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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

A retail mortgage loan originator is normally paid a commission of _____% of the loan amount, payable upon funding of the loan.

1%

What was a major force of change in the mortgage lending market in the early 1980's?

High volatility and instability of interest rates.

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

Who originates third-party-origination loans?

Mortgage loan correspondents.

When a mortgage lender acquires a processed loan from another loan professional who has originated the loan, the operation is called:

Wholesale mortgage lending

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.

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.

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.

A negative factor for a wholesale lender is:

Quality of loans.