This course is Department of Real Estate (DRE) accredited for 4 hours of Continuing Education (CE) in Consumer Protection. DRE Sponsor No. 0001
Course Description:
"This course was developed in collaboration with CitiMortgage and Freddie Mac to promote responsible lending and sustainable homeownership opportunities for first-time homebuyers and distressed homeowners."
The real estate industry is experiencing numerous changes and added requirements in the lender's guidelines. As a REALTOR®, it is important to have a clear understanding about how to effectively work with your lender and potential homebuyers to address the new lending paradigm, mortgage regulations, and increased processing requirements.
Equip yourself to help homeowners and potential homebuyers sustain their dream of homeownership in today's real estate market.
How you will benefit from taking this course:
- Gain knowledge of how to effectively assist eligible homeowners seeking assistance through the federal Home Affordable Modification Program (HAMP), including HAFA short sale and dee-in-lieu options.
- Understand how to comply with the Secure and Fair Enforcement for Mortgage Lending Act of 2008 (S.A.F.E.).
- Familiarize yourself with information about the changes made to the Real Estate Settlement Procedures Act (RESPA).
- Receive information about the new Good Faith Estimate (GFE) to help answer homebuyer questions.
- Identify key aspects of the Residential Purchase Agreement and Joint Escrow Instructions (Form RPA-CA), mortgage insurance updates, and other important revisions.
- Learn how to avoid frequent errors leading toward misrepresentation.
EXTRA: Course price includes a student manual.
Registration: To register for the Navigating through the Mortgage Process in a Changing Environment program near you, visit the C.A.R. Education Calendar.
This course covers:
The evolution of mortgages: a transition from “risk-free” to risk-based
- The Federal Reserve Act of 1913 and its effect on real estate lending
- The Great Depression and innovation in real estate lending
- 1970s-1980s: Fannie Mae's privatization and the creation of Freddie Mac establish prudent lending underwriting standards for loans not backed by the federal government.
- 1995-2005: A decade of growth in the housing market and a rapid run-up in values through 'risk based lending'.
The REALTOR'S® role in assisting the homeowner under HAFA
- HAMP requirements before proceeding with HAFA
- Homeowner's credit issues
- Basic HAFA pre-listing procedures
- Establishing value: the professional approach to the BPO
- HAFA pricing and listing guidelines including commissions
- Incentives to the homeowner and to the servicer
The REALTOR'S® role in guiding the prospective home buyer in the process.
- Assessing the buyers' needs, including personal, family and financial considerations Counseling and qualifying the buyer
- Understanding and identifying appropriate and responsible lenders
- Secure and Fair Enforcement for Mortgage Lending Act of 2008 (S.A.F.E.)
The REALTOR'S® professional and fiduciary responsibilities to the buyer.
- Understanding and identifying predatory lenders and their loans
- "High Cost Loans" as defined by the federal government
- RESPA and TILA: Understanding and complying with RESPA and TILA including recent changes and restrictions
- Understanding the Preliminary Title
REALTOR® resources to educate and inform.
- Continuing changes in real estate practices and lender's guidelines
- New and nascent programs offered by both the private and public sectors
- Government-sponsored enterprises (GSE) resources
- HUD resources
- Lending industry resources
- NAR and C.A.R. resources, REALTOR® professional designations and other membership resources
Who should attend:
Every REALTOR® in the state of California who has any involvement in the lending process.
Instructors:
