Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
59 Cards in this Set
- Front
- Back
REG X- RESPA |
real estate settlement procedures- regulate and standardize real estate settlement practices. Requires disclosure of closing costs to be given to loan applicants. |
|
(ECOA) Reg b |
equal credit opportunity act- prohibits creditors form denying credit based on FFHA standards. |
|
FFHA |
federal fair housing act- prohibits discrimination based on race, color, religion, sex, national origin, handicap, or familial status in sale or lease of residential property. |
|
TIL Reg z |
truth in lending act- protects consumers by requiring creditors to disclose the complete cost of credit to consumer loan applicants. Have to Disclose APR- annual percentage rate |
|
EPA |
equity protection act- protects borrowers form unfair lending practices on subprime loans |
|
f (HMDA) |
Home mortgage disclosure act- provides way of lending whether or not lenders are fulfilling their obligations to serve the housing needs of the communities where they are located. |
|
(FCRA)-Reg V |
fair credit reporting act- designed to protect the public form the reporting of inaccurate information by credit agencies. |
|
DTPA |
deceptive trace practices act- protects consumers against false or misleading business practices |
|
(FACTA) |
fair and accurate credit transaction act- requires lenders to make certain disclosures regarding a borrowers credit history |
|
SAFE ACT |
secure and fair enforcement of mortgage licensing act.- created to coincide with NMLS |
|
NMLS |
National mortgage licensing system-education and testing nation wide |
|
Patriot ACt |
collect certain information from borrowers including borrowers ethnicity. applicants are required to give name, SS, ITIN, or Alien ID card |
|
Home owners protection act |
designed to control PMI- Private mortgage insurance required with LTV ratio greater than 80% |
|
MARS |
mortgage protection assistance relief services- designed to protect distressed homeowners form mortgage relief scams |
|
Gramm- leach- bliley act |
establishes consistent practices regarding the use of customer info. |
|
CFPB |
consumer financial protection bureau |
|
Package mortgages |
real property and personal property are pledged on one mortgage. Borrow can use something like furniture |
|
Blanket Mortgage |
mortgage covering more than one parcel of real estate- an agreement saying that when a certain amount of the loan is paid off then the part of the land will be released form the lien |
|
HUD |
department of urban development and housing-created to increase home ownership, support community development. |
|
FHA |
federal housing administration- generate new jobs through increased construction activity, repair, improvement and sale of real estate. Giant insurance company |
|
FHA loan |
loan is insured by FHA which makes it easier for lenders to give to borrowers who may not qualify for conventional. LOW DOWN payment |
|
FHA 203b |
most popular for first time home buyers- need 3.5% down |
|
FHA 203k |
rehabilitation and repair of single-family properties |
|
FHA 234c |
condominium type structure that provides authority to insure common ares and facilities of project |
|
FHA 251 |
includes standard one year ARM |
|
ARM |
Adjustable rate mortgage |
|
FHA steamline |
reduced amount of documentation |
|
VA guaranteed loan |
no down payment/lower interest rate/needs VA certificate of eligability and certificate of reasonable value |
|
RHS |
rural housing service-helps give credit to farmers usually those with 80% below credit income |
|
Home repair grant program |
loan to repair homes for handi accessible reasons |
|
Sub prime loan |
extending loans to people who do not meet credit qualification for prime rate |
|
Reverse mortgage |
Lender pays the borrower- usually for people over 62 because their home is paid off so they can take out the equity. Called HECM-home equity conversion mortgage |
|
construciton mortgage |
mortgage for construction finance. Once constructed loan goes to permanent financing. |
|
Open end mortgage |
allows borrower to obtain further advance at a later date. HELOC is example |
|
LTV |
Loan to value ratio- loan amount/lesser of sale price or appraisal value ex: loan 82,000 sale price 120,000 appraisal 100,000 what do? answer is 82% |
|
Discount points |
added loan fee charged by lender to me the yield on a lower-market-interest VA or FHA loan to be competitive with higher interest conventional loans. 1 point equals 1 percentage or mortage |
|
Equity |
market value of home-total debt=equity |
|
Amortization |
(Principal balance)(interest rate)=one years interst (ones years interest)/(12 moths)=one months interest (payment amount)-(one months interest)=principal balance payoff (principal)-(principal paid off)= new principal balance |
|
Escrow |
trust set up to cover property taxes and insurance |
|
income to debt ratio |
housing expenses ratio/monthly income of borrower |
|
FER or HER ratio |
PITI/total monthly income=front end ratio |
|
PITI |
principle, interest, taxes, insurance |
|
Back end ratio |
housing expense+other debt/monthly income=Back end ratio |
|
Rate lock |
locks the rate in at a specific time. This can benefit borrower if rates go up but will hurt if they go down |
|
Float rate |
borrower lets rate float until closer to closing. Benefits if rates go down doesn't benefit if rates go up |
|
Title insurance |
insurance designed to cover any potential lying about the property. |
|
Hazerd insurance |
borrower selects hazard insurance but lender makes sure policy and coverage meet fannie mae |
|
Rent loss insurance |
insurance landlord if anything happens so they will still get income they would miss out on from renters staying |
|
flood insurance |
needed if in flood zone |
|
encumbrance |
claim or right to interest in property held by a tenant |
|
easement |
a right held by one person to use another persons land |
|
encroachment |
unauthorized use of someones property |
|
deed restricitons |
privately created limitations on land use |
|
lien |
security investment on a property. allow the proceeds of a foreclosed home to pay the debt |
|
Title report |
reveals any problems revealed by the physical inspection |
|
owner policy title insurance |
borrower is policy holder and is covered for life |
|
mortgagee policy |
lender usually requires so mortgage can be sold on secondary market |
|
subordination |
used with two mortgages on a home. borrower wants to refinance one and the subordination lets one take priority |
|
secondary market |
market for purchase and sale of existing mortgages. provides a stable resale of homes to borrowers |