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29 Cards in this Set
- Front
- Back
conduits
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agencies that pool mortgages and sell mortgage backed securities, using the pool of mortgages purchased as the collateral for the MBS
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warehousing
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provision by commercial banks of short term funds to mortgage banking companies to enable them to originate and fund mortgage loans until they can be sold in the secondary mortgage market
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loan servicing
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all actions associated with administering a mortgage loan, including collection of payments, monitoring insurance and tax obligations, and notification of delinquent borrowers.
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standby forward commitment
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it's where the mortgage banker has the right, but not the obligation, to sell a prespecified dollar amount of a certain loan type at a prespecified price to the seller of the commitment.
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fallout risk
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potential loss of borrowers from the origination pipeline if mortgage interest rates decline after the loan commitment, but before the closing of the loan, which results in borrowers choosing not to close.
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subprime mortgage loan
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loans made to homeowners who do not qualify for standard home loans
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loan underwriting
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involves an analysis by the lender of the riskiness of the promised mortgage payments
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disintermediation
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reference to the occurrence of conditions when the growth of deposits in banks and savings associations becomes negative, due to more attractive, direct investment opportunities.
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mortgage bankers
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full service mortgage companies that process, close, provide funding, and sell the loans they originate in the secondary mortgage market, and service loans for loan investors
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mortgage brokers
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an intermediary between those who demand mortgage funds and those who supply the funds.
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broker license
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the authority granted by a state for one to own and operate a real estate brokerage business; most complete type of RE license
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commission
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payment a RE salesperson receives for services rendered, usually expressed as a percentage of the property sale price and not usually paid until the transaction is closed.
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errors and omission insurance
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a type of insurance that indemnifies professionals if the make an error in their profession or if they omit something important from their analyses.
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exclusive right of sale listing
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an agreement between a seller of property and a broker in which the broker is assured of receiving a commission if the broker or anyone else, including the owner, finds a buyer during the period of agreement.
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fiduciary relationship
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The special duties and obligations to a principal required of an agent, including complete loyalty, confidentiality, obedience, disclosure, accounting, care, skill, and due dilligence.
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general agent
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one who is empowered to represent a principal, often a business firm, in its business relationships.
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multiple listing service (MLS)
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Sharing of property sale listings by a number of RE brokers with an agreement as to how costs and commissions are to be shared.
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real estate commission
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Appointed commission responsible for overseeing the implementations and administration of a state's RE license law.
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salesperson license
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Authority granted by a state to engage in the RE brokerage business as an employee or agent of a RE broker.
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subagency
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The agency role of a broker is extended to one or more additional brokers, who also become a fiduciary of the prinicipal and are empowered to act on his behalf
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transaction broker
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One who facilitates a RE transaction but who is not an agent of either buyer or seller.
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consideration
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Anything of value given to induce another party to enter into a contract.
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contract for sale
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The legal document between a buyer and seller that states the purchase price and other details of the transaction, and the detailed manner in which ownership rights are to be transferred
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contracts with contengencies
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An aggreement for sale that makes the sale conditional on the buyer's obtaining something such as financing or favorable engineering report.
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earnest money
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A cash deposit by a buyer at the time of the offer to establish credibility of the offer and to provide recourse to the seller if the buyer reneges.
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equitable title
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The right of someone to obtain full, legal title to RE, provided the terms and conditions of the document are fulfilled.
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legal title
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Ownership of property; for RE a lawful claim, supported by evidence of ownership.
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prorating
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Allocation of costs and revenues between buyer and seller of real property at closing, based on the time of ownership by each party.
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specific performance
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A legal action brought in a court of equity, compelling a party defaulting on a contract to carry out the exact requirements of the contract rather than, for example, settlin for damages.
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