The Mortgage Origination Calculations course is designed to enhance examiners’ skills when reviewing mortgage loan disclosures for compliance with the Truth in Lending Act (TILA). The course will teach mortgage origination fundamentals of varying complexity using both the HP12-C financial calculator and FFIEC’s online annual percentage rate (APR) computational tool.
The school provides practical instruction for reviewing mortgage loan calculations using “real-world” examples. The course is an interactive, iterative course wherein each lesson builds upon previous lessons. Instructional methods include lecture followed by application through learning exercises using sample loan documents and disclosures.
Content is designed for examiners with existing foundational skills and knowledge.
The length is three and a half days.
| At-a-Glance | |
|---|---|
| Length | 3 ½ days |
| Delivery | In-Person |
| Prerequisite/Pre-course | No |
| Continuing Education | No |
Objectives
Upon completion, participants should be able to:
- Apply the concepts, terms, and calculations learned in this course, as well as verify the accuracy of calculations and disclosures of mortgage loans with the following characteristics:
- Fixed Rate
- Adjustable-Rate Mortgages
- Construction Only / Construction Permanent
- Balloon Loans
- Loans with PMI
- FHA and VA Loans
- Interest in Advance / Interest in Arrears
- Odd Days Interest
- Bi-Weekly Payments
- Describe and calculate the impact that finance charges, such as origination fees, points, mortgage insurance premiums, and other charges have on the APR for fixed and adjustable-rate mortgages.
- Apply the concepts and terms by imputing information into the FFIEC’s APR computational tool to verify the accuracy of APR and Finance Charge disclosures on various types of mortgage loan products.
- Apply concepts relating to violations of Regulation Z, and understated APR and finance charge calculations.
Target Audience
The course is generally directed at consumer compliance examiners with existing foundational skills and skills or consumer compliance specialists. Participants should regularly examine mortgage loan files for compliance with the Homeowners Protection Act and the Truth in Lending Act as they pertain to Mortgage Originations.
Requirements
Participants must bring to class a laptop as well as an HP12-C calculator or a mobile device with the HP12-C app installed.