links borrowers together with mrotgage lenders for the purpose of originating mortgage loans in exchange for a fee.

An intermidiary between a borrower and a lender.

Us at AEM

Originates and closes the loans in their own name

Also known as a mortgage banker

A legal document or contract by which real property is pledged for the replayment of a loan or performance of a duty.

This is a lien against real property that allows for the transfer of the property in the event of a default.

What happens in the secondary market?

packaging, buying, and selling loans once they are originated.

Lenders who acruie mortgage loans from the primary market through mortgage brokers and bankers, savings and loans, commercial banks;

They can choose to hold the loan or package and sell their loans to investors on the secondary market.

Originate

Process

Underwrite

Close/Fund

Sell

Securitize

Service

The LP orders credit reports, verrfications of of employment, appraisals, ect;

Submits the loan for final underwriting, clears all the final conditions and sets up loan for closing.

Reviews the doc in a loan file, evaluates risk, assesses if the loan meets the specific standards. They evaluate the borrowers ability and willingness to pay.

legal right of ownership of a property

lender holds title until loan is paid off

a right to exclude others from property

A right to sell or transfer ownership

teh right to any benefits

the right to control and use the property

secured loan transaction;

a volunary lien is places on the title to the property given to secure the repaymant of debt

Borrower=

Terms

Promise to pay

signiture of the borrowers

state uses a third party deed of trust instrument as security for the debt. The borrower actuall conveys their legal title over to the trustee until debt is satisfied.

NC

seller

person who is giving the deed to the grantee (buyer), who is receiving the deed

a deed in which the seller warrants or guarantees the title of the property agains any and all claims.

best and highest formof protections whereby the grantor will forever warrant the title to the property

Sole ownership of a specific real property; 

not shared with any other person

included real estate and the rights of an owner to:

possess the property

use the property

dispose of the property

rights of quiet enjoyment

exclude or control rights of entry

Be permanently affixed to the ground

be designed as a one family dwelling

assume the cahracteristics of site-built housing

have permanent utilities

ownership that provides the nost inclusive and comprehensive form of ownership.

Allows for property to descend to heirs

provides for all the "fee simple"  rights of ownership but limits these rights to life of owner.

Upon death of owner, property reverts back to original grantor or to a thrid party called a remainder man

Owners have equal or unequal interests;

Heirs entitled to recieve a deceased owners interests;

No right of suvivorship;

husband and wife

right of survivorship

 A spouse cannot will their share to a third party

Fair Credit Reporting Act

FCRA

also referred to as a swing loan;

Used when buying a new home, the borrower usues the collateral of his present home before it is sold.

It is common for these loans to be interest only contracts and they are normally for the terms of less than 18 months.

Also known as conforming loans;

Currrent upper loan limit is 417,000

Federal National Mortgage Association

Federal Home Loan Mortgage Group

created in 1970 to strengthen the secondary market; they act soley as a conduit of mortgage loans that are sold as whole loans or as mortgage-backed securities to major institutional investors such as insurance companies, major corporations or pension funds.

the financial instrument that adjusts up and down, used to compute the adjustable interest rate.

also known as adjustment Caps;

are the maximum amount a loan can adjust up or down in any one adjustment period. Commonly set at 2%

are limits that an ARM loan can adjust over the life of the loan term. Commonly set at 2%.

loans that exceed the conforming loan limit;

limit in most areas are 417000

Home Equity Lines of Credit

open ended lines of credit that are secured by a mortgage lien on a borrowers property.

Varibale rate loans; no set adjustment period

Gov't loans made under the teh programs of the Federal Housing Admin (FHA).

MIP is required

Typically a min of 3.5% downpayment is required.

NO down payment

No Max loan amount

No Min credit score

100% LTV

30 year fixed rate only

3.5% up front guarantee fee for all borrowers

No limits on seller contributioins

29% ront, 41% back with flexibility

no acreage limitations

modular and new manufactured homes allowed

loan amount calculations based on appraise value

seller concessions limited to 6%

equal to one-hundreth of one percent (.0001) and is a unit of measure used in pricing a loan

25 basis points = 1/4 of a percent

Department of Housing and Urban Development

HUD

right given to another party or person to trespass upon land that a person does not own.