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22 Cards in this Set
- Front
- Back
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What is a primary market?
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Where loans are originated directly to buyers. A institution or individual originating a laon to a custumer.
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What are Savings and Loan Associations (S&L's)?
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Traditionally the most active in the home loan mortgage market, specializing in long-term residential loans. Princial function is to promote thrift and home ownership.
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What is the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)?
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Restructures the S&L regulatory system and the system that protectd depositors.
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Who are the S&L deposits insured through?
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The Savings Association Insurance Fund (SAIF)
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Starting July 1, 1991, S&L's are required to do what?
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To keep 70% of their loan portfolios in housing-related portfolios.
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Deposits in the Federal Reserve are managed by what?
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The Federal Deposit Isurance Corporation (FDIC)
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Mutual Savings Banks are?
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Located mainly in northeastern US. Primarily savings instituions and are highly active in the mortgage market, investing in loan secured by income property as well as residential real estate.
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What is a Mortgage banking company?
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They originate mortgage loans with money belonging to such other institutions as insurance companies and pension funds.
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What is the secondary mortgage market?
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After loans are originated in the primary market, they are bought and sold in the secondary market.
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What is a warehousing agency?
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Agencies such as Fannie Mae, Ginnie Mae, Freddie Mac, & Maggie Mae, which purchases a number of motgage loans and assembles them into one or more packages of loans for resale to investors.
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Lending Regulations:
What is the Federal Equal Credit Opportunity Act(ECOA)? |
An act administered by the Federal Trade Commission (FTC), was enacted to prohibot discrimination against credit applications on basis of race, color, religion, etc.
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Lending Regulations:
Due to the Federal Equal Credit Opportunity Act(ECOA) lenders focus on applicant's: |
income, job stability, net worth, and credit history.
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Lending Regulations:
The Truth in Lending law is a federal law that became effective July 1969 as part of the: |
Consumer Credit Protection Act and was implemented by the Federal Reserve Board's Regulation Z.
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Lending Regulations:
What is exempt from Regulation Z? |
Personal property transactions over $25,000, and the extension of credit to the owner of a dwelling containing more than four family housing units.
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Lending Regulations:
What is "trigger" |
Certain credit terms mentioned in an ad that "trigger" a required diclosure of other items when dealing with advertisements. Regulation Z
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Lending Regulations:
What is the penalty for violation of Regualation Z? |
Twice the amount of the finance charge or a min. of $100, up to a max. of $1000, plus court costs.
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Lending Regulations:
Regulation Z is enforced by the? |
Federal Trade Commission (FTC)
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Lending Regulations:
Enacted in 1974, was created to ensure that the buyer and seller in a residential real estate sale or transfer have knowledge of all settlement costs. |
Real Estate Settlement Procedure Act (RESPA)
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Lending Regulations:
RESPA requirements apply when: |
the purchase price is financed by a federally related mortgage loan.
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Lending Regulations:
RESPA provides that loan closing information must br prepared on a special HUD form: |
the Uniform Settlement Statement, designed to detail all financial particulars of a transaction.
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Lending Regulations:
RESPA is administered by the: |
US Department of Housing and Urban Development (HUD).
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Lending Regulations:
RESPA is administered by the: |
US Department of Housing and Urban Development (HUD).
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