MBA Compliance Essentials Ability to Repay-Qualified Mortgage Rule Web Course Webinar Presentation June 19, 2014 Ken Markison, Esq. MBA Vice President & Regulatory Counsel Mike Wheeden MBA Director of Business Development

2 Introduction and Background  Financial crisis profoundly changed the regulatory landscape for the mortgage industry  New regulator, myriad regulations and robust enforcement came with Dodd-Frank  In fact, new 900 page Examination Guide was one of the first issuances of new CFPB  Regulatory framework presents question of how companies of all sizes can comply and remain in business to serve consumers  Compliance essentials and its progeny are MBA’s top level responses to these concerns

3 Introduction and Background (cont’d)  In numerous issuances including its Examination Guide, the Bureau has made clear that it expects companies to have policies and procedures to implement the rules.  It is not enough to simply have policies and procedures  Employees must be trained to follow them

4 Compliance Essentials  Compliance Essentials was the first response to these concerns  It works as a key tool at the enterprise level of a company to help it understand the rules  Also provides model set of policies and procedures prepared by expert law firms in partnership with MBA  With necessary customizing the only additional cost, CE makes implementing the rules accessible to companies at a fraction of the cost of each seeking legal services on their own

5 Self Study Courses  Are the next response to pressures to implement and train  It works as a low-cost tool to provide first rate training using the same experts that have developed the Compliance Essentials  First of these products is Ability to Repay-Qualified Mortgage (ATR-QM) self study using Mitch Kider and his team at the Weiner Brodsky Kider firm

6 ATR-QM Web Course: What to Expect  Participants complete a guided self-study course at their own pace  Only requires about two hours to complete  The course contains practice questions on ATR-QM rule compliance  Culminates in a final exam  Participants that pass the exam earn a certificate of completion illustrating their knowledge of the ATR-QM rule  Score of 80% or higher needed  Excellent way to show regulators what steps you and/or your employees are taking to ensure compliance

7 The Certificate of Completion

8 Product Comparison NEW ATR-QM Web Course:  Provides training for your full mortgage lending team  Audience is all employees who touch the residential mortgage loan process (originators, underwriters, processors, closers, etc.)  MBA Member,$119; State MBA Member, $149; Non-member, $169 ATR-QM Resource Guide:  Provides model policies/procedures for companies to incorporate into large-scale compliance management program  Audience is senior management, counsel, compliance staff, etc.  MBA Member, $1,000; State MBA Member, $1,550, Non-member $6,000

9 Training Outcomes Better quality loan applications Reduced fall out rates Smoother closings More satisfied loan customers Improved communication between MLO, Processor & Underwriter

10 ATR-QM Course (Click to Play)

11 Produced Jointly By: MBA’s ATR-QM Products Weiner Brodsky Kider PC is a Washington, D.C.-based firm with a national practice focused on compliance, regulatory, transactional and litigation matters related to financial services concerns.

12 How to Purchase In the following states, visit your state MBA’s website for their MBA web store: California MBA, Colorado MLA, Indiana MBA, Kentucky MBA, Massachusetts MBA, New Jersey MBA, Michigan MLA, New Mexico MLA, Ohio MBA, Oklahoma MBA, Wisconsin MBA OR In the following states, contact your State MBA leadership directly who can begin the ordering process directly with you: Connecticut MBA, Florida MBA, Maryland MBA, MBA of the Carolinas, MBA of Metropolitan Washington, Minnesota Mortgage Association, Nevada MBA, Texas MBA, Vermont MBA, Virginia MLA

13 Train More and Save More Group Pricing Options:  Pricing model for MBA Members 2-99 people$99/person people$80/person people$70/person 1,000-2,499 people$60/person 2,500-4,999 people$50/person 5,000-9,999 people$40/person 10,000-14,999 people$35/person 15,000+ people$30/person

14  Your state MBA is authorized to work with MBA to offer group pricing discounts for: Companies/individuals that are only members of their state MBA; Companies/individuals that are neither members of their state or the national MBA  Contact your state MBA to be referred to appropriate MBA Education staff for follow-up Group Savings Also Available for Non Members

15 State MBAs are also authorized to offer special pricing to their members on additional MBA Education products, including: School of Mortgage Banking (1-3); School of Mortgage Servicing (1&2); and Mortgage Banking Primer Web Course Again, even if the State MBA member is not a member of the national MBA More Products Available Through States

16 Looking Ahead Additional Web Course Products are Arriving Soon CFPB’s National Servicing Standards CFPB’s Loan Officer Compensation More to come…