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INTRODUCTION TO MORTGAGE
LENDING, (c) 2006
Mortgage lending has long been
a foundational product offered by America's banks, and despite the
current upheaval in the mortgage industry, it still is. Banks
have a proud history of prudent lending, extending the benefit of
homeownership to credit-worthy borrowers. Despite the current rise in
defaults and foreclosures on home mortgages, many credit-worthy
borrowers are in the market for mortgages and for refinancing options.
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.
Introduction to Mortgage Lending,
developed by
Andrea Lee Negroni, Esq. and Jeremiah S. Buckley, Esq.
of Buckley Kolar LLP,
is
written for financial service professionals or those who seek to advance
their knowledge and expertise in the various aspects of mortgage
lending. This publication covers construction and permanent financing
for residential property, real estate and mortgage law, appraisals,
financing residential real estate, servicing residential mortgage loans,
the secondary mortgage market, construction lending and land development
lending, and investing in residential real estate. The publication
provides a broad overview of mortgage lending while focusing on salient
points that are necessary for any individual to function successfully in
the mortgage lending business today.
Learning
Objectives: After completing this book, the reader will have
answers to such questions as:
-
Why has mortgage
lending become so important for financial service companies,
particularly commercial bans?
-
What are the legal
aspects of mortgage lending and how should lenders document mortgage
loans?
-
How does a lender
determine if a mortgage loan application should be approved?
-
What is the
secondary mortgage market and how does it affect mortgage lenders?
-
What are the
advantages and disadvantages of residential real estate as an
investment?
and will be able to:
-
Discuss the significance
of homeownership and the contributions the housing sector of the
economy makes to the U.S. economy as a whole and describe the
involvement of commercial banks and other financial institutions in
the real estate lending industry.
-
Describe the most common types of
real property
ownership in the United States and the benefits of each type, and
explain how property is transferred from one owner to another and the
legal implications in the transfer of ownership.
-
Identify
the principle
federal laws that apply to origination of home mortgage loans and how
they are applied, their significance to both the financial institution
and the consumer, and appreciate the new legal developments pertinent
to mortgage lending, such as financial data privacy and electronic
signature laws.
-
Define
"market value" as
the term applies to real estate; explain the cost, market data, and
income capitalization approaches to real estate appraising; explain
how estimates of value derived by the three approaches are reconciled
into a final opinion; discuss the functions and limits of appraisal
reports; describe appraiser qualifications; explain the various parts
of the appraisal report; and explain the distribution and use of the
appraisal report.
-
Describe
the basic procedures
involved in the purchase and sale of residential property; describe
the significance of fair housing regulations; identify the major
residential loan origination laws, including RESPA, ECOA, and TILA;
describe the essential steps of credit underwriting for residential
real estate loans; and discuss the basic procedures for closing a
residential mortgage loan.
-
List
the payment
processing steps within a bank's real estate loan department; describe
the duties of the insurance area in a bank's real estate loan
department; discuss how and why a loan's escrow account is analyzed;
outline the components of an effective real estate loan collection
procedure; summarize various loss mitigation alternatives; and explain
how payoffs and satisfactions are handled.
-
Describe
the process of
structuring and marketing mortgage-backed securities; describe the
organization of the secondary mortgage market, identify its principal
participants, and outline the basic operations of secondary mortgage
marketing; discuss the primary reasons that lending institutions sell
mortgage loans into the secondary mortgage market; and identify and
describe the two primary methods for selling mortgage loans in the
secondary mortgage market.
-
List
and describe the
numerous national, state, and local government initiatives employed to
further housing and home ownership in the United States; identify the
government agencies and government-sponsored agencies that interact to
further home ownership; describe the methods that commercial banks use
to monitor their compliance with the letter and spirit of CRA;
explain how commercial banks can use both private and publicly
sponsored initiatives in their communities to further home ownership
by low-and-moderate income families; and name several methods
commercial banks use to work with community groups to achieve CRA
objectives.
-
Identify
some of the policy
issues involved in a bank's decision whether or not to offer
construction loans; identify the information needed to evaluate an
application for a residential construction loan or land development
financing; describe how lenders process disbursements to fund
construction and development loans; and identify the unique risks and
legal aspects of construction lending.
-
Appreciate
why people invest in
real estate; understand why banks and other lenders loan money on the
security of investment real estate; learn how to evaluate the return
on a potential real estate investment; learn about real estate tax
benefits; understand the importance of management skill and expertise
in owning and operating income-producing real estate; understand the
risks associated with real estate investment and why these risks
prevent some people from investing in real estate; and appreciate the
current national dialogue about the "housing bubble."
Introduction to Mortgage Lending supports the AIB Online
course - Introduction Mortgage Lending and may be used to teach
Introduction to Mortgage Lending
in the classroom.
Recommended Instruction Hours:
15-30-45
Recommended AIB Credit: 1-2-3
Softbound, (c) 2006
Catalog #3003284
$69 members; $95 non-members
Publication Order Form
Instructor's Manual - CD-ROM
Catalog #3003285
$50 members; $65 non-members
For further information,
call NYBA Education at (212) 297-1679. |
