Mortgage Loan Origination Activities

Front 1

Fiduciary Deeds

Back 1

Deeds executed by a trustee, executor, or other fiduciary, conveying property the fiduciary doesn't own but is authorized to manage.

Front 2

Call Provision

Back 2

Clause that lets lenders demand full payment of a loan immediately aka call of note

Front 3

Uniqueness

Back 3

Characteristic of real property that says that every piece of land, every building, and every house is said to be a different piece of real estate aka non-homogeneity

Front 4

Right of disposal

Back 4

Confers upon the owner the ability to transfer all or some property rights to others.

Front 5

Federal Fair Housing Act

Back 5

Common name for Title VIII of the Civil Rights Act of 1968

Front 6

BEACON Score

Back 6

1. Score range 300-900

2. Above 660- acceptable risk

3. Between 620-600- marginal risk

4. Below 620 is high risk

Front 7

FICO Score

Back 7

300-850

Front 8

Junk Fees

Back 8

Charges assessed to a borrower by a loan originator that serve little if any function and are often hidden in mortgage documents.

Front 9

Right of Use

Back 9

Confers upon the owner the right to make the land productive

Front 10

Words of Conveyance

Back 10

Deed language that clearly states the grantor's intention to transfer the real property.

Front 11

Deed in Lieu of Foreclosure

Back 11

Deed given by a borrower to lender to satisfy a debt, avoiding a foreclosure

Front 12

Deed in Lieu of Foreclosure is aka...

Back 12

Voluntary Conveyance

Front 13

Right of Enjoyment

Back 13

Confers upon the owner the freedom to use land without undue interference from the outside.

Front 14

AVMs

Back 14

Automated Valuation Models - computer programs that are able to provide a probable value range for properties by performing a statistical analysis of available data.

Front 15

Option Money

Back 15

Cash consideration given for an option contract

Front 16

Loan Origination Fee

Back 16

Fee charged by a lender to cover the administrative costs of making a loan, usually based on a percentage of the loan amount

Front 17

Liquid Assets

Back 17

Cash and any other assets, such as stocks and bonds, that can quickly be converted to cash.

Front 18

Stipulations

Back 18

Conditions that must be met before a loan can close

Front 19

Warranty Deeds

Back 19

Deeds that carry warranties of clear title and the grantor's right to convey title.

Front 20

Federal Reserve Banks

Back 20

Banks that provide services to financial institutions

Front 21

Reserves

Back 21

Cash on deposit or other highly liquid assets a borrower must have in order to cover two months of PITI mortgage payments, after they make a cash down payment and pays all closing costs.

Front 22

Assemblage

Back 22

Combining two or more parcels of land into one larger parcel

Front 23

Bill Consolidation

Back 23

Borrowing a larger sum of money to pay off many smaller debts.

Front 24

Quitclaim Deeds

Back 24

Deeds that convey any interest in a piece of real property the grantor has at the time the deed is executed.

Front 25

Line of Credit

Back 25

Available money that a borrower can access at any time up to a predetermined borrowing limit.

Front 26

Home Equity Line of Credit

Back 26

The loan is secured by a second mortgage on the borrower's principal residence

Front 27

Valuable Consideration

Back 27

Anything of value, such as money, services, goods, or promises, given to induce another to enter into a contract.

Front 28

Self-Liquidating

Back 28

Describes a fully amortized loan where the total payments over the life of the loan pay off the entire balance by the end of the loan's term.

Front 29

Nontraditional Mortgage Product

Back 29

As defined by the S.A.F.E. Act, anything other than a 30 year fixed rate loan

Front 30

External Obsolescence

Back 30

Any influence that falls outside the actual property site and negatively affects a property's value.

Front 31

Clouds to Title

Back 31

Encumbrances or outstanding claims that could affect the owner's title.

Front 32

Equitable Title

Back 32

Any interest created in property upon the execution of a valid sales contract, whereby actual title is transferred by dead at a closing. The buyer's interest in property under a land contract.

Front 33

Plottage

Back 33

An increase in value, over the cost of acquiring the separate parcels, by successful assemblage, usually due to a change in use

Front 34

Instrument

Back 34

Any document that transfers title (such as a deed), creates a lien (such as a mortgage), or gives a right to payment (such as a note or contract)

Front 35

Mrs. Murphy Exemption

Back 35

An exemption to the Federal Fair Housing Act, which holds that the rental of a unit or a room in an owner-occupied dwelling containing four units or less is exempt for the Fair Housing Law, provided rental ads are not discriminatory and a real estate is not used to locate tenants.

Front 36

Landlord is also known as a...

Back 36

Lessor

Front 37

Reconciliation

Back 37

Analyzing the values derived from the different appraisal approaches to arrive at a final opinion of value.

Front 38

Notary Public

Back 38

An official whose primary functions is to witness and certify the acknowledgement made by one signing a legal document

Front 39

Leasehold Estate

Back 39

An interest that gives the holder a temporary right to possession of the estate without title

Front 40

Interest Shortfall

Back 40

Any accumulated interest accrued, but not collected, through regular payments because of the adjustable rate or graduated payment feature of the loan

Front 41

Elements of Comparison

Back 41

Any aspect of a property that causes a difference in value

Front 42

Trade Fixtures

Back 42

Any equipment or personal property a tenant installs for business purposes

Front 43

Advancement

Back 43

An improvement in one's employment position, given as a reason for changing employers

Front 44

Security Instrument

Back 44

An instrument that gives a creditor the right to sell collateral to satisfy a debt if the debtor fails to pay according to the terms of the agreement

Front 45

Minimum down payment for an FHA loan when the credit score is between 500-579.

Back 45

10%

Front 46

To calculate the housing expense ratio for a conventional loan, you do what?

Back 46

Take the monthly income and multiply it by 28%

Front 47

Who created the Uniform Residential Loan Application (Form 1003)

Back 47

Fannie Mae or the Federal National Mortgage Association

Front 48

What is the maximum seller concession for a VA loan?

Back 48

4% and reasonable (2) discount points

Front 49

What is the minimum number of comps required by most secondary lenders to ensure an accurate estimate of value when performing the sales comparison approach?

Back 49

THREE

Front 50

FHA loans require that borrowers occupy the property as their principal residence for at least __ _________

Back 50

12 months

Front 51

Chapter 7 Bankruptcy

Back 51

The debtor turns over all non-exempt property to the bankruptcy trustee, who then converts it to cash for distribution to the creditors

Front 52

Chapter 7 Bankruptcy is aka

Back 52

Liquidation Proceeding

Front 53

What is a VA Streamline Loan?

Back 53

Intended to primarily to put the veteran in a better position by reducing the interest rate or changing an ARM to a fixed rate

Front 54

A VA Streamline Loan is aka as what and what does it stand for?

Back 54

IRRRL - VA Interest Rate Reduction Refinance Loan

Front 55

Section 502 Loans

Back 55

1. USDA Loan Program

2. AKA USDA Direct Loan Program

3. Assists low and very-low income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicants repayment ability. Reduces the mortgage payment for a short amount of time.

Front 56

The title insurance protects a title and the process of the closing against risk of defects, forgeries, and errors that occur during what time period?

Back 56

From the time the land was first registered to the time of closing

Front 57

When applying for a VA Loan, an inactive veteran needs to supply the __-__ to show proof of discharge

Back 57

DD-14

Front 58

Veteran must show proof of __ + __ to obtain a VA Loan

Back 58

Certificate of Eligibility and Proof of Discharge

Front 59

Biggest component of a credit score and how much does it represent?

Back 59

Payment history / 35%

Front 60

Market value can best be defined as a property's....

Back 60

Most probable selling price

Front 61

Overtime can only be counted if the potential borrower has worked for the employer for over __ ______

Back 61

2 years

Front 62

Who is responsible for the accurate accounting of all monies due to and from the parties in a real estate sale?

Back 62

The title company

Front 63

Cost to Cure

Back 63

If an appraiser discovers damage to the property that lowers its value, and it is necessary to make repairs prior to selling the house for the listed value, the appraiser identifies the problems with the amount it would cost to repair the property.

Front 64

Interest paid for the rest of the month rules when the loan is funded on the 15th in a 30 day month...

Back 64

Must pay for 16 days... including the day it was funded.

Front 65

Hypothecation

Back 65

Using property as collateral without surrendering the use or possession of it

Front 66

Legitimate reason for prior derogatory credit?

Back 66

Unforeseeable circumstances

Front 67

Is an appraisal a necessary document @ closing?

Back 67

No

Front 68

Gross Living Area

Back 68

Only heated, finished living areas ABOVE grade are considered in the square footage for the gross living area. Ex) Bedroom's walk-in closet

Front 69

Should an original application be kept if it were incomplete?

Back 69

YES, in the same file with the incomplete application

Front 70

Affidavit of Title

Back 70

Written statement made under oath by the title holder certifying there have not been any judgments, bankruptcies, or divorces since the title exam

Front 71

What is not shown on the credit report in reference to the loan balance?

Back 71

Prepayment peanlties

Front 72

Consumer debts that have less than ___ of payments remaining do not need to be included for the purpose of calculating debt ratios?

Back 72

10 months

Front 73

Can FHA loans have prepayment penalties?

Back 73

No

Front 74

Constructive Notice of Title

Back 74

Makes the document public. Recording a deed, note, or mortgage.