EL CAMINO COLLEGE COURSE OUTLINE: RE 31
I. COURSE DESCRIPTION:
Course Title and Number: Real Estate 31 (RE31)
Descriptive Title: Mortgage Loan Brokering and Lending
Discipline: Real Estate
Hours Lecture: 3
Course Units: 3
Grading Method: Letter
Associate Degree Credit
Transfer CSU - Effective Date: 4/25/95.
Recommended Preparation: Real Estate Principles (RE11) OR concurrent enrollment OR California DRE license and Business Mathematics (BUS 15).
Catalog Description:
This course introduces the student to the principles and operations of the mortgage loan brokering field. The emphasis is on the lending rules for residential property. Students learn lending laws of Regulation Z, usury laws, disclosures, maximum fees and charges, agency relationships, advertising laws, HUD/RESPA calculations and the loan process.
NOTE: This course is approved by the California Department of Real Estate (DRE) for credit towards the required coursework for the California real estate broker license. This course is approved for one of the two courses required for DRE salesperson license in addition to Real Estate Principles (RE11).
II. COURSE OBJECTIVES AND METHODS OF EVALUATION
A. Course Objectives:
1. The student will demonstrate knowledge of how to use a financial calculator for loan amounts, monthly payments and amortization for conventional and government loans for fixed and variable rate loans.
2. The student will utilize a loan application to determine buyer qualification.
3. The student will outline the steps to coordinate escrow instructions, amendments and recording to close a loan.
B. Methods of Evaluation:
1. Substantial writing assignments, including: written homework and other papers.
2. Computational and non-computational problem-solving demonstrations, including: quizzes, homework problems, and student project.
Skill demonstrations, including: industry forms completed.
3. Objective examinations, including multiple choice, completion and true/false.
III. OUTLINE OF SUBJECT MATTER
Computerized uses in mortgage brokerage (loan documents, amortization)
Credit reports: Types, laws, reading reports
Prequalification. Self employment qualification.
Escrow (Certified escrow instructions, amendments, recordation, closing.
HUD/RESPA (Calculating closing costs, prorations, APR, comparing loans)
Lenders (Brokers getting established with lender, wholesale rates, portfolio lender)
Legal Aspects (Usury law, Regulation Z, advertising disclosures, agency, loan broker law, referral fees, commissions, discrepancies)
Loan application (Completion, supporting data, verifying, signatures)
Loan documents (getting approval, documents--wrong, expire, signature, funding)
Loan types (jumbo, conforming, rate sheets)
Packaging and selling loan (calculating yields, discounting, transfer forms)
Ratios (top, bottom, loan type)
Secondary money market
Money sources (private lenders, D paper)
Problem solving (rising rates, bad credit)
Working conditions (license laws, work ethic, independent contractor)
Underwriting guidelines
Verifications (wages, rental income, other income)
IV. READING AND WRITING ASSIGNMENTSThree hours of work per week, including class time, are required for each unit of credit.
A. A representative example of an assignment.
The student will calculate the buyer's financial costs for a HUD/RESPA financial disclosure sheet to estimate the buyer's proposed closing costs.
B. Two hours of work outside of class are required for each hour of lecture or equivalent.
Each student will be required to perform the following outside of regular class time:
1. Study.
2. Answer questions.
3. Skill practice.
4. Required reading.
5. Problem solving activity or exercise.
V. COLLEGE LEVEL CRITICAL THINKING ASSIGNMENTS
1. The student will demonstrate the ability to calculate the down payment for four different loan types. The student must pick the one that is best for the borrower.
2. The student will demonstrate the ability to read and study a loan application form to determine indicated credit and ratio data.
VI. PLANNED INSTRUCTIONAL ACTIVITIES
This course is taught using lecture and note taking, videotape presentation on loan types and qualifications, weekly reading from textbook and review of fill-in-the-blanks in student study guide, and group dynamics from completion of financial calculation problems in study groups determined by type of calculator (i.e. HP, TI, etc.).
VII. APPROPRIATE TEXT AND MATERIALS
Required:
California Mortgage Loan Brokerage and Lending - Student Study Guide, newest edition, Bond,, California Community Colleges, Real Estate Education Center, Pirate's Bookstore.
California Mortgage Loan Brokering and Lending, Grogan and Chambers, Prentice Hall Publishing, New Jersey.
Other Required Materials:
Real Estate Project, Grogan, newest edition, El Camino Bookstore.
Realty Blue Book, FINANCIAL TABLES, newest edition, Dearborn Publishing Company, Chicago.
Computer search for loan programs, rates, etc. (such as Internet, homeseekers, MLS or similar).
Real estate Financial Calculator.
Real Estate Department Home Page
|
