Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/22

Click to flip

22 Cards in this Set

  • Front
  • Back
What is a primary market?
Where loans are originated directly to buyers. A institution or individual originating a laon to a custumer.
What are Savings and Loan Associations (S&L's)?
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.
What is the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)?
Restructures the S&L regulatory system and the system that protectd depositors.
Who are the S&L deposits insured through?
The Savings Association Insurance Fund (SAIF)
Starting July 1, 1991, S&L's are required to do what?
To keep 70% of their loan portfolios in housing-related portfolios.
Deposits in the Federal Reserve are managed by what?
The Federal Deposit Isurance Corporation (FDIC)
Mutual Savings Banks are?
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.
What is a Mortgage banking company?
They originate mortgage loans with money belonging to such other institutions as insurance companies and pension funds.
What is the secondary mortgage market?
After loans are originated in the primary market, they are bought and sold in the secondary market.
What is a warehousing agency?
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.
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.
Lending Regulations:

Due to the Federal Equal Credit Opportunity Act(ECOA) lenders focus on applicant's:
income, job stability, net worth, and credit history.
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.
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.
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
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.
Lending Regulations:

Regulation Z is enforced by the?
Federal Trade Commission (FTC)
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)
Lending Regulations:

RESPA requirements apply when:
the purchase price is financed by a federally related mortgage loan.
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.
Lending Regulations:

RESPA is administered by the:
US Department of Housing and Urban Development (HUD).
Lending Regulations:

RESPA is administered by the:
US Department of Housing and Urban Development (HUD).