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What is the best learning format for NMLS training?

Oct 23


There are many things to consider when choosing your PreLicensing or Continuing
Education provider. Whether you’re a seasoned mortgage professional or just
getting started, content and delivery are just two factors to think about. If you don’t
want your hours to be a waste of time, then you need to do your research.

Technology in the 21st century allows you to choose not only when and where, but
how, you take your required mortgage education. Before deciding on a course, you
should ask yourself what environment best fits your needs?

Not all mortgage education providers are created equal. In order to be NMLS
approved, a course provider must offer material on Federal Laws and Regulations,
General Mortgage Knowledge, Loan Originator Activities, and Ethics. However, how
that material is delivered, and the environment it’s delivered in, can affect your
retention and ultimately, your mortgage career.

Today, many loan officers think that a self-study online course is the best answer.
It’s flexible and you can do the work according to your own schedule. However,
not everyone retains the information they’ve been exposed to in an online setting.
Others find great value in live courses. Here you can interact with the instructor,
at the same time learn from the questions and comments by the other participants.
These also have a social benefit. If you are looking to hang your license with a
broker or lender, or perhaps you’re looking to hire loan officers, what better place
to look than at a live class? There you can observe the interaction, personality and
professionalism of others, and perhaps find the new hire, or new employer, you’re
looking for. Another venue is that of webinars. This too, is an online format, yet with
live human instruction. For some, this is the best of both worlds. It’s online, so you
can do it from your home or office, yet with a live instructor to deliver the content
and interact with.

Each venue has it’s own benefits and drawbacks. When studying on your own you
must read the material, process and retain it and hope you understand it properly.
On the positive side, you have the flexibility to fit it into your schedule so you don’t
have to take time out of the office. Live classes have the burden of finding the day
and time to be out of the office and away from your files, employees or clients, but
many get more out of the live class environment because of the participation and
interaction. With webinars, there’s the benefit of doing it from your computer and
have a live instructor to ask questions and run scenarios. On the downside, you must
find the uninterrupted time to be present and participate in order to receive credit.

One last thing to consider when looking at your mortgage education is the actual
material presented. Some providers only offer the bare minimum requirements.
Others give information with a more of a finance or real estate focus. While
others realize that you are a residential mortgage loan originator and focus on the
specialized mortgage content that you need to do your job best. Don’t be afraid to
call ahead and ask about the material and delivery of the class you’re considering.

Ultimately you, the Loan Officer, are responsible for knowing the laws and
regulations in your industry, therefore, it’s up to you to choose the format, venue
and content that you will give you the most benefit. Mortgage education is not one size
fits all. Review your options, do your research and choose the one that best fits your
needs. At, we want you as one of our successful graduates!

Sharmen Roos - Sr. Instructor

Homeowners Protection Act (HPA)

Sep 18

There are many laws to be aware of in the mortgage business, most of which
require the Loan Officer or Lender to take action. Rarely are there laws that allow
the borrower to take action and get direct benefit. That is what the Homeowners
Protection Act is for.

The Homeowners Protection Act is all about private mortgage insurance and when
it can, and when it will, be removed. It’s important to remember that PMI and the
Homeowners Protection Act do not apply to government loans like FHA, VA or USDA
loans or loans with no PMI.

For conventional loans, PMI applies when the LTV is over 80%. The Homeowners
Protection Act says that mortgage insurance cannot remain on loan for the duration.
Once a borrower’s principal balance reaches 80% of the original value the borrower
can request that the PMI be removed. Most of the time lenders will use the original
appraised value of the property, however, they can use the current value if it has
gone down or if the borrower pays for the appraisal and did improvements to justify
an increase in value. When requesting PMI removal at 80% the lender can say
no but when the LTV reaches 78% of the original value the PMI is required to be
automatically be removed.

Lenders are required to notify the borrower of the details of their PMI at closing,
when the LTV reaches 80% and if the PMI has not yet been removed, when the LTV
reaches 78%. This way the borrower doesn’t “forget” about their PMI and can have
their monthly mortgage payment reduced when their loan to value qualifies.

Remember, when you are working with your borrowers who are required to have
PMI, let them know about Homeowners Protection Act. You will be one of the few
loan officers who know the details of the law and how it can help save them money

Knowing the laws of the mortgage industry is not only required under the NMLS in
order to become a licensed Loan Officer, it also helps you provide a better service to
your clients. Mortgage professionals who know about the laws and regulations in
their industry tend to have more repeat clients and referrals. Therefore, there’s no
better time than the present to get more familiar with the laws and regulations that
affect your clients most.

First Post

Feb 26

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