Shared Flashcard Set

Details

sale
sale
50
Real Estate & Planning
Not Applicable
02/18/2016

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Rescission
Definition
Ability to cancel a transaction for a refi or home equity loan. Generally 3 business days: The right to rescind is only available for loans secured by the borrower's principal dwelling.
Term
Reverse Mortgage 3 types
Definition
1.Single Purpose Reverse Mortgage
2. Home Equity conversion Mortgages(HECM)
3.Proprietary Mortgages- private loans. more expensive.
Term
SSPL should be prepared based on
Definition
Final Itemized costs
Term
The best tools for a borrower to shop and rate compare are
Definition
Truth in lending form
Term
Interest Only has what features
Definition
can be paid off faster than fully amortized
Term
What's the Fannie Mac hazard ins. coverage minimum
Definition
100% of the replacement cost or loan balance
Term
How does rate charged for PMI for a 90% loan compare to that for a 95% loan
Definition
It depends solely on the loan amount
Term
Which of the following charges have no tolerance restriction
Definition
transfer taxes
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 consummation of the transaction?
Definition
3
Term
Bank of Doe receives a change of address request from consumer Jane. What requires the bank to follow up with Jane to verify the validity of the request?
Definition
Red Flag Rules
Term
FHA requires a borrower to maintain hazard insurance of at least the lesser of
Definition
the loan balance or the replacement cost of the improvements.
Term
Which of the following contains information about the penalty for providing fraudulent answers on the 1003?
Definition
The Uniform Residential Loan Application
Term
What agency is TILA regulated by ?
Definition
HUD
Term
A title insurance agent may
Definition
charge a fee for title insurance services which are ultimately rendered.
Term
A home is appraised at $100,000. The borrower currently has a loan of $50,000, an open end line of credit with a limit of $25,000 and a current balance of $17,500. What is his LTV?
Definition
50%
Term
A borrower in a mortgage transaction is called
Definition
mortgagor.
Term
What is the MINIMUM equity required to automatically eliminate mortgage insurance?
Definition
22%
Term
RESPA does not require lender disclosures of closing costs and procedures for which of the following home loans?
Definition
Construction loans
Term
A credit report will always display which of the following?
Definition
Name and Social Security number
Term
Which of the following CANNOT be used to help pay the down payment for a buyer wanting an FHA loan?
Definition
A gift from the seller
Term
ECOA serves to
Definition
prevent discrimination in the mortgage lending industry.
Term
A prepaid finance charge DOES NOT consists of
Definition
Loan origination fee
[Escrow] Processing fee
Escrow Waiver Fee
**All of the above** answer
Term
Which of the following charges have 10% tolerance?
Definition
Government recording charges
Term
When is the appraisal disclosure required to be delivered?
Definition
When a complete application is taken
Term
To qualify for an FHA loan, a borrower without any compensating factors must meet which of the following ratios?
Definition
31% housing/43% debt
Term
Interest, service charges, transaction charges, buyer's points, loan fees, and mortgage insurance are examples of what is included in the dollar amount called the
Definition
finance charge
Term
Which of the following would be included in an escrow or impound account
Definition
Mortgage insurance premiums
Term
Which of the following cannot be charged to a borrower in an FHA loan transaction?
Definition
Tax service fee
Term
Which products don't require MI?
Definition
VA with Zero down
Term
A lender who preys upon unsophisticated borrowers in order to strip them of their home equity is engaging in
Definition
predatory lending
Term
Subordinate financing relates to
Definition
second mortgages
Term
The risk that an agent may not have his client's best interest at heart is called
Definition
principal-agent risk.
Term
Who orders table funding "when closing in their own name"
Definition
broker or third party
Term
A property that is appraised with a higher than market value results in a(n}
Definition
inflated appraisal
Term
A prepaid finance charge consists of
Definition
Loan origination fee, Escrow Processing fee, and Escrow Fee
Term
The lender's risk of loss in the event it has to foreclose is reduced by which type of insurance?
Definition
Mortgage insurance
Term
If a lender discovers the fire policy is not in effect they can effect what can happen?
Definition
Forced place insurance
Term
During the term of a fully amortized loan
Definition
the monthly payment to principal increases
Term
What does HUD define as a "referral"?
Definition
A lead generation company worker providing information on a broker to a customer
Term
What is the function of FNMA and FHLMC?
Definition
To buy loans from banks and other lenders
Term
The term "margin" is used frequently when describing terms for an adjustable rate loan. The "margin" is
Definition
the amount the lender adds to a selected index rate.
Term
When a telemarketer calls a person on the do not call list in violation of the do not call regulations, he is subject to a fine of
Definition
$16,000.
Term
Borrower with good credit, low DTI, large down payment, and applies for a loan of $800k. They qualify for what type of loan?
Definition
Non Conforming
Term
A homeowner has a home worth $220,000. He has an outstanding loan of $165,000, and a HELOC with a limit of $30,000, on which he has drawn $12,000. Which of the following is NOT true?
Definition
His TLTV is 94%
Term
RESPA is okay with which of the following types of payment splitting?
Definition
commission split between employees of the same originating broker
Term
Bob needs additional cash to finance expansion of his business as well as pay for a new addition to his house. The collateral for the loan will be a mortgage on his house. The amount of the loan request is $82,000. Bob plans to use $48,000 of the proceeds for his business expansion. This loan will be
Definition
exempt from RESPA because it is a business loan.
Term
What is Fannie Mae (before market changes and gov't intervention)?
Definition
Government supervised but privately owned
Term
Which type of limited documentation does not consider income in qualifying the borrower?
Definition
No ratio
Term
A 15-year mortgage of $225,000 has a fixed rate of 4%. If the origination fee is 1%, what is the amount financed?
Definition
$222,750
Term
For a $300,000, 3/1 ARM with a rate of 6.5%, what would the per diem interest be based on a 360-day year
Definition
$54.17
Supporting users have an ad free experience!