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26 Cards in this Set
- Front
- Back
- 3rd side (hint)
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The Mortgage Loan Broker Law |
All brokers must give Mortgage Disclosure Statement BEFORE borrower become obligated to the loan. |
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The Mortgage Disclosure Statement |
Form that clearly states ALL information and charges associated with a particular loan. |
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The Mortgage Loan Broker must: 3 |
1) present this statement to perspective borrower within 3 days of receipt of written loan application or before borrower is obligated to take the loan. Whatever comes 1st. 2) have borrower sign the statement before borrower becomes obligated to complete the loan. 3) keep this form on filefor 3 years |
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Anyone that makes more than 10 collections per year or collects more than $40,000, MUST WHAT? |
Must be licensed as California real estate broker |
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Charges to a borrower can not exceed? |
5% of loan or $390, whichever is greater. Max $700 |
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Charges to borrower can not exceed ? |
$700 or the amount customarily charged for same service in the same area. |
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Article 7 |
Charges made to borrower can not exceed 5% of loan amount OR $390. Whichever is higher. Max $700. No charge can exceed customary charges for same service in same area. |
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According to Article 7, for cash loans of $30,000 and up or $20,000 Junior Deed of Trust, the Broker can charge what commission? |
As much as the borrower will agree to pay. |
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In Article 7, when must the broker provide copies of the appraisal report to BOTH parties? |
1st Trust Deed Loans under $30,000. And Junior Trust deed loans under $20,000. |
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Under Article 7, when are balloon payments not allowed. |
Owner-occupied homes negotiated by broker for term of 6 or more years. |
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Under Article 7, when are loans exempt from balloon payments? |
Home is not occupied by owner AND loan term less than 3 years. |
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Article 7, Threshold Reporting |
Requirement to report annual and quarterly loan activities to DRE IF 10 or more loans to a subdivision OR more that $1,000,000 in loans given. |
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Article 5 2 parts |
1) No pooling funds, no accepting funds UNLESS, funds are for specific loan transaction. 2) can accept lender $, but must Own loan AND HAVE authorization from prospective borrower. |
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Article 6 |
To sell estate investment type security, MUST have Commissioner’s Permit. Costs $100. (Lasts 1 yr) (can’t be used for adverting unless shown in full) Requires $10,000 surety bond. |
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Real Property Securities Dealer |
Anyone selling real property securities or who accepts funds to be reinvested in real property securities or be placed in an account. |
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Truth in Lending Law |
Requires lenders to disclose to buyers the true cost of obtaining credit so buyer can compare costs of various lenders. |
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A.P.R |
Annual Percentage Rate |
Relationship of total finance charged to total amount to be financed. |
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APR is taken into consideration for what Law? |
Truth in lending Law |
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What is required to be considered a lender? |
Lend 25 times a year or lend funds for 5 housing loans annually. |
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Rescission Clause |
Informs a purchaser of their rescission rights as provided by state law. Does NOT apply to residential purchase money or first mortgage or deed of trust loans) Nor to loans carried back by seller in the transaction. |
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RESPA |
Real Estate Settlement Procedures Act Buyer and seller are aware and know all settlement costs |
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What does RESPA prohibit? |
Kickbacks- unearned fees paid to lender for referring customers to insurance agencies, etc. |
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ECOA |
Equal Credit Opportunity Act Prohibits discrimination in the granting of credit to others. (Depending of public assistance included) age and family size also. |
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ECOA can base lending decision on what? 4 |
1) income 2) net worth 3) job stability 4) credit rating |
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When is a licensee considered a creditor? |
If licensee routinely assists sellers in determining whether a proposed buyer in a land contract or purchase-money mortgage is creditworthy. |
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Holden Act Housing Financial Discrimination Act |
Prohibits financial institutions from engaging in discriminatory loan practices No Redlining!!! |
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