AZK RE L-12 C-15 Government in Financing - 2

  1. what information cannot be advertised? (4)
    • 1) Down payment 
    • 2) Monthly payment
    • 3) Amount on the finance charge
    • 4) Term of the loan
  2. 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
  3. 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
  4. ECOA
    • - Equal Credit Opportunity Act
    • - prohibits discrimination in the lending process based on race, religion...
  5. FCRA
    • - Fair Credit Reporting Act
    • - law applicant who is rejected must be provided with statement of the reason w/i 30 days
  6. 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
  7. 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
  8. CLO
    • - Computerized Loan Organization System
    • - governed by RESPA
  9. Automated Underwriting and Scoring
    - governed by?
    • - governed by RESPA
    • - can shorten loan approvals
    • - to lower the cost of loan application
  10. 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
  11. rate charged for loans controlled by Fed
    - Discount rate
  12. Which component of RE financing marker stimulates the economy at a time of recession?
  13. Which component of RE financing marker is made up of the lenders that originate mortgage loans?
    Primary Mortgage Market
  14. Which component of RE financing marker makes money available directly to borrowers?
    Primary Mortgage Market
  15. Thrifts is?
    • Saving Association
    • Major lender
  16. Commercial Banks are?
    • Saving Association
    • Major lender
  17. Which lender investing in large commercial real estate loans?
    Insurance Companies
  18. Which lender investing in first and second mortgage and Deed of Trust loans?
    Credit Unions
  19. What regulates Fiduciary Lenders
    Office of the Controller of the Currency (OCC)
  20. 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
  21. What regulates Credit Union?
    Insures deposit up to what amount?
    • - National Credit Union Association (NCUA)
    • - up to $250,000 in all Federal Credit Unions
  22. Which lender investing in low risk commercial and Industrial properties?
    • - Endowment Funds
    • - hospitals, universities, colleges
  23. Which lender provides high-yield low-risk mortgages?
    Pension Funds
  24. Which lender investing in high rise apartment buildings, office complexes, shopping centers?
    Investment Group Financing
  25. Which lenders investing through Mortgage Bankers?
    • - Pension Funds
    • - Insurance Companies
  26. Which lender originate mortgage loans with money belonging to insurance companies, pension funds, individuals and their own?
    Mortgage Banking Companies
  27. Which lender is selling loans to investors?
    Mortgage Banking Companies
  28. Which lender is receiving fee for servicing the loans
    Mortgage Banking Companies
  29. who brings borrowers and lenders together?
    Mortgage Brokers
  30. Which act requires to license mortgage loan organizations?
    • - SAFE Act
    • - Secure and Fair Enforcement for Mortgage Licensing Act 2008
  31. All state agencies must to participate in the?
    • - NMLS
    • - Nationwide Mortgage Licensing System and Registry
  32. Which component of real estate financing Market helps lenders raise capital to make additional mortgage loans?
    Secondary mortgage Market
  33. Which component of real estate financing Market useful when money is in short supply?
    Secondary mortgage Market
  34. What is number of mortgage loans that are assembled into blocks?
  35. What are securities that represent shares in pulled mortgages than sold to investors or other organizations
    • - GSEs
    • - Government-Sponsored Enterprises
  36. GSEs security for all kinds of loan (conventional, FHA-insured, VA-guaranteed loans)?
    • Fannie Mae
    • Federal National Mortgage Association (FNMA)
  37. GSEs security for mostly conventional loans
    • Freddie Mac
    • Federal Home Loan Mortgage Corporation (FHLMC)
  38. GSEs security that administers special assistance loan
    • Ginnie Mae
    • Government National Mortgage Association (GNMA)
  39. mortgage that is not government insured or guaranteed?
    Conventional loans
  40. most secure loan?
    • - Conventional loans
    • - b/c LTV are often lowest (80% or less)
  41. Jumbo Loans
    • - Nonconforming Loans
    • - loans that exceed the stated limits
    • - not marketable
  42. to obtain a Conventional Mortgage Loans with down payment less than 20% borrower must
    - borrower must purchase PMI
  43. What insurance protects the top portion of a loan 20%-30% against borrower default?
    - Private Mortgage Insurance (PMI)
  44. 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)
  45. which loan covers fixed-rate loans for 10 to 30 years (1-4 family residences)?
    FHA-Insured Loans
  46. which loan does not set interest rates
    FHA-Insured Loans
  47. which loan does limit lender fees?
    FHA-Insured Loans
  48. which loan regulates rate increases and cups on adjustable-rate loans?
    FHA-Insured Loans
  49. 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
  50. MIP
    • - Mortgage Insurance Premium
    • - all borrowers are charged to use FHA-Insured Loans
  51. 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
  52. 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
  53. using which loan borrower can prepay the dept at any time without penalty?
    VA-Guaranteed Loans
  54. Agricultural Loan Program
    • - Farm Service Agency (FSA)
    • - Department of Agriculture
    • - offers programs to help families purchase and operate Family Farms
  55. whch loan include furniture, drapes and other appliances as part of the sales price of the home?
    Package Loan
  56. which loan covers more than one parcel or lot?
    Blanket Loan
  57. which loan to finance the purchase of improved property?
    Blanket Loan
  58. which loan to consolidate multiple loans on a single property
    Blanket Loan
  59. 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
  60. 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
  61. Bridge Loan is
    Wrap-Around Loan
  62. which loan secures any future advances of funds made by the lender to the borrower?
    Open-End Loan
  63. which loan allows to temporarily (or permanently) lower the interest rate?
  64. 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
  65. which loan borrower can use at will?
    Home Equity Line of Credit (HELOC)
  66. which loan will appear on the credit report even if it's not being used?
    Home Equity Line of Credit (HELOC)
  67. what regulation and act requires that Credit Institution inform borrowers of the true cost of obtaining credit?
    • - Regulation Z
    • - Truth in Lending Act (TILA)
  68. in what regulation borrower has 3 business days to cancel the transaction by notifying the lender?
    Three-Business-Day Right of Rescission
  69. 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)
  70. what act requires that buyer and the seller fully informed of all costs related to closing the transaction?
    Real Estate Settlement Procedure Act (RESPA)
  71. 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
  72. what Automated Underwriting is used by Freddie Mac?
    Loan Prospector
  73. what Automated Underwriting is used by Fannie Mae
    Desktop Underwriter
  74. What certificate sets forth to max loan guaranty to which veteran is entitled?
    Certificate of Eligibility
  75. Program that offers programs to help families purchase and operate Family Farms
    • - Agricultural Loan Program
    •    - Farm Service Agency (FSA)
  76. What act refers to responsibility of financial institutions to help meet their communities’ needs for low- and moderate-income housing?
    Community Reinvestment Act (CRA)
Card Set
AZK RE L-12 C-15 Government in Financing - 2
AZK RE L-12 C-15 Government in Financing - 2