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15 Cards in this Set
- Front
- Back
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Accured items
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On a closing statement, items of expense that are incurred but not yet payable, such as interest on a mortgage loan or taxes on real property.
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closing
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An event where promises made in a sales contract are fulfilled and mortgage loan funds (if any) are distributed to the buyer.
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closing statement
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A detailed cash accounting of a real estae transaction showing all cash received, all charges and credits made, and all cash paid out in the transaction.
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computerized loan origination (CLO)
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An electronic network for handling loan applications through remote computer terminals linked to various lenders' computers.
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controlled business arrangement (CBA)
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An arrangement where a package of services (such as a real estate firm, title insurance company, mortgage broker, and home inspection company) is offered to consumers.
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credit
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On a closing statement, an amount entered in a person's favor-either an amount the party has paid or an amount for which the party must be reimbursed.
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debit
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On a closing statement, an amount charged; that is, an amount that the debited party must pay.
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escrow
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The closing of a transaction through a third party called an escrow agent, or escrowee, who receives certain funds and documents to be delivered upon the performance of certain conditions outlined in the escrow instructions.
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prepaid item
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On a closing statement, items that have been paid in advance by the seller, such as insurance premiums and some real estate taxes, for which he or she must be reimbursed by the buyer.
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prorations
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Expenses, either prepaid or paid in arrears that are divided or distributed between buyer and seller at the closing.
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Real Estate Settlement Procedures Act (RESPA)
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The federal law that requires certain disclosures to consumers about mortgage loan settlements. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees.
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survey
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the process by which boundaries are measured and land areas are determined; the on-site measurement of lot lines, dimensions, and position of a house on a lot including the determination of any existing encroachments or easements.
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Uniform Settlement Statement
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A special HUD form that itemizes all charges to be paid by a borrower and seller in connection with the settlement.
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Disclosure Requirements
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Special information booklet- must be provied to every person form whom they receive or for whom they prepare a loan application except for refinancing. aka(HUD booklet) Good faith Estimate of settlement costs no later than three business days after receiving a loan application the lender must provie to the borrower a good faith estemate of the settlement costs the borrower is likely to incur. Uniform Settlement Statement (HUD-1) Form Itemizes all charges to be paid by a borrower an includes all charges that will be collected at closing.
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RESPA's Consumer Protections
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CLO regulation *CBA disclosure *Settlement cost booklet *Good faith estimate of settlement costs *Unfirrom Settlement statement *Prohibition of kickbacks and unearned fees
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