Course Catalogue
HoursCost
HoursCostTexas State Requirements
You must have 15 hours of Continuing Education. 8 hours of required training, 2 of which are ethics courses, and 7 hours elective courses.
May be delivered in classroom, classroom-equivalent, correspondence, online, or seminar settings.
Fulfills license renewal educational requirements established in the Mortgage Broker License Act, §156.208(a)(3)(A) for mortgage brokers and §156.208(b)(3)(A) for loan officers. The Act requires a licensee to have attended, during the term of the current license, 15 hours of Commissioner-approved continuing education courses unless the licensee maintains an active license in other specific professional fields.
A renewing licensee must select courses approved as core and ethics for at least eight hours of the required training while the remaining seven hours may come from the continuing education courses to fulfill their requirements for licensure renewal.
This course covers math principles essential in the practice of real estate. Some of these topics may already be familiar to the student. The course will elaborate on how the subject matter pertains to real estate in everyday use. It is important that licensees understand the mathematical concepts presented here in order to be competent in the practice of real estate. This course includes the following lessons:
The Language of Math
Measurement of Dimensions
Financial Math
Valuation Math
Real Estate Practice
The course includes fractions, decimals and percentages: the mathematical language used to express many aspects of real estate practice. Area and volume will be discussed so that the licensee will be able to determine and express the amount of commodity in a particular parcel of realty. While not a real estate finance course, this course will review concepts of interest, amortization and loan rate and discount. These concepts must be understood fully so that the licensee may grasp the essential elements used in the purchase of and financing for real property. Additionally, the principle of prorating will depict the importance of time in the transfer of realty.
The conclusion of this course offers real world examples and applications of the information presented. Upon completion of this course the student will comprehend the language and principles of mathematics necessary to successfully function in the practice of real estate.
Learning Objectives
Name key terms used in real estate math problems.
Apply fractions, decimals and percentages.
Translate fractions into decimal and percentage forms.
Determine the area and volume of a given object or parcel.
Manipulate the principles involved in rate calculations.
Grasp the concept of amortization.
Comprehend the principles of prorating and how to apply them.
Understand and solve for appreciation and depreciation.
Identify and apply calculation formulas to determine value and profit.
Apply interest rates and loan discount rates.
Use equations to calculate interest.
To purchase residential real estate, borrowers typically take out loans. Most loans are fully amortized, meaning that they are paid off in equal monthly installments that reduce the principal over time. The process by which borrowers are considered for loans and, if qualified, receive them is called underwriting. Underwriters consider the quality, quantity and durability of an applicant’s income and his or her net worth, credit, debt and source of funds. Borrowers qualify for most loans on the basis of two ratios: the total housing expense to income ratio and the total debt service ratio. The three most common types of loans are conventional loans, FHA loans and VA loans.
Conventional loans are those loans that are neither guaranteed nor insured by the federal government. Conventional loans are categorized by whether they conform to FNMA (“Fannie Mae”) guidelines for secondary market sale or not. These latter are called non-conforming or jumbo loans. Most conventional loans are fully amortized loans. They generally have a 28%/36% (total housing expense/ total debt service) ratio requirement, but lenders can set these ratios higher for subprime borrowers. The Fannie Mae underwriting guidelines are designed to decrease the risk of default by increasing the lending restrictions on high LTV loans and to make conventional loans uniform and comparable for sale on the secondary market.
FHA loans are insured by the Federal Housing Authority, which Congress created as part of the U.S. Department of Housing and Urban Development (HUD). The FHA program was designed to encourage homeownership and anyone who is either a U.S. citizen or holds a valid U.S. green card may apply. The cost of the FHA insured loan is the Mortgage Insurance Premium, consisting of a one-time up-front fee of 2.25% of the loan amount and an annual MIP payment that varies in accordance with the length of the loan term. The FHA sets certain limits on the loans that it insures, including a stipulated maximum loan limit, down payment requirements and income qualifications. Borrowers are required to have at least a 3% investment in the property they are purchasing and may not have a total housing expense to income ratio in excess of 29% or a total debt service ratio in excess of 41%.
VA loans are loans guaranteed by the Veterans Administration and the federal government. They are only for veterans of foreign wars, current servicemen and women and a select group of others. The VA reimburses lenders up to $60,000 in the event of a veteran borrower’s default. The cost of this guarantee is a one-time funding fee, which varies inversely as a function of the borrower’s down payment. The VA sets limits on allowable closing costs and requires that sellers pay the amount of any overages at closing. It also requires that properties be appraised by the Administration and receive a Certificate of Reasonable Value. Any amount of the appraisal value that exceeds the sale price must be paid as a down payment. VA loans are fully assumable, but only by borrowers who meet all the VA eligibility requirements.
In addition to the three most common types of loans, VA, FHA and conventional fixed-rate loans, there are several other loan payment plans available. One important loan type of this sort is the Adjustable Rate Mortgage or ARM. ARM’s have an initial interest rate generally below conventional rate loans that is adjusted periodically on the basis of the fluctuation of some economic indicator, an index, stipulated in the loan to which the lender adds a percent called the margin. ARM’s typically have either a rate cap or a payment cap for either the adjustment period or the term of the loan, or both. Other loan payment plans are often variations on the conventional loan and can have increased payments over time like a Graduated Payment Mortgage or a Temporary Buydown; an increasing interest rate, as with a Growth Equity Mortgage; or a decreased rate, as with a Permanent Buydown.
The formal process by which ownership of real property passes from seller to buyer is known as closing. The loan and purchase process is governed by several government acts, including the Real Estate Settlement Procedures Act (RESPA), the Federal Fair Credit Reporting Act and the Equal Credit Opportunity Act (ECOA). A real estate professional must be familiar with the provisions of these acts in order to avoid violating the law.
Closing costs are many and varied. They include lender’s fees and fees unassociated with the lender. Fees must be paid to lawyers, couriers, homeowners’ associations, insurers, inspectors, appraisers and a myriad of others. Lenders typically charge a loan origination fee for originating a loan, a mortgage broker fee for processing, a credit report fee for obtaining a credit report, a tax service fee to ensure that a property’s taxes are current and other fees from services in the course of closing.
Learning Objectives
Understand the basic concepts of real estate financing, and the key terms involved
Know how to qualify a buyer for the most common types of loans
Be familiar with the use and function of escrow accounts
Know what a Mortgage Insurance Premium is
Know the underwriting guidelines and process
Be familiar with the three most common types of loans: Conventional, FHA and VA
Know the advantages and disadvantages of conventional loans
Know how to use conventional qualifying ratios
Know the advantages and disadvantages of FHA loans
Know about the differing FHA qualification ratios
Know the advantages and disadvantages of VA loans
Be familiar with VA eligibility and qualification periods
Be able to calculate the amount of VA entitlement used
Be able to calculate VA loan amounts and required down payments
Know the process and qualifications for assuming VA and FHA loans
Be familiar with other types of loans available
Know how to underwrite and close loans
This course covers broad issues on fair housing laws. Specifically, the student will learn: what fair housing laws exist, what classes of individuals are covered under these laws, how discrimination is defined in real estate, how can one avoid discriminating practices, and what the consequences are for non-compliance with fair housing laws. This module addresses the following topics:
Introduction to Fair Housing
Discrimination
Additional Legal Protections to Prevent Discrimination
Enforcement of Fair Housing Laws
Avoiding Discriminatory Practices
Real World Practice
Texas State Laws and Regulations
LEARNING OBJECTIVES
Understand the purpose of the Federal Fair Housing Laws and be able to identify the protected classes covered by the Fair Housing Act.
Be aware of the seven activities considered illegal as a result of the Fair Housing Laws.
Know the five exemptions from the Federal Fair Housing Laws for property owners.
Be able to recognize discrimination in real estate practice.
Be able to identify acts considered discriminatory under the Fair Housing Act of 1968 as amended in 1972 and 1988.
Understand the purpose of the Federal Equal Credit Opportunity Act (ECOA) and know the classes it protects.
Understand the purpose of the Americans with Disabilities Act ADA).
Know how the ADA affects real estate practice.
Know how Fair Housing Complaints are handled.
Know the penalties for non-compliance with Fair Housing Laws.
Know how to incorporate business practices designed to prevent discrimination by real estate professionals.
Understand the purpose of the HUD/NAR Partnership and why it is important.
Know the most important principle in following HUD Advertising Guidelines.
Be able to identify acceptable and unacceptable words and phrases for use in advertisements.
Have learned how to apply those practices that will assist a REALTOR® in evidencing that he or she does not discriminate.
Know what the differences are between federal regulations and Texas State regulations on fair housing.
In order to own and convey property in a market economy it is necessary for that property to be assigned a specific monetary value. This process, unlike, say, that of assigning value to durable goods—which have specific materials, production and marketing costs—can be somewhat more involved. With property, the fixed costs—building materials and labor costs—are always accompanied by more esoteric factors that go to make property more (or less) valuable. Becoming a member of the group that understands and applies these factors is a bit more complex than simply being able to understand a balance sheet.
This course covers the theories, rules, duties and activities that guide the real estate appraisal process. An appraiser must also conduct him or herself professionally, ethically and honestly. There are guidelines regarding professionally and ethically correct behavior of appraisers as well which are also covered by this course. The entire appraisal process should be carried out in the best possible way for consumers and licensees as well as the real estate market.
Texas Mortgage Continuing Education School Mortgage Brokers
TEXAS Mortgage CE
Texas Mortgage Continuing Education School
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Texas Mortgage Continuing Education School Mortgage Brokers
