Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
255 Cards in this Set
- Front
- Back
|
_______ is a written instrument using real property to secure repayment of debt |
Mortgages |
|
|
What created the Federal Reserve and established a federal charter for banks to make real estate loans? |
The Federal Reserve Act or 1913 |
|
|
Who insures banks against losses for defaults on home loans? |
FHA |
|
|
Who created the FHA? |
The National Housing Act of 1934 |
|
|
In 1938 what was the first secondary market to address the problem of uneven supply of money for mortgage loans |
Fannie Mae |
|
|
What market has lenders making mortgage loans directly to borrowers? |
Primary Market |
|
|
What was created to to moderate local real estate cycles, give lenders new money to lend again, and standardize loan criteria? |
The secondary market |
|
|
Who is the largest investor in residential mortgages? |
Fannie Mae |
|
|
Who is government owned and managed by HUD? |
Ginnie Mae |
|
|
Who guarantees payment of principle and interest on government insured loans? |
Ginnie Mae |
|
|
Who insures deposits and examines and supervises financial institution? |
FDIC |
|
|
Who charters, regulates, and supervises all National banks? |
Office of Comptroller of Currency OCC |
|
|
Who is the legal and regulatory authority over the secondary mortgage markets, Fannie Mae, Freddie Mac, and the Federal Home Loans Banks? |
Federal Housing Finance Agency |
|
|
The Banking Act of 1933 created what? |
FDIC |
|
|
Jumbo loans are loans that do not meet the conforming loan limit guidelines set by _________ and _________ |
Fannie Mae and Freddie Mac |
|
|
The FHA does not fund loans, the FHA provides ________ __________ |
Mortgage Insurance |
|
|
Who is the largest insurer of mortgages in the world? |
FHA |
|
|
What was established by congress to improve the efficiency of markets and enhance the flow of credit to targeted sectors of the economy? |
Government Sponsored Enterprizes |
|
|
What are Thrifts? |
Financial institutions that specialize in taking savings deposits and making mortgage loans |
|
|
What is disintermediation? |
Loss of deposits to competing investments |
|
|
Do mortgage banking companies take deposits from customers like a regular bank? |
No |
|
|
What is a Service Release Premium? |
A payment received by a lending institution, such as a bank or retail mortgage lender, on the sale of the right to service a closed mortgage loan |
|
|
Who for a fee places loans with wholesale lenders, but does not service such loans? |
Mortgage brokers |
|
|
Who is a company, individual, or entity that originates, processes, underwrites, fund, and services mortgage loans? |
Mortgage Bankers |
|
|
What are cooperative financial institutions owned and controlled by their members in order to pool their deposits, receive better interest rates, and loan money to fellow members |
Credit Unions |
|
|
Who are organizations that specialize in making higher-risk loans at higher interest rates. Mainly second mortgages |
Finance Companies |
|
|
What are state or federal-chartered banks that are owned by depositors and operate for their benefit. |
Mutual Savings Banks (Thrifts) |
|
|
What is it called when financial institutions that make real estate loans keep and service those loans in-house as part of their investment portfolios, instead of selling on the secondary market |
portfolio lending |
|
|
What is made up of private investors or government agencies that buy and sell real estate mortgages |
Secondary Market |
|
|
What are debt obligations that represent claims to the cash flows from pools of mortgage loans |
Mortgage-baked securities |
|
|
What type of mortgage-backed securities carry the full faith and credit guarantee of the United States government |
Ginnie Mae |
|
|
What does Fannie Mae and Freddie Mac use to streamline and standardize the underwriting process |
Automated Underwriting Systems (AUS) |
|
|
What automated underwriting system does Fannie Mae use? |
Desktop Underwriter (DU) |
|
|
What automated underwriting system does Freddie Mac use? |
Loan Prospector (LP) |
|
|
Who are borrowers that have a poor credit history, lower income, previous bankruptcy, short employment history, and other less than ideal characteristics |
Subprime borrowers |
|
|
What type of loan has greater risk than prime, but less than subprime |
Alt-A loan |
|
|
Title X designated what? |
Consumer Financial Protection Act |
|
|
What are the 2 titles of Dodd-Frank Act that had the greatest impact |
Title X Consumer Financial Protection Act Title XIV Mortgage Reform an Anti-Predatory Lending Act |
|
|
Title XIV designated what? |
Mortgage Reform and Anti-Predatory Lending Act |
|
|
Who oversees RESPA and TILA |
Dodd-Frank Act Title XIV Mortgage Reform and Anti-Predatory Lending Act |
|
|
Who enforces consumer financial protection laws |
Consumer Financial Protection Bureau |
|
|
The Consumer Financial Protection Bureau is within? |
The Federal Reserve |
|
|
RESPA Section 6: Protects _________ |
Homeowners against abuses in loan servicing |
|
|
RESPA Section 8: Prohibits _________ |
Kickbacks, fee splitting, and unearned fees |
|
|
RESPA Section 9: States ______ |
a seller cannot require the use of particular title company |
|
|
RESPA Section 10: Identifies __________ |
the amounts that can be charged to maintain escrow accounts |
|
|
Any service provided in connection with a prospective or actual settlement is a? |
Settlement service |
|
|
A company that collects monthly mortgage payments, pay taxes, insurance, and other items as they come due, and notifies the borrower of late payments is a |
Mortgage servicer |
|
|
What holds money that some mortgage lenders collect every month along with a mortgage payment |
Escrow account |
|
|
A loan that meets TILA definition of a "Higher-Priced" loan is required to have a lender-imposed escrow account for at least ______ |
60 months |
|
|
Special information booklet Good Faith Estimate Mortgage Servicing Disclosure Statement Affiliated Business Arrangement Disclosure (If required by lender) Are all required ________ |
At or Within 3 business days of application |
|
|
Affiliated Business Arrangement Disclosure HUD-1 Settlement Statement (If borrower requests) Are all required _______ |
Before settlement |
|
|
Finalized HUD-1 Settlement Statement Initial Escrow Statement Are all required ______ |
At settlement |
|
|
Annual Escrow Statement Servicing Transfer Statement Are all required ________ |
After statement |
|
|
What explains unfair practices and gives a list of homeowner counseling organizations to each loan applicant? |
HUD's Settlement Costs Booklet |
|
|
What was created to help people borrowing money to better understand the nature and costs of real estate settlement services |
Special Information Booklet |
|
|
What provides a summary of the borrowers settlement charges in the mortgage transaction? |
Good Faith Estimate |
|
|
What provides information to the borrower regarding whether the lender intends to service the loan, sell, or transfer servicing of the loan |
Mortgage Servicing Disclosure Statement |
|
|
What is the continued maintenance of a mortgage loan, including accepting escrow payments and paying these charges when due |
Servicing of a mortgage loan |
|
|
The loan servicer must notify the borrower __ days before the effective date of a servicing transfer |
15 |
|
|
An annual escrow statement must be delivered to borrowers by loan servicers __________ |
Once a year |
|
|
What shows the borrower which charges: -Can change before settlement -Can change up to 10% before settlement -Cannot change |
Good Faith Estimate |
|
|
How long is a revised GFE required to stay on file |
3 years |
|
|
What requires the disclosure of consumer credit costs expressed as a percentage? |
TILA |
|
|
RESPA requires disclosures to be expressed as a ______ amount |
dollar |
|
|
What is the total cost of financing a loan in percentage terms, as a relationship of the total finance charges to the total amount financed |
APR |
|
|
The note rate is |
The interest rate on the promissory note |
|
|
What is the cost of consumer credit as a dollar amount? |
Finance charge |
|
|
Seller points are not included in the _______ charge |
finance charge |
|
|
The earliest a loan may close is the _____th day after the initial disclosures are delivered or placed in the mail |
7 |
|
|
3/7/3 Rule is? |
-initial disclosure in 3 days of application -the earliest a loan may be consummated is on the 7th day -any correction must wait 3 days |
|
|
Dodd-Frank says a qualified mortgages must meet certain requirements that prohibit __________ |
The risky features that harmed consumers |
|
|
What is the total monthly debt divided by their total monthly gross income |
debt-to-income ratio |
|
|
A loan cannot be a qualified mortgage if the points and fees paid by the consumer exceed ____% of the total loan amount |
3% |
|
|
What is a loan where the balance is expected to be repaid by a specific date? |
Closed-end loan |
|
|
Who requires that private mortgage insurance (PMI) disclosures and notifications are provided? |
Homeowners Protection Act (HPA) |
|
|
HPA does not cover |
Second home mortgages, VA, FHA loans |
|
|
The borrower may cancel PMI when a mortgage has been paid down to ___% of the appraised value or purchase price |
80% |
|
|
PMI will be automatically cancelled when a mortgage has been paid down to ___% of the appraised value or purchase price |
78% |
|
|
What is regulation V |
Fair Credit Reporting Act |
|
|
What is a federal law dealing with the granting of credit, access to credit information, the rights of debtors, and the responsibilities of creditors? |
Regulation V Fair Credit Reporting Act (FCRA) |
|
|
What regulation gives the consumers the right to receive an adverse action notice, a copy of consumer credit, request their credit score, dispute inaccurate information, and limit prescreened offers? |
Regulation V Fair Credit Reporting Act |
|
|
What information must be given with an adverse action notice? |
Name, address, and phone number of the agency |
|
|
When can consumers get a free copy of their credit FILE under FCRA? |
-If a credit report caused adverse action -If a fraud alert was put on credit file -If credit file has inaccurate info from fraud -If the consumer is unemployed or on public assistance |
|
|
All consumers are entitled to ___ free disclosure every ___ months upon request |
1 free, 12 months |
|
|
FCRA does not allow consumer reporting agencies from reporting negative credit information that is more than _____ years old |
7 |
|
|
FCRA does not allow consumer reporting agencies from reporting bankruptcy information that is more than _____ years old |
10 |
|
|
Who limits access to credit files? |
Regulation V Fair Credit Reporting Act |
|
|
What act is intended to help consumers fight the growing crime of identity theft? |
Fair and Accurate Credit Transaction (FACTA) |
|
|
What act allows the consumers to contact the credit bureaus and place a fraud alert? |
Fair and Accurate Credit Transaction (FACTA) |
|
|
What act requires businesses to take measures to responsibly secure and dispose of personal information found in a consumers credit report? |
Fair and Accurate Credit Transaction (FACTA) |
|
|
Red flag rules are under what act? |
Fair and Accurate Credit Transaction (FACTA) |
|
|
The Financial Services Modernization Act of 1999 is also known as |
Gramm-Leach-Bliley Act |
|
|
What protects and regulates the disclosures of consumers personal financial information? |
Title V Gram-Leach-Bliley |
|
|
A consumer is |
an individual a financial service, usually a one-time transaction |
|
|
A customer is |
a consumer with a continuing relationship with a financial institution |
|
|
Under GLB Act, customers must receive a financial institution's privacy notice every ______ for as long as the customer relationship lasts. Consumers are entitled to receive a privacy notice only ____________ |
every year, only when they share their info |
|
|
A written safeguard policy must include: |
security to customer records protect potential threats of records protect against unauthorized access |
|
|
What Act allows law enforcement to search telephone, email, medical, and financial records |
USA Patriot Act |
|
|
What Act requires Customer Identification Programs (CIP)? |
USA Patriot Act |
|
|
Who manages the National Do Not Call Registry? |
Federal Trade Commission FTC |
|
|
The National Do Not Call list must be updated every ___ ____, and the INTERNAL national do not call list must be updated every ____ ____. |
3 months 30 days |
|
|
A telemarketer or seller may call a consumer with whom they have a established business relationship for up to ____ ____, even if the consumer is on the DNC list |
18 months |
|
|
If a consumer makes an inquiry, the company may call up to ____ _____ |
3 months |
|
|
The Home Ownership and Equity Protection Act is an amendment of?
|
Truth in Lending Act
|
|
|
What establishes disclosure requirements and unfair practices in lending
|
Home Ownership and Equity Protection Act
|
|
|
A violation of HOEPA may enable a consumer to rescind the loan for up to ___ ____
|
3 years
|
|
|
The _____ enforces HOEPA on Non-depository lenders, and _________ enforces HOEPA for federally regulated depository institutions
|
FTC
CFPB |
|
|
What will replace the GFE and initial TILA?
|
Loan Estimate Form
|
|
|
What will replace HUD-1 and final TILA?
|
Closing Disclosure Form
|
|
|
When must a list of home ownership counseling organizations be provided to a consumer?
|
Within 3 business days after they apply
|
|
|
According to HOEPA, what is a closed-end loan secured by a borrower's principal residence?
|
High Cost loan
|
|
|
A HOEPA loan is defined as an original mortgage when the APR exceeds the APOR Index by _____%, and second mortgage by _____%
|
6.5%
8.5% |
|
|
A HOEPA loan is a loan where the borrower pays points and fees that exceeds ____%
|
5%
|
|
|
HOEPA does not regulate
|
construction loans or reverse mortgages
|
|
|
HOEPA disclosures must be given ____ days _____ to consummation
|
3 prior
|
|
|
What Act has rules on Higher Priced Loans?
|
TILA
|
|
|
A higher priced loan is a loan where the APR exceeds the average prime offer rate by:
____% for a first mortgage ____% for a first lien jumbo loan ____% for a subordinate mortgage lien |
1.5%
2.5% 3.5% |
|
|
A jumbo loan is a loan with the amount over $_________
|
$417,000
|
|
|
TILA requires the lender to determine the borrowers ability to repay using the largest possible payment for the first _____ years
|
5 years
|
|
|
Ability to repay does not apply to
|
loans 12 moths or less
|
|
|
Higher PRICED mortgage loans must have an escrow account for _____ years
|
5 years
|
|
|
If a seller increases the sale price by more than ___% in the first 90days or ___% in the first 6 months the creditor must obtain ____ written appraisals
|
10%
20% 2 |
|
|
What is influencing, advising, counseling, directing consumers to accept the terms offered by a particular creditor in order to receive greater compensation
|
Steering
|
|
|
What Act prohibits compensation based on any other term other than the loan amount
|
Dodd-Frank Act
|
|
|
Title V is the
|
SAFE Act
|
|
|
Prelicensing education 20hrs:
Federal law and regulation ___ Ethics ___ Nontraditional ___ Elective ___ |
3 federal
3 ethics 2 nontraditional 12 electives |
|
|
Continuing education 8hrs:
Federal Law and regulation ___ Ethics ___ Nontraditional ___ Elective ___ |
3 federal2 ethics2 nontraditional1 elective
|
|
|
Title V
SAFE Act is under what Act? |
Housing and Economic Recovery Act
HERA |
|
|
3/1 ARM is a ________ loan that has ________ rate for 3 years then changes to ______
|
Hybrid loan
fixed ARM |
|
|
FHA does not have income limits to determine who is eligible for their loans, but they do have ________ _________ _________ that it will insure
|
maximum mortgage amount
|
|
|
Who issues regulations and establishes guidelines for approving lenders authorized to make FHA loans
|
HUD
|
|
|
Once a lending institution is approved to make FHA loans, they become a
|
FHA Direct Endorsement Lender
|
|
|
What are FHA's 4 Cs?
|
Credit - willingness to repay
Capacity - enough income to repay Cash - assets to close Collateral - value of home |
|
|
Defaulted on student loans or any federal debt would NOT qualify for a _____ loan
|
FHA
|
|
|
What is a federal database of delinquent federal debtors that allows federal agencies to reduce the risk to federal loan and loan guarantee programs
|
Credit Alert Verification Reporting System
CAIVRS |
|
|
If a borrower appears on the CAIVRS list they are ineligible for an FHA loan for ______ years
|
3
|
|
|
What uses:
-Credit score -Monthly housing expense -Number of monthly payments in reserve -Loan-to-value ratio -Loan term to determine credit worthiness |
Technology Open to Approved Lenders
TOTAL |
|
|
What is the relationship of the borrowers total monthly housing expense to income, expressed as a percentage?
|
Housing Expense ratio
|
|
|
PITI stands for
|
Principle, interest, taxes, and insurance
|
|
|
The FHA housing expense ratio is ___%
|
31%
|
|
|
The FHA debt-to-income ratio is ___%
|
43%
|
|
|
What is the relationship of the borrowers total monthly debt obligations to income, expressed as a percentage?
|
Debt-to-income ratio
|
|
|
Property guidelines for FHA loans are
|
Eligibility - one to four family dwellings
Condition - free of health and safety hazards Maximum Mortgage amount - loan ceiling and base Occupancy - occupy within 60 days, stay for 1 year |
|
|
What is the minimum down payment for a FHA loan with a credit score of 580 or more?
|
3.5%
|
|
|
What is the minimum down payment for a FHA loan with a credit score less than 580?
|
10%
|
|
|
No FHA loan is allowed to borrowers with a credit score lower than _____
|
500
|
|
|
The seller or third party may contribute up to ___% of the lesser of the sales price or appraised value
|
6%
|
|
|
The seller cannot contribute to the borrowers minimum _________
|
downpayment
|
|
|
Every dollar over the 6% limit from the seller must be subtracted from the _______ price
|
sales price
|
|
|
HUD regulations _________ prepayment penalties in FHA loans
|
prohibit
|
|
|
Mortgage Insurance Premium (MIP) is ________ for all FHA loans
|
required
|
|
|
Upfront Mortgage Insurance Premium (UFMIP) for FHA loan is ________%
|
1.75%
|
|
|
The MONTHLY Premium for Mortgage Insurance Premium on a 30-year loan with:
LTV 95% or less is _____% LTV greater than 95% is ____% |
1.30%
1.35% |
|
|
The MONTHLY Premium for Mortgage Insurance Premium on a 15-year loan with:
LTV 90% or less is _____% LTV greater than 90% is ____% |
.45%
.70% |
|
|
What are loans guaranteed by the federal government through the Veterans Benefits Administration?
|
VA loans
|
|
|
The VA rarely loan money directly, usually the veteran must borrower from a __________
|
VA Automatic Endorser
|
|
|
In order to get a VA loan, veterans must have a ______________
|
Certificate of Eligibilty
|
|
|
A veteran must file a _________ to get their Certificate of Eligibility
|
DD-214
|
|
|
The basic entitlement for VA loans is $_________
|
$36,000
|
|
|
The VA guaranties ___% of the purchase price
|
25%
|
|
|
VA loans must have a Debt to Income not exceeding ___%
|
41%
|
|
|
What is the amount of income remaining after subtracting taxes, housing expenses, and all recurring debts and obligations?
|
Residual Income
|
|
|
What is the maximum mortgage amount a veteran may have on a VA-guaranteed loan for that property?
|
Established Reasonable Value
|
|
|
On VA loans veterans must pay a non-refundable one-time ______________
|
variable funding fee
|
|
|
What is a Seller Concession, which cannot exceed 4%?
|
Anything of value added to the transaction by the builder or seller for which the buyer pays nothing additional and which the seller is not required to pay
|
|
|
Rural can be towns up to __________ people
|
20,000
|
|
|
What program makes loans if no local lender is available?
|
Section 502 loans
|
|
|
USDA mortgage insurance rates:
___% upfront fee ___% annual fee |
2%
.40% |
|
|
What is a fixed rate 30-year conventional loan that the payments increase regularly?
|
Growth Equity Mortgage
|
|
|
What is a loan that exceeds the maximum loan amount established by Fannie Mae and Freddie Mac?
|
Jumbo Loan
|
|
|
What are loans that hold borrowers with good credit to different documentation standards than traditional loans?
|
Alt-A
|
|
|
Like Alt-A, _______ loans are riskier than prime mortgages but not as risky as subprime
|
A-minus loans
|
|
|
What is one percent of the loan amount?
|
a Point
|
|
|
What are additional funds paid to a lender at the beginning of a loan to lower the note interest rate, therefore, the monthly payments
|
Discount Point
|
|
|
Typically, a borrower pays for a buydown by simply prepaying some interest at closing. Therefore, a buydown in the form of a discount points appears on a ______________ as a charge to the __________
|
Good Faith Estimate
Borrower |
|
|
What is it called when points are paid to a lender to reduce the interest rate and loan payments for the entire life of the loan?
|
Permanent Buydown
|
|
|
What is it called when someone is depositing funds at closing with the lender that will be used to supplement the borrowers reduced monthly out-of-pocket payment
|
temporary buydown
|
|
|
FHA maximum contributions from Interested Party Contributions are:
LTV greater than 90% maximum _____% LTV 75.01%-90% maximum ______% LTV 75% or less maximum _____% |
3%
6% 9% |
|
|
The ______ is often referred to as the COST OF MONEY
|
index
|
|
|
What is determined and affected by market conditions?
|
The index
|
|
|
The ______ is referred to as a SPREAD
|
Margin
|
|
|
The index plus the margin equals the _______________
|
Fully indexed rate
|
|
|
The _______ is the length of time between payment adjustments with ARMs
|
mortgage payment adjustment period
|
|
|
When the initial rate is LESS than the fully indexed rate, it is considered _______________
|
discount rate
|
|
|
5/2/6 loan means the interest rate cannot increase more than:
5% ________ 2% ________ 6% ________ |
5% at the first adjustment
2% for the adjustment periods 6% total over the life of the loan |
|
|
What is a ARM mortgage that gives the borrower the right to convert form an adjustable rate loan to a fixed rate loan?
|
Conversion option
Convertible loan |
|
|
A Fannie Mae convertible ARM program may be converted between the ___th and ___th month for a small processing fee
|
13th
60th |
|
|
A loan servicer must provide a borrower with an adjustable rate mortgage with at least _____ days notice before an interest change
|
60 days
|
|
|
What are mortgage products that allow borrowers to defer principal and sometimes interest? (Interagency Guidance on Nontraditional Mortgage Product Risks)
|
Nontraditional Mortgage Products
|
|
|
FHA's reverse mortgage program is __________
|
Home Equity Conversion Mortgage
HECM |
|
|
The existing annual MIP rate of _____% will continue to be in effect for all HECM's
|
1.25%
|
|
|
For reverse mortgages there is ___ income requirement, the owner must be _____ years old, are ______ to maintain homeowner insurance, any debt on the home should be ________, must see a counselor _______ they are able to apply
|
No,
62 years old, paid off, before, |
|
|
With a reverse mortgage the lender will allow up to ___ months for payment in the event of death
|
12 months
|
|
|
What is it called when a seller extends credit to a buyer to finance the purchase of the property?
|
Seller financing
|
|
|
What is a mortgage given by the buyer to the seller for the purchase of real estate
|
Purchase Money Mortgage
|
|
|
What is it called when one party agrees to take over payments of another party's debt, with terms of the note staying unchanged
|
Assumption
|
|
|
What is it called when a buyer makes payments to the seller in exchange for the right to occupy and use the property, but no deed is transferred until all payments are made
|
Land contracts
|
|
|
Under a land contract the seller is the ________ and holds the title to the property as security
|
Vendor
|
|
|
Under a land contract the buyer is the ______ and has the right to posses and enjoy the land, but is not the legal owner
|
vedee
|
|
|
What is a basic legal doctrine that prevents a person from asserting rights inconsistent with earlier actions or statements when he or she failed to object another persons action
|
Estoppel
|
|
|
What is it called when a seller leases the property to someone for a specific term, with an OPTION to buy the property at a predetermined price
|
Lease/Option
|
|
|
What is it called when a seller leases a property to someone for a specific term, with the tenant agreeing to buy the property at a set price following the lease term
|
Lease/Purchase
|
|
|
What is it called when you trade value in one property for value in another property
|
Equity exchange
|
|
|
Homebuyer assistance programs to subsidize interest rates, help with closing costs is covered under
|
Community Reinvestment Act
|
|
|
What are items on a settlement statement the seller has already paid?
|
Prepaid expenses
|
|
|
Whichever party is responsible for making the payment receives the ________; the other party receives the _______.
|
credit
debit |
|
|
Conventional loans require a ___% down payment
|
5%
|
|
|
What is a combined total of all liens balances of a property, divided by the lesser of the sale price or appraised value
|
Combined Loan to Value
CLTV |
|
|
Any monthly payment that has less than ____ payments left will not be counted in Total Debt to Income ratio
|
10
|
|
|
An interest buydown is always based off the __________ __________. Not the sale price or appraised value
|
loan amount
|
|
|
What is the total amount needed to purchase property, including down payment, loan amount, and any allowable buyer-paid closing costs
|
Acquisition cost
|
|
|
What are expenses incurred in the transfer of real estate in addition to the purchase price?
|
Closing cost
|
|
|
What is the sum of the current numerical value of the index value used and the margin, as defined in the note
|
Fully indexed rate
|
|
|
What regulation has Prohibited Representation?
|
Regulation N
|
|
|
What is a tactic of luring consumers in with promises of low rates and specific products, and then steering otherwise qualified buyers to other terms so that the mortgage loan originator can earn a higher fee
|
Bait and Switch
|
|
|
If the act will cause substantial monetary harm to consumer it is a _________ practice
|
unfair
|
|
|
If the act will misrepresent or mislead the consumer it is a ________ practice
|
deceptive
|
|
|
If the act takes advantage of the lack of understanding of the consumer it is a ________ pratice
|
abusive
|
|
|
What Act prohibits all racial discrimination in the sale of property
|
Civil Rights Act
1866 |
|
|
Which Act protects against discrimination based on:
Race, color, religion, sex, national origin, disability, familial status |
Fair Housing Act
|
|
|
Age is a class protected by
|
Equal Credit Opportunity Act
|
|
|
What is trying to induce owners to sell their homes by suggesting that the ethnic or racial composition of the neighborhood is changing, with the implication that the property values will decline
|
Blockbusting
|
|
|
What is channeling prospective real estate buyers or tenants to particular neighborhoods based on their race, religion, or ethic background
|
Steering
|
|
|
What is a refusal to make loans - or making loans less favorable terms - on property located in a particular neighborhood for discriminatory reasons
|
Redlining
|
|
|
What slogan must be included in any broadcast advertisment
|
Equal Housing Lender
|
|
|
What must be posted in every branch where mortgage loans are made
|
Equal Housing Opportunity poster
|
|
|
What must be printed on all promotional material
|
Equal Housing Opportunity logo
|
|
|
People who have been discriminated against a violation of the Fair Housing Act may file a written complaint with ______ within __________
|
HUD
one year |
|
|
What Act prohibits discriminating based off of:
Race, color, religion, national origin, age, sex, marital status, public assistance |
Equal Credit Opportunity Act
ECOA |
|
|
Regulation B is
|
Equal Credit Opportunity Act
|
|
|
What are interests in real estate of a deceased spouse given by law to the surviving partner
|
Dower or curtest rights
|
|
|
What Act requires to ask the borrower their ethnicity, race, and sex
|
Home Mortgage Disclosure Act
Regulation C |
|
|
If an applicant refuses to furnish information on ethnicity, race, or sex what Act requires the interviewer to make a visual observation and surname when the application is made
|
Home Mortgage Disclosure Act
Regulation C |
|
|
ECOA is enforced by
|
Consumer Financial Protection Bureau
|
|
|
Fraud for profit is perpetrated by __________, fraud for property is perpetrated by the __________
|
worker
Borrower |
|
|
A loan made on non-existent properties is a
|
Air loan
|
|
|
What is it called when a signature on a deed is forged, the thief mortgages the property, and walks away with the csah
|
deed scam
|
|
|
What Act makes it a felony to falsify loan documents
|
Fraud Enforcement ad Recovery Act
FERA |
|
|
The FBI uses what to track mortgage fraud
|
Suspicious Activity Reports
SARs |
|
|
Fees greater that ___-___% may be considered higher than normal
|
4-5%
|
|
|
A mortgage servicer must respond to a payoff request within ____ days
|
7
|
|
|
A mortgage servicer is required to try to establish contact with the borrower no later than ____ days after missed mortgage payments
|
36
|
|
|
What requires financial institutions to disclose information that helps consumers make sound decisions when faced with foreclosures
|
Mortgage Assistance Relief Service
MARS |
|
|
_________ requires service to be provided to mortgage assistance before payment is taken
|
MARS
|
|
|
_________ requires financial institutions to maintain certain financial records, but report transactions greater that $10,000
|
Bank Secrecy Act
BSA |
|
|
Force-placed insurance is purchased by the ____________ when the borrower's insurance lapses
|
mortgage servicers
|
|
|
Who regulates money laundering
|
Bank Secrecy Act/Anti-money laundering
|
|
|
What is a document that gives notice of evidence of a debt
|
note
|
|
|
An agreement or clause in a security instrument that keeps a lien in a subordinate position is called a __________________
|
subordination clause
|
|
|
A ___________ is a note where interest only payments are made for a specific period of time and a balloon payment is required
|
straight note
|
|
|
What states that in the event an entire or partial interests are transferred by a borrower, the lender may call the entire balance of the loan due
|
Alienation Clause (Due on sale clause)
|
|
|
_____________ is pledging of security for a note or loan without giving up possession or use of the property (Land Contract)
|
Hypothecation
|
|
|
15 year loans poses less risk, therefore lenders charge ________ interest rates. Lender will have funds returned sooner
|
lower
|
|
|
The SAFE Act authorizes ________ to control the licensing process of the mortgage lending industy
|
states
|
