TrainingPro: 8 Hour SAFE Comprehensive_ Fairness Awareness in

Mortgage Lending (Course Number: 3180) Online Self-Paced Class Syllabus

Course Dates: Course Description:
This program is self-paced by the student. Thus, does not require a start and end date.

With the creation of the Consumer Financial Protection Bureau and other extensive legislative changes on the horizon, fair lending issues have stepped to the forefront of the mortgage lending profession. Fairness Awareness in Mortgage Lending was developed to assist students in keeping abreast of the ever-changing mortgage regulations, especially those focused on fair lending. Fairness Awareness in Mortgage Lending is NMLS-approved for eight hours of core continuing education, which is the minimum standard for the yearly continuing education requirement set forth in the SAFE Act. Students will examine several federal laws in place to protect consumers, as well as mortgage professionals, including the Equal Credit Opportunity Act, the Fair Housing Act, the Fair Credit Reporting Act, and the Home Mortgage Disclosure Act. Students will also have the opportunity to take a close look at reverse mortgages, which are becoming a more popular option for senior borrowers. Module 1: Fair Lending Compliance Challenges Under the Equal Credit Opportunity Act and the Fair Housing Act (3 Hours): Some of the greatest compliance challenges for mortgage lenders, brokers, and loan originators arise under the Equal Credit Opportunity Act (ECOA) and the Fair Housing Act. ECOAs extensive regulations include many exceptions that can leave the mortgage professional wondering how to comply with the law. Findings of discrimination under the Fair Housing Act may depend as much on the disparate impact theory as on concrete laws and regulations. The following course will help its participants to recognize issues that may indicate fair lending concerns. It will describe facts and circumstances that are leading to a new wave of claims of discrimination in mortgage lending and discuss the most recent rulemaking proceedings under the Fair Housing Act. The course will also review some examples based on real life situations in the form of Discussion Scenarios. Module 2 : Giving Credit Where Credit is Due: A Review of the Fair Credit Reporting Act (2 Hours):

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The Fair Credit Reporting Act (FCRA) is a federal law enacted in 1970 as an amendment to the Consumer Credit Protection Act. Its purpose is to improve accuracy, impartiality, privacy, and fairness in credit reporting by imposing special requirements on consumer reporting agencies, companies that supply information to consumer reporting agencies, and companies that use consumers personal information. Prior to FCRA, credit reports were compiled, and credit scores were determined, largely out of view. Consumers frequently were unaware what their credit score was, why a loan was denied, or why a potential employer or landlord rejected an application. Since the enactment of FCRA and its amendments, the credit reporting process is much more transparent, and consumers have been given rights to view their reports and to act to correct errors. As a result, FCRA has been called one of the two most important consumer credit rights laws in the U.S. (the other one is the Fair Debt Collection Practices Act). The following course material explains how FCRA accomplished this goal and how it regulates credit reporting agencies, users of credit information, and furnishers of credit information. The course will also review some examples based on real life situations in the form of Discussion Scenarios. Module 3: Moving Forward with Reverse Mortgages Part 1 and 2: The mortgage industry has seen massive shifts in direction and legislation in recent years as a result of the unprecedented collapse of the housing and economic markets. While clear cut reasons for the mortgage market collapse continue to be debated, one thing has become certain: the scrutiny of the industrys products and programs has never been tighter, and expanding legislation promises to continue that trend. One mortgage product that has experienced a surge in popularity in recent years has been the reverse mortgage. Module 4: Recognize, Record, Report: The Latest Developments in the Home Mortgage Disclosure Act (1 Hour): Congress enacted the Home Mortgage Disclosure Act (HMDA) in 1975 to discourage creditors from denying loans to qualified applicants because of the applicants race, a practice also known as redlining, and to encourage lending institutions to provide loans to the consumers in their communities. HMDA requires covered lending institutions to submit reports about their mortgage lending activities in order to help citizens and public officials determine whether institutions are serving the housing needs of the communities in which they are located and to assist public officials to determine how to best use public sector investments in order to encourage private sector investment. This course will review the legal and ethical importance of reporting and 2 (v2.0)

disclosure requirements under HMDA. The course includes new standards for entities and individuals as a result of changes mandated by the DoddFrank Act. The course will also review some examples based on real life situations in the form of Discussion Scenarios. Course Materials: Students will be able to view the course online and be able to download the course content in PDF form if necessary. Please note, the option to download the course material in a PDF format will only be available after the module has been successfully completed within the online platform. The student will complete all exercises and quizzes through their personal computer via the internet. Course progress will be monitored by TrainingPro. 75 Minutes

Module 1 Fair Lending Compliance Challenges Under the Equal Credit Opportunity Act and the Fair Housing Act Part 1 Module 1 Part 1 Objectives:

In Fair Lending Compliance Challenges Under the Equal Credit Opportunity Act and the Fair Housing Act Part 1, course participants will review the following information about the Equal Credit Opportunity Act: Discriminatory lending practices that Congress sought to discourage by adopting ECOA The broad scope of ECOA and its implementing regulations, Regulation B The complex division of regulatory and enforcement responsibilities between the Consumer Financial Protection Bureau, the federal banking agencies, the Federal Trade Commission, and the Department of Justice Requirements that creditors must meet when taking applications from credit applicants and prohibited practices during the credit application process, such as discouragement Information that creditors may and may not request about a credit applicants spouse and how certain types of credit transactions determine the scope of these limitations Prohibited considerations that creditors may not use and assumptions that they may not make when evaluating credit applicants Prohibited practices when extending credit Exceptions to ECOA prohibitions when extending credit to underserved consumers through special credit programs Disclosure and notice requirements Incentives that ECOA creates for self-testing to identify and correct

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discriminatory practices The interaction of state and federal laws against discriminatory practices in offering credit to consumers 75 Minutes

Module 1 Fair Lending Compliance Challenges Under the Equal Credit Opportunity Act and the Fair Housing Act Part 2 Module 1 Part 2 Objectives:

In Fair Lending Compliance Challenges Under the Equal Credit Opportunity Act and the Fair Housing Act Part 2, course participants will review the following information about the Equal Credit Opportunity Act: Discriminatory lending practices that Congress sought to discourage by adopting the Fair Housing Act The scope of the Fair Housing Act and the HUD Fair Housing Regulations Exemptions from the Fair Housing Act The regulatory authority of the Department of Housing and Urban Development Investigative and enforcement responsibilities of HUDs Office of Fair Housing and Equal Opportunity Lending and loan purchasing practices that are discriminatory Distinctions between overt discrimination, disparate treatment, and disparate impact HUDs new rules prohibiting discrimination on the basis of sexual orientation and gender identity The use of conciliation agreements to resolve claims of discrimination The challenge of addressing an increase in allegations of discrimination practiced against pregnant loan applicants and loan applicants on maternity leave Penalty provisions of the Fair Housing Act HUDs proposed discriminatory effects rule 50 Minutes

Module 2 Giving Credit Where Credit is Due: A Review of the Fair Credit Reporting Act Part 1 Module 2 Part 1 Objectives:

In Module 2 Giving Credit Where Credit is Due: A Review of the Fair Credit Reporting Act Part 1 participants will: Review provisions of FCRA, including definitions, exclusions, and required and prohibited practices Explore the rights of consumers under FCRA and the duties owed to

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consumers by creditors Gain an understanding of compliance concerns as well as violations of FCRA 50 Minutes

Module 2 Giving Credit Where Credit is Due: A Review of the Fair Credit Reporting Act Part 2 Module 2 Part 2 Objectives:

In Module 2 Giving Credit Where Credit is Due: A Review of the Fair Credit Reporting Act Part 2 participants will: Learn the obligations that FCRA places on users of information provided by consumer reporting agencies, including the rules that apply when those entities use that information to take actions that are adverse to the consumer Learn the compliance obligations that FCRA places on suppliers of information to consumer reporting agencies to ensure that the information that they provide is accurate Review the penalties that apply to FCRA violations 50 Minutes

Module 3 Moving Forward with Reverse Mortgages Part 1 Module 3 Part 1 Objectives:

In Module 3 Moving Forward with Reverse Mortgages Part 1 participants will: Discuss what a reverse mortgage is Determine what oversight and regulatory provisions and authority apply to certain products Define terms often used in the reverse mortgage industry Learn who is eligible to obtain a reverse mortgage Learn what general provisions cover most reverse mortgage products Gain a general understanding of the several varieties and uses of the reverse mortgage Explore reasons why the reverse mortgage has gained a broader popularity 50 Minutes

Module 3 Moving Forward with Reverse Mortgages Part 2 Module 3 Part 2 Objectives:

In Module 3 Moving Forward with Reverse Mortgages Part 1 participants will: Gain a more detailed understanding of the HECM Learn what the benefits of the HECM are for both the lender and borrower

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Learn how loan amounts are determined Look at both the upfront and long term costs of the HECM Gain a general understanding of the several types of HECM loans Examine the steps in the reverse mortgage process Take a more detailed look into the counseling requirements Examine the future of the market for reverse mortgages and discuss the lenders entering (and leaving) the market 25 Minutes

Module 4 Recognize, Record, Report: The Latest Developments in the Home Mortgage Disclosure Act Part 1 Module 4 Part 1 Objectives:

In Module 4 Recognize, Record, Report: The Latest Developments in the Home Mortgage Disclosure Act Part 1 participants will: Explore an overview of the Home Mortgage Disclosure Act, including definitions and who is regulated by the law Take a look at the oversight agencies charged with enforcing compliance with the Home Mortgage Disclosure Act Review institutions and loans subject to the Home Mortgage Disclosure Act 25 Minutes

Module 4 Recognize, Record, Report: The Latest Developments in the Home Mortgage Disclosure Act Part 2 Module 4 Part 2 Objectives:

In Module 4 Recognize, Record, Report: The Latest Developments in the Home Mortgage Disclosure Act Part 2 participants will: Review recordkeeping and reporting requirements of the Home Mortgage Disclosure Act Review new reporting requirements mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act (pending the revision of Regulation C by the Consumer Financial Protection Bureau) Take a look at disclosures required under the law Examine penalties for violation of the Home Mortgage Disclosure Act Review what to expect during a HMDA compliance examination

Course Activities:

Students will review all course material online. The content can be found on the students TrainingPro personal profile. In-Course Activities: Throughout the duration of the course, students will be presented with Test Your Knowledge pop-up questions within each module. Students must

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answer these questions correctly before they can proceed to the next page. Modular Quizzes: Students must pass, with no less than a 70%, a 5-question quiz at the end of EACH Module. Students are required to successfully pass EACH quiz before they can proceed to the final exam. Final Examination: After the student has reviewed the entire course, and met all other course requirements, they must complete a final exam consisting of twenty five (25) questions. The student must pass the exam at a rate of 70% in order to complete the course. Attendance: Students will be required to answer one identity verification question, to assure their identity, each time they log into their online course. This may include a question regarding their last four digits of their social security number, NMLS unique identifier number, family members, street names, etc. Students must choose and answer the question prior to entering the course for the first time. This is a timed course. Students must spend no less than four hundred (400) minutes within this course before it can be marked as complete. Students are required to spend no less than fifteen (15) seconds on each page of instruction. Students will not be permitted to move forward to the next page before this timing requirement is met. Students will be logged out of their course if there is no detected activity after six (6) minutes. Attendance will be monitored and verified by TrainingPro. Student Behavior: Students are expected to conduct themselves in a professional manner while taking the online course. Students are expected to conduct themselves in accordance TrainingPros policies. If a student violates the law (i.e.; illegal drug or alcohol use, smoking in a non-smoking facility, assault, battery, etc) the proper authorities will be notified and prompt action will be taken in accordance with the nature of the violation. Students who violate TrainingPro student conduct policies are subject to disciplinary actions up to and including dismissal from the program. Students are required by law to attend and complete the online self-paced course. If the student is found to have another individual completing the course, or is in violation of any rules assigned upon the course, the student will forfeit their right to complete the course and will subsequently permanently locked out of the course, making them unable to complete the course.

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If a student is dismissed from the program, they may be allowed to return to the program pending the outcome of a meeting with the Education Director. Any time that has been missed of the program, the student must make up. End of Course Completion Requirements: Contacts: Students must successfully complete all course exercises, as well as pass a twenty five (25) question final examination with a 70% or higher. The course cannot be completed if the student has not met the timing, exercise and examination requirements Course Instructor: instructor@trainingpro.com (410) 628-1060 Customer Service and Technical Support: support@trainingpro.com (877) 878-3600

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