Our Training Seminars
CMA recently established an educational arm designed to train people to perform forensic mortgage audits. During this intensive training program attendees will learn background of the industry as well as how to use our proprietary software to find the errors and violations committed by the lenders. We will also teach you valuable marketing technique on how to attract clients who need your help.
During the intensive 25 hour course you will learn:
- Background of the mortgage industry
- How to properly calculate Finance Charges and Annual Percentage Rates
- How to read and understand documents such as HUD-1, Truth in Lending Statement, various forms of a mortgage note, and many others
- Applicable state and federal laws such as Fair Debt Collection Practices Act, Discrimination Laws, Predatory Loan Indicators, and many more
Day One
- What is our Forensic Mortgage Audit
- How is the Audit done?
- General Mortgage Information
- Security Interest
- Lender
- Borrower
- Mortgage History
- Dates back to Anglo-Saxon England
- Mortgage: “dead pledge” versus “live pledge”
- Equity of redemption
- Mortgagor’s and mortgagee’s rights
- Types of Mortgages in U.S.
- Mortgage and Deed of Trust
- Mortgage creates lien on title
- Deed to Secure Debt (GA)
- Security deed
- Deed of Trust
- Mortgage in CA is usually Deed of Trust
- Both (Mortgage/Deed of Trust) create lien on title
- Subprime Loans
- Riskiest loan
- Subprime borrower defined
- Proponents’ claims
- First subprime loans
- Subprime versus foreclosure rates
- Types of risks lenders took on
- Subprime borrowers can access loans
- General credit profile
- Origination, Securitization and Servicing
- Some originators trapped naïve borrowers
- Warehouse Line of Credit
- Special Servicers
- REO’s
- Repurchase demand by Special Servicers
- Subprime Mortgage Underwriting and Statistics
- Financial and credit profile of the consumers
- Riskier due to borrower being unable to qualify for traditional loan
- Prime versus subprime criteria: FICO, DTI and LTV
- Subprime growth
- Special features: I/O, pay-options, hybrid
- Fixed-Rate Mortgage Types
- Conventional
- FHA
- VA
- I/O
- Hybrid
- Option ARM’s
- Combo/Piggyback
- ARM’s
- Buydowns
- Specialty Mortgage Types
- Streamline-K
- Swing/Bridge
- Equity Mortgage Loans
- Reverse Mortgages
- Examples of Documents Needed to Complete an Audit
- Notes
- Riders and Addenda
- HUD-1 Settlement Statements
- TIL’s
- Notice of Right to Cancel
- Residential Loan Applications (1003)
- GFE’s
Day Two
Documents Needed for Audit in Detail:
- Note
- Fixed Rate
- Adjustable Rate
- Adjustable Rate with Pay Caps
- Riders and/or Addenda
- Demand Feature
- Variable Rate
- Prepayment Penalty
- Balloon
- HUD-1 Settlement Statement
- Origination Fee
- Discount Points
- Processing
- Underwriting
- Funding/Review Fee
- Mortgage Broker
- Assumption Fee
- Lock/Commitment Fee
- Mortgage Insurance Premiums
- Life/Disability Insurance
- Administration
- Accident/Health/Credit Insurance
- Yield Spread Premium
- Per-diem Interest
- Settlement or Closing Fee
- Total Settlement Costs
- Truth-in-Lending Disclosure
- APR
- Finance Charge
- Amount Financed
- Total of Payments
- Loan Features
- Demand
- Variable Rate
- Prepayment Penalty
- Balloon Payment
- Notice of Right to Cancel
- Date of last event
- Rescission period ending date
- Loan Application (1003)
- Total Gross Monthly Income
- Total Combined Monthly Housing Expense
- Total Other Monthly Payments
- Loan Purpose
- Property Type
- Good Faith Estimate
- Overview of the Software
Day Three
- Learning to use the software
- HUD-1
- Truth-in-Lending
- HOEPA Loans
- Rescission
- Loan Application
- Generating the Report
- Hands On Trial Audit
- Test on Audits in Groups
- QWR (Qualified Written Request or Demand Letter)
- Test Results
- Graduation