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15 Cards in this Set
- Front
- Back
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RESIDENTIAL LOANS
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comprise over 2/3 of the mortgage loan market.
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EQUAL CREDIT OPPORTUNITY ACT
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limits info that may be required in an application.
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LOAN APPLICATION
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offers info for qualification of both the borrower and the property.
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CREDIT SCORING
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a method of giving a default probability number based on an individuals credit record.
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PRODUCTION-RELATED INCOME
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commissions, bonuses, etc.
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ASSURED INCOME
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wages, salary, etc.
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LIABILITIES
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If liabilties excessive, an applicant can be rejected.
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ASSETS
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unlike commercial loan, residential apllicants need not show substantial assets to qualify.
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WILLINGNESS TO PAY
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can be the cause of loan rejection.
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CREDIT REPORTS
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a report giving the credit history on an individual or company; it reveals previous debt payment experience as well as other identifying data.
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FAIR CREDIT REPORTING ACT
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consumers rights
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PERCENTAGE GUIDELINE METHOD
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considers an apllicants monthly liabilities in 2 seperate categories and measures each amount against the applicants effective income.
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RESIDUAL METHOD
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1.gross income 2.tax liabilities 3. shelter expenses 4. other monthly obligations 5. residual income 6. cost of living expense
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INCOME RATIO METHOD
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1. shelter expenses 2. other monthly payments 3. income ratio
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CONFORMING LOAN
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A conventional loan that meets the requirements of either freddie mac or fannie mae.
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