In the Creative Mortgages course, you’ll learn about the latest developments in the Private Lending (Non-QM) market. Led by an industry expert on private lending, you’ll get an inside look into the nuances of the financing side of real estate transactions.
We’ll begin with an overview of the loan market, events that have shaped it, types of loans, and relevant calculations and and measurements. Towards the end of the course, we’ll dive into private lending, major types of Non-QM loans, and common questions surrounding this burgeoning industry. Armed with a better understanding of the mortgage industry, you can help more buyers in different situations discover the steps they can take to secure financing for their home.
10:00 – 10:10
The instructor will facilitate and encourage the class to get to know each other, foster a sense of community in the class, and help students learn from each other. To get us started, please tell us your name, and your professional interest in this course.
SECTION 1 From Subprime Lending to Qualified Mortgage
Mortgage Financing, Qualifying Borrower for Mortgage
Interagency Guidance on Non-Traditional Mortgage of 2006
Statement on Subprime Mortgage Lending of 2007
“QM Rule” under Dodd-Frank Wall Street Reform and Consumer Protection Act of 2014
Types of QM Loans: - General QM
- Temporary QM
- Small Creditor
GSE Patch and its Expiration
SECTION 2 Learning Products and Programs
11:40 – 11:50
Traditional (QM) VS Non-Traditional (Non-QM)
11:50 – 12:00
Fixed Rate Mortgage
12:00 – 12:15
12:15 – 12:30
Adjustable Rate Mortgage (ARM)
- Components of ARM
- Index and Margin
- Interest Rate Caps
- Interest Rate Caps Math
12:30 – 12:50
Calculation of Interest:
- Simple Interest
- Fixed Rate Amortization
- Adjusted Payment Calculation
12:50 – 13:00
Negative Amortization (Neg-AM):
- Neg-AM Features
- Neg-AM Math
SECTION 3 Types of Non-Traditional Products and Programs
13:00 – 13:15
Types of ARM:
- Hybrid ARM
- Interest-only ARM
- Payment option ARM
- Advantages and Disadvantages
- Interest-only Mortgage today
Adjustable Rate Mortgage is a good fit?
- Comparison with 30-year Fixed-rate Loan
- Risks and a good fit
13:40 – 13:50
HELOC – Home Equity Line of Credit
13:50 – 13:55
13:55 – 14:05
Why Non-Traditional Mortgages are Coming Back?
14:05 – 14:10
Is Non-QM the Same as a Subprime Loan?
14:10 - 14:15
This course provides an overview and analysis of Federal and Georgia laws, statutes, regulations, and rules.
Develop a better understanding of credit, its impacts, and how to repair a buyer’s score.