Principles of Mortgage Finance ( Conventional Loan Training)

Competency Training Covering Conventional Loan Types For New FDIC Registered MLO’s
And Lender – Broker Licensed MLO’S Who Have Already Passed the NMLS Testing.

Competency Training For Loan Originators

(Allow 3 to 5 days for printed manual and case study to arrive)

Course includes:

* Printed training manual
* Printed case study exercises to strengthen your skills
* 7/24 online video access for 90 days
* Allow 3 to 5 days for printed manual and case study to arrive)

* If you ever need to ask a question during or after your training just
call 888-254-3431 or send your questions to: or


Your Instructor:

Kathy Lewis
Founder & President of Capstone Institute
America’s first mortgage training school, established in 1986
Online self paced,  video training with narrated powerpoint presentation.

In the mortgage industry your training never ends; its continuous because our industry is ever changing. Legislative and loan program changes are continuous. One month you can , the next month you can’t.  Whether you’re planning on working for a bank or a lender or a broker your initial training is going to make the difference in your level of success. This online, video training with testing covers all the essential subjects and topics you’ll need to master within your first 90 days of employment. If you’ve completed your SAFE Act pre-licensing testing you can now get excited because now you’re going to learn how to do your job and how to do it the right way. If you’re a Bank employee you’re also in for a treat because after this training you’ll be equal in mortgage knowledge than those who’ve taken the NMLS training.

Training Overview


Explanation of Mortgage Programs
Federal Regulations and Compliance Overview
Calculating PITI By Hand
Qualifying Ratios
Reviewing the Credit Report
Explanation of Prepaid Finance Charges (PFCs)
Preparing a Fees Worksheet
Preparing Loan Estimate
Prepaid Escrow & Taxes
Calculating PITI By Hand
Taking a Detailed Loan Application
Acceptable Income and Assets
Required Documentation
Refinance Transactions

What Each Training Section Covers

Section # 2: Review of Mortgage Terms and Definitions

Library-Books Knowing and understanding your mortgage terms and definitions is as important as know how to calculate a loan payment. Home work test assignment located in case studies book

From acceleration clauses and add on interest to waiver of lien and warranty deeds you’ll have the information to understand what subject ,conditions and limitations your borrower’s loan will have to meet.



Section 3: Detailed Review of Federal Regulations & Compliance

Federal Reserve

Under our new system of mortgage regulations; meant to protect our consumers;
you’ll find a maze of overlapping regulations and requirements. This section will assist loan originators in clearly showing you:
* What your responsibilities are
* When you must comply
* How to stay in compliance.

Section 4: Conventional Loan Programs & Non-Traditional Loan Types




Standard 15-20- 30 year fixed programs
Use of CHARMS Booklet
Maximum Loan to Value
Maximum Seller Contributions
Adjustable Rate
Construction Perms
Second Mortgage
Other historical and present day programs


Section 5: How to do mortgage math with your own calculator

Requires knowledge of how to use a financial calculator.
Your borrowers have chosen what type of loan they want; so now lets do the math to see if they can qualify.
Without accessing any mortgage software you’re going to learn how to read rate sheets and calculate:

See our HP12C financial calculator training
Reading Private mortgage Insurance Rates Sheets
Calculating PMI
Principal and Interest Payment
Hazard Insurance
Completing the Loan Estimate
Fees that do and don’t affect “APR”
Fees worksheet
Property Taxes
Flood Insurance
Origination Charges –
Services your borrower can & can’t shop for
Total Cash Required To Close
Home Loan Tool Kit

Now that you understand the math , we’ll cover pre-qualifying the borrower and how to take a correct loan application, Including:

Basic Fannie Mae Underwriting Guidelines
Borrower Income and Assets
Debt to Income Ratios
Loan-To-Value Requirements
Cash Required to Close
Required Borrower Documentation


Section #6: Guidelines For Taking A Detailed Loan Application

Fha Loan Processing Training

Interviewing your borrower correctly during the application process is absolutely essential.

It takes time to properly and thoroughly complete a mortgage loan application. However, the extra time spent “UPFRONT” results in speedier processing and approval later on.

A properly completed application means less surprises for you and your processor. Asking all the right questions during the application process results in speedier approvals – with little or no condition

Section #7: Loan Originator Duties & Responsibilities For Assisting In Speedier Loan Processing

This is a review of conventional loan processing requirements and why originator’s need to understand the importance of submitting complete loan applications with all the required documentation the first time.

This section emphasises why it’s absolutely essential for every originator to understand how loans are processed, and how underwriters look at the risk in determining approval or denial of a loan file

Return To Top Of Page