By completing these interactive courses, you will gain an understanding of the mortgage loan servicing process. Learn about mortgage loan documents, interest, servicing payments, escrow accounts, member relations, collections, and loan servicing technologies.

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Following are the learning objectives for each course:

Types of Mortgage Loan Programs:

• Explain how fixed-rate mortgage loans, adjustable-rate mortgage loans, and balloon loans differ from each other
• List three major characteristics and purposes of subprime lending
• Recognize two member benefits of FHA and VA loans
• Compare and contrast interest first loans, option ARMs, and reverse mortgages
• Pinpoint two member benefits of each of the mortgage loan programs covered in this course

Regulatory Compliance:

• Outline the purpose and requirements of the Fair Housing Act and the Equal Credit Opportunity Act
• Explain the purpose and disclosure requirements of the Truth in Lending Act and the Real Estate Settlement Act
• State the flood insurance requirements set by the National Flood Insurance Act
• Restate which credit unions must report home mortgage loan data under the Home Mortgage Disclosure Act
• Discuss how the Fair Credit Reporting Act and Fair Accurate Credit Transactions Act help consumers

Loan Servicing:

• Calculate simple interest on loans
• Compare interest calculations based on 360 days versus 365 days per year
• Explain the basics of loan amortization to a member
• Describe how interest is calculated on credit cards and lines of credit
• List the key features of interest calculations on variable-rate loans
• Identify two interest-rate disclosure requirements of Truth-in-Lending

Servicing Payments:

• Explain key features of the payment options available to members from payroll deduction, automatic transfer, and coupons to statements and electronic bill pay
• Outline the process of notifying members about variable-rate loan changes and the importance of accuracy
• Answer a member's question about how prepayments are applied to loans
• List the typical actions for a vehicle loan payoff, stock loan payoff, and mortgage loan payoff
• Describe how mortgage loan assumptions are processed

Insurance, Taxes, and Escrow Accounts:

• Define escrow account and the aggregate accounting method used to calculate escrow payments
• Describe the required disclosures on escrow accounts
• Articulate how credit unions handle shortages, excesses, payments, renewals, and claims on escrow accounts and non-escrowed insurance coverage
• State when private mortgage insurance is canceled on loans

Collections and Delinquent Loans:

• Describe types of non-paying members
• Explain how credit unions use mailings to follow up on late payments
• Name four steps used in telephone collection
• Identify key provisions of the Fair Debt Collection Practices Act
• Report the methods credit unions use to recover defaulted loans including repossession, foreclosure, and judgments
• Outline effects of Chapter 7 and Chapter 13 bankruptcies on credit union members and loans