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39 Cards in this Set
- Front
- Back
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PMI is calculated by... |
loan amount x mortgage insurance rate |
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The 1003 is also known as... |
The Uniform Residential Loan Application (URLA) |
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A borrower must obtain flood insurance... |
If the appraiser notes that the property is located in a flood zone. Zones A & Z |
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The Government Monitoring Section of the 1003... |
is voluntary for loan applications. If they decline to provide info, loan originators should make a best guess |
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Back-end DTI is concerned with... |
borrowers ability to meet monthly housing and other fixed debt expenses based on monthly income |
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Credit Score was designed by... |
FICO |
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How is annual MIP determined? |
loan amount, loan term and loan-to-value. |
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Total debt to ratio is also called... |
The back ratio |
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A "point" equals... |
1% of the loan amount |
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FHA loans use a back end ratio of... |
43% |
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"Your Home Loan Toolkit: A Step-by-Step Guide" is used... |
For new home purchases |
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The CLTV is... |
A loan-to-value ratio used when dealing with second liens. CLTV is calculated by combining the cost of all mortgages on the home and comparing the combined cost to the value of the home securing the loans. |
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The Cost approach to appraisal... |
considers the replacement value of the property. |
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Refinance transactions must have a ... |
Tangible net benefit. |
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Net adjustments to comparables... |
may be made up to 15% and gross adjustments of 25% |
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An example of a voluntary lien is... |
a mortgage |
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Non-taxable income may be grossed up... |
by as much as 25% ie. social security, public assistance, and disability |
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What percentage of rental income may be used for qualification? |
75% |
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Bankruptcies stay on a credit report for.. |
10 years account information is purged after 7 years |
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When can child support and alimony be used for income qualifications? |
if they are court-ordered. Must be able to show a stable history of receiving the payments |
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Nontraditional credit includes... |
- payments for items such as rent and utilities |
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Conventional/conforming loans use a front end ratio of... |
28% (housing ratio) |
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FHA uses a front end ratio of... |
31% |
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LTV is calculated by... |
dividing the amount of the mortgage by the appraised value or purchase price (whichever is less) |
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The income approach to appraisal is used... |
for investment properties |
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Liens are... |
monetary claims that provide a creditor with the right to foreclose. |
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Involuntary liens may include.. |
- tax liens - mechanics liens - judgments - attachments |
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PMI is used to |
provide security for the lender when a borrower makes a smaller down payment |
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Upfront MIP is collected on... |
All FHA loans. |
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Fee Simple is.. |
the desired form of holding ownership to property (has the fewest restrictions). |
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An estate held in fee simple means that... |
the owner is entitled to the entire property and has "unconditional power of disposition" |
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The ATR and QM Rule became effective... |
In January 2014 |
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Loans excluded from the ATR Rule... |
- open-end credit plans - timeshare plans - reverse mortgage loans - temp/bridge loans |
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In title theory states... |
the borrower gives legal title to the lender, but retains equitable title. |
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In lien theory states... |
The borrower retains legal and equitable title to the property |
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Dry settlement occurs when |
parties meet to execute docs but funds are not disbursed |
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Wet Settlement occurs when |
parties meet to execute docs and funds are disbursed. |
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Re-disclosure of APR is required... |
at least 3 business days before closing, any time the ARP varies by more than 1/8 (0.125%) |
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Notice of Right to Receive Appraisal Report is due... |
no later than 3 business days after receiving an application for credit |
