation Guidelines Case Study: Sara s Actions Assignment of Wages/Salary Disbursing Monies Illegal or Improper Business Practices Property Insurance Requirements Advertising Guidelines Examination of Books and Records Improper Practices Misuse of Balloon Payments Use of Private Party Investors Agency Issues Case Study: Ed s Actions Quick Check Activities Case Study: Sara s Actions Apply Your Knowledge Activity Discussion Questions Case Study: Ed s Actions Matching Exercise Activity Module Review Checklist Page 5 of 8

6 Module Quiz 5 multiple-choice questions presented in random order from bank of 10 questions,70% required passing score; unlimited retakes Module 2: Short Sales and Mortgage Fraud in Arizona Estimated Time 25 minutes Module Topics Unit 1 Short Sales and Loan Modifications in Arizona Page 6 of 8 Unit 2 Mortgage Fraud in Arizona Review and Module Quiz ACTIVITY Pre-Test Student Workbook Activity Unit 1 Topics Short Sales and Loan Modifications in Arizona What is a Short Sale? Key Definition: Short Sales Key Definition: Loan Modification Key Law Loan Modifications and Short Sales Key Question Re: Short Sales Negotiator Regulations Key Law: Issue of Scope Key Law: Issue of Compensation Fees Considered Compensation Key Concept: Compensation Key Concept: Licensing When a Loan Originator License is Required Think About It Type of Services Being Performed Key Concept: Unlicensed Activity Cooperative Opportunities Think About It Duty to Review All Options Alternatives to Short Sales Beware of Short Sale Scams Types of Short Sale Scams Predatory Short Sale Negotiators

7 Arm s Length Transaction Safeguarding Against Fraud ACTIVITIES Read and Discuss Activity Unit 2 Topics Mortgage Fraud in Arizona Think About It Activities Apply Your Knowledge Activity Quick Check Activities Apply Your Knowledge Activities Matching Activities What is Mortgage Fraud? Mortgage Fraud in Arizona Federal Bureau of Investigation (FBI) FBI Mortgage Fraud Report Top Ten Mortgage Fraud States Short Sale, Foreclosure Rescue, and REO Fraud for Profit Loan Origination Fraud Types of Loan Origination Fraud Characteristics of Fraud for Profit Types of Fraud for Profit Schemes Industry Insiders Who Is Committing Mortgage Fraud? About Collusion Fraud for Property Fraud for Property Schemes Fraud in Arizona: Headline Cases Case Study Activity 2.2 Case Study Activity 2.3 Case Study Activity 2.4 Case Study Activity 2.5 Final Thoughts ACTIVITIES Mortgage Fraud Schemes Matching Exercise Quick Check Activities Reference Based- Case Study Activity 2.2 Page 7 of 8

8 End of Module ACTIVITIES Reference Based- Case Study Activity 2.3 Reference Based- Case Study Activity 2.4 Reference Based- Case Study Activity 2.5 Module Review Checklist Key Terms Review Module Quiz 5 multiple-choice questions presented in random order from bank of 10 questions; 70% required passing score; unlimited retakes Final Exam and Course Evaluation Estimated Time 5 minutes Final Exam Comprehensive 15 multiple-choice questions; passing score presented in random order from bank of 30 questions; 70% required passing score. Retakes Unlimited Survey Complete a course evaluation Page 8 of 8