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36 Cards in this Set
- Front
- Back
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What two ratios are important to a lender when pre-qualifying a borrower |
Income Ratio
Debt Ratio |
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For what reason can an agent refuse to show certain homes to a client? |
Does not qualify
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What act was passed to prevent descirmination in lender? |
equal credit opportunity act
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What is one of the protected classes which is covered in ECOA but not the FFHA? |
Age, marital status & public assistance |
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Loans must be based entirely on what? |
Credit worthiness
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The lender is required to disclose the Annual percentage rate because of what? |
Regulation Z / Truth in lending
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The charge for use of the lender's money is referred to as? |
Interest
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The fee charged for processing the mortgage application is referred to as? |
Origination Fee
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The original amount that is borrowed is referred to as the: |
Principal
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Prepaid interest paid to the lender at closing is called: |
Discount Points
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What state laws limit interest rates that lender can charge? |
Usary
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What does each point cost? |
1% of the loan amount
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Each point reduces the interest rate over the term of the loan by what percent? |
1/8th
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What is the purpose of the prepayment clause? |
Recoup anticipated interest for lender
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A way to temporarily reduce the interest rate is referred to as |
BuyDown
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What was established to help maintain a sound credit and economic environment and counteract inflation and deflation trends |
Federal Reserve System |
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who acts as intermediaries between borrowers and lenders? |
Mortgage brokers
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who is the largest mortgage purchaser handles FHA VA and Conventional loans |
Fannie Mae
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Who is a wholly owned government corporation that guarantees mortgage backed securities market or VA and FHA loans: |
Ginnie Mae
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Who originates and service real estate loans? |
Mortgage Bankers
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This type of loan is assumable under certain conditions |
VA
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what is the federal agency that administers FHA loans |
HUD |
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This type of loan is guaranteed up to certain limits |
VA
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what is the monthly insurance fee charged on conventional loans called? |
PMI
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This type of loan requires PMI |
Conventional with less than 20% down. |
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This type of loan doesn't require a downpayment: |
VA
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This type of loan is not insured or guaranteed by the federal government |
Conventional
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Who pays the points on a VA loan? |
The seller or buyer (negotiable)
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In order to get a VA loan, what document must the veteran have |
Certificate of Eligibility / DD-214
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the appraisal on the VA loan is called? |
Certificate of Reasonable Value.
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The buyer makes the payments but is not personally responsible for the loan: |
Subject to
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The buyer becomes primarily liable for the loan |
Assumption
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The clause that requires the borrower to pay off the loan when title transfers |
Alienation Clause
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Substitution of obligations or parties is referred to as? |
Novation
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Every loan has two key items: |
Note and Security Instrument |
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At the end of an Interest only loan the paid in: |
A lump sum |
