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22 Hour Mortgage Loan Originator Washington SAFE Comprehensive Course
Course Syllabus -- 7 Day
(14 Day Schedule included at the bottom of this document)
Welcome to our Washington SAFE Comprehensive Course. We are excited to assist you in
furthering or beginning your mortgage career and are pleased you chose Praedo Institute to
satisfy your education requirements.
Course Purpose
This course is meant to satisfy the 22 hour SAFE education requirement for mortgage originator
licensure for the state of Washington. As of April 1, 2013, applicants for licensure in
Washington must complete four hours of WA-DFI specific PE prior to licensing. This course will
also prepare you for the National Component of the SAFE Mortgage Loan Originator Exam
including the UST portion of the exam.
Course Description
Along with the 18 hours of SAFE required education, this course includes 4 hours of Washington
law as well as information related to loan qualification and the loan process. This course
satisfies the Washington SAFE requirement. Included in this course are: discussion forums,
interactive content, practice questions, and live instructor support.
Course Dates and Times
This course begins on Tuesday at 8:00am Mountain Time and must be completed by midnight
on the session end date.
Instructor Contact Information
Once you register for the course, you will receive an email from the instructor assigned to your
course. The email will introduce your instructor as well as explain contact methods and
expected response times. All of our instructors are required to respond to student questions
within one business day of the receipt of your question. Your instructor’s personal email will be
included in the introduction email.
Course Objectives
Each of the individual modules in this course include learning objectives applicable to the
individual module itself. Our course is meant to give you an introduction to the mortgage
industry. Upon completing this course, you should be able to do the following:
Define basic mortgage terms;
Perform mathematical calculations common to the mortgage industry;
Explain certain mortgage concepts to potential borrowers;
Comply with applicable federal laws related to the mortgage industry.
Understand the scope and applicability of the applicable Washington mortgage laws and
rules;
Comply with the requirements for licensees under the applicable laws and rules; and
Protect the public by following the requirements set forth in the rules and laws.
You should also be able to pass the National Component of the SAFE Mortgage Loan
including the UST portion of the exam
Grading Policy
Most of the sections in this course consist of slides mixed with comprehension questions. Each
chapter includes a chapter quiz, and most sections include a course final. You may view the
slides at your own pace, but you must answer all of the comprehension questions correctly and
score 80 percent on all quizzes to receive credit for the course. You must also pass the course
section final exams and the course final exam with a score of 80 percent in order to receive
credit for the course. Please remember, your course does include a completion deadline.
Several of the modules also include case studies, which involve the completion of a certain
project. The details for the individual case studies are found in the course.
Our course also includes 8-10 learning activities. In each of the learning activities, you will be
required to either post comments on our discussion forum or email an assignment to your
instructor for grading. Instructions for the learning activities are included in the course.
Your course consists of four parts. At the end of each part, you will be required to submit an
assignment to your instructor. Your instructor will grade your assignment within one business
day of assignment submission. Once your instructor grades the assignment, your instructor will
allow you access to the next part of your course. The instructor reserves the right to delay your
advancement to the next part in the event you are progressing substantially faster than the
other students in that part.
Course Policies
Each student is required to submit an Identity Affidavit. By confirming this attestation, the
student certifies that the course work was or will be completed by the person for whom the
certificate will be issued. The student further certifies that they did or will not receive any
assistance in completing the course. The submission of a completion certificate for a course
they did not complete themselves may constitute fraud on the student’s part and is subject to
prosecution and/or discipline.
Technical Support
As our course is entirely online, we do offer live technical support via telephone, email, and
chat from 8:30am to 5:00pm mountain time on regular business days. After hours, holiday,
and weekend support is available 365 days a year via email from 9:00am to 10:00pm mountain
time. Our telephone number is 801-492-9933 and the support email is [email protected].
Please note, our technical support staff will often be unable to answer content questions which
are more appropriately directed to your instructor.
Using our System
Once you purchase the course and are logged into our system, you should see a link to the
course on your home page. This link will launch the course. Please carefully review the
introduction module for instructions on using our online system.
Course Outline
This course consists of four parts, each covering different aspects of the Secure and Fair
Enforcement for Mortgage Licensing Act of 2008 (SAFE Act).
SAFE WA 22 Hour Pre-licensing Course Introduction: This module will introduce you to our
system. Adherence to the advice and instructions offered in this module will greatly improve
your online education experience.
SAFE Part One: Consumer Protection
Learning Activity Welcome: The student will follow the instructions to make a post about
themselves.
Consumer Protection Chapter 1: Chapter One covers the Gramm-Leach-Bliley Act. It consists of
the following sections:
Privacy Rule
Safeguard Rule
Pre-texting
Consumer Protection Chapter 2: Chapter Two covers the Do Not Call Rules. It consists of the
following sections:
Do Not Call Registry
Do Not Fax Rules
Consumer Protection Chapter 3: Chapter Three covers the Red Flags Rule. It consists of the
following sections:
Definitions
Red Flag Rule Requirements
Identifying Red Flags
Learning Activity Consumer Protection: The student will follow instructions to post
information on the discussion forum regarding consumer protection.
Identity Theft Case Study: The student will review information on the Federal Trade
Commission's web site and answer related questions.
Learning Activity Identity Theft: After reviewing the information from the case study, the
student will follow instructions to post remarks on the discussion forum.
Fair Lending & Housing Chapter 1: Chapter One covers the Fair Housing Act, the Equal Credit
Opportunity Act, and the Home Mortgage Disclosure Act. It consists of the following sections:
Fair Housing Act
Equal Credit Opportunity Act
Home Mortgage Disclosure Act
Fair Lending & Housing Chapter 2: Chapter Two covers the Fair Credit Reporting Act and the
Fair and Accurate Credit Transaction Act. It consists of the following sections:
Fair Credit Reporting Act
Fair and Accurate Credit Transaction Act
Fair Lending & Housing Chapter 3: Chapter Three covers the governmental agencies who
participate in regulating the mortgage industry. It consists of the following sections:
Role of the Federal Reserve
Role of the Federal Trade Commission
Role of the Department of Housing and Urban Developments
Hud Case Study: The student will review information on the HUD web site and answer related
questions with regard to Fair Housing.
Learning Activity Fair Housing: After completing the HUD case study, the student will follow
instructions to post a scenario on the discussion forum.
Loan Fraud & Ethics Chapter 1: Chapter One will introduce you to the definition of loan fraud
and different types of loan fraud. It consists of the following sections:
Introduction to Loan Fraud
Definition of Loan Fraud
Consequences of Loan Fraud
Types of Fraud
Loan Fraud and Ethics Chapter 2: Chapter Two will review popular loan fraud schemes and
loan fraud statistics. This chapter also discusses ways to detect fraud and licensee obligations
when it comes to loan fraud. It consists of the following sections:
Common Loan Fraud Schemes
Short Sale Fraud
MARI Fraud Index
Loan Fraud Case Study: The student will review information on the FBI's web site and answer
related questions with regard to fraud.
Learning Activity Loan Fraud & Ethics: The student will search the Internet for two examples of
loan fraud and report their findings to their instructor through the internal email system.
SAFE Part Two: Federal Law
Non-Traditional Mortgage Products Chapter 1: Chapter One introduces the student to non-
traditional mortgage products. It consists of the following sections:
Introduction to the Industry
Definition of the Industry
Product Overviews
Non-Traditional Mortgage Products Chapter 2: Chapter Two covers federal guidance of the
non-traditional mortgage industry. It consists of the following sections:
Interagency Guidance on Nontraditional Mortgage Product Risks
Loan Terms and Underwriting Standards
Portfolio and Risk Management Practices
Consumer Protection Issues
Statement on Sub-prime Mortgage Lending
Predatory Lending
Prepayment Penalties
Reduced Documentation
Payment Shock
Workout Arrangements
Consumer Protection Principles
RESPA Chapter 1: Chapter One introduces RESPA’s provisions regarding disclosure of costs and
record keeping. It consists of the following sections:
Purposes of the Real Estate Settlement Procedures Act
Scope of RESPA
Exempt Transactions
Definitions
Advance Disclosure of Costs - Good Faith Estimate
RESPA Chapter 2: Chapter Two explains RESPA’s kickback and referral fee provisions. It
consists of the following sections:
Eliminate Kickbacks and Referral Fees
Common RESPA Violations
RESPA Chapter 3: Chapter Three covers affiliated business arrangements and servicing
requirements set forth in RESPA. It consists of the following sections:
Affiliated Business Arrangements
Servicing Issues
Learning Activity RESPA: The student will follow the instructions to post a comment on the
discussion forum regarding RESPA.
TILA Chapter 1: Chapter One introduces the Truth in Lending Act and includes definitions as
well as information on APR and advertising. It consists of the following sections:
Definitions
Annual Percentage Rate
Advertising Rules
Trigger Terms
Required Disclosures
TILA Chapter 2: Chapter Two covers disclosure and the right to cancel. It consists of the
following sections:
Disclosure Requirements
Early Disclosures
Early Disclosure and Closing
Collecting Fees
Changes During the Transaction
Right of Rescission
High-Cost Loans
Additional Disclosures
Higher-priced Loans
TILA Chapter 3: Chapter Three covers loan officer compensation. It consists of the following
sections:
LO Compensation Rule
Payments Based on Transaction Terms
Reducing LO Compensation on a Transaction
Other Compensation Issues
Final Rule and Official Staff Commentary
Safe Harbor
Presenting Loan Options
TILA Chapter 4: Chapter Four Covers the ability to repay and QM rule. It consists of the
following section:
Ability to Repay and QM Rule
Learning Activity TILA: The student will follow the instructions to search the Internet to find
mortgage ads which include trigger terms. They will complete an assignment and submit it to
their instructor through the internal email system.
SAFE Part Three: Industry Basics
Industry Chapter 1: Chapter One reviews the structure of the mortgage industry. It consists of
the following sections:
Structure of the Mortgage Industry
The Primary Market
The Secondary Market
Mortgage Brokers
Mortgage Lenders/Bankers
Secondary Market Transactions
The Capital Market
Industry Chapter 2: Chapter Two discusses the basic mortgage categories. It consists of the
following sections:
Mortgage Industry Overview
Purchase Transactions
Rate/Term Refinance
Cash-Out Refinance
Mortgage Categories
Conventional/Conforming
FHA - Federal Housing Administration
Advantages of FHA Lending
Higher Debt to Income Ratios
Non-occupant Co-borrowers
Disadvantages of FHA Lending
VA Loans
Rural Housing
Construction Loans
Jumbo/Non-Conforming
Second Mortgage/HELOC
Reverse Equity/HECM
Loan Process: Qualification Chapter 1: Chapter One covers pre-qualification. It consists of the
following sections:
Pre-qualification
Down Payment
Income
Debts
Credit
Loan Process: Qualification Chapter 2: Chapter Two explores file documentation. It consists
of the following sections:
Assembling the File
Income Documentation
Acceptable Assets
Loan Process: Qualification Chapter 3: Chapter Three reviews credit reports. It consists of the
following sections:
Credit Reports
Credit Scores
FICO Scores Case Study: The student will review credit scores and answer questions related to
FICO.
Learning Activity Credit Report: The student will follow the instructions to post a comment on
the discussion forum regarding credit scores.
Learning Activity Loan Process: Qualification: The student will complete an assignment based
on qualification calculations and submit their work to their instructor through the internal email
system.
SAFE Part Four: Loan Process Part II & Washington Law
Loan Process: Part II Chapter 1: Chapter One covers mortgage products. It consists of the
following sections:
Fixed Rate Mortgages
Adjustable Rate Mortgages
Balloons
HELOC - Home Equity Line of Credit
Reverse Mortgages
Loan Process: Part II Chapter 2: Chapter Two covers appraisals. It consists of the following
sections:
Types of appraisals
Cost Approach
Income Approach
Market Approach
Loan Process: Part II Chapter 3: Chapter Three covers the closing process. It consists of the
following sections:
Hazard Insurance
Flood Insurance
Mortgage Insurance
Dropping Mortgage Insurance
Title, Escrow and Closing
Mortgages, Notes and Liens
Title Insurance Policies
Learning Activity Loan Process: Part II: The student will review the types of loan products
discussed and follow the instructions to post a comment on the discussion forum and respond
to another student's post.
Washington Mortgage Law Chapter 1: Chapter One covers the Washington Mortgage Broker
Practices Act. It consists of the following sections:
Definitions
Exemptions
Prohibited Conduct
Written Disclosure and Fee Requirements
Trust Account Requirements
Record Keeping Requirements
Compensation
Duties of a Mortgage Broker
Mortgage Broker License Requirements
Loan Modifications
Washington Mortgage Law Chapter 2: Chapter Two covers the Consumer Loan Act and the
implementing code along with the Washington Administrative Procedures Act. It consists of
the following sections:
Definitions
Application of the Chapter
Violations
Licensing
Loans/Fee Disclosures/Time Limits
Powers of Licensees
Investigations and Examinations
Recordkeeping
Unique Identifier
Required Information and Fees
Education Requirements
Washington Administrative Procedures Act
Washington Mortgage Law Chapter 3: Chapter Three covers the Escrow Registration Act. It
consists of the following sections:
Definitions
Exemptions
Licensing Requirements
Fees
Unlicensed Activity
Prohibited Practices
Prohibited Practices Case Study
Cease and Desist Orders
Referral Fees Prohibited
Authority to Prosecute
Usury Act
Certified Real Estate Appraisers Act
Real Estate Brokers and Managing Brokers
Washington Mortgage Law Chapter 4: Chapter Four covers unfair real estate practices. It
consists of the following sections:
Unfair Practices
Real Estate Contract Forfeitures
Purpose
Conditions to Forfeiture
Required Notices
Contents of Notice
Contents of Declaration
Enforcement Actions Case Study: The student will review newsletters posted on the
Washington Department of Financial Institution's web site. To complete the assignment, the
student will write a short review about four different disciplinary actions described in the
newsletter. They will explain what they have learned from the newsletter examples and what
could have been done for the individuals to avoid disciplinary action.
The student will submit their completed assignment to their instructor for grading.
Course Final: 100 question course final covering all of the material in the course.
Course Evaluation: Students will be allowed to give feedback regarding the course.
Course Schedule
This course consists of the four parts outlined below. The requirements for each part are listed
with the approximate time needed to complete each learning module. The scheduled days are
approximate as well, you are not required to follow the prescribed outline, but doing so would
allow you to complete the course in the allotted time frame. This course meets the minimum
time requirement of 50 seat minutes for each clock hour the course is approved. This course
is approved as a 22 hour course and must be completed in its entirety in order for you to
receive credit.
Good Luck
Once again, thank you for choosing Praedo Institute. Your success is extremely important to us.
Please let us know if we can be of assistance at any time. Enjoy the course!
Course Outline and Schedule - 7 Day
Schedule Topics and Activities Reading Due Assignments Due Instruction Time
Allocation (in minutes)
Day 1
SAFE WA 22 Hour Pre-licensing Course
Introduction
Introduction and Syllabus
Submit Online Affidavit
15
SAFE Part One: Consumer Protection
Learning Activity Welcome
Learning Activity Instructions
Post an introduction on the Discussion
Forum 10
Consumer Protection Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
Learning Activity Consumer Protection
Learning Activity Instructions
Post Information regarding consumer protection on the Discussion Forum
10
Identity Theft Case Study
Review information on FTC's website
Complete Quiz 10
Learning Activity Identity Theft
Review information on FTC's website
Post remarks on the Discussion Forum
10
Day 2
Fair Lending & Housing
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
HUD Case Study Review information on HUD's website
Complete Quiz 10
Learning Activity Fair Housing
Review information on HUD's website
Post a scenario on the Discussion
Forum 10
Loan Fraud & Ethics Chapters 1 & 2 Complete Chapter Quizzes and Test
100
Loan Fraud Case Study
Review Information on FBI's website
Complete Quiz 10
Learning Activity Loan Fraud & Ethics
Internet search for loan fraud examples
Report findings to instructor
20
Day 3
SAFE Part Two: Federal Law
Non-traditional Mortgage Products
Chapters 1 & 2 Complete Chapter Quizzes and Test
90
RESPA Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
Learning Activity RESPA
N/A
Post a comment on the Discussion
Forum regarding RESPA
10
Day 4
TILA Chapters 1, 2, 3, & 4 Complete Chapter Quizzes and Test
110
Learning Activity TILA
Internet search for trigger terms
Report findings to instructor
20
Day 5
SAFE Part Three: Industry Basics
Industry Chapters 1 & 2
Complete Chapter Quizzes and Test
100
Loan Process: Qualification
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
FICO Scores Case Study
Review credit scores Complete Quiz 10
Learning Activity Credit Report
Review credit scores
Post a comment on the Discussion
Forum regarding credit scores
10
Learning Activity Loan Process: Qualification
N/A
Complete an assignment based on
qualification calculations and
submit to instructor
20
Day 6
SAFE Part Four: Loan Process &
Washington Law Loan Process: Part II
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
90
Learning Activity Loan Process: Part II
Review types of loan products
Post a comment on the Discussion
Forum and comment on another student's
post
10
Day 7
Washington Mortgage Law
Chapters 1,2,3, & 4
Complete Chapter Quizzes, Case Study
and Test 200
Enforcement Actions Case Study
Department of Financial
Institution's newsletter
Submit review of disciplinary actions
to instructor 20
Course Final N/A Complete course
final 20
Evaluation N/A Complete evaluation 5
Course Outline and Schedule - 14 Day
Schedule Topics and Activities Reading Due Assignments Due Instruction Time
Allocation (in minutes)
Days 1-2
SAFE WA 22 Hour Pre-licensing Course
Introduction
Introduction and Syllabus
Submit Online Affidavit
15
SAFE Part One: Consumer Protection
Learning Activity Welcome
Learning Activity Instructions
Post an introduction on the Discussion
Forum 10
Consumer Protection Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
Learning Activity Consumer Protection
Learning Activity Instructions
Post Information regarding consumer protection on the Discussion Forum
10
Identity Theft Case Study
Review information on FTC's website
Complete Quiz 10
Learning Activity Identity Theft
Review information on FTC's website
Post remarks on the Discussion Forum
10
Days 3-4
Fair Lending & Housing
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
HUD Case Study Review information on HUD's website
Complete Quiz 10
Learning Activity Fair Housing
Review information on HUD's website
Post a scenario on the Discussion
Forum 10
Loan Fraud & Ethics Chapters 1 & 2 Complete Chapter Quizzes and Test
100
Loan Fraud Case Study
Review Information on FBI's website
Complete Quiz 10
Learning Activity Loan Fraud & Ethics
Internet search for loan fraud examples
Report findings to instructor
20
Days 5-6
SAFE Part Two: Federal Law
Non-traditional Mortgage Products
Chapters 1 & 2 Complete Chapter Quizzes and Test
90
RESPA Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
Learning Activity RESPA
N/A
Post a comment on the Discussion
Forum regarding RESPA
10
Days 7-8 TILA Chapters 1, 2, 3 & 4
Complete Chapter Quizzes and Test
110
Learning Activity TILA
Internet search for trigger terms
Report findings to instructor
20
Days 9-10
SAFE Part Three: Industry Basics
Industry Chapters 1 & 2
Complete Chapter Quizzes and Test
100
Loan Process: Qualification
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
100
FICO Scores Case Study
Review credit scores Complete Quiz 10
Learning Activity Credit Report
Review credit scores
Post a comment on the Discussion
Forum regarding credit scores
10
Learning Activity Loan Process: Qualification
N/A
Complete an assignment based on
qualification calculations and
submit to instructor
20
Days 11-12
SAFE Part Four: Loan Process &
Washington Law Loan Process: Part II
Chapters 1, 2, & 3 Complete Chapter Quizzes and Test
90
Learning Activity Loan Process: Part II
Review types of loan products
Post a comment on the Discussion
Forum and comment on another student's
post
10
Days 13-14
Washington Mortgage Law
Chapters 1,2,3, & 4
Complete Chapter Quizzes, Case Study
and Test 200
Enforcement Actions Case Study
Department of Financial
Institution's newsletter
Submit review of disciplinary actions
to instructor 20
Course Final N/A Complete course
final 20
Evaluation N/A Complete evaluation 5
