Term
| Interest only has what feature? |
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Definition
| They can be paid off faster than fully amortized. |
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Term
| What document provides information about the penalty for providing fraudulant answers on the 1003? |
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Definition
| The Uniform Residential Loan App |
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Term
| What does Investors with non-recourse loans mean? |
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Definition
| Borrower does not have any recourse on default |
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Term
| Without a waiver, an applicant for a conforming loan must be given a copy of the appraisal when? |
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Definition
| At least 3 business days prior to closing |
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Term
| What is the prupose of RESPA? |
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Definition
| To regulate closing costs |
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Term
| After the loan is sold to the secondary market, the originating lender may be required to purhase the loan back due to.... |
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Definition
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Term
| What is the variance allowed on adjustments for apprasisals according to Fannie Mae and Freddie Mac? |
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Definition
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Term
| Whish type of loan processing woul include only an appraisal and a crdit score? |
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Definition
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Term
| A creditor failed to deliver the required TILA rescission notice and material disclosures. As a result the borrower's right to rescind was extended for how many years from the date of consumation of the transaction? |
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Definition
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Term
| Under the Graham-Leech-Bliley Act, a person is considered a consumer of a financial institution when the person.... |
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Definition
| obtains credit from the financial institution for personal purposes |
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Term
| A copy of the appraisal is provided when? |
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Definition
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Term
| A conventional loan is a loan that |
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Definition
| is nmot issued, insured, or guaranteed by a government huosing entity. |
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Term
| In the loan app process which of the documents refers to the shopping cart? |
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Definition
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Term
| The 3 day right to rescission provided by Truth in Lending and Regulation Z applies to a loan |
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Definition
| to refinance a loan from the same institution that fails to cover the unpaid balance of the prior loan plus closing costs |
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Term
| The Gramm-Leech-Bliley Act requires that financial institutions giuve consumers what period of time to opt out of allowing the sharing of their non-public personal information |
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Definition
| No specified time but a reasonable opportunity |
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Term
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Definition
| Refusing to lend to a specific neighborhood |
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Term
| For an FHA loan, an acceptable source of a down payment is .... |
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Definition
| a gift from a non-profit organization |
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Term
| Each loan originator is indentified in the NMLS database by... |
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Definition
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Term
| The federal regulation that implements the REal Estate Settlement Procedures Act is... |
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Definition
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Term
| When a self-employed person is 25% owner of a business, which of the following documents needs to be reviwed to determine his loan qualifications? |
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Definition
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Term
| Which of the following CANNOT be used to help pay the down payment for a buyer wanting an FHA loan? |
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Definition
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Term
| The pricing model used for subprime loans has been? |
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Definition
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Term
| Which of the following provide a guarantee against losses to a lender in the event of default on a residential mortgage loan? |
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Definition
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Term
| A disocunt point is used for? |
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Definition
| Buying down the interest rate for a charge |
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Term
| The rules relating to the Federal Trade Commission's "no call" registry allow calls to persons on a no call list are: |
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Definition
for up to 18 months after a business transaction has been completed with them
for up to 3 months after they have made an inquiry |
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Term
| Inclusion of the permium for single-premium creduit life insurance in the principal loan amount without the borrower's informed consent is one example of? |
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Definition
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Term
| The cost of a loan is shown in the annual percentage rate in the? |
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Definition
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Term
| What can be counted as income for self-emplyed borrowers? |
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Definition
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Term
| A portion of each payment made on an uninsured loan without an escrow account is applied to? |
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Definition
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Term
| Which law requires distribution of teh CHARM booklet to certain loan applicants? |
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Definition
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Term
| The practice of lenders refusing to provide financing to qualified applicants on reasonable terms and conditions due tot he geographic area in which the property is located is? |
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Definition
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Term
| Which law is the Truth in Lending Act most closely related to? |
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Definition
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Term
| An AR< rate adjustment will take into account what? |
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Definition
| Index rate, margin, and cap |
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Term
| WHich charges have a no tolerance restriction? |
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Definition
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Term
| The interest rate for an ARM will change periodically based on? |
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Definition
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Term
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Definition
| one-one hundreth of a percent |
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Term
| If a refinance is closing on 10/15 and the borrowers is not waiving their escrows, how many months of insurance can they collect? |
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Definition
| depends upon the expiration date of the insurance company |
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Term
| What is the cost of having an impound account? |
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Definition
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Term
| What is considered the an illegal referal? |
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Definition
| Lead generating company gets a percentage of loan amount on a closed deal |
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Term
| Regulation Z was issued to implement the Truth in Lending Act by? |
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Definition
| The Board of Governors of the Federal Reserve System |
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Term
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Definition
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Term
| Regulation X requires that the estimate of the charges and terms be available for what period of time after the GFE is provided? |
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Definition
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Term
| In qualifying the income ofa sole proprietor borrowerm the orginator should consider what? |
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Definition
| Schedule C net income, plus on-cash expenses and depreciation |
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Term
| The HUD-1A settlement statement is designed for use when? |
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Definition
| no seller is involved in the transaction |
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Term
| What should not be given to a consumer who applies for an ARM loan? |
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Definition
| the interest rate upon the first adjustment |
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Term
| The 1003 included a section requesting info regarding government monitoring. Applicants must complete this section... |
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Definition
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Term
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Definition
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Term
| An Alt-A loan is a class of? |
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Definition
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Term
| The TIL is not required on any business/commercial credit lines used for any? |
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Definition
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Term
| When is notice of adverse action requried when the borrower applies for a loan? |
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Definition
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Term
| When is the appraisal disclosure required to be delivered? |
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Definition
| when a complete app is taken |
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Term
| What part of the app process is the GFE required? |
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Definition
| within 3 days of the complete app |
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Term
| RESPA does not require lender disclosures of closing costs and procedures for which home loans? |
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Definition
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Term
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Definition
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Term
| FHA requires a borrower to maintain hazard insurance of at least the lesser of |
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Definition
| the loan balance or the replacement costs of the improvements |
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Term
| What disclosure would show if a loan is a balloon payment or not? |
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Definition
|
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Term
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Definition
| teh amount the lender adds to a selected index rate |
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Term
| Who is the entity that administers RESPA? |
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Definition
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Term
| RESPA requires that the borrower be given which document at closing? |
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Definition
| HUD-1 Settlement Statement |
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Term
| What is the type of loan an investor cannot come after the borrower? |
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Definition
|
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Term
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Definition
| the closign costs financed into the balance of the loan in an interest rate form |
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Term
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Definition
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Term
| What law regulates and sets limits on the origination fee? |
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Definition
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Term
| A consumer has the right to inspect his HUD-1 settlement statement how many business days prior to closing? |
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Definition
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Term
| What is used to reduce interest rates? |
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Definition
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Term
| Who is the entity that administers RESPA? |
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Definition
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Term
| Lien priority based on the respective dates of recording of the mortgages can be changed by a ? |
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Definition
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Term
| What percentage variance is allowed in a fannie mae appraisal report is tolerable when dealing with comps without justification. |
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Definition
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Term
| Borrower has a right to recieve apprasial within how many days? |
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Definition
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Term
| What is the prupose for FHA? |
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Definition
| To provide governement method for insuring mortgages |
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Term
| The Truth in Lending Disclosure statement shows? |
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Definition
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Term
| What is the main prupose of Fannie Mae and freddie mac? |
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Definition
| to provide a source of funds for the mortgage lender |
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Term
| What is the defeasance clause? |
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Definition
| states the lender will remove the lien when the debt is repaid |
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Term
| What charges have a 10% tolerance? |
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Definition
| govt recording tolerances |
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Term
| In the sales comparison appraisal approach, the appraiser uses what as comparable sales? |
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Definition
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Term
| When is an ALTA policy not needed? |
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Definition
| When the is no lender involved |
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Term
| A real estate agent believes that his Asian client may prefer to live in a more diverse area and so only shows him the homes where there is a high concentratuion of Chinese. What is this agent guilty of? |
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Definition
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Term
| What is the lowest payment option for an ARM? |
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Definition
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Term
| Test nortgage transfered servicing rights of some of his mortgage loans to Answer Mortgage. Test must send a servicing transfer statement to the affected borrowers how many days before the effective date of transfer? |
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Definition
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Term
| What is a convertible ARM? What does it allow borrowers to do? |
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Definition
| change from an adjustable rate to a fixed rate mortgage |
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Term
| How can one calculate the nummber of years it will take to recover the costs of refinancing a loan? |
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Definition
| total costs/ monthly savings due to refinancing/ 12 |
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Term
| What is the housing/ debt ratio for FHA loans? |
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Definition
|
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Term
|
Definition
| It shows the slow moving Cost of Funds Index |
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Term
| An appraisal that is appraised with a higher than market value appraisal results in an? |
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Definition
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Term
| Which federal agency administers regulation B implementing ECOA, regulation C implementing HMDA, and regulation Z implementing TILA? |
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Definition
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Term
| What is the minimum equity required to automatically eliminate MI? |
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Definition
|
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Term
| What is the Fannie Mae housing insurance minimum? |
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Definition
| 100% of the replacement cost of loan balance |
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Term
| A loan calls for payments if 2000 a month for the first 60 months and then go up to 2300 a month for the remainder of the 30 year term. What kind of loan is this? |
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Definition
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Term
| What is the purpose of the Market Conditions Addendum? |
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Definition
| provide the lender with a clear understanding of the market trends and conditions in the subject neighborhood |
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Term
| At closing a borrower may deposit funds to establish reserves for what? |
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Definition
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Term
| When the actual charges at the settlement exceed the estimates on the GFE by more than 10% tolerances, the loan originator must what? |
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Definition
| has 30 days from the settlement to refund the excess to the borrower |
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Term
| What prevents the title from being transferred? |
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Definition
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Term
| The cost of an appraisal, paid outside of closing can be found on teh HUD-1 Settlement as? |
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Definition
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Term
| When a telemarketer calls someone on the do not call list they ar4e subject to how much in fines? |
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Definition
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Term
| A loan applicant's employment is verified by? |
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Definition
| completion of a VOE by the employer |
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Term
| Borrowers buying a 100K house, sellers agree to credit up to 3% of the closing costs. The closing costs are $3500, how much can be credited? |
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Definition
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Term
| The risk that an agent may not have his client's best interest at heart is called? |
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Definition
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Term
| How do you get your LTV ratio? |
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Definition
| total of all loans/ property value |
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Term
| What is the IO fully indexed accrural rate? |
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Definition
| the sum of the index + the margin |
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Term
|
Definition
| reduces the interest rate by 2% the first year and 1% the second year |
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Term
| Service release premium represents? |
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Definition
| the profit a bank makes when selling the servicing rights of a loan. |
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Term
| Which law prevents a lender from making any oral or written statement, in advertising or otherwise, to applicants or prospective applicants that may discourage a reasonable person from making or pursuing an app? |
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Definition
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