Fair Lending Essentials seeks to achieve an overview of the multiple elements involved in fair lending with a focus on the real estate industry. This course explores fair lending issues in mortgage lending, including such topics as regulatory compliance laws, quality assistance dialogues, discrimination and diversity, product quotations and pre-qualification, understanding fine print, third party providers and tracking, credit approval and denial, loan closing, and HMDA-LAR. Students will focus on the history and background of regulatory compliance laws; overt discrimination outside the mortgage lending industry and how to prevent it; the roles of third party providers, settlement agents, and property appraisers; the process of loan disposition and settlement; and relevant Internet sources of information.

Course Outline:

Lesson 1 - Regulatory Compliance: A Cause for Change

• History and Background
• A Cause for Change
• The New Priority for a Standard of Fairness
• Quality of Assistance
• Discrimination: Overt or Subtle

Lesson 2 - Fairness During Inquiries

• Product Quotations: Recommended Phraseology
• Pre-Qualification: Appropriate Methods
• The Mortgage Application: Understanding the Fine Print
• Initial Disclosure: Explaining the Fine Print
• Information and Privacy

Lesson 3 - Fairness During Processing

• Third Party Providers: Relationship Disclosure
• Settlement Agents and Property Appraisers
• Environmental Regulations
• Fair Lending and Document Tracking

Lesson 4 - Loan Disposition and Settlement

• Credit Approval
• Credit Denial
• Loan Closing
• Assessment of Community Credit Needs and HMDA

Lesson 5 - Fair Lending: Assessment of Compliance

• Fair Lending Examinations
• Public Disclosure Requirements
• Consumer Fair Lending Complaint Procedures

Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or Certified Mortgage Technologist (CMT) designations. This course also earns five points towards MBA's Residential Loan Production, Quality Assurance (CQAP Level I), or Residential Underwriter (CRU Level I) Achievement Certificates, or the Mortgage Servicer, Loan Administration (CMS Level II) Professional Certificate.