Unlocking Electronic Signature Legitimateness for Mortgage in Mexico with airSlate SignNow

How to eSign a document: electronic signature legitimateness for Mortgage in Mexico

so my name is artricia woods and this is your exam prep crash course we're going to just be talking about what you need to know to pass the exam this is my name this is our 800 number if you press extension one you'll get me and you can leave a message directly for me if you need to speak with someone specifically press extension 2 and you'll get ding you can also send text messages to that number as well and I get a lot of students they just text me questions all day long so if you see me checking my phone are things of that nature it's because I am I'm actually returning students messages are my email address is here you can email me I told you guys about the Facebook study group and then this is the website you guys should be able to open the book and actually follow me so go ahead and find this page in the book as well so go ahead and find this page this page is our disclaimer um it's just to let you know that our information is copy written because we do find that a lot of people take our information copy it pass it out I went to a convention they were just selling them five dollars five dollars five dollars still have my name on it and they were just selling them so we do the information is copywritten so you guys we have to let you know that uh going forward going to find this page and this is where we're actually going to get started now there are six steps that it takes to get licensed you need to know these steps because these are the six steps it takes to get licensed but you also need to know these steps because they're going to test you on your knowledge of these steps so the first thing you have to do is get your nmls number by now everybody in here should have had their nmls number I want you to highlight where it says unique identifier unique identifier we call it our nmls number but that's slang the correct name for it the official name for it is unique identifier you need to know that I don't want you to get it wrong on the exam because they said something about the unique identifier that's just your nmls number now this number will be tied to you for the rest of your life just like your social security number it has to be on all your advertising it has to be on all your literature your business cards things of that nature if you are also a real estate agent make room for it take a look at my cards uh on your way out and you can see I have my broker number but I also have to have my nmls number on all advertising okay on all marketing things of that nature now this number will appear on the following documents you ready The Animals number our unique identifier will appear on the following documents the 1003 loan application promissory notes mortgages and trustees so I'm going to say that again because they're going to actually wear with the nmls number are you identifier number appear it will appear on the 1003 loan application promissory notes mortgages and trustees it will not appear on appraisal reports so again they're going to say and which of the following documents with the nmls number appear on which of the following documents will it not appear you need to know where it will appear where it will not appear you also need to know that nmls number and unique identifier those are the same the next thing it says complete 20 hours of pre-licensing highlight the 20. complete 20 hours of pre-licensing laughs everyone has to complete 20 hours of pre-licensing you also have to complete eight hours write that down of continuing education each year once you get licensed I'll talk about that in a minute 20 hours of pre-licensing before you can get a license but once your license you have to do eight hours of continuing education every single year it's not like the real estate where you have to do it every four years for this one you have to renew and you have to do eight hours of continuing education every year once you've complete your 20 hours of pre-licensing the next thing you have to do is take an exam make sure you're taking the correct exam the national exam with UST component National exam with UST component UST stands for uniform state test UST stands for uniform state test that means you can take one exam and all of the other states that have adopted the one test philosophy and there's only two states now that have not that means you will be able to do loans in those States once you pass this exam you'll notice the correct exam because it's a hundred and ten dollars but it's the national exam with UST component make sure you know what UST stands for uniform state tax take one exam and you'll be able to do loans in multiple States I'll show you a map a bit later of all the states but as of right now as of last week there's only two that require a separate test now once you pass the test you have to complete what's called your individual application it's called an mu4 highlight mu4 that is the name of the individual application that each person must complete they're going to ask you what is the name of the individual application it's called an mu4 and just for your own knowledge that application fee is three hundred and thirty dollars you don't need to know that for the test but you need to know that for your pocketbook right three hundred and thirty dollars so it's expensive to get this license it will be seven eight hundred dollars before you finish with all your schooling and everything you don't want to exasperate that by having to take the test over and over and over again because each time you take the test you gotta pay to take it again so you want to be able to pass the test the first time it's not the first time the next time you definitely not don't want to keep trying this over and over again once you've completed your application or as a part of your application you have to do fingerprinting Live Scan and a lot of people say well I've already been done a Live Scan because I'm a notary because I'm a policeman because I'm a fireman it doesn't matter they want their own you can't skip that step you're going to do Live Scan I believe it's either 29 or 39 but that's a step that you can't skip and then the last step is you're going to have to pay for a credit report and that's like 19 uh that scares a lot of people because they think oh what if I have bad credit what if I have late payments what if I have uh foreclosures or or any of that that's not going to stop you the only things I've seen that have stopped someone and I've been doing this for going on eight nine years now is very large IRS tax liens that you don't have any type of payment plan or arrangements with if you have IRS tax lien doesn't mean you're not going to get it just means are you working with the IRS are you running from the IRS if you're running they're not going to give it to you if you're trying to work it out you will get it but they do pull your credit report a lot of people think they have to have a certain credit score that's not how it works it's just part of their process so these are the six steps that it takes to get license you're going to get your end MLS number you have to complete your 20 hours of pre-licensing once you do that you have to take a test once you pass the test you do your application it's called an mu4 you're going to do your fingerprinting and they're going to pull a credit report it's done in this particular order any questions on anything on this page when you go in to complete your mu4 and online the paperwork for the Live Scan there's it's going to be in part of the system uh and what you have to do is you're going to pay for it online and then they're going to ask you for your zip code and they're going to tell you all of the approved places you can go near your ZIP code I don't know what the m stands for they don't really tell us but you have an mu1 mu2 or mu3 mu4 on the exam and we just want to make sure you pass the exam they're going to say which one is the one for your individual application and you need to know that that's the mu4 like me one is for a company mu2 is for a branch things of that nature but the individual application mu4 that's what you need to remember for the exam it could be any one of those any one of those there's over 4 000 possible questions those are the different documents that the uh nmls number are unique identifier number could appear on the mortgage [Music] now next slide you have to pass the test with a score of 75 or higher highlight that they're going to ask you what is the passing score for the exam and people are putting 70. that's the real estate exam this is the mortgage exam the passing score is 75 or higher if you fail the test you have to wait 30 days before you can retake it they're going to ask you that if you fail the test how long do you have to wait before you can retake it 30 days so highlight that if you fail the test three times how long do you have to wait if you fail the test three times six months who wants to do that okay and remember you're paying a hundred ten dollars each time over there where it says six months I want you to write 180 days because they could ask it that way um now to keep your license current want your license you have to do eight hours of continuing education every year highlight that eight hours of continuing education every year and it must be completed each year by December 31st highlight that so don't get it confused because a lot of the questions are scenario based they give you a lot of stories they can do continuing education anytime during the year it could be January it could be March it could be April but it must be completed by December 31st do you understand that it doesn't have to be the last part of the Year continuing education can be done any year although most schools don't start offering them to the second half of the year it can be done anytime during the year now this next one confuses people so we want to make sure you understand it when does your license expire to answer that question on the test when does your license expire the answer is December 31st every loan originator's license expires every single year on December 31st unless they renewed during the renewal period you need to know what the renewal period is November 1st to December 31st if you got your license during that renewal period it won't expire on December 31st but say if you got your license in January it expires December 31st so if you got your license in April it expires December 31st renewing your license meaning paying them money is 330 a year to renew every single year you can only renew during this 60-day period of November 1st to December 31st every loan officer in the world I just did mine this week doesn't matter whether you're here Connecticut New Jersey Hawaii every loan officer in the world has to give them 330 dollars during this 60-day period can you imagine our bank account for this 60 days that's how they actually do their budget because they know you have to do it you can't do it early and if you do it late it's going to be almost double that okay and there's tons of loan officers in the world we all have to give them 330 dollars during this 60-day period so for the exam you need to know what the renewal period is November 1st to December 31st if you got your license during that time you don't have to renew your grandfathered in but say if you got your license in October and you pay 330 dollars in October you still have to pay it by December 31st so you guys are not in this particular class in that situation because we're already in November you're in that particular period 330 dollars let me go ahead and finish this one and then I'll take questions so the next one says your license is valid for five years highlight that because that's how you're going to answer the question how long is your license valid well the answer is going to be for five years what does that mean does that mean after five years I need to do all of this again no it means if you go five years without renewing five years without giving them their money then you have to start all over again so what if I just went one year without renewing two years without renewing three years without renewing my license is still valid it's just not active well how do I get it back active I have to pay the renewal fee for the prior year not all the years that I missed just the prior year and I have to do continuing education for the prior year then I'm back in the game but if I let five years go by I have to start all over again with the 20 hour the background the test everything if you never want to take this test again once you pass don't go five years without giving them their money do you get that any questions on anything on this page yes if you get your license During the period of November 1st to December 31st is not going to expire on December 31st because you're getting your license during the renewal period correct go ahead you can't do anything your license is not active okay it just means that so if your license is inactive it just means you still have a period of time that you can reactivate it without starting over but if you let five years go by start all over again background check uh test 20 hour class all that stuff go ahead how long is the 20-hour class valid for five years how long is your test results valid for five years I have people that have passed the test and they still haven't gone through and done their mu4 well after five years you're gonna have to do it all over again okay uh because they're just not ready they're just not ready it's good for five years now a lot of times people have uh done their 20-hour class two three four years ago they never took the test they don't have to do the 20 hour class again but the information is old you're not going to be able to pass the test with what you learned from back then you have to take an updated crash course because this test has changed probably about seven times now and it's going to be changing again the first quarter so you guys want to get this information take this task pass this test be done with it got it now when you go to take the test it's 100 computerized you will know before you get out of that chair if you pass you'll be sitting there like do I press the button do I press the button because once you do boom pass or fail the people in the front with Noah's way that you're going to walk out and they're gonna be like hey high five or they're gonna be like okay thank you thank you you know try to avoid you but you wouldn't know right then and there if you passed or not um take your driver's license or ID in there with you they're pretty strict on that don't bother taking a calculator because you have to use theirs there has been so much cheating people have secret codes in their calculators uh they had one they showed us a video a lady was just pulling up her skirt and it's just written on her leg things of that nature they don't even let you go to the bathroom by yourself someone goes with you okay they don't go in the stall with you of course but they go in there with you to make sure that you're not doing any cheating things of that nature so they're pretty strict about that uh the test is 125 questions uh 10 of them are questions that they're practicing out you're only scored on 115. 10 of them are I call them like they say news Trump I call them questions but you have no idea which ten those are and a lot of times people say well I'm just going to try to figure out which questions are real and which ones aren't who cares just try to get them all right regardless of what they are but you really only scored on 115 of them they give you three hours to take the test it does not take three hours to take the test okay but they give you three hours it probably takes about an hour hour and 15 minutes if you're prepared but when you go to take the test um what happens is a lot of people see that they have a lot of time left so they keep going through it over and over and over again that's not good either I suggest that when you go take the test you go through it twice twice okay the first time that you go through it only answer the questions you 100 know there's a button that says skip questions use it when you go through that test the first time if you look at it and you know it like the back of your hand 20 hours this eight hours is some things you will know answer all of those and keep track of what you know for anything else skip question if it's a lot to read it's a math don't do those the first round I went through my whole test and back then it was only 100 questions and there were 64 that I just knew like the back of my hand then you hit the button that says return to skip questions they don't get harder they don't change there's some myth out there like they'll make them hard no they're the same questions then you hit the button that says return to skip questions that's when you sit back in your chair that's when you look at the screen pray on the question rub it like you at the whatever the case may be but that's when you worry about it but at that point either you know it or you don't pick an answer and move on it doesn't make sense to go through the same test five times it's not going to help you and it's going to confuse you more than anything like I said I had one person that she went through it five times and every time she went through it she changed something else she was so mixed up by the end that of course she didn't pass so don't do that any questions on anything on this page all right so here we go this is where I want you to have a separate sheet of paper to the side to take notes do not try to write all your notes in between these little bitty lines on this screen does it possible 4 000 test questions You're Gonna Get 125. You have no idea 125 you're gonna get but a lot of them are the same questions asked over and over in different ways so I start all my classes out with this things to remember section and then we'll get into some specific things this first line let me read it first and then I'm going to tell you what I want you to highlight if an application for credit could be credit for a house car boat doesn't matter if an application for credit is denied based on the appraisal ecoa which is regulation B says the bar has 90 days to request appraisal and the lender has 30 days to deliver it highlight ecoa regulation B highlight 90 days and highlight 30 days if an application for credit is denied and they say it's based on the appraisal ecoa says a bar has 90 days to request a copy of the appraisal and when they do a lender has 30 days to deliver it there's about 30 questions that they come up with from this one particular line this is how they do it what law says the bar has 90 days to request a copy of the appraisal what are three possible answers one is the Equal Credit opportunities Act another is ikoa and if they're using letters another one is regulation B same question but three different ways that they can ask it what law says the bar the lender has 90 days to deliver it equal credit opportunities act E coli regulation b six questions how many days does the borrower have to request a copy of the appraisal if they're using numbers 90. but what if they're using months three how many days is the lender have to provide it if they're using numbers 30 days if they're using months one month 10 questions but it's the same thing do you see what I mean it's not 4 000 different questions it's just the way that they manipulate the questions circle the word appraisal here circle the word appraisal and on top of appraisal I want you to write value value if an application for credit is denied based on the value because what does the appraisal give you it gives you the value my 10 questions just what turned into 20. now another way that they ask this that's not so obvious and I want you to write it in your notes they're going to ask you which regulation allows the borrower to challenge the value stated in the appraisal so I'm going to say that again what law or which regulation allows the borrower to challenge the value stated in the appraisal and I want you to go back and either underline or highlight the words challenge the value those are buzzwords whenever you see challenge the value I want you to think ecoa Equal Credit opportunities act regulation B Because if you get denied and they say well it's because of your appraisal what's the first thing you're going to want let me see a copy of that appraisal so E coli regulation B allows the borrower to challenge the value stated in the appraisal and then they'll go through that same series of questions how many days do they have to challenge the value and if they challenging how many days does the lender have that way my 20 questions just went up to 30. but it doesn't matter if you know and this is why I don't teach question answer question answer you need to understand why the answer is the answer so in case they ask it to you in a different way you'll still be able to figure it out if an application for credit could be credit for anything an application for credit is denied and they say it's based on the value which is the same thing as saying is based on the appraisal ecoa which is regulation B since the bar has 90 days to request a copy of the appraisal and when they do the lender has 30 days to deliver it that's just the role regardless of how they ask the question that's just the rule got it now the next one um I gave you guys a list of acronyms in your packet go ahead and pull that out I call it your cheat sheet it's a list of acronyms I want you to find on their ecoa on there in the ease and highlight it find a chord now ecoa stands for the Equal Credit opportunities act ikoa Equal Credit opportunities act highlight that okay and in your notes I need you to write the following about ecoa ecoa is about a credit application ecoa is about a credit application it's the Equal Credit opportunities Act so wherever you're taking notes ikoa is about a credit application ecoa is regulation B you have to remember that that ecoa is regulation B it's the law that says that they must be equal when extending credit you're gonna have to remember that equal is regulation B so the way that I help you remember that Eco is regulation B is I want you to write that ecore is the law that says that they must be equal when extending credit the core is regulation B The Regulators must be equal when extending credit what does that mean they can't discriminate because I'm female and you're male or because I'm black and you're Latino no they have to be equal ecoa is regulation b sometimes if you know what the law is all about you can figure out what letter we're going to be talking about regulation b d n p a whole bunch of them B it's the law that says that they have to be equal when extending credit got it the next one is hamda regulation C Honda find it on your cheat sheet and highlight it Honda regulation C now hamda is the Home Mortgage disclosure at Honda Home Mortgage disclosure Act now wherever you're writing notes and I told you guys to have a sheet of paper for your notes hamda is regulation C hamda is regulation C how do I help you remember that hamda is regulation C here we go Honda is the law that allows Regulators to see where possible discrimination takes place maybe if you know what the law is all about you can remember the letter Honda is the law that allows Regulators to see where possible discrimination takes place Honda just happens to be regulation see it's the law that allows Regulators to see where possible discrimination takes place you're gonna need more paper so on the back or something okay now they're also going to actually where is Honda information found or where is Honda information collected hum the information is found on Section 10 it's written like a Roman letter x Honda information is found on Section 10 of the 1003 loan application have you ever looked at the back of a loan application and there's a section that says male female Hispanic not that's the Honda section they might even just show you that session it says what law uses this section section 10 of the 1003 to identify possible discriminatory practice hamda Honda is regulation C it allows The Regulators to see where possible discrimination takes place got it ecore is regulation B The Regulators must be equal hamda is regulation C allows Regulators to see where possible discrimination takes place the next one I want you to find on your sheet there and highlight is respa respa thank you now respa is regulation X how do I help you remember that respite is regulation X I just mispronounce it I call it Rex like r e x p a so write that down respite equals rexpa r-e-x-p-a and that can help you remember that respa is regulation X let's call it Rex but E coli is regulation B The Regulators must be equal hamda is regulation C allows them to see where possible discrimination takes place and respa let's call it rexpa to remember that it's regulation X now the next one find it it's Tilla Tilla truth in Lending Act Tella truth and lending Act nutilla is Regulation Z illa is Regulation Z is one of the biggest ones we're going to go over and because it's Regulation Z to remember that it's Regulation Z we call it Tilla the Godzilla Tilla the Godzilla that will help you remember that Tilla is Regulation Z teller the Godzilla now in your notes you need to write this about Tilla Tilla deals with credit APR and advertising of Consumer loans that's even a question they're gonna say what law deals with credit APR and advertising of Consumer loans Tilla the Godzilla Regulation Z just with credit APR and advertising of Consumer loans the next one HIPAA HIPAA find it on your cheat sheet highlight it and you're ready for a lot of notes HIPAA homeowners protection act there's about four things I'm gonna have you write down about HIPAA so HIPAA is the homeowner's protection act and it's all about PMI private mortgage insurance HIPAA deals with PMI so again four things that I want to have you write down about HIPAA number one HIPAA deals with PMI not MIP a deals with PMI private mortgage insurance not MIP we'll talk about MIP when we get the FHA Loans but that's not what HIPAA is all about HIPAA is about PMI private mortgage insurance number two PMI is on conventional loans not government okay PMI is on conventional loans not government number three PMI is required when the bar puts less than 20 percent down when is a bar required to pay PMI when they put less than 20 percent down payment then they have to pay PMI and the last one PMI protects the lender not the borrower they're going to ask you who does PMI protect or who does PMI cover PMI protects the lender not the borrower so those are four things that you have to remember about PMI private I mean about HIPAA HIPAA deals with PMI not MIP PMI is on conventional loans not government loans PMI is required when the bar puts less than twenty percent down and who does PMI protect the lender not the borrower the next one SAFE Act find SAFE Act on your list of acronyms and then when you find it circle the word secure because that's what people get wrong here they're going to ask you the Safe Act stands for and they're going to have their ABCD and a is going to say it stands for the safe and fair Enforcement Act it does not they're trying to trick you yes it's called The Safe Act but what does the S stand for secure don't let them trick you if they trick you enough you got to go back and give them another 110 bucks yes it's called The Safe Act but the S stands for secure an easy one to get wrong so don't get it wrong if you're gonna get something wrong get something good wrong some math or something like that and then the next one find it Hera Hera housing and economic Recovery Act Hera you need to know that Hera is the law that created the Safe Act does not say what law created the safe act or what law came before The Safe Act Hera is the law that created the Safe Act next slide we're going to talk about fakra biggest thing that people do wrong with factors they don't know what the fcra stands for Sacra Fair Credit Reporting Act Sacra Fair Credit Reporting Act and fakra is regulation V how do I help you remember that factor is regulation V or Sacra is about a credit report factor is about a credit report and regulation V I say don't you want to have a very good credit report that can help you remember that factor is regulation V it's about credit reports and I want to have a very good credit report now make sure you keep this in mind ikoa is about a credit application thakura is about a credit report because they're going to try to confuse you what law deals with a credit application ecoa what law does with a credit report deals with credit reports and credit reporting agencies faculty deals with credit reports and credit reporting agencies what do I mean when I say credit reporting agencies Equifax Experian TransUnion Factor deals with what they can and cannot do so factor is regulation V and it deals with credit reports and credit reporting agencies the next one is the fact Act again know what the f-a-c-t stands for fact at fair and accurate credit transaction and whenever they put an a at the end it's just the word Act fair and accurate credit trans fair and accurate credit transaction Act sometimes they call it facta sometimes they call it fact act it's the same thing now in your notes what is fact act all about identity theft what law deals with identity theft the fact Act now the fact act in your notes also has a section of rules these rules are called section 114 rules because you could get that question what law has section 114 rules the fact act has a separate section of rules called section 114 rules well what are section 114 rules here we go section 114 rules are red flag identity theft rules section 114 rules what's another name for that red flag identity theft rules they're a section of rules that if the lender sees this uh like uh packages coming back they change their address every week just some things that look a little weird those are red flags that they should check to see if there's any identity theft going on section 114 rules AKA Red Flag AKA also known as red flag identity theft rules the next one Graham Leach bliley Act glba Graham leech blileiak so this law was written by three Senators Senator Graham Senator Elite Senator bliley a senator's job is supposed to be to protect people so I'm trying to give you guys something to kind of make the connection SPF SPF when we see SPF we think of protection like sun protection or skin protection the gram leech blightly act has SPF Three Laws they begin with S P and F afeguarding pre-taxing Financial privacy so find Grandma on your cheat sheet and get ready for a lot of notes Graham leads bloody highlighted on your cheat sheet and get ready for a lot of notes on this one foreign act has three policies safeguarding policy pre-texting policy Financial privacy policy it requires three policies SPF the first one I'm going to talk about is the safeguarding policy so they're going to ask you a question what law says that there must be a safeguarding policy the grammarly to blyle act then they're gonna say well what is a safeguarding policy here we go a policy on how companies have to keep our credit card and personal information safe when we use it at their place of business so I'm going to say it again what is the safeguarding policy all about it's a policy the companies have to have it just like they have to have an employee manuals and safety policies it's another policy that they have to have on how they're going to keep our credit card and personal information safe when we use it in their place of business when Target got in all that trouble with the credit card scams first thing FBI said is let us see your safeguarding policy what do you use what do you train your people on when I go to Macy's or Olive Garden or Vons or whatever and I use my credit card I should feel safe because they have a policy on what they train their people on on how to keep our credit card and personal information safe who says they have to have such a policy the gremlin's body act the next policy required by the law is a pre-texing policy pre-taxing policy so what is a pre-taxing policy here we go a pre-taxing policy is a policy to keep others from Gaining access to your information under false pretenses and then I want you to underline the words false pretenses so what law says they have to have a pre-text and policy the gram bleach blighty act what is a pre-taxing policy a policy to keep others from Gaining access to your information under false pretenses and I want you to underline the words false pretenses and then here I also want you to put in parentheses Pretenders Pretenders it's a policy to keep others from pretending from being you and getting into your information have you ever locked yourself out of your account and now ask for your mother's maiden name or your first car all of those security questions those are pre-texting policies policies to keep people from getting into your stuff under false pretenses if you're trying to get in your daughter's account or your client's account or your husband's account you put in the password wrong too many times it's gonna lock you out that's a pre-taxing policy now you're going to have to answer some security questions to get in a policy to keep other people from getting into your stuff from pretending from being you and getting access to your information under false pretenses that's what a pre-texting policy is and then the last one which is an F Financial privacy policy they're going to say what law says that there must be a financial privacy policy the gram Leach blightly Act what is a financial privacy policy here we go it's a policy that governs the collection of non-public information and how it share with affiliates so I'm going to repeat that who says that they have to have a financial privacy policy the Grammys by the ACT what is a financial privacy policy a policy no what did I say it governs the collection let's start with this it governs the collection of non-public information and go back and highlight our underlying non-public information and how it's shared with Affiliates non-public information is information that someone couldn't google on you when you fill out a loan application you may be put in your bank account numbers there your social security number some personal information would this policy governs what they can collect on you when I go to Chase or Wells Fargo and I fill out an application it governs what they can collect on me and what they can share with their Affiliates all these companies they share your information well this policy governs what they can collect and what they can share this is why you get a lot of junk mail this is why you get a lot of spam because they're sharing your information I have Chase Chase is associated with providing I get offers from Pavilion providians associated with so I get offers it's from them that's why you get so much spam that's why you get so much uh these flyers and stuff in your mailbox because they share your information but this policy governs what they can collect on you number one and it governs of that information what they can actually share with their Affiliates and I want you to write in parentheses here opt in opt out they have to give you the opportunity to opt in or opt out of having your personal information shared that's even a question what law has to give says that they have to give you an opportunity to opt in and opt out of having your personal information shared the financial privacy portion of the Grambling Act so the grammarly to blighty act has SPF safeguarding pre-taxing Financial privacy not sure not on the test so we're just doing Testa hope allowance find hopa on your cheat sheet and highlight it hope a lot now hopa home ownership and Equity protection act hope alone I call them hard money loans like what you would get at Cash Call or die Tech or some of the hard money lenders excuse me for the exam we only care about two hope alone there's several out there but we only care about two for the exam hope of section 32 which are called high cost I'm gonna go through later what would make it a high cost low but right now I need you to associate 32 with high cost and then there's section 35 which are high priced section 32 are high cost hope allowance section 35 are high price they're going to try to trick you remember that 35 is high price 32 is high cost now regardless of what type of Hope alone it is it's only part of Tilla remember I told you Tilla is the Godzilla and a lot of stuff comes under tiller okay um so they could say hope alone is a part of which larger law the answer would be tiller section 32 laws are part of which larger law the answer would be teller high cost laws are part of which large get my point that's how they come up with 4 000 different questions it's the same stuff that they ask it in different ways got it now afba find it afba affiliate affiliated business Arrangement you notice I have here one percent not 10 percent one percent not ten percent an affiliate business Arrangement is a disclosure that you have to give your client if you referring them to a business that you also have part ownership in and now you're going to be making money off of them in that business as well the question on the exam is if you own more than what percent are you then required to disclose it you're already doing a loan for me and then I tell you you know what Susan I could also use a roofer or contractor and you look into your wallet and you give me a card and say hey use this company if you own a part of that company you're trying to get me to use you're supposed to tell me that that's what an affiliate business Arrangement disclosure is again the question on the exam is if you own more than what percent are you then required by law to tell me people think it's 10 they don't want to pick one because they think it's too low but that's what the answer is one percent and then they're gonna say when must that disclosure be made the best answer is immediately when must the affiliate business Arrangement disclosure be made the best answer is immediately but if immediately is not one of the options there in ABCD then the next best answer is prior to dock signing you should let them know before they get committed prior to dock signing if both immediate and prior to dock signing are in the ABCD he immediate is still the best you know more than one or one one percent or more now this next one Civil Rights Act it's not on your cheat sheet but listen to what I'm telling you about the Civil Rights Act any question you get any any any question you get with the word Civil Rights Act the answer is about race and they're going to try to trick you and if you get one of these questions you will get the other so listen listen it goes right over a lot of people's head and those of you guys that were took my 20-hour class you already know this so let the other ones try they're gonna ask you I'm gonna ask you two questions which of the following can you not discriminate against age race religion all of the above which of the following can you not discriminate against age race religion all of the above what's the answer all of the above then you get another question and you'll think you got a free question oh my God they asked me the same question twice but it's gonna say which of the following ing to the Civil Rights Act can you not discriminate against age race religion all of the above then you have to pick race but that goes right over someone's head anyone need me to repeat that got it okay so listen to me first of all I told you any question you get about the Civil Rights Act the answer is going to be race these are not the same two questions which of the following can you not discriminate against age race religion all of the above you can't discriminate against any of those so the answer would be all of the above right then they ask you again or you think they're asking you the same thing which of the following ing to the Civil Rights Act that specific law can you not discriminate against age race religion all of the above race do you get my point yes don't let it go over your head and what happens is people are so anxious to finish the test they just see which of the following and they go to D you didn't read it it's a little bit different don't be in so much of a rush got it now they do the same thing with this one you have to know that an escrow account well that's the same thing as an impound account well that's the same thing as a reserve account that's the account what the lender takes the money for your taxes and insurance to put with your mortgage payment in California we call it an escrow account they escrowed our taxes and insurance well some states call that an impound account they impounded our taxes and insurance where others call it a reserve account I had one lady that got all three questions on the test she said she answered each one of them differently to make sure she got at least one right no they want to know again you're going to be able to do loans in over 48 49 states they want to know that you know the language an escrow account is the same as an impound account the same as a reserve account it's the account where the lender takes the money to put your taxes and insurance so that when you make your payment you're making one payment to cover all now they will ask you what type of a mortgage did that create this down if it's escrow impound or has a reserve account what type of a mortgage did that just create it created what's called a budget mortgage b-u-d-g-e-t if it's escrow impound of reserved it created a budget mortgage well what the heck is a budget mortgage write this down budget mortgage equal Piti mortgage it's just a mortgage that has budgeted for the Piti the principal interest taxes and insurance and when you pay that mortgage you paid everything required with that payment so that was our warm-up we haven't actually started today's class I'm going to give you guys a quick break before we actually start today's class but you should be sufficiently warmed up that's how it's going to go uh everything that I went over I will go over again but I need you guys to hear it at least three times one I just did it again I'm gonna do it a little bit slowly and then you should listen to this recording over and over and over again that's why we give it to you so I want to talk about the federal section five sections of the exam we're going to go over the federal section right now which is the most difficult part uh when they polled people that passed the test and didn't pass the test the pass rate right now as of last week it's 62 percent that means almost 40 of the people that take the test sell it over 40 or almost 40 percent of the people that take the test fail it that's because as Brokers agents we think we already know stuff or we took this class online and we got a false sense of hope are we um we just think this test is about mortgages and real estate and only about 20 25 of it is the rest of it is about rules regulations laws regulation NPD all of that kind of stuff and you don't know that going in and if you take a 20-hour class online you probably didn't pay a lot of attention you probably just click next next while you were watching TV handling business things of that nature this section is the federal section of all the people that failed 72 percent felt this section so that's why we spend a lot of time on the federal section I'm going to get started with the cfpb so you guys should be following me along the slides everything that you see on the slides is in in the little uh pamphlet there cfpb cfpb stands for Consumer Financial Protection Bureau cfpb cfpb I called a cfpb the new sheriff in town that's who's coming in making all these rules regulations changes things of that nature the cfpb for the exam you need to know that cfpb stands for Consumer Financial Protection Bureau you also need to know the two entities the two laws that created the cfpb and that is the Dodd-Frank Act high like that and the Consumer Finance protection act those are the two entities that created the cfpb now all of these uh organizations here now have to report to the cfpb they used to be their own boss but not anymore like Hut HUD didn't have to answer to anyone but HUD but not anymore now they have the answer to the cfpb the FTC all of these now have to answer to the cfpb why because when the whole mortgage meltdown happened um they went to HUD and said what do you think happened they were like we don't know they went to the uh FDIC what do you think happened we don't know they went to all of these entities that deal with money and banking to kind of get advice on why do you think this happened no one had any answers so that's why they created the cfpb now all of these entities now have to answer to the cfpb they're not Standalone anymore they all have a boss now which is the cfpb now any entity that deals with money and banking must report to the cfpb on the exam there's one that they try to trick you with that does not report to the cfpb the Fair Housing Act make yourself a note the Fair Housing Act does not report to the cfpb why because it doesn't deal with money in banking it's about discrimination Fair Housing Act has nothing to do with money or banking it's about discrimination but they try to trick you with that so I kind of let you guys know the Fair Housing Act does not report to the cfpb but all of these here do report to the cfpb money or banking it's about discrimination so I want to start with respa we're going to talk about respite now respite is regulation X I call it rexpa the purpose of respa is to help consumers become better Shoppers for Settlement Services highlight Settlement Services that's my buzzword when you see Settlement Services I want you to be thinking respa just so you'll know what Settlement Services are that just means escrow stuff but on the exam what law deals with Settlement Services respa the purpose of respa is to help consumers become better Shoppers for Settlement Services now respite deals with one to four unit residential property what type of property does respa deal with one to four unit residential property everything on this test is about one to four unit residential property does not apply to a commercial you don't need this license to do commercial this license is all about residential property another name for residential property is owner occupied property now respite does not deal with all cash sales parental property of more than four commercial property of property of 25 acres or more property of 25 acres or more is also called agricultural property make sure you know that so you're going to get questions like this which of the following is covered by respa which of the following is not covered by respa it's a three unit apartment building and the owner stays in Unit A yes or no yes it's a four unit apartment building and all four units are rented out no it's a single family resident and my mom stays in there and pay 500 a month rent no my mom stays in it it's not owner occupied see how they're trying to trick you it's a 10 unit apartment building and I stay in unit a no because it's more than four it's a four unit I stay in Unit A I got such a good deal I paid all cash for the property no no so you have to know the rule because can you imagine how many scenarios how many questions they can come up with but you need to know respite deals with one to four unit residential property the bar has to stay in one it does not deal with all cash sales rental property of more than four commercial property or a property of 25 acres or more also known as agricultural property that's just the rule the penalty for violating respa ten thousand dollars and up to one year in jail the penalty for violating respite is ten thousand dollars and up to one year in jail it's the only one that has the end up to one year in jail uh if I were to say what law has a penalty of ten thousand dollars you can probably name a few but if I said what law has a penalty of ten thousand dollars and up to one year in jail there's only respa only respa you guys get that now there are several sections of recipe but for the exam I only care about four and you need to know which four of those are again several sections of respa in your 20-hour class they probably talked about a bunch of sections but for the exam we only care about four sections that's section six that deals with mortgage Servicing Section 8 9 and 10. so I'm going to start with respite section six section 6 deals with mortgage Servicing and mortgage servicing abuses again respite section 6 deals with mortgage servicing and mortgage servicing abuses you need to know what a mortgage servicer is a servicer may not be the company that actually or the actual investor of the loan they're just the company that's been hired to handle the payments and to pay the taxes and insurance that's what a servicer does collects the monthly payments and handles the taxes and insurance what law deals with mortgage servicing and mortgage servicing abuses respite section 6. respa section six there's a lot of things that Services did wrong not applying people's payments on time not paying their taxes and insurance not giving them loan mods not giving them short sale holding up the process what law deals with Mortgage Services and mortgage servicing abuses respa section 6. section eight deals with kickbacks face splitting and unearned face what law deals with Kickbacks fee splitting and unearned fees respite Section 8 prohibits giving or accepting you're just as guilty if you accepted the gift well I didn't give it I didn't do it they gave it to me you're just as guilty you cannot take referral fees that's what they call Kickbacks in mortgages what in real estate we can do this this is not a real estate exam in mortgages you cannot take referral fees for services they call that a kickback a thing of value means anything of value they can give you the title company can give you pins with their names on it and stickies and all of that stuff but they can't give you a Gucci purse Dodger tickets switch to Vegas in exchange that would be considered a kickback and that will be a violation of respwest section 8. it also prohibits what's called fee splitting so what is fee splitting splitting your money with an unlicensed person now this happens every day but after you get license you can't say you didn't know that this was wrong fee splitting you have a loan but you don't have your license so you say our Trisha can you do it because I don't have my license so I can't I can't put it in my name can you do it I do the loan I get paid you found out I got paid then you want me to meet you down the street to give you your hat you don't have a hat I can't split my fee with you you are an unlicensed agent do you get that like I say people do this all the time but if they get in trouble they're gonna be in trouble you cannot split your fee the unlicensed person unearned fees that means two other words that they use for that is up front piece and Advance fees you cannot take money up front from the borrower you can't take advantage fees you can't say I'm gonna do this loan for you I'm gonna get paid at the end I'm gonna charge you two points three points but to start you need to give me 500 you can't do that how do you get paid in mortgages in real estate if and when the deal closes you cannot take unearned fees two other words that they use for that are upfront fees and Advance fees if you do that what law are you violating respite section eight section nine so you could take it on three closes respite section 9 deals with title insurance Title Insurance any question you get about title insurance is respite section 9. prohibits the seller from requiring a home buyer to use a particular title company as a condition of the sale another one that people do all the time because they don't know the rules they don't know the laws uh and I come across this a lot prohibits the seller from requiring the home buyer to use a particular title company as a condition of the cell you cannot make them use a certain Title Company but then people say but seller chooses all services that applies to everything except for title that applies to everything except for title and a lot of Brokers still don't know that you cannot make them use this particular Title Company I've had this where I I had a client she looked at everything and she said this is all great but I don't want to use this title company so I had to go back to the broker and said this is all great but do you have another title company she doesn't want to use this title company he was like well what do you mean she doesn't want to use this title company seller chooses all services well that applies to everything except for title do you have another Title Company well this is who we use this is what's wrong with these people we like them they do great we've used them for years I didn't say anything was wrong with them I just said that my bar doesn't want to use that title company well he said if you don't use this title company we're not going to sell you this house this is who we use and I tried to educate him and say well you can't say that he says yes I can seller chooses all services and I was trying to tell him but that applies to everything except for title but he was adamant about it and he said if you don't use this title company we're not going to sell you this house and I told him you're violating respite section 9. he says well I don't know what the hell that is but if you don't use this title company we're not going to sell you this house he just didn't know he was old school he didn't know the new rules regulations so I had to go back to my bar and says he just doesn't know and he's adamant and if you don't use his title company they're not going to sell you this house so you have to decide whether you want to go with this or we want to go find another house she said well I don't want to lose the house over this fine just use this title company we did everything went fine there was no problem at all we didn't say anything was wrong with their title company but then after that I gave her the emails where he put in writing if you don't use our Title Company we're not going to sell you this house she was able to go back and sue him for three times the amount she paid for title insurance why because he made it a condition of the sale and he can't and the law says if they do you can sue for three times the amount and another word that they use for that is treble damages for the amount paid for title insurance this only applies to title Restless section 9 is about title insurance section 10 deals with escrow accounts two other words I told you that they use in place of escrow accounts are impound accounts and Reserve accounts recipe section 10 deals with escrow accounts and escrow account is the count where the lender takes the money for your taxes and insurance to put with your payment you need to know what they can do each month and what they can do at closing each month the lender can take no more than one twelfth of the annual amount of the taxes and insurance why 112 because there's 12 months in a year for January they can take the January portion February they can take the February portion they can't take anything up front with this January monthly payment you can take the January portion of my taxes and with February the February portion 112th highlight that that's what you want to see let me finish at closing they can take a cushion of up to two months at clothing they can take a cushion highlight the word cushion in two months now this is where people tell me well I've seen where they've taken the next six months of taxes okay that's something totally different if the taxes are due they can take this next six months of taxes and still take the cushion again I'm trying to show you how to pass the test if they ask you how much of a cushion what does your answer need to be two months okay and with each month they can take no more than what 112. if taxes are due and they take the six months of taxes and the cushion great okay but for the exam what is the most that they can take as a cushion or a buffer two months now respite section 10 also requires that they conduct an annual escrow analysis how many of you guys own a home and your taxes and insurance is included if that's the case every year they give you a statement that says this is all the tax and insurance we took out every month this is when we paid it they have to give you that statement every single year okay you don't want to go five years and find out you've been paying too much you don't want to go five years and find out you haven't paid enough and now they want it all at one time that's why they have to do it annually what law says they have to do it annually respite section 10 says they have to conduct an annual escrow analysis meaning once a year if they took 50 or more too much highlight the 50 they're gonna actually at what point would they be required to return any money if they took 50 or more too much then they'd have to give it back that's not on the test we're doing what you need to know to pass the test now you need to know what makes up a complete application these are the six items that make up a complete application and if the lender gets all six of these items then they have to give out what's called the initial disclosures you need to know when the lender has to give out the initial disclosures if they get a complete application so you need to know what's considered a complete application these six items here now next to where it says address of subject property things you may see that are okay if it says unk that means unknown that's okay if it says TBD to be determined that's okay what's never okay and they try to trick you is if it says n a n a is never allowed so they're gonna ask you on the test which of the following is never allowed if they put in a if it's a refinance it'll have an address there but if it's a purchase maybe you don't know the property yet so it could be Unk or TBD but it cannot be in a does that make sense to you great so again if a complete application is uh collected then the borrower must get What's called the initial disclosures you need to know the two instances when they would not have to get the initial disclosures these are called exceptions now I'm going to tell you in a few minutes what are the initial disclosures but you need to know in which instance are when is it an exception when the lender does not have to give the bar the initial disclosures there are two if the lender receives a complete application but the bar withdraws the application within the first three days they don't have to give them all that initial disclosures so that's one if the applicant withdraws the application within the first three days even though the lender got a complete application they don't have to give out all those initial disclosures they don't have to waste all that paper or if the lender turns it down before the third day they do not have to give out their initial disclosures they can just give a one-page denial letter instead of all the initial disclosures and then I'm going to show you what the initial disclosures are in a few minutes so you need to know in which instances would the lender not be required to give out the initial disclosures one if the applicant withdraws the application before the third day or two if the lender turns it down before the third day but if that does not happen the lender has to give out what's called the initial disclosures they have to get them out at or within three days of the application so let's look at this chart here and on top of this chart I want you to First write the words respa deals with timing respa deals with timing respa talks about not so much what they have to get but when they have to get it now disclosures are simply notices notices that the bar must get respa deals with what notices they have to get out when respa deals with timing ing to respa there's four different time frames and you'll see them all here four different time frames there's at or within three days of the application certain things Russia says they have to get then there's where it says before settlement where I have before settlement I want you to write before doc signing so over here where it says before settlement I want you to write before doc signing and then there's at settlement where it says add settlement I want you to write at the doc signing and then after dark signing there's some things that respite said they still should be getting so ing to respite there's four different time frames added within three days of the application some things they have to get before settlement meaning before they get Docs certain things they have to get at settlement meaning at the actual dot signing while you're sitting there with the notary certain things they have to get and then after signing even after the loan has been closed there's still some things that recipe says that they have to get those are the four different time frames respa talks about when they must get certain documents then the next thing that I want you to do is take a circle a pen and circle all of these here these are what's called and make yourself a note the initial disclosures they're going to ask you questions what are the initial disclosures where they are these four documents when would the bar get the initial disclosures at or within three days of the application what are the exceptions if the applicant now the application has been withdrawal within the first three days or the lender turns it down within the first three days they don't get the initial disclosures but if that doesn't happen they get the initial disclosures well what are the initial disclosures these four documents here so they're going to ask you questions and the reason why I'm stressing that they're going to ask you questions which of the following is one of the initial disclosures which of the following is not one of the initial disclosures if you know what the four initial disclosures are you can't get it wrong okay then they're going to ask you when would the bar get the home loan toolkit added within three days of the application when would the bar get the loan estimate had it within three days of the application you get my point they that's how they come up with 4 000 different questions the information is all there they're just breaking it down into little bitty chunks so now I want to talk about each of these initial disclosures the first one that I'm going to talk about is the home loan toolkit the home loan toolkit I want you to put next to that for purchases only the home loan toolkit is a booklet that must be given out to people that are doing a purchase loan for purchases only it's just a little workbook that tells them how purchases work when do they have to get that at or within three days of the application is one of the initial disclosures the next one is the loan estimate what I want you to write next to the loan estimate is formally the good faith estimate it used to be called the GFE but now it's called the loan estimate you notice that I have it in red there and it says Tilla this is why it's not a respite document it's a tiller document respite just says when they have to get it I'm going to say that again the loan estimate is not a respite document it's a tiller document respite just says when they have to get it so here's the question what losses the bar has to get a loan estimate tiller what law says the bar has to get a loan estimate at or within three days of the application respa because respa deals with when they have to get it not so much what they have to get so the loan estimate is a tiller document it's required by tiller respite just says that they have to get it added within three days of the application the next one the Market's servicing disclosure statement what I want you to write next to that is the word intent i-n-t-e-n-t the mortgage servicing disclosure statement tells the lenders intent on whether they intend to service the loan themselves or if they're going to let somebody else service it when I first got my loan it was with IndyMac and then it went to SLS and then it went to occupant they let someone else collect the payments and pay the taxes and insurance but the mortgage servicing disclosure statement tells their intent we're going to fund your loan and you're going to make your payments to us forever that'll never change or we're going to fund your loan but we reserve the right later maybe five years from now ten years from now we haven't decided but we may let someone else service it we're just letting you know right now that that's a possibility that they have to let you know their intent so the mortgage service and disclosure statement tells the lenders intent on wheth