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40 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Promissary note |
Financing instrument that states that the terms of the underlying obligation, is signed by its maker, and is negotiable, transferable to 3rd party |
Financing instrument that states that the terms of the underlying obligation, is signed by its maker, and is negotiable, transferable to 3rd party |
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Negotiable instrument |
A written promise or order to pay a specific sum of money that may be transferee by endorsement or delivary. The transferee then has the original payees right to payment |
A written promise or order to pay a specific sum of money that may be transferee by endorsement or delivary. The transferee then has the original payees right to payment |
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Deed of trust |
Instrument that grants a trustee under a land trust full power to sell,mortgage and subdivide a parcel of real estate. The beneficiary controls the trustees use of these powers under the provisions of the trust agreement. |
Instrument that grants a trustee under a land trust full power to sell,mortgage and subdivide a parcel of real estate. The beneficiary controls the trustees use of these powers under the provisions of the trust agreement. |
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Usury |
Charging interest at a higher rate than the maximum rate established by state law. |
Charging interest at a higher rate than the maximum rate established by state law. |
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Index lease |
Provides for adjustment for rent according to changes in a price index, such as the consumer price index. Cost of living index |
Provides for adjustment for rent according to changes in a price index, such as the consumer price index. Cost of living index |
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Margin |
Amount added to index to an index to derive note rate on adjustment rate mortage |
Amount added to index to an index to derive note rate on adjustment rate mortage |
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Discount point |
Considered pre payed interest |
Considered pre payed interest |
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Straight or term loan loan |
Only pays interest due for first ten years, balance due at end |
Only pays interest due for first ten years, balance due at end |
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Deed of trust |
Lender makes nonjudicial foreclosure on a loan that is in default based on the power of sale clause |
Lender makes nonjudicial foreclosure on a loan that is in default based on the power of sale clause |
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Title theory state |
Trustee whom acts on behalf of the lender |
Trustee whom acts on behalf of the lender |
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Equitable right of redemption |
Allows borrower to pay off outstanding charges and reinstate the loan rights up to forclosure |
Allows borrower to pay off outstanding charges and reinstate the loan rights up to forclosure |
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Adjustable rate mortgage |
Index |
Index |
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Va loan |
Certificate if reasonable value |
Certificate if reasonable value |
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statutory redemption |
Gives borrower a chance to repay outstanding charges |
Gives borrower a chance to repay outstanding charges |
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installment contract |
When buyer has paid the full amount of sale price , that the title is theirs- or called land contract, contract deed, agreement sale- no mortgage or deed of trust |
When buyer has paid the full amount of sale price , that the title is theirs- or called land contract, contract deed, agreement sale- no mortgage or deed of trust |
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Reverse annuity |
Reverse mortgage |
Reverse mortgage |
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Sale and then lease back |
Investor has reliable income source |
Investor has reliable income source |
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Balloon loan |
Final payment |
Final payment |
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Package loan |
Condo company selling new fully furnished units, purchaser would obtain |
Condo company selling new fully furnished units, purchaser would obtain |
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Interim financing |
Construction financing |
Construction financing |
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Open ended loan |
Homeowner obtains loan for repairs |
Homeowner obtains loan for repairs |
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Shared appreciation loan |
Lenders offers a below market interest rate in exchange for equity position in the property |
Lenders offers a below market interest rate in exchange for equity position in the property |
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Short sale |
Home is less than amount that homeowners own |
Lenders offers a below market interest rate in exchange for equity position in the property |
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Disclose the costs of borrowing funds |
Reg Z |
Reg Z |
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Mutual savings bank |
Most in common with savings association |
Most in common with savings association |
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RESPA doesnt require lender to |
Give the borrower a good faith estimate of settlement costs |
Give the borrower a good faith estimate of settlement costs |
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Fannie mae |
Government sponsored |
Government sponsored |
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Freddie Mac |
Buying FHA,VA and conventional loans |
Buying FHA,VA and conventional loans |
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Freddie mae |
Participatrs in 2nd market by buying FHA,va and conventional loan |
Participatrs in 2nd market by buying FHA,va and conventional loan |
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Equity credit opportunity act is not one if seven classes designed in fair housing |
Source of income |
Source of income |
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Reg z regulates |
Personal loans under 25,000 |
Personal loans under 25,000 |
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Secondary market best described as: |
Market where loans are bought and sold after they have been originated |
Market where loans are bought and sold after they have been originated |
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Reg z trigger terms- print ads |
Pay off your loan in less than 15 years |
Pay off your loan in less than 15 years |
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Truth in lending has act (reg z) , apr includes all except: |
Brokers commission |
Brokers commission |
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Community reinvestment act |
Act requires banks to meet credit needs of the community they serve |
Act requires banks to meet credit needs of the community they serve |
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federal reserve slows downs economy |
Raise discount rate |
Raise discount rate |
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Respa prohibits |
Kickbacks |
Kickbacks |
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FICO |
Most commonly used method of credit score |
Most commonly used method of credit score |
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Closing could be delayed |
Lender increases loans interest before closing |
Lender increases loans interest before closing |
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Credit report fee |
Lender can only charge with good faith estimate in hand |
Lender can only charge with good faith estimate in hand |
