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13 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Which individual must be state licensed as a mortgage loan originator? |
The answer is employee who works as a loan originator for a mortgage brokerage company that is not federally regulated. |
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2. Which set of qualifying ratios applies to FHA mortgage loans? |
FHA lenders require a housing expense ratio (HER) of no more than 31% and a total obligations ratio (TOR) of no more than 43%. |
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A partially amortized mortgage has a final payment required to completely pay off the loan is called |
The answer is a balloon payment. |
up up and away |
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4. The law requiring lenders to furnish borrowers with the APR disclosure is the? |
The answer is Truth in Lending Act. |
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5. Which qualifying ratio applies to conventional mortgage loans? |
The answer is 36% TOR. To qualify for a conventional mortgage, the borrower's TOR must not exceed 36% |
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6. A commercial bank sold a group of 2,000 mortgages directly to Fannie Mae. This is an example of |
The answer is secondary market activity. The secondary mortgage market is an investor market that buys and sells existing mortgages. The existence of a secondary mortgage market allows lenders to have stable cash flow so that they can originate more new loans. |
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7. In an adjustable-rate mortgage, the calculated interest rate is the |
The answer is index + margin. The calculated interest rate is arrived at by adding the index to the lender's margin. |
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8. Which type of loan has NO established loan limit? |
VA Loans |
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9. T/F Fannie Mae deals directly with homebuyers. |
False. Fannie Mae is a secondary market with Lenders |
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10. A prospective borrower has a projected PITI of $1,000, an MIP of $260, a monthly car payment of $290, and a student loan payment of $175 per month. The borrower's gross monthly income is $4,200. What is the borrower's HER? |
30% |
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11. T/F VA funding fee may be added to the loan amount and financed over the life of the loan |
T: If a veteran is a purple heart recipient or has a service-connected disability, the funding fee is waived. |
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12. When investors bypass thrift institutions for direct investment elsewhere, the process is called |
The answer is disintermediation. With a secondary mortgage market, in times of disintermediation, lenders can sell more of their loans and use the cash to originate new mortgage loans. |
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12. When investors bypass thrift institutions for direct investment elsewhere, the process is called |
DISINTERMEDIATION . With a secondary mortgage market, in times of disintermediation, lenders can sell more of their loans and use the cash to originate new mortgage loans. |
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