Real Estate Finance & Lending Practices

Mortgage finance from qualification through closing. Loan types, TRID disclosures, qualification standards, and fraud prevention.

8 Units

20 minutes per unit

Curriculum Map

What You Will Learn

Loan Types

Conventional, FHA, VA, USDA — eligibility, down payments, and when to recommend each.

TRID Compliance

Loan Estimate, Closing Disclosure, and the timing rules that trip up transactions.

Fraud Prevention

Mortgage fraud schemes, wire fraud, and the agent's role in prevention.

All Units

20 minutes

Conventional Mortgage Loans and Underwriting

This unit examines conventional mortgage loans, including conforming and non-conforming products, the role of government-sponsored enterprises in the secondary market, underwriting standards for creditworthiness and capacity, private mortgage insurance requirements, and qualification guidelines that real estate professionals should understand to advise clients effectively.

•Identify the characteristics that distinguish conventional loans from government-insured mortgages
•Explain conforming loan limits and the role of Fannie Mae and Freddie Mac in the secondary market
•Analyze underwriting standards including debt-to-income ratios, credit scores, and down payment requirements

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20 minutes

Government-Backed Loans: FHA, VA & USDA

This unit examines government-backed mortgage programs including FHA, VA, and USDA loans, focusing on eligibility requirements, underwriting standards, property requirements, and the advantages and limitations of each program for borrowers and real estate professionals.

•Distinguish between FHA, VA, and USDA loan programs and eligibility requirements
•Evaluate borrower qualification standards for government-backed loans
•Identify property requirements and appraisal standards for each program

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20 minutes

Qualification Standards: DTI, LTV & Credit

This unit examines the fundamental qualification standards used in residential mortgage underwriting, focusing on debt-to-income ratios, loan-to-value requirements, credit score thresholds, and the interaction of these factors in determining borrower eligibility and loan terms.

•Calculate debt-to-income ratios and apply standard qualifying ratios
•Evaluate loan-to-value requirements and their impact on mortgage terms
•Analyze credit score requirements and compensating factors in underwriting

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20 minutes

TRID Disclosure Requirements

This unit examines the TILA-RESPA Integrated Disclosure (TRID) rule requirements governing residential mortgage disclosures, focusing on Loan Estimate and Closing Disclosure timing, tolerance limitations on fee increases, and compliance obligations affecting lenders and settlement service providers.

•Identify the timing requirements for Loan Estimate and Closing Disclosure delivery
•Evaluate circumstances requiring revised disclosures and reset waiting periods
•Distinguish between types of fees subject to tolerance limitations

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20 minutes

Truth in Lending Act & RESPA

This unit examines the Truth in Lending Act and Real Estate Settlement Procedures Act, focusing on disclosure requirements, Annual Percentage Rate calculations, prohibited kickback and referral fee practices, and consumer rescission rights that govern residential mortgage transactions.

•Identify Truth in Lending Act disclosure requirements and APR calculation methods
•Evaluate RESPA prohibited practices including kickbacks and unearned fees
•Apply right of rescission rules for refinance and home equity transactions

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20 minutes

Predatory Lending & Ability-to-Repay Rules

This unit examines predatory lending practices, federal regulations protecting consumers from abusive lending, ability-to-repay requirements under TILA, and special protections for high-cost mortgages under the Home Ownership and Equity Protection Act.

•Identify predatory lending practices and characteristics of abusive loans
•Evaluate ability-to-repay requirements and qualified mortgage safe harbors
•Analyze high-cost mortgage restrictions under HOEPA

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20 minutes

Mortgage Fraud Recognition & Reporting

This unit examines mortgage fraud schemes, recognition of suspicious activities, legal consequences for participants, and reporting obligations for real estate professionals to protect clients, prevent personal liability, and support law enforcement efforts against mortgage-related crimes.

•Identify common mortgage fraud schemes and red flag indicators
•Distinguish between fraud for property and fraud for profit schemes
•Evaluate reporting obligations and protective practices for real estate professionals

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20 minutes

Secondary Mortgage Market & Alternative Financing

This unit examines the secondary mortgage market's structure and function, the role of government-sponsored enterprises in providing market liquidity, conforming loan standards, and alternative financing arrangements including seller financing, lease-options, and hard money loans.

•Explain the role of Fannie Mae and Freddie Mac in the secondary mortgage market
•Evaluate conforming versus non-conforming loan characteristics and requirements
•Identify alternative financing options including seller financing and lease-options

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