Loan closing is the legal execution, or creation, of a mortgage loan. At the loan closing, title to and ownership of the property passes from the seller to the buyer. At the same time, the buyer borrows the amount necessary for the purchase while pledging the property as security for the debt.

CampusMBA's Closing Principles and Procedures presents an overview of loan closing and its role in the mortgage lending cycle. This course is designed for anyone desiring a better understanding of the closing process and the principles and procedures guiding the culmination of the mortgage transaction.

The course addresses:

• The role of closing in the mortgage lending process
• Origination, processing, and underwriting concepts that affect the closing process
• Legal issues related to closing
• The impact of federal laws and regulations on the closing process
• Documents present or executed at closing
• The purpose and use of title insurance
• How the lender protects its investment - the importance of insurance, taxes, and escrow
• What happens to the loan file before, during, and after settlement

Course Outline:

Lesson 1 - Closing in the Mortgage Lending Process

• The Mortgage Lending Process
• Types of Mortgage Specialists
• Players in the Lending Process
• A Closer Look at Closing
• Importance of the Closing to the Lender
• Closing in the Lending Process

Lesson 2 - Production Concepts

• Automation in Loan Production
• Origination
• Processing
• Underwriting
• Preparing for Closing

Lesson 3 - Legal Issues

• Real Property and Personal Property
• Real Property Limitations
• Requirements for Legal Transfer of Realty
• Types of Estates
• Common Ways to Hold Title
• Methods of Conveyance
• Mortgage Agreements
• Title Theory and Lien Theory
• Types of Mortgage Transfers

Lesson 4 - Regulatory Compliance

• Real Estate Settlement Procedures Act
• Truth in Lending Act
• Home Ownership and Equity Protection Act
• Home Mortgage Disclosure Act
• Gramm-Leach-Bliley Act
• USA PATRIOT Act
• Fair Housing Act
• Equal Credit Opportunity Act

Lesson 5 - Closing Documents

• Real Estate Sales Contract
• Deed
• The Promissory Note
• The Security Instrument
• Essential Mortgage Clauses
• Riders to the Promissory Note and Security Instrument
• Additional Documentation Present or Executed at Closing
• Additional Loan File Documents

Lesson 6 - Title Insurance

• Title Insurance Overview
• Title Examination
• Title Commitment
• Survey
• Lender Title Policy

Lesson 7 - Insurance, Taxes, and Escrow

• Hazard and Homeowner Insurance
• Flood Insurance
• Special Coverage Policies
• Mortgage Insurance
• Real Estate Taxes and Assessment
• Escrow Accounts

Lesson 8 - The Closing Process

• Players in the Closing Process
• Preparing and Reviewing the Loan File Documents
• Preparing Funds for Settlement
• The Settlement
• Disbursing Funds After Settlement
• Recording the Documents
• Other Post-Settlement Duties

Course Credit:
Completion of this course earns five points toward MBA's Certified Mortgage Banker (CMB), or Certified Mortgage Technologist (CMT) designations.