MORTGAGE BACKED SECURITIES

INCLUDE

FREDDIE FANNIE GENIE

PORFOLIO LOANS

HOLD ONTO LOANS

OWN MONEY

NON PORTFOLIO LENDER

SELL SOON AFTER FUNDING

FANNIE MAE

LARGEST PURCHASER AND FIRST ONE TO COME ALONG

FANNIE 1948

GINNIE

FREDDIE

IN THIS ORDER

GINNIE DOES NOT PURCHASE LOANS

THEY ORGANIZE TYPE OF INSURANCE TO GUARANTEE LOANS.

GINNIE IS THE 1/8 DIFFERENCE IN PRICING

NOT THE 1/2

GINNIE ONLY

BACKED BY US GOVERNMENT

FREDDIE IS PRIVATELY OWNED

QUAZIE GOVT AGENCY

ACRONYM

FEDERAL HOME LOAN MORTGAGE CORP

PARTICIPATIONS

ORIGINAL LENDERS SELLS AN INTEREST OR BLOCK OF LOANS TO INVESTORS

PASSTHROUGH

PRINCIPLE ANJD INTEREST IS PASSES THROUGH TO THE INVESTOR ON A REGULAR BASIS

MODIFIED PASSTHROUGH

INSULATE THE INVESTOR FROMLOSS=GINNIE

SERVICING RELEASE

SELLER NOT RESPONSIBLE FOR THE SERVICE OR FUNCTION OF LOAN

PAID A SERVICING FEE WHEN SOLD

SERVICING RETAINED

SELLER SERVICES FOR FEE DEDUCTED FROM THE PAYMENTS AND SENDS THE REST TO THE INVESTOR

EMINENT DOMAIN

is the inherent power of the state to seize a citizen's private property, expropriate property, or seize a citizen's rights in property with due monetary compensation, but without the owner's consent. The property is taken either for government use or by delegation to third parties who will devote it to public or civic use or, in some cases, economic development.

ADVERSE POSSESSION

Adverse possession is a concept in law which concerns title of a real property.

In common law, adverse possession is the process by which title to another's real property is acquired without compensation, by holding the property in a manner that conflicts with the true owner's rights for a specified period

RESPA

IS FROM HUD

GFE / TIL

SETLEMENT ONLY

TIL

REG Z

FED SETTING RULES

RESPA

REG X

HUD SETTING RULES

ECOA=

REG B

CONTINDATION

FIND OUT WHAT THIS IS

FHA

HOUSING TRANSACTION ONLY

AGE IS THE DISCRIMINATION AGAINST

DOES PROTECT RENTERS

RESPA VIOLATIONS

KICKBACKS AND REFERRAL FEE

REG B =

ECOA

REDLINING

NOT LENDING IN A CERTAIN PLACE

ADVERSE ACTION

REFUSAL TO GRANT CREDIT

BROKER CAN PERFORM

DECLINATION LETTER

HAS TO GO OUT IN 30 DAYS

HMDA

KNOW THE ACRONYMS

SECTION 32

ONLY EFFECTS APR ON REFI

LIBOR

LONDON INTERNATIONAL BANK OFFER RATE

COFI

COST OF FUND INDEX

MTA

MORTGAGE

MARGIN

BANKS PROFIT

CONSTANT

LEARN HOW TO CALCULATE

APR

KNOW WHAT THE FORMULA IS

KNW HOW TO CALCULATE INCOME

HOURLY ETC

INDEX RATE

VS

MARGIN

KNOW BUY 2-1 BUYDOWN

INSURANCE BASED ON

REPLACEMENT VALUE

NOT MARKET VALUE

MARSHALL & SWIFT HANDBOOK

AND WHAT IS IT USED FOR???

GROSS ADJUSTMENTS ON TEST

FEMA

WHAT THEY DO?

WHAT IS AN EASEMENT?

USUALLY UTILITY

EXCESSIVE EASEMENT =

GOLF PATH / DROP VALUE

DIFFERENCE BETWEEN

AGE AND EFFECTIVE AGE

APPRASIALS

PHYSICAL

FUNCTIONAL

ECONOMICAL

KNOW FANNIE AND FREDDIE

BASIC GUIDELINES

28/36 RATIOS

FHA

31/43 RATIOS

JOINT TENANTS

EQUAL & SOLE SHARES

TENANCY COMMON

TOWNHOME

OWN 100% OF LOT

CONDO OWN 1% OF WHOLE THING

# OF DEPENDANTS

MATTERS FOR DISPOSAL INCOME

95% FNMA LOAN

YES / GENERAL STANDARD GUIDELINES

APPRAISALS

SIX MONTHS TO GO BACK ON APPRAISALS NOT THREE MONTHS

FHA

ADD GIFT AND THE AMOUNT OF GIFT FUNDS OR YOU WILL GET A DECLINE

IF YOU DON'T HAVE ENOUGH TO CLOSE

SCHEDULE E

SCHEDULE C

GROSS RENTS

ROYALTIES

BIGGEST MISTAKES

BAD CALCULATIONS

INCOMPLETE INFO

ALT DOC

WHAT IS IT?

RED FLAG QUESTIONS

SUBSTANTIAL AMOUNT IN BANK WITH NO TAX RETURN VERIFICATION

DOES OWN TAX RETURNS UNLESS CPA

NO CREDIT HISTORY

RESIDENCY

CREDIT

COLLATERAL

CAPACITY

CHARACTER

MORTGAGE VS DEED OF TRUST

MORTGAGE CAN CLOSE FASTER (2)

DEED OF TRUST (3) PARTIES

LIEN THEORY VS TITLE THEORY

LIEN THEORY (BORROWER HOLDS TITLE)

TITLE THEORY (CONDITIONAL TO LENDER)

STATE OWNS ALL THE LAND

TITLE B = CONDITIONS

THLEA = SPECIFICS ON BORROWER

MB MUST MAINTAIN LOAN FILES FOR

FIVE YEARS

LO ADVERTISING MUST INCLUDE OR COMPLY WITH ALL THE FOLOWING EXCEPT

LO CAN EXPENSE THE COST OF ALL ADS

RESONABLE INVESTIGATION OF EMPLOYEE BY MB OR BK DOES NT INCLUDE

PERSONAL REFERENCES

ALL TRUE

MB MUST UPDATE AND RECONCILE RECORDS QUATERLY IF THEY HAVE 10 OR FEWER TRANSACTIONS IN A QUARTER

MB MUST UPDATE AND RECONCILE RECORDS MONTHLY IF THEY HAVE MORE THEN 10 TRANSATIONS IN A QUARTER

BK MUST UPDATE AND RECONCILE RECORDS QUARTERLY IF THEY HAVE 10 OR FEWR TRANSACTIONS IN A QUARTER

BK MUST UPDATE AND RECONCILE RECORDS MONTHLY IF THEY HAVE MORE THEN 10 TRANSACTIONS IN A QUARTER.

WHAT DOES SOLVANT MEAN?

BE ABLE TO PAY BILLS ON TIME OR WHEN THEY BEOCME DUE

High-Rate, High-Fee Loans (HOEPA/Section 32 Mortgages)

If you’re refinancing your mortgage or applying for a home equity installment loan, you should know about the Home Ownership and Equity Protection Act of 1994 (HOEPA). The law addresses certain deceptive and unfair practices in home equity lending. It amends the Truth in Lending Act (TILA) and establishes requirements for certain loans with high rates and/or high fees. The rules for these loans are contained in Section 32 of Regulation Z, which implements the TILA, so the loans also are called “Section 32 Mortgages.” Here’s what loans are covered, the law’s disclosure requirements, prohibited features, and actions you can take against a lender who is violating the law.

What Loans Are Covered?

HOPEA

A loan is covered by the law if it meets the following tests:

• for a first-lien loan, that is, the original mortgage on the property, the annual percentage rate (APR) exceeds by more than eight percentage points the rates on Treasury securities of comparable maturity;
• for a second-lien loan, that is, a second mortgage, the APR exceeds by more than 10 percentage points the rates in Treasury securities of comparable maturity; or
• the total fees and points payable by the consumer at or before closing exceed the larger of $583 or eight percent of the total loan amount. (The $583 figure is for 2009. This amount is adjusted annually by the Federal Reserve Board, based on changes in the Consumer Price Index.) Credit insurance premiums for insurance written in connection with the credit transaction are counted as fees.

SECTION 32 CALCULATIONS

REG Z

GOOD FAITH ESTIMATE

REG X

NO LATE THEN 3 DAYS AFTER APPLICATION

GOOD FAITH ESTIMATE

REG X