-
what information cannot be advertised? (4)
- 1) Down payment
- 2) Monthly payment
- 3) Amount on the finance charge
- 4) Term of the loan
-
creditor who fails in comply of TILA may be liable to a consumer for?
- - Truth in Lending Act
- - twice the amount of the finance charge
- - min of $100
- - max of $1,000
- - + court costs, attorneys fees and any actual damages
-
Alternatively, a creditor understand the APR and/or finance charge could make the creditor liable for punitive damages of?
- in case of willful violation
- - lesser of $500,000 or 1% the creditors net worth + attorney fees and court costs
- - fine up to $5,000 and/or 1-year imprisonment
-
ECOA
- - Equal Credit Opportunity Act
- - prohibits discrimination in the lending process based on race, religion...
-
FCRA
- - Fair Credit Reporting Act
- - law applicant who is rejected must be provided with statement of the reason w/i 30 days
-
CRA
- - Community Reinvestment Act
- - refers to responsibility of financial institutions to help meet their communities’ needs for low- and moderate-income housing
- - requires any financial institution to prepare a statement containing:
- - definition of the geographic boundaries
- - identification of the types of community
- - comments from public
-
RESPA
- - Real Estate Settlement Procedure Act
- - applies to any transaction involving a new first mortgage loan
- - requires that buyer and the seller fully informed of all costs related to closing the transaction
-
CLO
- - Computerized Loan Organization System
- - governed by RESPA
-
Automated Underwriting and Scoring
- governed by?
- - governed by RESPA
- - can shorten loan approvals
- - to lower the cost of loan application
-
Purchase Money Mortgage
- - kind of the Owner Financing Contract
- - buyer
- - receives title to the property
- - places a security interest on it (mortgage) in favor of the seller interest
-
rate charged for loans controlled by Fed
- Discount rate
-
Which component of RE financing marker stimulates the economy at a time of recession?
Fed
-
Which component of RE financing marker is made up of the lenders that originate mortgage loans?
Primary Mortgage Market
-
Which component of RE financing marker makes money available directly to borrowers?
Primary Mortgage Market
-
Thrifts is?
- Saving Association
- Major lender
-
Commercial Banks are?
- Saving Association
- Major lender
-
Which lender investing in large commercial real estate loans?
Insurance Companies
-
Which lender investing in first and second mortgage and Deed of Trust loans?
Credit Unions
-
What regulates Fiduciary Lenders
Office of the Controller of the Currency (OCC)
-
What covers deposits to Saving Associations?
Up to what amount?
- - Federal Deposit Insurance Corporation (FDIC)
- - up to the specified limit $250,000 per depositor per account
-
What regulates Credit Union?
Insures deposit up to what amount?
- - National Credit Union Association (NCUA)
- - up to $250,000 in all Federal Credit Unions
-
Which lender investing in low risk commercial and Industrial properties?
- - Endowment Funds
- - hospitals, universities, colleges
-
Which lender provides high-yield low-risk mortgages?
Pension Funds
-
Which lender investing in high rise apartment buildings, office complexes, shopping centers?
Investment Group Financing
-
Which lenders investing through Mortgage Bankers?
- - Pension Funds
- - Insurance Companies
-
Which lender originate mortgage loans with money belonging to insurance companies, pension funds, individuals and their own?
Mortgage Banking Companies
-
Which lender is selling loans to investors?
Mortgage Banking Companies
-
Which lender is receiving fee for servicing the loans
Mortgage Banking Companies
-
who brings borrowers and lenders together?
Mortgage Brokers
-
Which act requires to license mortgage loan organizations?
- - SAFE Act
- - Secure and Fair Enforcement for Mortgage Licensing Act 2008
-
All state agencies must to participate in the?
- - NMLS
- - Nationwide Mortgage Licensing System and Registry
-
Which component of real estate financing Market helps lenders raise capital to make additional mortgage loans?
Secondary mortgage Market
-
Which component of real estate financing Market useful when money is in short supply?
Secondary mortgage Market
-
What is number of mortgage loans that are assembled into blocks?
Pools
-
What are securities that represent shares in pulled mortgages than sold to investors or other organizations
- - GSEs
- - Government-Sponsored Enterprises
-
GSEs security for all kinds of loan (conventional, FHA-insured, VA-guaranteed loans)?
- Fannie Mae
- Federal National Mortgage Association (FNMA)
-
GSEs security for mostly conventional loans
- Freddie Mac
- Federal Home Loan Mortgage Corporation (FHLMC)
-
GSEs security that administers special assistance loan
- Ginnie Mae
- Government National Mortgage Association (GNMA)
-
mortgage that is not government insured or guaranteed?
Conventional loans
-
most secure loan?
Why?
- - Conventional loans
- - b/c LTV are often lowest (80% or less)
-
Jumbo Loans
- - Nonconforming Loans
- - loans that exceed the stated limits
- - not marketable
-
to obtain a Conventional Mortgage Loans with down payment less than 20% borrower must
- borrower must purchase PMI
-
What insurance protects the top portion of a loan 20%-30% against borrower default?
- Private Mortgage Insurance (PMI)
-
what act requires to terminate PMI payment automatically if borrower has accrued at least 22% equity and is current on mortgage payment?
- Homeowners Protection Act (HPA)
-
which loan covers fixed-rate loans for 10 to 30 years (1-4 family residences)?
FHA-Insured Loans
-
which loan does not set interest rates
FHA-Insured Loans
-
which loan does limit lender fees?
FHA-Insured Loans
-
which loan regulates rate increases and cups on adjustable-rate loans?
FHA-Insured Loans
-
which loan allows loans even when the borrower makes a relatively low down payment?
as low as?
- - FHA-Insured Loans
- - as low as 3.5% of the purchase price
-
MIP
- - Mortgage Insurance Premium
- - all borrowers are charged to use FHA-Insured Loans
-
if the seller pays more than 6% of the costs normally paid by the buyer (discount points, loan origination fees, MIP…), lender will...
- - treat the payment as a reduction in sales price
- - recalculate the mortgage amount accordingly
-
which certificate issued for property being purchased that states the property's current market value based on a VA-approved appraisal?
issued by who?
- - Certificate of Reasonable Value (CRV)
- - issued by VA
-
using which loan borrower can prepay the dept at any time without penalty?
VA-Guaranteed Loans
-
Agricultural Loan Program
- - Farm Service Agency (FSA)
- - Department of Agriculture
- - offers programs to help families purchase and operate Family Farms
-
whch loan include furniture, drapes and other appliances as part of the sales price of the home?
Package Loan
-
which loan covers more than one parcel or lot?
Blanket Loan
-
which loan to finance the purchase of improved property?
Blanket Loan
-
which loan to consolidate multiple loans on a single property
Blanket Loan
-
Which provision permits the borrower to obtain the release of any one lot or parcel from blanket lien by repaying a certain amount of the loan?
Included in what Loan?
- - Partial Release Clause
- - included in Blanket Loan
-
which loan enables a borrower with an existing mortgage loan to obtain additional financing from a second lender without paying off the first loan?
- - Wrap-Around Loan
- - or Bridge Loan
-
Bridge Loan is
Wrap-Around Loan
-
which loan secures any future advances of funds made by the lender to the borrower?
Open-End Loan
-
which loan allows to temporarily (or permanently) lower the interest rate?
Buydown
-
under which loan interest paid on a home equity loan is deductible from federal income tax?
up to what amount?
- - Home Equity Loan
- - up 100,000
-
which loan borrower can use at will?
Home Equity Line of Credit (HELOC)
-
which loan will appear on the credit report even if it's not being used?
Home Equity Line of Credit (HELOC)
-
what regulation and act requires that Credit Institution inform borrowers of the true cost of obtaining credit?
- - Regulation Z
- - Truth in Lending Act (TILA)
-
in what regulation borrower has 3 business days to cancel the transaction by notifying the lender?
Three-Business-Day Right of Rescission
-
what act requires any federally regulated financial institution to prepare a statement containing definition of the geographic boundaries of its community, identification of the types of community, comments from public?
Community Reinvestment Act of 1977 (CRA)
-
what act requires that buyer and the seller fully informed of all costs related to closing the transaction?
Real Estate Settlement Procedure Act (RESPA)
-
For how much the RESPA permits the broker to earn for providing a borrower access to a lender available throws a brokerage?
broker is permitted by RESPA to earn to 1/2 point of the loan amount
-
what Automated Underwriting is used by Freddie Mac?
Loan Prospector
-
what Automated Underwriting is used by Fannie Mae
Desktop Underwriter
-
What certificate sets forth to max loan guaranty to which veteran is entitled?
Certificate of Eligibility
-
Program that offers programs to help families purchase and operate Family Farms
- - Agricultural Loan Program
- - Farm Service Agency (FSA)
-
What act refers to responsibility of financial institutions to help meet their communities’ needs for low- and moderate-income housing?
Community Reinvestment Act (CRA)
|
|
