This 20-hour course will teach you the various aspects of the mortgage lending industry such as loan finance documents, the laws that must be followed, the importance of ethical conduct, how to watch out for fraud and other nefarious acts, how to complete a loan application and the process for loan approval, and various different loan programs that are available to consumers.
Some states require state-specific prelicense education in addition to the standard course. Please check with your state regulatory agency, the NMLS, or contact us to verify if the jurisdiction you are becoming licensed under requires additional state-specific training.
Course Content
This course is divided into two components:
- Twelve (12) chapters of online reading material and online testing
- Four (4) days of instructor-led 1-hour live webinars
The online reading modules in this course are:
- Segment 1: The Mortgage Lending Industry
- Segment 2: Basic Loan Finance Documents
- Segment 3: Financing Terminology
- Segment 4: The SAFE Act
- Segment 5: Federal Laws Governing Mortgage Practice
- Segment 6: Ethics and Consumer Protection
- Segment 7: Fraud and Money Laundering
- Segment 8: The Mortgage Loan Application
- Segment 9: Processing and Underwriting
- Segment 10: Closing
- Segment 11: Financial Calculations
- Segment 12: Specific Loan Programs
This course is structured to be completed in a 4-day class starting on Monday and concluding on Thursday. As required by the Nationwide Mortgage Licensing System (NMLS), sections of the course will unlock as the class moves together through the course material, ensuring that no student moves faster than the rest of the class. Instructor-led sessions will be available during the course enrollment period where students can interact with an educator to have questions answered or to help enforce the information that was covered during the course session. Quizzes are given throughout the online course segments.
Please review the course syllabus for the schedule of course topics available on each day of the class.
The online final exam will be presented at the end of the course. The final exam is not timed, contains 25 multiple choice questions, and requires a 70% or higher passing score. Students can take multiple attempts at passing the final exam, with each attempt containing a new set of test questions. The final exam must be completed before the end of the 14-day class session to receive credit for passing the course.
NMLS functional specifications define that a 20-hour mortgage loan originator prelicense courses MUST be completed within 14 days of the course session start date. Students who do not pass the final exam before the enrollment period expires will be marked as failing the course. Refunds will not be issued for failed courses. Extensions to lengthen the 14-day enrollment period are NOT available. Students who fail the course can enroll for a new course session and must start from the beginning.
After successfully passing the final exam, OnlineEd will notify the Nationwide Mortgage Licensing System (NMLS) that the mortgage loan originator pre-eduction has been completed by the student. It is OnlineEd policy to have credit uploaded to the NMLS by the end of the following business day.
The student will have a printable course completion certificate available after passing the course final exam. The certificate is for the student's personal records and is not confirmation that the NMLS has received the notification that the student has completed the course.
Technical Requirements
This is an online instructor-led course that contains online reading materials, audio presentations, and video presentations. Students will need to have a current internet browser and computer speakers. The instructor-led webinar sessions are presented using Citrix GoToMeeting software. A webcam is NOT required. An audio bridge call-in number along with confirmation of the webinar session times will be emailed to students when the class begins.
NMLS Unique ID is Required
You will need a NMLS Unique ID number in order for us to upload record of your course completion to the NMLS. If you already have an NMLS ID but don't remember what it is:
Login into NMLS
Click on the Composite View tab.
Click View Individual on the sub-header row.
The number that appears in parentheses after your name is your NMLS ID number.
If you do not have an NMLS ID and need to obtain one, use the instructions available in the NMLS Resource Center:
https://mortgage.nationwidelicensingsystem.org/licensees/resources/LicenseeResources/Create-an-Individual-Account-Quick-Guide.pdf
Learning Module Outline
Segment 1: The Mortgage Lending Industry
Total study time: 30 minutes
This segment will give you an overview of the mortgage lending industry. Students will learn about various types of lenders and the parties who are involved in the mortgage lending process.
Segment 2: Basic Loan Finance Documents
Total study time: 30 minutes
This segment will explain the various promissory notes that are available. Students will also learn the three main types of security instruments used in residential purchase transactions.
Segment 3: Financing Terminology
Total study time: 1 clock hour
There are many terms and words used within the mortgage industry that aren't a part of the everyday person's vocabulary. This segment will outline many common words and loans used in the lending industry.
Segment 4: The SAFE Act
Total study time: 1 clock hour
After the passage of the SAFE Act, a national registration system was created that allowed states to use a centralized system to supervise the licensing of individuals and companies. This segment will explain the SAFE Act and its implications on the mortgage industry
Segment 5: Federal Laws Governing Mortgage Practice
Total study time: 4.5 clock hours
This segment will outline many of the important federal regulations and rules that students will need to comply with when working with borrowers on residential loan transactions.
Segment 6: Ethics and Consumer Protection
Total study time: 1 clock hour
Interacting with the public must always be done in an ethical manner. There are many courtesy standards that should be followed, as licensees are expected to protect the loan applicant's interests and not take an unfair advantage of an applicant in order to earn a commission.
Segment 7: Fraud and Money Laundering
Total study time: 1 clock hour
This segment will outline the ways in which loan fraud is used for illegal activities, the programs that companies are expected to create to detect fraud, and the various ways that criminals try to trick lenders (and mortgage loan originators) into financing their property purchases.
Segment 8: The Mortgage Loan Application
Total study time: 2.5 clock hours
This segment will outline both the standard loan application and the Loan Estimate disclosure. Students will also learn about credit scores and what to look out for when working with documents submitted by applicants to support their personal financial obligations.
Segment 9: Processing and Underwriting
Total study time: 30 minutes
Appraisals are often used to confirm that the property being used as collateral for the loan is adequate in case of borrower default. If the lender has to take the property and sell it, the property should be worth enough money for the lender to recoup its financial loss.
Segment 10: Closing
Total study time: 2 clock hours
In this segment students will learn about the CFPB's Closing Disclosure. This form is in conjunction with the earlier Loan Estimate and discloses the final details of the approved loan to the borrower.
Segment 11: Financial Calculations
Total study time: 30 minutes
Financial transactions naturally involve a lot of math calculations; the amount to be repaid monthly, how much interest a loan will accrue during its term, and so on. Students will also need to be able to take the income and debt values supplied by the loan applicant to determine if he or she will even meet the minimum qualifications for the loan being applied for.
Segment 12: Specific Loan Programs
Total study time: 2 clock hours
There are a variety of loan programs available for applicants to qualify for. This segment will give students an overview of a variety of loan programs that borrowers can apply for.
