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The Secondary Mortgage Market (computer-based training program).

Remember when loan histories were kept on 3x5 cards, payments were recorded on a key-punch form and employee training consisted of a glance at a procedure manual? Times have changed, and so has mortgage banking. Today the industry is flooded with new technology - loan applications on laptop computers, underwriting reviews by "artificial intelligence" and computer-based training programs (CBT).

While computer-based training is certainly not new to some industries, it is only recently that CBT has been introduced to mortgage banking. One of the most advanced, challenging and user-friendly products in this genre is The Secondary Mortgage Market CBT that combines computer graphics, text and user interaction to create an extremely effective training tool for an otherwise complex subject matter.

The six-and-a-half-hour program is organized into a series of seven topics that include: Getting Started with CBT; Introduction to the Secondary Mortgage Market; Characteristics of Mortgage-Backed Securities; Government-Sponsored Secondary Mortgage Market Programs; Private Mortgage-Backed Securities; Multiclass Mortgage-Backed Securities; and Doing Business in the Secondary Mortgage Market.

The "Getting Started with CBT" module explains the concepts of computer-based training and gives instructions for using the program.

"Introduction to the Secondary Mortgage Market" and "Characteristics of Mortgage-Backed Securities" are ideal for employees just entering the mortgage banking field. In these lessons, employees learn about the function and purpose of the secondary market, the key players (Freddie Mac, Fannie Mae and GNMA), risk management and the types and characteristics or mortgage-backed securities.

At a more advanced level, employees with mortgage banking experience will gain expertise from the modules on "Government-Sponsored Secondary Mortgage Programs" and "Private Mortgage-Backed Securities." These modules cover the requirements for pooling and issuing securities for government and private agencies.

Rounding out the series are the sixth and seventh modules. The sixth module, "Multiclass Mortgage-Backed Securities," introduces CMOs, REMICs and SMBSs, while the seventh lesson, "Doing Business in the Secondary Mortgage Market," deals primarily with the functions and services of investment bankers.

One of the key benefits of The Secondary Mortgage Market CBT is its ability to test the user's comprehension of the subject matter. Each lesson contains multiple-choice and true-or-false review questions dispersed throughout the reading material. The employee has several opportunities to correctly answer the questions. With each incorrect response, the system provides information to help the employee answer correctly. If necessary, the user can re-read the material to gain a better understanding of the topic.

At the end of each lesson, the user takes a lesson test. During this phase, the employee may answer each question only once. The test results are tabulated and scored. Although the test scores are not recorded permanently, a screen print can produce a hard copy of test results (without using valuable memory space on the computer system).

Supporting The Secondary Mortgage Market CBT is a detailed help menu that may be accessed at any time during the program. The help menu is subdivided into two areas: CBT systems help and a main glossary. CBT systems help provides information on the use and functions of the command keys. The main glossary contains more than 140 mortgage banking terms and their definitions.

At ARCS Mortgage Inc., Calabasas, California management has made The Secondary Mortgage Market CBT a required course in the training curriculum for management trainees, quality control and loan origination staff. The use of this program is by no means limited to these areas. All ARCS employees who are stepping into a mortgage banking career are encouraged to use the program as a tool to enhance their understanding of the vital role the secondary market plays in the industry.

The Secondary Mortgage Market CBT is an excellent addition to any training program. The use of the computer as an alternative training medium is interesting and challenging, whether it is used as a reference guide or implemented into a full-scale training program. As mortgage banking technology approaches the 21st century, it is reassuring to know that the development and training of employees is keeping pace.
COPYRIGHT 1992 Mortgage Bankers Association of America
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

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Title Annotation:Special Feature: Training
Author:Howes, Barbara
Publication:Mortgage Banking
Date:Mar 1, 1992
Words:660
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