(0411) Finance I - Online Version

360TRAINING, INC.
Pre-License
Finance One
COURSE NUMBER: TREC 0411
30 hours

COURSE SYLLABUS

COURSE DESCRIPTION

Finance One is a 30-hour course that meets the elective prelicense requirement or SAE requirement by the Texas Real Estate Commission (TREC) for anyone who wishes to become or maintain a license in Texas. This course provides an introduction to residential real estate finance information on how to underwrite FHA, VA, FNMA, & FHLMC loans. In this course, the basics are discussed regarding applications, appraisals, escrow, title, and credit reports, which includes FICO, qualifying for loan amounts, and verifying income and assets.

You will also learn how to calculate loan amounts, affordable monthly payments, property taxes, hazard and mortgage insurances (Conventional and FHA), qualifying ratios and income.

PREREQUISITES: None

LEARNING OBJECTIVES:

  • Identify and discuss the Federal and State laws affecting real estate.
  • Describe mortgage loan programs and the mortgage markets
  • Calculate loan amounts, affordable monthly payments, property taxes, hazard and mortgage insurances (conventional and FHA), qualifying ratios and income
  • Explain theoretical aspects of financing including sources of money for mortgages, various types of mortgages based on payment structure and financial agreement, and the different kinds of loans available in the market
  • Utilize the basics applications of escrow, title, private mortgage insurance and credit reports
  • Verify the required documentation in the mortgage lending practice

REQUIRED MATERIAL:

The items listed below are the minimal system requirements in order to take this online course. While you may use the minimal requirements shown below, it is recommended to use a faster system and faster Internet connection. Some courses may take time to download on 56k modem. If your computer is not up to par, the local library should have on-site computers available and connected to the internet free of charge.

  • IBM PC Compatible Computer (200 MHz processor with 32MB RAM)
  • Sound Card with speakers or headphones
  • SVGA (800x600) video card, driver, and monitor
  • Microsoft Windows 95/98/ME/NT/2000/XP
  • Internet connection (minimum 56Kbps recommended)
  • Microsoft Internet Explorer version 5.0 or greater (free download)

TYPE OF COURSE:
The course is an online course taken at the student’s convenience. It is available 24 hours a day, seven days per week.

Should you require help regarding the online course, please contact the content expert at instructor@360training.com. If you have technical questions please contact support@360training or 800-480-3890.

EVALUATION:
The course contains several lessons which include quizzes. The student must pass a lesson’s quiz in order to move onto the next lesson. In order to complete the course, the student must pass the final quiz with a minimum score of 70%.

The College will mail you a certificate of course completion to the address you provided during course enrollment, and it is your responsibility to submit a copy of the certificate to TREC for credit. For more real estate education requirements, the student should visit TREC’s Web site, www.trec.state.tx.us

COURSE OUTLINE:

Finance One

Introduction: 15 minutes

  • Learning Objectives
  • Key Terms

Lesson 1- Fundamentals of Mortgage Lending: 4 hours

  • The Real Estate Market
  • Instruments of Real Estate Finance
  • Loan Application Checklist
  • Underwriting Guidelines
  • Closing Real Estate Loans
  • RESPA
  • Closing Cost Terminology
  • Federal and State Laws Affecting Real Estate

Lesson 2- The Mortgage Markets: 6 hours

  • The Primary Mortgage Market
  • The Secondary Mortgage Market
  • Secondary Market Agencies
  • Activities of Secondary Market Agencies
  • Development of the Secondary Market
  • Milestones in the Secondary Market

Lesson 3- Fair Lending Basics: 3 hours

  • Mortgage Lending Practice
  • Loan Payment Plans

Lesson 4- Types of Loans: 4 hours

  • Conventional Loans
  • FHA Insured Loans
  • VA Guaranteed Loans
  • Comparison Exercise of Conventional, FA & VA Loans

Lesson 5- Understanding Credit: 5 hours

  • Credit Reports
  • Derogatory Credit Information
  • The Non-Traditional Mortgage Credit Report
  • Frequently Asked Questions by Borrowers (FAQ's)
  • Other Important Information Regarding Credit
  • Mortgage Calculations

Lesson 6- Contemporary Real Estate Finance: 4 hours

  • Computerized Loan Origination (CLO)
  • Automated Underwriting Systems
  • Automatic Underwriting on the Internet Investment in Real Estate
  • Recent Expansion of Real Estate Investment Trust (REIT)
  • Appendix

Lesson 7- Forms and Documents: 4 hours

  • Mortgage Practice
  • Loan Processing
  • Conventional Loan Requirements
  • FA Loan Requirement
  • VA Loan Requirement