State Exam Ch 15

Front 1

Chapter 15

Blanket mortgage

Back 1

Mortgage covering, more than one parcel of Real Estate.

Front 2

Construction loan

Back 2

The lender, disburses, the loan proceeds, while the building, is being constructed. It's a Straight loan, for a short building period.

Front 3

Credit Union

Back 3

Cooperative organization, for members, who save and borrow.

Front 4

Fannie Mae

Back 4

Shareholder owned company, operating under, a congressional chapter, that provides a secondary market for mortgage loans.

Front 5

Federal National Mortgage Association, (F. N. M. A.)

Back 5

Government National Mortgage Association (G. N. M. A.)

Front 6

Freddie Mac (Federal Home Loan mortgage Corporation)

Back 6

Warehouses, packages, of mortgages

Freddie's In The Warehouse

Front 7

Ginnie Mae (government National Mortgage Association) G. N. M. A.

Back 7

Primarily assist, with low income, moderate income, and high-risk mortgages. Pools mortgages, for investors.

Front 8

Home equity loan

Back 8

Additional financing, for Homeowner, a type of second mortgage. When property has appreciated in value, homeowners may borrow, up to the New, loan-to-value ratio. This usually carries, an, adjustable interest rate.

Front 9

Interim financing, (bridge. gap)

Back 9

Bridge, or swing loan, to cover the gap, between purchase of, a new home, and, old home. Usually six months.

Front 10

Jumbo loan

Back 10

Loan for, a higher amount, then those generally, brought by, the secondary Market.

Front 11

Mortgage Banker

Back 11

An agent, who makes, real estate loans.

Front 12

Mortgage broker

Back 12

An agent, who brings together, the lender, and the borrower, for a fee.

Front 13

Open-end mortgage

Back 13

Used by the borrower, to obtain additional funds, to improve their property. A mortgage, that provides possibility, for further borrowing.

Front 14

Package mortgage

Back 14

Mortgage covering, real and personal property. Also covers, fixtures and appliances, on the premises. This type of loan is used, extensively, for Condominiums.

Front 15

Portfolio loan, non conforming mortgages

Back 15

A loan, not intended for sale, in the secondary market, these loan do not have to meet, uniform underwriting standards, they can be flexible, in their guidelines.

Front 16

Primary mortgage Market

Back 16

Lending institutions, that make mortgage loans, to the public.

Lender, who makes individual loans, directly to borrowers.

Front 17

Purchase money mortgage

Back 17

Any mortgage for purchase, rather than financing.

Front 18

Qualifying, ratio

Back 18

Percentage of income, a borrower, is allowed to spend, on mortgage payments.

Front 19

Regulation Z

Back 19

Implements, the truth, and lending Act.

Front 20

Truth In Lending Act

Back 20

Federal law, that obliges a lender, to fully disclose in writing, all fees, terms, and conditions, associated with, obtaining credit.

Front 21

Reverse, mortgage

Back 21

Mortgage, where Lender, can send regular checks, building up debt. Elderly homeowner, can draw against Equity, Building up a gradual debt, with no repayments, until moving out.

Front 22

Sale-leaseback

Back 22

Arrangement by which, the seller becomes the tenant.

Front 23

Shared Equity Mortgage

Back 23

A mortgage, in which the lender, in exchange for a loan, with a favorable interest rate, participates in the profits the mortgagor receives, when the property, is eventually sold.

Front 24

Triggering term

Back 24

Words in an ad, that require, full disclosure, of financing conditions.

Front 25

Underwriting

Back 25

Process of deciding, whether to make, a specific loan.

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Wrap-around mortgage

Back 26

An additional mortgage, in which another Lender, refinances a borrower, by lending an amount, including the existing 1st mortgage amount, without disturbing, the 1st Mortgage.

Front 27

ALIENS, required items, before, the Lender a can proceed.

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1. Address, of the subject property.

2. Loan amount.

3. Income.

4. Estimate of property value.

5. Name of borrower.

6. Social security number.

Front 28

TRID

Back 28

Acronym for, the rule that combines, the disclosure required, by the truth in Lending Act (TILA), and the, real estate settlement procedures Act (RESPA).

Front 29

Loan estimate (LE)

Back 29

A three-page, TRID required document, that itemizes important details, of the mortgage loan

Front 30

The term, purchase money mortgage applies to?

Back 30

Any mortgage, used to finance, the purchase of Real Estate.

Front 31

Real estate brokers, should be especially careful, to seek an attorney's assistant, when a real estate transaction, involves a?

Back 31

Wrap-around mortgage

Front 32

The buyer, does not immediately, receive a deed, when purchasing with a?

Back 32

Land contract

Front 33

When a bank, allows a buyer, to spend up to 28%, of gross income, on housing costs, it is applying a formula, known as a?

Back 33

Qualifying ratio

Front 34

A developer, obtains one Mortgage, for a whole subdivision, the mortgage, that best fits, this occasion is a?

Back 34

Blanket mortgage

Front 35

Tom buys a local Factory, from a company, that intends to, Remain and rent the building from him. Tom has put together a?

Back 35

Sale-leaseback.

Front 36

Secondary Market?

Back 36

Lenders, who buy, and sell, mortgages, after they have been, originated.

Front 37

Fannie Mae is?

Back 37

The leading producer, of mortgages, on the secondary Market.

Front 38

The public, can invest in mortgage Pools, by buying, certificates issued, by the?

Back 38

Government National mortgage Association. (G. N. M. A.)

Front 39

All of the following, participate in, the nation's secondary Market, except?

A. FmHA.

B. Ginnie Mae.

C. Fannie Mae.

D. FHLMC

Back 39

Answer

A. FmHA

Front 40

HELOCS, Equity Lines of Credit

Back 40

FHLMC, Federal Home Loan mortgage Corporation

Front 41

Farmers Home Administration, FmHA.

Back 41

Consumer

Federal Protection Bureau

(C. F. P. B.)

Front 42

Real estate settlement procedures Act, (RESPA)

Back 42

Truth in Lending Act, (TILA)

Front 43

Freddie Mac

Back 43

Buys and pools, blocks of conventional mortgages, selling bonds, with such mortgages, as security.

Front 44

Regulation Z, protects the consumer, from?

Back 44

Misleading advertising.

Front 45

Regulation Z, provides, that?

Back 45

If certain financing terms, are mention, others also, must be included.

Front 46

Triggering terms

Back 46

1. Amount, or percentage of down payment

2. Number of payments or of repayment.

3. Amount of any payments.

4. Amount of any finance charge.

Front 47

Advertisement, must also include?

Back 47

1. Amount or percentage of down payment.

2. Number of payments, or terms of loan.

3. The words, annual percentage rate.

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Full disclosure, is necessary, if any of these terms are used:

Back 48

1. 30-year loan available.

2. Payment $1,432 including principal and interest.

3. Only 5% down.

Front 49

These terms, would not trigger, the required, disclosure;

Back 49

1. Financing available.

2. Terms Negotiable.

3. Owner May Finance.

4. 5% annual percentage rate loan.

5. Attractive financing.

6. $400,000 mortgage available.

Front 50

Any offer, of financing, must include the words:

Back 50

To a qualified buyer

Front 51

Under Regulation Z, the borrower, who places, a mortgage must?

Back 51

Be quoted, the APR, as well as, simple interest rate.

Front 52

The lender, is required, to provide a, loan estimate, to prospective borrowers?

Back 52

Within, three business days, of, a, completed, loan application.

Front 53

Which of the following, is one, that will trigger, the need, for a new loan estimate, and delay a closing?

Back 53

Loan products, was changed.

Front 54

The borrowers, want to talk, with several Lenders, about various loan products.

Back 54

Each lender can charge, enough, for a credit report.

Chapter 15

Front 55

Portfolio loan - not for sale, flexible

Back 55

Non conforming mortgages – not for sale, flexible