LO Activities

  1. URLA
    • Form 1003
    • Uniform Residential Loan Application
  2. Title 18, Section 1001
    • it is a crime to knowingly and willfully make any verbal or written statement to the government that is materially false, ficticious, or fraudulent
    • 5 year jail term
  3. VOE
    • Verification of Employment
    • if the applicant is salaried
  4. VOD
    • Verification of Deposit
    • signed by the loan applicant's bank, verifying the balance and account history
  5. counseling requirements
    • all HUD-approved
    • -high-cost home loans
    • -negative amortization loans
    • -FHA HECMs
  6. Tangible Net Benefit
    • many states passed laws requiring lenders to show that a refinance will provide a tangible net benefit to the borrower
    • Congress never adopted this rule. They restrict the number of refinances, unless it is in consumers interest, but the rule only applies to the same creditor that made the original mortgage
  7. Rate-lock aggreement
    • made by lender to hold interest rate and a specified number of points while processing an applicant's loan
    • 7 - 120 days
    • mostly 30 - 60 days
  8. rate-lock with floating points
    benefits the loan applicant if points fall
  9. URAR
    • 1004
    • Uniform Residential Appraisal Report
  10. sales comparison approach
    comparison with similar, recent property sales in the same vicinity
  11. cost approach
    • commonly used to appraise new home construction
    • estimating the reproduction cost of improvements, subtracting the depreciation, and adding the estimated value as if it were vacant
  12. income approach
    for investment properties
  13. title insurance
    • known as owners insurance
    • not required, but may protect them against many potential liabilities like:
    • mechanics liens
    • unreleased mortgages
    • zoning violations
    • tax liens
    • other legal concerns related to the property
  14. Real Property
    comprised of land and anything that is affixed to the land
  15. Personal Property
    anything that is transitory and can be moved
Card Set
LO Activities