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18 Cards in this Set
- Front
- Back
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consumer financial protection bureau CFPB |
agency for consumer protection within seven federal agencies created by Dodds frank act |
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when the amount of money available for lending decreases the interest rates go up |
the opposite is aso true- by decreasing the reserve requirements the FED can encourage more lending |
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the primary mortgage market |
loans being made, collect interest for the life of the loan. is made up of lenders that orginate mortgage loans |
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secondary mortgage company |
purchases, services and sometimes re sells exsisting mortgages and mortgaged backed securities created by the primary market. it is a way to replenish the primary market. no loans are being made. loans are being sold to investors |
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subprime mortgage |
made to borrowers who could not traditionally qualify for loans. by the summer of 07 the subprime crisis exploded when several of the largest subprime lenders went bankrupt, leaving remaining subprime lenders suffering with huge drops in stock value |
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conventional loans |
not backed up by the gov't.made to the most well qualified buyers. insured by the gov't. |
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conforming loan |
a standardized conventional loan that meets fannie maes or freddi macs purchase requirements. include max loan amt min down pyment and limits seller contributions and borrower qualiifying ratios |
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private mortgage insurance or PMI |
most guidelines require a 5% min down payment ( althought some have required less) that necessitates the purchase. one way a borrower can obtain a conventional mortgage loan with a smaller down payment is under the PMI program. when the LTV ratio is higher than a specified % typically 80%, the lender requires additional security |
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FHA insured loans |
does not make loans. require owner occupancy. assumable loans if owner qualifies.operates under HUD neither builds homes nor lends money to purchase single family housing. it insures loans on real property does not insure property. it insures lenders agaisnt loss in case of borrower default.does not fix interest rates on loans. |
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VA- guranteed loans |
to gurantee loans to purchase or construct homes for eligible veterans. does not make loans or interes rates just like FHA. NO down payment required. assumable can be assumed by non veterans as long as the borrower qualifies but no very common. |
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prepayment |
as with an FHA insured loan, the borrower under a VA guranteed loan can prepay the debt at any time w/o penalty |
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truth in lending act and regulation z |
requires lenders to disclose credt terms to borrowers APR finance charges monthyl payments and the amt of payments person is borrowing. |
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Equal credit oppotunity ECOA |
in effect since 1975 prohibits lender and other who rant or arrange credit to consumers from discriminating agains credit applicants on the basis of sex, color, religion |
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advertising |
regulation z strict regulation of real estate advertisments that include mortgage financing terms aslo known as trigger terms if you use trigger terms you must also be ready to disclose the four listed above. trigger terms= numbers |
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residental mortagage fraud act |
in december 07 NC passed state specific mortage fraud legislation that made violation on one mortgage loan a felony |
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NC predatory lending act |
with the passage of the predatory act in 99 NC became the first state to enact comprehensive predatory laws, applies to lenders and addresses permisible fees that be charged n connection with home loans secured by the first mortage deed of trust |
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determing LTV |
if a property has the an appraised value of 100,00 and secured by a 90,000 loan the LTV is 90% 90,000 (loan) / 100,000 value= 0.90 or 90% LTV |
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Federal reserve system FED |
Is to maintain credit conditions help counteract inflationary and deflationary. Regulated supply of money and interest rates |
