AZK RE - Abbreviations 2

  1. DTI
    Debt to Income
  2. PITI
    • Principal - Interest - Taxes - Insurance
    • - In at least 10% of the down payment
    • 1) PITI
    •      - no more than 28% of the gross monthly income
    • 2) PITI + other (non-housing) debt expense
    •      - not to exceed 36% of the gross monthly income
    • 3) Other (non-housing) debt
    •      - not to exceed 8% of the gross monthly income
    • 4) Insurance premiums, utilities, routine medical care
    •      - to be covered by 64% of the gross monthly income
  3. In at least 10% of the down payment PITI must be
    - no more than 28% of the gross monthly income
  4. In at least 10% of the down payment PITI + other (non-housing) debt expense must be
    - not to exceed 36% of the gross monthly income
  5. In at least 10% of the down payment other (non-housing) debt must
    - not to exceed 8% of the gross monthly income
  6. In at least 10% of the down payment insurance premiums, utilities, routine medical care must
    - be covered by 64% of the gross monthly income
  7. Conventional loan
    - is not government insured or guaranteed
  8. Conventional loan if down payment 20%+
    no additional insurance
  9. Conventional loan (PITI?)
    • - PITI must be no more than 28% of the gross monthly income
    • - PITI + other (non-housing) debt expense not to exceed 36% of the gross monthly income
    • - Maximum total monthly obligation can be as high as 45%-50%
  10. PMI
    • Private Mortgage Insurance
    • - required by FHFA if down payment less than 20%
  11. PMI Covers fixed-rate loans for how long?
    - 10 to 30 years
  12. PMI allows low down payment how low?
    - 3.5% of the purchase price
  13. Buyers pays PMI when and for how long?
    - buyer pays 1 year's PMI at closing
  14. MIP
    • Mortgage Insurance Premium
    • - required for borrower of FHA loan
  15. FSA
    • Farm Service Agency
    • - Federal agency of the Department of Agriculture
    • - provides Agricultural Loan Program
  16. CRV
    • Certificate of Reasonable Value
    • - issued by VA and states the property's current market value based on a VA-approved appraisal
  17. TILA
    • Truth in Lending Act
    • - requires that Credit Institution inform borrowers of the true cost of credit
  18. TILA penalties
    • - x2 the amount of the finance charge
    • - min of $100
    • - max of $1,000
  19. Tila-Respa Integrated Disclosure Rule
    • 1) Loan Estimate must be provided w/i 3 business days after a loan application is submitted
    • 2) Closing Disclosure
  20. With in how many days Loan Estimate must be provided per Tila-Respa Integrated Disclosure Rule
    Loan Estimate must be provided w/i 3 business days after a loan application is submitted
  21. ECOA
    • Equal Credit Opportunity Act
    • - race, religion...
    • - what you do for one, do for all
  22. FCRA
    • Fair Credit Reporting Act
    • - requires that a creditor truthfully record credit remarks on an individual's credit report
    • - law applicant who is rejected must be provided with statement of the reason w/i 30 days
  23. CRA
    • Community Reinvestment Act
    • - responsibility of Financial Institutions to help meet their communities’ needs
  24. RESPA
    • Real Estate Settlement Procedure Act
    • - requirements apply when property is financed with a federally-related mortgage loan
    • - includes all government financed loans
    •     - FHA, VA, Fannie Mae, Ginnie Mae, or Freddie Mac
    • - buyer and the seller fully informed of all costs related to closing the transaction
  25. RESPA includes
    • all government financed loans
    •     - FHA, VA, Fannie Mae, Ginnie Mae, or Freddie Mac
  26. RESPA apply to
    - First-lien Residential Mortgage Loan to 1 to 4 family home, cooperative or condominium - Second or subordinate liens for Home Equity Loans
  27. RESPA does not apply to
    • 1) more than 25 acres
    • 2) business or agricultural
    • 3) construction loans
    • 4) vacant land
    • 5) Installment Contract (contract for deed)
    • 6) buyer's assumption
  28. CLO
    • Computerized Loan Organization System
    • - to earn to 1/2 point of the loan amount
    • - for providing a borrower access to a lender available throws a brokerage
  29. AIR
    Appraiser Independence Requirements
  30. FIRREA
    • Financial Institution Reform Recovery and Enforcement Act
    • - any appraisal be performed by competent individual who is licensed
  31. AQB
    • Appraiser Qualifications Board
    • - confirms
    •   - State Licensing
    •   - Certification Criteria for appraisers
  32. APB
    • Appraisal Practice Board
    • - offers voluntary guidance to appraisers
  33. ASB
    Appraisal of Standards Board
  34. USPAP
    • Uniform Standards of Professional Appraisal Practice
    • - book established by ASB
  35. URAR
    • Uniform Residential Appraisal Report
    • - illustrates the type of detail information required of an appraisal
  36. Section 9
    - prohibits home seller from requiring buyer to purchase Title Insurance from a practical company
  37. Section 10
    - prohibits the lender from requiring excessive escrow deposits for taxes and Hazard insurance
  38. ABA
    • Affiliated Business Arrangement
    • - package of service to consumers
  39. CAM
    • Community Association Management
    • - mostly for commercials (snow, landscaping…)
  40. BRI
    • Building Related Illness
    • - asthma, hypersensitivities, allergies
  41. SBS
    • Sick Building Syndrome
    • - fatigue, nausea dizziness, headache
  42. EPA
    Environmental Protection Agency
  43. EPA require that residential dwelling built before 1978
    • 1) LL and sellers must disclose known information
    • 2) All are required to disclose any prior test results
    • 3) Buyers must have up to 10 days to conduct a risk assessment or inspection
    • 4) “Protect Your Family from Lead in Your Home” the pamphlet
    • 5) Anyone who disturbs paint in housing built before 1978 must be trained and certified
    • 6) REP must ensure that all parties comply with the law
  44. RR&P
    • Renovation, Repair and Painting Program
    • - involves prerenovation education
  45. VOC
    • Volatile (во’латил - летучий) Organic Compounds
    • - Formaldehyde       - can be measured
  46. PCBs
    • Polychlorinated Biphenyls (поли-кло’ринэйтэд ба’йфэнилс)
    • - consists of more than 200 chemical compounds
    • - used in transformers, electrical motors, refrigerators
    • - can be destroyed only burning at more than 2,400 degrees
  47. CFCs
    • Chlorofluorocarbons (клоро-флуро-карбонс)
    • - non-toxic nonflammable chemical
    • - used as refrigerant in air conditioners, refrigerators and freezers (destroys Ozone layer)
  48. USTs
    Underground storage tanks
  49. CERCLA
    • Comprehensive Environmental Response, Compensation, and Liability Act
    • - to clean up uncontrolled hazardous waste sites
  50. SARA
    • Superfund Amendment and Rasterization Act    
    • - (rasterize (ра’стэрайзэйшон) – third person present)
    • - created an "innocent land owner" immunity status
  51. ESA
    • Environmental Site Assessments
    • - Phase 1 - to determine whether any potential environmental problems exist
    • - Phase 2 - includes soil water and other testing and is performed if warranted
  52. EIS
    • Environmental Impact Statements
    • - details impact the Federally Funded Project (required) will have on the environment
Author
flashsmilenet
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347418
Card Set
AZK RE - Abbreviations 2
Description
AZK RE - Abbreviations 2
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