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10 Cards in this Set
- Front
- Back
The retail approach to loan origination is most likely to be used by: |
Smaller banks |
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A retail mortgage loan originator is normally paid a commission of _____% of the loan amount, payable upon funding of the loan. |
1% |
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What was a major force of change in the mortgage lending market in the early 1980's? |
High volatility and instability of interest rates. |
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Unpredictable cycles of originations in different areas of the country prevented mortgage bankers from: |
Making long term projections about where mortgage money was going to be needed |
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Who originates third-party-origination loans? |
Mortgage loan correspondents. |
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When a mortgage lender acquires a processed loan from another loan professional who has originated the loan, the operation is called: |
Wholesale mortgage lending |
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After the loan has been transferred to the wholesale lender, and has been funded either before the transfer or by the wholesale lender: |
It will be held in the lender's portfolio or sold on the secondary loan market. |
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How does an originating lender get paid? |
Through an application fee paid by the prospective borrower, as well as an origination fee for usually 1 point, or 1 percent of the loan amount. |
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What is the most important benefit to the wholesale lender? |
The large number of mortgage loans that may be provided by the loan broker and may be acquired more economically than if the lender originated the loans. |
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A negative factor for a wholesale lender is: |
Quality of loans. |