Nmls

Front 1

Under the GLB Act, nonpublic information can only be shared with affiliates of the financial institution or affiliates of related third parties, even if the customer does not opt out. (True or False)

Back 1

True

Front 2

What information must be provided to the borrower when referrals take place between affiliated businesses?

Back 2

An Affiliated Business Disclosure Statement as mandated by RESPA

Front 3

What is the primary purpose of the Gramm-Leach Bliley Act?

Back 3

Notice of right to financial privacy and right to opt out of sharing personal information

Front 4

Along with the Fair and Accurate Credit Transactions Act Disposal Rule, what GLB Act provision ensures that customer’s information is not handled or maintained carelessly and is disposed of properly?

Back 4

GLB Act’s Safeguards Rule

Front 5

What is the difference between the GLB Act Safeguards Rule and the FACT Act Disposal Rule?

Back 5

GLB Act’s Safeguards Rule requires all companies to design, implement, and maintain safeguards to protect customer information from theft…FACT Act requires businesses to take appropriate measures to safeguard from theft in the disposal of consumer report

Front 6

What is “Federally Related Loan”?

Back 6

Loans secured by a first or subordinate lien on a residential property that meets stated RESPA criteria. The definition is so broad it covers virtually every home loan secured by a mortgage.

Front 7

Most of HUD’s enforcement actions result due to section 8 or RESPA. What is addressed in Section 8?

Back 7

Prohibited against giving or receiving a fee, kickback, or anything of value pursuant to an agreement or understanding for the referral of settlement business.

Front 8

What is an affiliated business arrangement?

Back 8

An arrangement in which one person refers applicants to a settlement service provider with whom the referring person has an ownership interest of 1% or more

Front 9

What customer protection does Section 10 or RESPA provide?

Back 9

Protect consumers by ensuring borrowers know the amount they are to deposit into escrow by preventing lenders from overcharging borrowers for escrow deposits.

Front 10

What are the consequences for violating Section 8 or RESPA?

Back 10

Up to $10,000 and/or one year in prison

Front 11

What is the primary aim of Regulation B?

Back 11

ECOA is intended to promote the availability of credit to all creditworthy applicants and prohibit discrimination

Front 12

A copy of the HUD1 may be requested by the borrower how many days prior to the closing?

Back 12

1 day; After August 1, 2015 the closing disclosure is required to be given 3 days prior to closing.

Front 13

Under the ECOA, is it lawful to turn down an applicant because part of his/her income is derived from public assistance?

Back 13

It is unlawful not to accept an application due to the type of income it is not however unlawful to turn them down if the income is not enough to qualify them for repayment.

Front 14

What is the letter of the regulation by which the ECOA is also referred?

Back 14

Regulation B

(B for Borrower is protected)

Front 15

To whom does the TIL Act apply? (Truth in Lending Act)

Back 15

All businesses and individuals that regularly extend consumer credit that is primarily for family or household purposes. Regularly extend credit means more than 5 mortgages per year.

Front 16

What is the RESPA prohibition on “mark ups” designed to prevent?

Back 16

A lender or service provider marking up 3rd party costs for the purpose of retaining the additional funds

Front 17

TILA requires that mortgage broker fee’s are _______ included in the finance charge?

(Always or Never)

Back 17

Always

Front 18

Under the ECOA, you must notify an applicant of Notice of Action Taken within what time period?

Back 18

30 days from receipt of a loan application

Front 19

Credit denial letters do not require the disclosure of _________________?

Back 19

Credit scores

Front 20

Which lending law provides that consumers get a free copy of their credit bureau report annually?

Back 20

FCRA(Fair Credit Reporting Act)

Front 21

Which law prohibits discrimination in residential real estate transactions?

Back 21

Fair Housing Act

Front 22

Which law requires institutions, that are covered by law, to collect extensive data about each mortgage loan application?

Back 22

HMDA Regulation C (Home Mortgage Disclosure Act)

Front 23

Which law applies to transactions involving the information that is used and assembled by credit reporting agencies (CRAs)?

Back 23

FCRA (Fair Credit Reporting Act)

Front 24

What does the acronym TSR represent?

Back 24

Telemarketing Sales Rule

Front 25

Red Flag Rules make what requirements on creditors and financial institutions?

Back 25

To establish an identity theft prevention program outlining methods to prevent security breaches at a company wide level

Front 26

A mortgage broker is not a violation of Section 8 or RESPA if he/she gives or accepts a gift of nominal value ($25 or less)

(True or False)

Back 26

FALSE, nothing of value, regardless of the amount

Front 27

When would it not be a violation of the TIL act to use the term “low monthly payment” in an advertisement?

Back 27

When you do not advertise a rate, repayment term or amount of a finance charge in conjunction with this General Advertising term

Front 28

Is a mortgage lender operating within the guidelines of the TILA if they advertise a particular home equity loan product as “Tax Deductible”?

Back 28

No Reg Z (Zila of the TILA) specifically prohibits the use of advertisements that include any misleading statements regarding tax benefits of a home equity plan

Front 29

Define “property flipping”

Back 29

A property is bought and resold within a very short period of time, sometimes the same day typically with an inflated appraised value

Front 30

What is a straw buyer?

Back 30

An individual who accepts a fee to provide his/her name, SSN and other personal information for use on a mortgage application, the motivation is to cover the true identity of the person sitting at the closing table

Front 31

What is a straw seller?

Back 31

An individual who accepts a fee to falsely claim ownership to a property. Falsified documents are normally used to complete the transaction (title and deeds)

Front 32

What is an “Air Loan”?

Back 32

A loan obtained on a property (land) where a structure does not exist yet has been presented as having a property on the lot.

Front 33

Define “Equity Theft”

Back 33

Occurs when a mortgage industry employee forges a deed transfer and obtains a new lien on the property without the homeowner’s knowledge.

Front 34

Under what circumstances would a sale or assignment of a sales contract be considered fraud?

Back 34

When a fraudulent real estate investor obtains a contract on a property with an inflated value and offers to sale the contract to an unknowing buyer for a fee

Front 35

What is the most common type of mortgage fraud involving borrowers?

Back 35

Fraudulent information on loan application is the most common committed by borrowers.

Front 36

What is the primary step in detecting mortgage fraud?

Back 36

A thorough “common sense” analysis of the application information and documents relating to the mortgage loan request

Front 37

Why is it important to check the back of pay stubs, bank statements, and w2 forms?

Back 37

To detect watermarks and printed fraud prevention patterns. Technology allows to produce high quality fraudulent documents. Most have incorporated prevention techniques.

Front 38

What does the phrase “Caveat Emptor” mean?

Back 38

“Buyer Beware”… If the buyer is provided all the info and disclosures, they will ultimately be responsible for understanding the terms.

Front 39

What is a “Buy-Back” provision in reference to table funding?

Back 39

If any form of fraud related activity takes place around a particular loan, the originator (broker) IS RESPONSIBLE for buying the loan back

Front 40

What is “Equity-Based Lending”?

Back 40

It occurs when loans are made to homeowners based solely on the equity in their homes with no regard to other credit. This is an unethical practice because it can “strip” homeowners of their equity and leave them with larger loans than they can pay for

Front 41

What is “Redlining”?

Back 41

Failing to lend to certain geographic areas or segments of the population

Front 42

What is “Reverse Redlining”?

Back 42

Targeting consumers to charge them more than in rates and fees

Front 43

When a consumer registers on the National Do Not Call Registry, when does the request expire?

Back 43

Never, they remain permanently as of the DNC Improvement Act of 2007

Front 44

What 2 exceptions exist for calling a client that currently resides on the Do Not Call List?

Back 44

90 days from taking an application or 18 months from a completed transaction are okay to contact

Front 45

The FACT Act’s Red Flag Rules provide indicators of potential fraud. What credit bureau information is most likely to indicate fraud?

Back 45

“Suspicious Identification Information” such as an address that doesn’t match the address on the credit report, a SSN identified in the reports states a being invalid

Front 46

When is the Notice of Right to Receive Appraisal given to the borrower?

Back 46

Within 3 days of application

Front 47

The GLBA Privacy Notice may be delivered to customers via fax, mail, or email?

(True or False)

Back 47

True, In writing or electronic form. Clearly describe the institution’s practice of sharing nonpublic personal information.

Front 48

What federal law regulates settlement costs?

Back 48

RESPA (REG X) (X stands for X-ray of your RESPA’tory system)

Front 49

Define “Trigger Term”

Back 49

The most attractive features of a credit plan such as: Rate, finance charges, payment terms, down payments, and monthly payments

Front 50

Explain the advertising requirements about the term “Annual Percentage Rate” outlined in Reg Z

Back 50

TILA requires clear and conspicuous presentation of relevant terms when triggers are used. Other relevant terms must have equal prominence so the consumer doesn’t have to read the fine print.

Front 51

What regulation is ECOA?

Back 51

Regulation B

Front 52

What is the purpose of ECOA?

Back 52

To make credit applications equally available and to allow the request of credit without fear of discrimination of protected classes

Front 53

How many years does a victim of ECOA discrimination against a violator?

Back 53

Two years

Front 54

What is the civil penalty for violating ECOA?

Back 54

$10,000 each violation and $25,000 for patterns of misconduct

Front 55

What does HMDA stand for?

Back 55

Home Mortgage Disclosure Act (Regulation C)

Front 56

What is an easy way to remember RESPA is Regulation X?

Back 56

X-ray of your RESPAtory system

Front 57

What is an easy way to remember TILA is Regulation Z?

Back 57

“Zila the TILA” or until I Z you again”

Front 58

What federal regulation allows a borrower to exercise their right to rescission?

Back 58

Regulation Z, TILA

Front 59

What is the fine for a violation of TILA?

Back 59

$5,000 and 1 year imprisonment unless class action then $500,000 or 1% of net worth

Front 60

What are the words behind FCRA?

Back 60

Fair Credit Reporting Act

Front 61

What is the DNR?

Back 61

Don Not Call Registry

Front 62

How often must a lender update their DNR database?

Back 62

Every 31 days

Front 63

Always include the APR in an advertisement when _______________?

Back 63

A rate is present or quoted

Front 64

How long does a number stay on the DNR?

Back 64

Permanently unless consumer removes number or the number is assigned to another person.

Front 65

Who takes the initiative to place or remove a phone number on the DNR?

Back 65

The Consumer

Front 66

What are the words behind SAFE?

Back 66

Secure and Fair Enforcement

Front 67

What federal Act requires creditors to allow consumers to OPT OUT of the sale of their Non-public Information (NPI)?

Back 67

Gramm-Leach Bliley Act

Front 68

What federal act requires that creditors create a policy to safe guard consumers NPI?

Back 68

GLBA or Gramm-Leach Bliley Act

Front 69

Under the SAFE Act, how many hours of education are required for pre-licensing and continuing education?

Back 69

20/8 hours

Front 70

Which action is a violation of the GLBA?

Back 70

Obtaining customer information by false pretenses (Known as pre-texting)

Front 71

How often can an MLO be investigated by authorities?

Back 71

As often as necessary

Front 72

The SAFE Act defines a nontraditional mortgage as?

Back 72

Anything other than a 30 year fixed rate loan.

Front 73

What is the waiting period for a person who seeks to license as an MLO that had a prior felony pardoned?

Back 73

No waiting period

Front 74

Felony convictions in the last _____ years would keep a person from being able to obtain an MLO license?

Back 74

7 years

Front 75

MLO Licensees who teach an approved NBMLS course get _____ hourse CE credit for every _____ they teach?

Back 75

2 for 1

Front 76

Of the 8 hours annual CE needed to renew an MLO’s license how many hours are devoted to ethics and fraud?

Back 76

2 hours

Front 77

The NMLS accepts applications for licensing for all 50 states and US occupied territories but does not have the authority ___________ or ___________ a license.

Back 77

Approve or Deny

Front 78

What is the maximum state regulatory civil penalty that can be levied?

Back 78

$25,000

Front 79

Offering or soliciting applications, negotiating rates and terms with borrowers are all job functions of what type of person?

Back 79

MLO

Front 80

MLO’s that work for a depository are defined as?

Back 80

Federally registered MLO’s

Front 81

MLO’s that work for a licensed lender or broker are defined as?

Back 81

State licensed MLO'S

Front 82

What is used to permanently identify an MLO?

Back 82

NMLS Unique Identifier

Front 83

Licensed MLO’s may work for how many entities?

Back 83

Only 1

Front 84

Contract Processors and Underwriters licensed as an MLO may work for how many companies?

Back 84

Unlimited

Front 85

A business card is considered a _____________ according to the SAFE Act?

Back 85

Advertisement

Front 86

MLO’s must retake the SAFE exam if they fail to maintain a license for a period of ________ years?

Back 86

5 years

Front 87

How long must an MLO wait to retake a SAFE exam if they fail?

Back 87

30 days each failed attempt

Front 88

How long must an MLO wait to retake the SAFE exam if they fail a third time?

Back 88

6 months

Front 89

What prohibited practice is defined as requiring a borrower to sign an exclusive contract for services where the MLO is paid whether or not the loan is found?

Back 89

Best efforts contract

Front 90

What is defined as advertising a lower rate than what is actually available?

Back 90

Bait and Switch

Front 91

Reports of condition must be submitted to the NMLS on an ________ basis?

Back 91

Annual

Front 92

Licenses expire annually on which date?

Back 92

December 31st

Front 93

Mortgage Lenders _______________ loans while Mortgage Brokers ______________ loans?

Back 93

Make/Arrange

Front 94

The CSBS and AARMR own the State Regulatory Registry (SRR) which operates which state licensing system?

Back 94

NMLS/R

Front 95

What is the difference between the Loan Estimate and the Closing Disclosure?

Back 95

The loan estimate provides estimated cost to the close and the closing disclosure shows the actual costs at closing.

Front 96

What is a loan modification?

Back 96

A permanent change in the terms of a loan (either term, interest rate, or both) in response to a borrower’s long-term inability to make payments.

Front 97

What is a fully amortizing loan?

Back 97

A loan on which the payments cover the principal and interest required to pay the loan balance off the schedule.

Front 98

What is a balloon mortgage?

Back 98

Mortgage that requires the borrower to make one large payment at the end of the loan term. This payment may also be referred to as a “call”, a “demand”, or a “bullet”.

Front 99

Is the margin on an ARM a fixed number or is it subject to change during the term of the loan?

Back 99

The margin in an ARM is a fixed number (Index + Margin = New Rate)

Front 100

What is an adjustment period?

Back 100

The agreed upon adjustment frequency established in the ARM

Front 101

What is a lifetime rate cap?

Back 101

A limit on the amount an interest rate can change over the life of an ARM (AKA rate ceiling)

Front 102

COFI, LIBOR, T-BILL are all examples of?

Back 102

An index usually associated with an ARM

Front 103

What is the conforming loan limit for a one-family property?

Back 103

$417,000 (this limit goes up to $625,500 for high cost areas)

Front 104

What is a periodic rate cap?

Back 104

A limit on the amount that the interest rate can change during any adjustment periods.

Front 105

What is an initial rate cap?

Back 105

A limit on the amount that the interest rate can increase during the first adjustment period for an ARM

Front 106

What is an initial rate cap?

Back 106

A limit on the amount that the interest rate can increase during the first adjustment period for an ARM

Front 107

What is negative amortization?

Back 107

A monthly mortgage payment is not large enough to pay all of the interest due on the mortgage therefore the balance is not reduced, also known as deferred interest.

Front 108

In a bi-weekly mortgage payment plan, how many extra mortgage payments are made every year?

Back 108

One extra payment. Bi-weekly collects payments every two weeks resulting in 13 payments.

Front 109

What is a “conforming” loan?

Back 109

A conventional loan, (one NOT insured by the government) that meets the guidelines for purchase established by FNMA or FHLMC

Front 110

What is a “conforming” loan?

Back 110

A conventional loan, (one NOT insured by the government) that meets the guidelines for purchase established by FNMA or FHLMC

Front 111

What is a variable rate mortgage?

Back 111

A mortgage with an interest rate that may change one or more times during the life of the loan.

Front 112

What is a non-conforming loan?

Back 112

A conventional loan that does not meet the FNMA or FHLMC guidelines.

Front 113

What is a non-conforming loan?

Back 113

A conventional loan that does not meet the FNMA or FHLMC guidelines.

Front 114

Which non-conventional loan has a funding fee?

Back 114

VA has a funding fee. The fee ranges for .5-3.3 but is waived for qualifying disabled veteran. Remember, a non-conventional loan is one that is insured by the federal government.

Front 115

What is a non-conforming loan?

Back 115

A conventional loan that does not meet the FNMA or FHLMC guidelines.

Front 116

Which non-conventional loan has a funding fee?

Back 116

VA has a funding fee. The fee ranges for .5-3.3 but is waived for qualifying disabled veteran. Remember, a non-conventional loan is one that is insured by the federal government.

Front 117

What is the maximum loan guaranty from the VA?

Back 117

The maximum VA home loan guarantee is 25% of conforming VA home loan amount.

Front 118

What is a non-conforming loan?

Back 118

A conventional loan that does not meet the FNMA or FHLMC guidelines.

Front 119

Which non-conventional loan has a funding fee?

Back 119

VA has a funding fee. The fee ranges for .5-3.3 but is waived for qualifying disabled veteran. Remember, a non-conventional loan is one that is insured by the federal government.

Front 120

What is the maximum loan guaranty from the VA?

Back 120

The maximum VA home loan guarantee is 25% of conforming VA home loan amount.

Front 121

What is a payment cap?

Back 121

A limit on the amount the payment can change during one adjustment period on an ARM

Front 122

What is a conventional loan?

Back 122

A loan NOT insured by the government. (NOT a FHA, VA, or USDA loan).

Front 123

What is the maximum entitlement amount for a veteran?

Back 123

4 times the amount listed on COE

Front 124

Does the FHA (Federal Housing Administration) make loans?

Back 124

No….FHA and VA do not make loans they insure (FHA) or guarantee (VA).

Front 125

Does the FHA (Federal Housing Administration) make loans?

Back 125

No….FHA and VA do not make loans they insure (FHA) or guarantee (VA).

Front 126

Which non-conventional loan is made for the purpose of assisting low-income borrowers purchasing homes in rural areas?

Back 126

USDA (US Department of Agriculture) AKA Guaranteed Rural Housing Loans

Front 127

Does the FHA (Federal Housing Administration) make loans?

Back 127

No….FHA and VA do not make loans they insure (FHA) or guarantee (VA).

Front 128

Which non-conventional loan is made for the purpose of assisting low-income borrowers purchasing homes in rural areas?

Back 128

USDA (US Department of Agriculture) AKA Guaranteed Rural Housing Loans

Front 129

The Dept of Veterans Affairs requires each veteran to obtain a Certificate of Eligibility?

(True or False)

Back 129

True, it’s also referred as the COE

Front 130

Does the FHA (Federal Housing Administration) make loans?

Back 130

No….FHA and VA do not make loans they insure (FHA) or guarantee (VA).

Front 131

Which non-conventional loan is made for the purpose of assisting low-income borrowers purchasing homes in rural areas?

Back 131

USDA (US Department of Agriculture) AKA Guaranteed Rural Housing Loans

Front 132

The Dept of Veterans Affairs requires each veteran to obtain a Certificate of Eligibility?

(True or False)

Back 132

True, it’s also referred as the COE

Front 133

Can a borrower get an FHA insured loan for a condominium?

Back 133

Yes, in addition to the primary fixed rebate program for the purchase or refinance of 1-4 family dwellings, FHA offers programs for the purchase of a condominium

Front 134

What is the difference between a non-conforming loan and a non-conventional loan?

Back 134

​

Non-conventional loans are government insured loans while Non-Conforming loans are conventional loans (non govt loans) that don’t meet FNMA and FHLMC underwriting guidelines.

Front 135

What is the difference between a non-conforming loan and a non-conventional loan?

Back 135

​

Non-conventional loans are government insured loans while Non-Conforming loans are conventional loans (non govt loans) that don’t meet FNMA and FHLMC underwriting guidelines.

Front 136

What is the time frame a borrower has to take possession and move into the house after closing?

Back 136

60 days

Front 137

What is the difference between a non-conforming loan and a non-conventional loan?

Back 137

​

Non-conventional loans are government insured loans while Non-Conforming loans are conventional loans (non govt loans) that don’t meet FNMA and FHLMC underwriting guidelines.

Front 138

What is the time frame a borrower has to take possession and move into the house after closing?

Back 138

60 days

Front 139

FNMA and FHLMC allow borrower’s to obtain “Seller Financing” in conforming loan transactions?

(True or False)

Back 139

True, FNMA and FHLMC do not allow borrowers to obtain seller financing also known as concessions. Seller concessions are limited to 6% with a buyer paying 10% or higher down payment or limited to 3% for less than 10%

Front 140

Define a Seller Carry-Back?

Back 140

A purchase transaction, often involving an assumable mortgage, in which the party selling the property provides all or part of the financing. Also known as Owner Financing.

Front 141

Define a Fully Indexed Rate

Back 141

In an ARM, the interest rate indicated by adding the current index value and the margin.

Front 142

Define a Fully Indexed Rate

Back 142

In an ARM, the interest rate indicated by adding the current index value and the margin.

Front 143

Define Amortization?

Back 143

Periodic payments on a loan requiring payment of enough principal and interest to ensure complete repayment of the loan by the end of the loan term.

Front 144

Define a Fully Indexed Rate

Back 144

In an ARM, the interest rate indicated by adding the current index value and the margin.

Front 145

Define Amortization?

Back 145

Periodic payments on a loan requiring payment of enough principal and interest to ensure complete repayment of the loan by the end of the loan term.

Front 146

What charges are NEVER included when calculating Finance Charges?

Back 146

Examples of some standard items that are never included in finance charges are: charges payable in comparable cash transactions, such as fees for appraisals, document preparation, title insurance, pest inspections, sellers points and membership fees.

Front 147

What charges are ALWAYS included when calculating Finance Charges?

Back 147

Transaction Fees,

Origination Fees,

Consumer Points, and

Broker Fees

Front 148

What charges are ALWAYS included when calculating Finance Charges?

Back 148

Transaction Fees,

Origination Fees,

Consumer Points, and

Broker Fees

Front 149

Define “Rate Discount”

Back 149

Also, known as a permanent buy down, a rate discount allows the borrower to pay a discount point(s) to permanently reduce the rate of the mortgage.

Front 150

What charges are ALWAYS included when calculating Finance Charges?

Back 150

Transaction Fees,

Origination Fees,

Consumer Points, and

Broker Fees

Front 151

Define “Rate Discount”

Back 151

Also, known as a permanent buy down, a rate discount allows the borrower to pay a discount point(s) to permanently reduce the rate of the mortgage.

Front 152

Define “Point”

Back 152

1% of the loan amount is equal to a point.

Example, 1 point on a $100,000 loan would be equal to $1,000 and 3points would be equal to $3,000

Front 153

What charges are ALWAYS included when calculating Finance Charges?

Back 153

Transaction Fees,

Origination Fees,

Consumer Points, and

Broker Fees

Front 154

Define “Rate Discount”

Back 154

Also, known as a permanent buy down, a rate discount allows the borrower to pay a discount point(s) to permanently reduce the rate of the mortgage.

Front 155

Define “Point”

Back 155

1% of the loan amount is equal to a point.

Example, 1 point on a $100,000 loan would be equal to $1,000 and 3points would be equal to $3,000

Front 156

When must the affiliated business arrangement disclosure be given to the borrower?

Back 156

Before or at the time of the referral by the referring party.

Front 157

What charges are ALWAYS included when calculating Finance Charges?

Back 157

Transaction Fees,

Origination Fees,

Consumer Points, and

Broker Fees

Front 158

Define “Rate Discount”

Back 158

Also, known as a permanent buy down, a rate discount allows the borrower to pay a discount point(s) to permanently reduce the rate of the mortgage.

Front 159

Define “Point”

Back 159

1% of the loan amount is equal to a point.

Example, 1 point on a $100,000 loan would be equal to $1,000 and 3points would be equal to $3,000

Front 160

When must the affiliated business arrangement disclosure be given to the borrower?

Back 160

Before or at the time of the referral by the referring party.

Front 161

Define “Buy Down”

Back 161

The paying of fees (buying) to reduce (down) the payments on a mortgage and qualifying for a larger loan. A buy down may be permanent or temporary.

Front 162

Define “Creditor”

Back 162

A person or entity to whom an obligation is owed, such as a loan.

Front 163

Define “Creditor”

Back 163

A person or entity to whom an obligation is owed, such as a loan.

Front 164

What is the difference between Finance Charge and the Annual Percentage Rate?

Back 164

Finance Charge is a uniform measurement of the cost of a loan expressed in dollar amount and an APR is a measurement of the cost of a loan including interest and financed costs of closing, expressed in a yearly percentage.

Front 165

Define “Creditor”

Back 165

A person or entity to whom an obligation is owed, such as a loan.

Front 166

What is the difference between Finance Charge and the Annual Percentage Rate?

Back 166

Finance Charge is a uniform measurement of the cost of a loan expressed in dollar amount and an APR is a measurement of the cost of a loan including interest and financed costs of closing, expressed in a yearly percentage.

Front 167

Mortgage brokers fees are always included in the finance charge?

(True or False)

Back 167

True

Front 168

A 10-year old property is being sold. What is the best approach for an appraiser to evaluate the property?

Back 168

Market approach is also known as Sales Comparison Approach or Market Data Approach

Front 169

Which type of automated underwriter does Fannie Mae and Freddie Mac use?

Back 169

FNMA uses Desktop Underwriter (DU) and FHMLC uses Loan Prospector (LP)

Front 170

What is the “worst case scenario” for an ARM?

Back 170

The worst case scenario is the highest interest rate the loan could produce over the life of the loan based on the interest rate and adjustment caps.

Front 171

What is the “worst case scenario” for an ARM?

Back 171

The worst case scenario is the highest interest rate the loan could produce over the life of the loan based on the interest rate and adjustment caps.

Front 172

What is a COFI loan?

Back 172

An adjustable rate mortgage that uses the Cost of Funds Index (COFI) for interest rate adjustments.

Front 173

What is a fully indexed rate?

Back 173

Also known as the Fully Indexed Accrual Rate (FIAR). This is the “Real” or “True” interest rate of an ARM. ARM’s often have introductory or temporarily discounted rates. The full indexed rate is the result of adding the index and margin.

Front 174

What is a fully indexed rate?

Back 174

Also known as the Fully Indexed Accrual Rate (FIAR). This is the “Real” or “True” interest rate of an ARM. ARM’s often have introductory or temporarily discounted rates. The full indexed rate is the result of adding the index and margin.

Front 175

What is tenancy by the entirety?

Back 175

One of the ways to own property by more than one person (concurrent ownership). The co-owners must be husband and wife, both of whom own the whole property. When one of the two dies, their interest goes to the surviving spouse.

Front 176

What percentage of down payment is required on USDA loans?

Back 176

Zero (0%)

Front 177

What is a temporary buy-down?

Back 177

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 178

What is a temporary buy-down?

Back 178

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 179

What are Fannie Mae and Freddie Mac?

Back 179

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 180

What is a temporary buy-down?

Back 180

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 181

What are Fannie Mae and Freddie Mac?

Back 181

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 182

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 182

Funding Fee

Front 183

What is a temporary buy-down?

Back 183

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 184

What are Fannie Mae and Freddie Mac?

Back 184

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 185

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 185

Funding Fee

Front 186

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 186

True

Front 187

What is a temporary buy-down?

Back 187

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 188

What are Fannie Mae and Freddie Mac?

Back 188

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 189

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 189

Funding Fee

Front 190

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 190

True

Front 191

What is the difference between a mortgage broker and a mortgage banker?

Back 191

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 192

What is a temporary buy-down?

Back 192

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 193

What are Fannie Mae and Freddie Mac?

Back 193

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 194

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 194

Funding Fee

Front 195

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 195

True

Front 196

What is the difference between a mortgage broker and a mortgage banker?

Back 196

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 197

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 197

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 198

What is a temporary buy-down?

Back 198

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 199

What are Fannie Mae and Freddie Mac?

Back 199

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 200

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 200

Funding Fee

Front 201

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 201

True

Front 202

What is the difference between a mortgage broker and a mortgage banker?

Back 202

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 203

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 203

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 204

What is the difference between PMI and MIP?

Back 204

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 205

What is a temporary buy-down?

Back 205

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 206

What are Fannie Mae and Freddie Mac?

Back 206

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 207

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 207

Funding Fee

Front 208

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 208

True

Front 209

What is the difference between a mortgage broker and a mortgage banker?

Back 209

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 210

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 210

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 211

What is the difference between PMI and MIP?

Back 211

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 212

What does the acronym PUD represent?

Back 212

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 213

What is a temporary buy-down?

Back 213

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 214

What are Fannie Mae and Freddie Mac?

Back 214

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 215

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 215

Funding Fee

Front 216

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 216

True

Front 217

What is the difference between a mortgage broker and a mortgage banker?

Back 217

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 218

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 218

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 219

What is the difference between PMI and MIP?

Back 219

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 220

What does the acronym PUD represent?

Back 220

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 221

What is a Lock-In Agreement?

Back 221

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 222

What is a temporary buy-down?

Back 222

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 223

What are Fannie Mae and Freddie Mac?

Back 223

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 224

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 224

Funding Fee

Front 225

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 225

True

Front 226

What is the difference between a mortgage broker and a mortgage banker?

Back 226

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 227

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 227

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 228

What is the difference between PMI and MIP?

Back 228

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 229

What does the acronym PUD represent?

Back 229

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 230

What is a Lock-In Agreement?

Back 230

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 231

What is joint tenancy?

Back 231

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 232

What is a temporary buy-down?

Back 232

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 233

What is a jumbo loan?

Back 233

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 234

What are Fannie Mae and Freddie Mac?

Back 234

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 235

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 235

Funding Fee

Front 236

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 236

True

Front 237

What is the difference between a mortgage broker and a mortgage banker?

Back 237

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 238

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 238

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 239

What is the difference between PMI and MIP?

Back 239

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 240

What does the acronym PUD represent?

Back 240

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 241

What is a Lock-In Agreement?

Back 241

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 242

What is joint tenancy?

Back 242

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 243

What is a temporary buy-down?

Back 243

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 244

What is a jumbo loan?

Back 244

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 245

What is the difference between the primary and secondary mortgage lending market?

Back 245

Primary is made up of all activities involved in the origination and closing or loans. The Secondary is where previously made loans are bundled and sold to investors.

Front 246

What are Fannie Mae and Freddie Mac?

Back 246

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 247

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 247

Funding Fee

Front 248

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 248

True

Front 249

What is the difference between a mortgage broker and a mortgage banker?

Back 249

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 250

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 250

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 251

What is the difference between PMI and MIP?

Back 251

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 252

What does the acronym PUD represent?

Back 252

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 253

What is a Lock-In Agreement?

Back 253

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 254

What is joint tenancy?

Back 254

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 255

What is a temporary buy-down?

Back 255

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 256

What is a jumbo loan?

Back 256

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 257

What is the difference between the primary and secondary mortgage lending market?

Back 257

Primary is made up of all activities involved in the origination and closing or loans. The Secondary is where previously made loans are bundled and sold to investors.

Front 258

What is a float agreement?

Back 258

A type of lock-in agreement that allows the interest rate or points to rise and fall with the market while processing the loan. You may lock in rates and float points, lenders may agree to float both.

Front 259

What are Fannie Mae and Freddie Mac?

Back 259

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 260

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 260

Funding Fee

Front 261

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 261

True

Front 262

What is the difference between a mortgage broker and a mortgage banker?

Back 262

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 263

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 263

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 264

What is the difference between PMI and MIP?

Back 264

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 265

What does the acronym PUD represent?

Back 265

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 266

What is a Lock-In Agreement?

Back 266

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 267

What is joint tenancy?

Back 267

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 268

What is a temporary buy-down?

Back 268

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 269

What is a jumbo loan?

Back 269

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 270

What is the difference between the primary and secondary mortgage lending market?

Back 270

Primary is made up of all activities involved in the origination and closing or loans. The Secondary is where previously made loans are bundled and sold to investors.

Front 271

What is a float agreement?

Back 271

A type of lock-in agreement that allows the interest rate or points to rise and fall with the market while processing the loan. You may lock in rates and float points, lenders may agree to float both.

Front 272

What is a subprime loan?

Back 272

Loans made to borrowers whose debt to income ratio (DTI) or credit characteristic do not meet the guidelines of Fannie Mae or Freddie Mac.

Front 273

What are Fannie Mae and Freddie Mac?

Back 273

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 274

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 274

Funding Fee

Front 275

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 275

True

Front 276

What is the difference between a mortgage broker and a mortgage banker?

Back 276

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 277

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 277

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 278

What is the difference between PMI and MIP?

Back 278

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 279

What does the acronym PUD represent?

Back 279

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 280

What is a Lock-In Agreement?

Back 280

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 281

What is joint tenancy?

Back 281

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 282

What is a temporary buy-down?

Back 282

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 283

What is a jumbo loan?

Back 283

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 284

What is the difference between the primary and secondary mortgage lending market?

Back 284

Primary is made up of all activities involved in the origination and closing or loans. The Secondary is where previously made loans are bundled and sold to investors.

Front 285

What is a float agreement?

Back 285

A type of lock-in agreement that allows the interest rate or points to rise and fall with the market while processing the loan. You may lock in rates and float points, lenders may agree to float both.

Front 286

What is a subprime loan?

Back 286

Loans made to borrowers whose debt to income ratio (DTI) or credit characteristic do not meet the guidelines of Fannie Mae or Freddie Mac.

Front 287

To meet the purchase guidelines of FNMA or FHLMC, what type of insurance must a borrower have purchased if the LTC exceeds 80%?

Back 287

PMI – Private Mortgage Insurance

Front 288

What are Fannie Mae and Freddie Mac?

Back 288

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 289

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 289

Funding Fee

Front 290

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 290

True

Front 291

What is the difference between a mortgage broker and a mortgage banker?

Back 291

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 292

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 292

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 293

What is the difference between PMI and MIP?

Back 293

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 294

What does the acronym PUD represent?

Back 294

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 295

What is a Lock-In Agreement?

Back 295

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 296

What is joint tenancy?

Back 296

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 297

What is a temporary buy-down?

Back 297

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 298

What is a jumbo loan?

Back 298

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 299

What is the difference between the primary and secondary mortgage lending market?

Back 299

Primary is made up of all activities involved in the origination and closing or loans. The Secondary is where previously made loans are bundled and sold to investors.

Front 300

What is a float agreement?

Back 300

A type of lock-in agreement that allows the interest rate or points to rise and fall with the market while processing the loan. You may lock in rates and float points, lenders may agree to float both.

Front 301

What is a subprime loan?

Back 301

Loans made to borrowers whose debt to income ratio (DTI) or credit characteristic do not meet the guidelines of Fannie Mae or Freddie Mac.

Front 302

To meet the purchase guidelines of FNMA or FHLMC, what type of insurance must a borrower have purchased if the LTC exceeds 80%?

Back 302

PMI – Private Mortgage Insurance

Front 303

When identifying property rights, what is the difference between Fee Simple and Leasehold?

Back 303

Fee simple implies that the property being purchased includes the improvements and the land. Leasehold implies the property being purchased only includes improvements. The land it sits on would be leased.

Front 304

What are Fannie Mae and Freddie Mac?

Back 304

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 305

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 305

Funding Fee

Front 306

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 306

True

Front 307

What is the difference between a mortgage broker and a mortgage banker?

Back 307

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 308

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 308

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 309

What is the difference between PMI and MIP?

Back 309

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 310

What does the acronym PUD represent?

Back 310

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 311

What is a Lock-In Agreement?

Back 311

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 312

What is joint tenancy?

Back 312

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 313

What is a temporary buy-down?

Back 313

Borrower places funds in escrow in an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn’t change during the buy-down period.

Front 314

What is a jumbo loan?

Back 314

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC (loans in excess of $417,000).

Front 315

What is the difference between the primary and secondary mortgage lending market?

Back 315

Primary is made up of all activities involved in the origination and closing or loans. The Secondary is where previously made loans are bundled and sold to investors.

Front 316

What is a float agreement?

Back 316

A type of lock-in agreement that allows the interest rate or points to rise and fall with the market while processing the loan. You may lock in rates and float points, lenders may agree to float both.

Front 317

What is a subprime loan?

Back 317

Loans made to borrowers whose debt to income ratio (DTI) or credit characteristic do not meet the guidelines of Fannie Mae or Freddie Mac.

Front 318

To meet the purchase guidelines of FNMA or FHLMC, what type of insurance must a borrower have purchased if the LTC exceeds 80%?

Back 318

PMI – Private Mortgage Insurance

Front 319

When identifying property rights, what is the difference between Fee Simple and Leasehold?

Back 319

Fee simple implies that the property being purchased includes the improvements and the land. Leasehold implies the property being purchased only includes improvements. The land it sits on would be leased.

Front 320

What does PITI stand for?

Back 320

Principal, Interest, Taxes, and Insurance (PITI)

Front 321

What are Fannie Mae and Freddie Mac?

Back 321

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities.

Front 322

Instead of mortgage insurance, every VA (and USDA) loan includes what type of fee?

Back 322

Funding Fee

Front 323

FHA down payment funds can be from borrower’s own funds, gift funds, or housing authority grants.

(TRUE or FALSE)

Back 323

True

Front 324

What is the difference between a mortgage broker and a mortgage banker?

Back 324

Brokers arrange loans through a banker or lender and brokers don’t fund the loans. Bankers originate the fund loans in their own name for resale in the secondary market.

Front 325

At what LTV does the Homeownership Protection Act require the PMI is automatically discounted on a loan by the lender?

Back 325

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped till 78% (22% equity position).

Front 326

What is the difference between PMI and MIP?

Back 326

PMI is Private Mortgage Insurance. Is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV.

Front 327

What does the acronym PUD represent?

Back 327

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in the development.

Front 328

What is a Lock-In Agreement?

Back 328

An agreement made by a lender to hold (lock-in) a specific rate and a specified number of points while processing an applicant’s loan

Front 329

What is joint tenancy?

Back 329

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s).

Front 330

Which mortgage loan document contains the borrower’s contractual promise to pay?

Back 330

Note (or promissory note). Neither a mortgage or a deed of trust contains a contractual promise to pay.

Front 331

VA funding fee is not charged to eligible veterans or their spouses, or spouses of Vet who dies in service

(True or False)

Back 331

True

Front 332

What is an index?

Back 332

Published interest rate that is used as the basis upon which the note rate of an ARM will adjust. Typically indices are Treasury Bill Index, the 11th District Cost of Sunday Indexes (COFI) and the London Interbank Offered Rate (LIBOR)

Front 333

What is a permanent buy-down?

Back 333

The use of discount points to lower the rate of interest for the full term of the loan.

Front 334

What is a permanent buy-down?

Back 334

The use of discount points to lower the rate of interest for the full term of the loan.

Front 335

What is the difference between a judicial foreclosure and a non-judicial foreclosure?

Back 335

Judicial- The mortgage includes a clause that requires the lender to file a lawsuit, requesting the court to enter an order to foreclosure.

Non-Judicial – the deed of trust includes a power of sale clause allowing the lender to begin foreclosure without filing suit.

Front 336

What is a permanent buy-down?

Back 336

The use of discount points to lower the rate of interest for the full term of the loan.

Front 337

What is the difference between a judicial foreclosure and a non-judicial foreclosure?

Back 337

Judicial- The mortgage includes a clause that requires the lender to file a lawsuit, requesting the court to enter an order to foreclosure.

Non-Judicial – the deed of trust includes a power of sale clause allowing the lender to begin foreclosure without filing suit.

Front 338

What is the finance charge?

Back 338

A uniform measurement of the cost of a loan expressed as a dollar amount.

Front 339

What is a permanent buy-down?

Back 339

The use of discount points to lower the rate of interest for the full term of the loan.

Front 340

What is the difference between a judicial foreclosure and a non-judicial foreclosure?

Back 340

Judicial- The mortgage includes a clause that requires the lender to file a lawsuit, requesting the court to enter an order to foreclosure.

Non-Judicial – the deed of trust includes a power of sale clause allowing the lender to begin foreclosure without filing suit.

Front 341

What is the finance charge?

Back 341

A uniform measurement of the cost of a loan expressed as a dollar amount.

Front 342

What is an interest only loan?

Back 342

A loan that requires only interest payments. At the end of the loan, the borrower essentially owes a balloon payment of the entire principal of the loan.

Front 343

What is a permanent buy-down?

Back 343

The use of discount points to lower the rate of interest for the full term of the loan.

Front 344

What is the difference between a judicial foreclosure and a non-judicial foreclosure?

Back 344

Judicial- The mortgage includes a clause that requires the lender to file a lawsuit, requesting the court to enter an order to foreclosure.

Non-Judicial – the deed of trust includes a power of sale clause allowing the lender to begin foreclosure without filing suit.

Front 345

What is the finance charge?

Back 345

A uniform measurement of the cost of a loan expressed as a dollar amount.

Front 346

What is an interest only loan?

Back 346

A loan that requires only interest payments. At the end of the loan, the borrower essentially owes a balloon payment of the entire principal of the loan.

Front 347

What is a seller carry-back?

Back 347

A purchase transaction, often involving an assumable mortgage in which the party selling the property provides all or part of the financing.

Front 348

What is a permanent buy-down?

Back 348

The use of discount points to lower the rate of interest for the full term of the loan.

Front 349

What is the difference between a judicial foreclosure and a non-judicial foreclosure?

Back 349

Judicial- The mortgage includes a clause that requires the lender to file a lawsuit, requesting the court to enter an order to foreclosure.

Non-Judicial – the deed of trust includes a power of sale clause allowing the lender to begin foreclosure without filing suit.

Front 350

What is the finance charge?

Back 350

A uniform measurement of the cost of a loan expressed as a dollar amount.

Front 351

What is an interest only loan?

Back 351

A loan that requires only interest payments. At the end of the loan, the borrower essentially owes a balloon payment of the entire principal of the loan.

Front 352

What is a seller carry-back?

Back 352

A purchase transaction, often involving an assumable mortgage in which the party selling the property provides all or part of the financing.

Front 353

What is a short sale?

Back 353

When the lender agrees to a reduced payoff on a loan when the subject property is sold.

Front 354

Can a VA loan be assumed?

Back 354

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 355

Can a VA loan be assumed?

Back 355

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 356

What is the note rate?

Back 356

The stated interest rate on a mortgage or loan agreement.

Front 357

Can a VA loan be assumed?

Back 357

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 358

What is the note rate?

Back 358

The stated interest rate on a mortgage or loan agreement.

Front 359

What are Service Release Premiums?

Back 359

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 360

Can a VA loan be assumed?

Back 360

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 361

What is the note rate?

Back 361

The stated interest rate on a mortgage or loan agreement.

Front 362

What are Service Release Premiums?

Back 362

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 363

A second mortgage is also known as a subordinate lien.

(True or False)

Back 363

True, also known as a junior mortgage.

Front 364

Can a VA loan be assumed?

Back 364

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 365

What is the note rate?

Back 365

The stated interest rate on a mortgage or loan agreement.

Front 366

What are Service Release Premiums?

Back 366

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 367

A second mortgage is also known as a subordinate lien.

(True or False)

Back 367

True, also known as a junior mortgage.

Front 368

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 368

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 369

Can a VA loan be assumed?

Back 369

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 370

What is the note rate?

Back 370

The stated interest rate on a mortgage or loan agreement.

Front 371

What are Service Release Premiums?

Back 371

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 372

A second mortgage is also known as a subordinate lien.

(True or False)

Back 372

True, also known as a junior mortgage.

Front 373

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 373

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 374

What is a Home Equity Conversion Mortgage (HEMC)

Back 374

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 375

Can a VA loan be assumed?

Back 375

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 376

What is the note rate?

Back 376

The stated interest rate on a mortgage or loan agreement.

Front 377

What are Service Release Premiums?

Back 377

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 378

A second mortgage is also known as a subordinate lien.

(True or False)

Back 378

True, also known as a junior mortgage.

Front 379

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 379

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 380

What is a Home Equity Conversion Mortgage (HEMC)

Back 380

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 381

What factor does not affect the money received in a HECM loan?

Back 381

Age of property

Front 382

Can a VA loan be assumed?

Back 382

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 383

What is the note rate?

Back 383

The stated interest rate on a mortgage or loan agreement.

Front 384

What are Service Release Premiums?

Back 384

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 385

A second mortgage is also known as a subordinate lien.

(True or False)

Back 385

True, also known as a junior mortgage.

Front 386

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 386

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 387

What is a Home Equity Conversion Mortgage (HEMC)

Back 387

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 388

What factor does not affect the money received in a HECM loan?

Back 388

Age of property

Front 389

Best appraisal approach to use when determining value of a rental property?

Back 389

Income Approach

Front 390

Can a VA loan be assumed?

Back 390

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 391

What is the note rate?

Back 391

The stated interest rate on a mortgage or loan agreement.

Front 392

What are Service Release Premiums?

Back 392

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 393

A second mortgage is also known as a subordinate lien.

(True or False)

Back 393

True, also known as a junior mortgage.

Front 394

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 394

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 395

What is a Home Equity Conversion Mortgage (HEMC)

Back 395

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 396

What factor does not affect the money received in a HECM loan?

Back 396

Age of property

Front 397

Best appraisal approach to use when determining value of a rental property?

Back 397

Income Approach

Front 398

What is securitization?

Back 398

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 399

Can a VA loan be assumed?

Back 399

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 400

What is the note rate?

Back 400

The stated interest rate on a mortgage or loan agreement.

Front 401

What are Service Release Premiums?

Back 401

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 402

A second mortgage is also known as a subordinate lien.

(True or False)

Back 402

True, also known as a junior mortgage.

Front 403

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 403

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 404

What is a Home Equity Conversion Mortgage (HEMC)

Back 404

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 405

What factor does not affect the money received in a HECM loan?

Back 405

Age of property

Front 406

Best appraisal approach to use when determining value of a rental property?

Back 406

Income Approach

Front 407

What is securitization?

Back 407

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 408

What are service release premiums?

Back 408

The revenue earned from the resell of pools of loans to investors?

Front 409

Can a VA loan be assumed?

Back 409

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 410

LIBOR stands for?

Back 410

London Interbank Offered Rate

Front 411

What is the note rate?

Back 411

The stated interest rate on a mortgage or loan agreement.

Front 412

What are Service Release Premiums?

Back 412

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 413

A second mortgage is also known as a subordinate lien.

(True or False)

Back 413

True, also known as a junior mortgage.

Front 414

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 414

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 415

What is a Home Equity Conversion Mortgage (HEMC)

Back 415

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 416

What factor does not affect the money received in a HECM loan?

Back 416

Age of property

Front 417

Best appraisal approach to use when determining value of a rental property?

Back 417

Income Approach

Front 418

What is securitization?

Back 418

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 419

What are service release premiums?

Back 419

The revenue earned from the resell of pools of loans to investors?

Front 420

Can a VA loan be assumed?

Back 420

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 421

LIBOR stands for?

Back 421

London Interbank Offered Rate

Front 422

Margin for ARM’s are set by:

Back 422

Investor/Lender

Front 423

What is the note rate?

Back 423

The stated interest rate on a mortgage or loan agreement.

Front 424

What are Service Release Premiums?

Back 424

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 425

A second mortgage is also known as a subordinate lien.

(True or False)

Back 425

True, also known as a junior mortgage.

Front 426

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 426

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 427

What is a Home Equity Conversion Mortgage (HEMC)

Back 427

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 428

What factor does not affect the money received in a HECM loan?

Back 428

Age of property

Front 429

Best appraisal approach to use when determining value of a rental property?

Back 429

Income Approach

Front 430

What is securitization?

Back 430

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 431

What are service release premiums?

Back 431

The revenue earned from the resell of pools of loans to investors?

Front 432

Can a VA loan be assumed?

Back 432

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 433

LIBOR stands for?

Back 433

London Interbank Offered Rate

Front 434

Margin for ARM’s are set by:

Back 434

Investor/Lender

Front 435

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 435

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 436

What is the note rate?

Back 436

The stated interest rate on a mortgage or loan agreement.

Front 437

What are Service Release Premiums?

Back 437

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 438

A second mortgage is also known as a subordinate lien.

(True or False)

Back 438

True, also known as a junior mortgage.

Front 439

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 439

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 440

What is a Home Equity Conversion Mortgage (HEMC)

Back 440

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 441

What factor does not affect the money received in a HECM loan?

Back 441

Age of property

Front 442

Best appraisal approach to use when determining value of a rental property?

Back 442

Income Approach

Front 443

What is securitization?

Back 443

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 444

What are service release premiums?

Back 444

The revenue earned from the resell of pools of loans to investors?

Front 445

Can a VA loan be assumed?

Back 445

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 446

LIBOR stands for?

Back 446

London Interbank Offered Rate

Front 447

Margin for ARM’s are set by:

Back 447

Investor/Lender

Front 448

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 448

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 449

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 449

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 450

What is the note rate?

Back 450

The stated interest rate on a mortgage or loan agreement.

Front 451

What are Service Release Premiums?

Back 451

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 452

A second mortgage is also known as a subordinate lien.

(True or False)

Back 452

True, also known as a junior mortgage.

Front 453

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 453

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 454

What is a Home Equity Conversion Mortgage (HEMC)

Back 454

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 455

What factor does not affect the money received in a HECM loan?

Back 455

Age of property

Front 456

Best appraisal approach to use when determining value of a rental property?

Back 456

Income Approach

Front 457

What is securitization?

Back 457

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 458

What are service release premiums?

Back 458

The revenue earned from the resell of pools of loans to investors?

Front 459

Can a VA loan be assumed?

Back 459

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 460

LIBOR stands for?

Back 460

London Interbank Offered Rate

Front 461

Margin for ARM’s are set by:

Back 461

Investor/Lender

Front 462

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 462

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 463

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 463

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 464

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 464

70% LTV

78% CLTV

83% LTV

Front 465

What is the note rate?

Back 465

The stated interest rate on a mortgage or loan agreement.

Front 466

What are Service Release Premiums?

Back 466

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 467

A second mortgage is also known as a subordinate lien.

(True or False)

Back 467

True, also known as a junior mortgage.

Front 468

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 468

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 469

What is a Home Equity Conversion Mortgage (HEMC)

Back 469

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 470

What factor does not affect the money received in a HECM loan?

Back 470

Age of property

Front 471

Best appraisal approach to use when determining value of a rental property?

Back 471

Income Approach

Front 472

What is securitization?

Back 472

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 473

What are service release premiums?

Back 473

The revenue earned from the resell of pools of loans to investors?

Front 474

Can a VA loan be assumed?

Back 474

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 475

LIBOR stands for?

Back 475

London Interbank Offered Rate

Front 476

Margin for ARM’s are set by:

Back 476

Investor/Lender

Front 477

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 477

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 478

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 478

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 479

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 479

70% LTV

78% CLTV

83% LTV

Front 480

What type of loan is open-ended?

Back 480

HELOC

Front 481

What is the note rate?

Back 481

The stated interest rate on a mortgage or loan agreement.

Front 482

What are Service Release Premiums?

Back 482

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 483

A second mortgage is also known as a subordinate lien.

(True or False)

Back 483

True, also known as a junior mortgage.

Front 484

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 484

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 485

What is a Home Equity Conversion Mortgage (HEMC)

Back 485

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 486

What factor does not affect the money received in a HECM loan?

Back 486

Age of property

Front 487

Best appraisal approach to use when determining value of a rental property?

Back 487

Income Approach

Front 488

What is securitization?

Back 488

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 489

What are service release premiums?

Back 489

The revenue earned from the resell of pools of loans to investors?

Front 490

Can a VA loan be assumed?

Back 490

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 491

LIBOR stands for?

Back 491

London Interbank Offered Rate

Front 492

Margin for ARM’s are set by:

Back 492

Investor/Lender

Front 493

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 493

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 494

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 494

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 495

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 495

70% LTV

78% CLTV

83% LTV

Front 496

What type of loan is open-ended?

Back 496

HELOC

Front 497

Which lien takes precedence on title?

Back 497

The mortgage recorded first

Front 498

What is the note rate?

Back 498

The stated interest rate on a mortgage or loan agreement.

Front 499

What are Service Release Premiums?

Back 499

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 500

A second mortgage is also known as a subordinate lien.

(True or False)

Back 500

True, also known as a junior mortgage.

Front 501

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 501

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 502

What is a Home Equity Conversion Mortgage (HEMC)

Back 502

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 503

What factor does not affect the money received in a HECM loan?

Back 503

Age of property

Front 504

Best appraisal approach to use when determining value of a rental property?

Back 504

Income Approach

Front 505

What is securitization?

Back 505

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 506

What are service release premiums?

Back 506

The revenue earned from the resell of pools of loans to investors?

Front 507

Can a VA loan be assumed?

Back 507

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 508

LIBOR stands for?

Back 508

London Interbank Offered Rate

Front 509

Margin for ARM’s are set by:

Back 509

Investor/Lender

Front 510

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 510

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 511

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 511

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 512

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 512

70% LTV

78% CLTV

83% LTV

Front 513

What type of loan is open-ended?

Back 513

HELOC

Front 514

Which lien takes precedence on title?

Back 514

The mortgage recorded first

Front 515

What type of lien has priority over all others?

Back 515

Taxes

Front 516

What is the note rate?

Back 516

The stated interest rate on a mortgage or loan agreement.

Front 517

What are Service Release Premiums?

Back 517

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 518

A second mortgage is also known as a subordinate lien.

(True or False)

Back 518

True, also known as a junior mortgage.

Front 519

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 519

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 520

What is a Home Equity Conversion Mortgage (HEMC)

Back 520

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 521

What factor does not affect the money received in a HECM loan?

Back 521

Age of property

Front 522

Best appraisal approach to use when determining value of a rental property?

Back 522

Income Approach

Front 523

What is securitization?

Back 523

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 524

What are service release premiums?

Back 524

The revenue earned from the resell of pools of loans to investors?

Front 525

Can a VA loan be assumed?

Back 525

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 526

LIBOR stands for?

Back 526

London Interbank Offered Rate

Front 527

Margin for ARM’s are set by:

Back 527

Investor/Lender

Front 528

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 528

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 529

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 529

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 530

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 530

70% LTV

78% CLTV

83% LTV

Front 531

What type of loan is open-ended?

Back 531

HELOC

Front 532

Which lien takes precedence on title?

Back 532

The mortgage recorded first

Front 533

What type of lien has priority over all others?

Back 533

Taxes

Front 534

Who earns SRP?

Back 534

Lender

Front 535

What is the note rate?

Back 535

The stated interest rate on a mortgage or loan agreement.

Front 536

What are Service Release Premiums?

Back 536

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 537

A second mortgage is also known as a subordinate lien.

(True or False)

Back 537

True, also known as a junior mortgage.

Front 538

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 538

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 539

What is a Home Equity Conversion Mortgage (HEMC)

Back 539

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 540

What factor does not affect the money received in a HECM loan?

Back 540

Age of property

Front 541

Best appraisal approach to use when determining value of a rental property?

Back 541

Income Approach

Front 542

What is securitization?

Back 542

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 543

What are service release premiums?

Back 543

The revenue earned from the resell of pools of loans to investors?

Front 544

Can a VA loan be assumed?

Back 544

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 545

LIBOR stands for?

Back 545

London Interbank Offered Rate

Front 546

Margin for ARM’s are set by:

Back 546

Investor/Lender

Front 547

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 547

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 548

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 548

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 549

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 549

70% LTV

78% CLTV

83% LTV

Front 550

What type of loan is open-ended?

Back 550

HELOC

Front 551

Which lien takes precedence on title?

Back 551

The mortgage recorded first

Front 552

What type of lien has priority over all others?

Back 552

Taxes

Front 553

Who earns SRP?

Back 553

Lender

Front 554

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 554

True

Front 555

What is the note rate?

Back 555

The stated interest rate on a mortgage or loan agreement.

Front 556

What are Service Release Premiums?

Back 556

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 557

A second mortgage is also known as a subordinate lien.

(True or False)

Back 557

True, also known as a junior mortgage.

Front 558

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 558

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 559

What is a Home Equity Conversion Mortgage (HEMC)

Back 559

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 560

What factor does not affect the money received in a HECM loan?

Back 560

Age of property

Front 561

Best appraisal approach to use when determining value of a rental property?

Back 561

Income Approach

Front 562

What is securitization?

Back 562

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 563

What are service release premiums?

Back 563

The revenue earned from the resell of pools of loans to investors?

Front 564

Can a VA loan be assumed?

Back 564

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 565

LIBOR stands for?

Back 565

London Interbank Offered Rate

Front 566

Margin for ARM’s are set by:

Back 566

Investor/Lender

Front 567

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 567

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 568

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 568

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 569

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 569

70% LTV

78% CLTV

83% LTV

Front 570

What type of loan is open-ended?

Back 570

HELOC

Front 571

Which lien takes precedence on title?

Back 571

The mortgage recorded first

Front 572

What type of lien has priority over all others?

Back 572

Taxes

Front 573

Who earns SRP?

Back 573

Lender

Front 574

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 574

True

Front 575

What is the note rate?

Back 575

The stated interest rate on a mortgage or loan agreement.

Front 576

What information is not provided on the Notice of Adverse Action Letter?

Back 576

Credit Score

Front 577

What are Service Release Premiums?

Back 577

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 578

A second mortgage is also known as a subordinate lien.

(True or False)

Back 578

True, also known as a junior mortgage.

Front 579

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 579

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 580

What is a Home Equity Conversion Mortgage (HEMC)

Back 580

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 581

What factor does not affect the money received in a HECM loan?

Back 581

Age of property

Front 582

Best appraisal approach to use when determining value of a rental property?

Back 582

Income Approach

Front 583

What is securitization?

Back 583

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 584

What are service release premiums?

Back 584

The revenue earned from the resell of pools of loans to investors?

Front 585

Can a VA loan be assumed?

Back 585

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 586

LIBOR stands for?

Back 586

London Interbank Offered Rate

Front 587

Margin for ARM’s are set by:

Back 587

Investor/Lender

Front 588

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 588

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 589

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 589

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 590

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 590

70% LTV

78% CLTV

83% LTV

Front 591

What type of loan is open-ended?

Back 591

HELOC

Front 592

Which lien takes precedence on title?

Back 592

The mortgage recorded first

Front 593

What type of lien has priority over all others?

Back 593

Taxes

Front 594

Who earns SRP?

Back 594

Lender

Front 595

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 595

True

Front 596

What is the note rate?

Back 596

The stated interest rate on a mortgage or loan agreement.

Front 597

What information is not provided on the Notice of Adverse Action Letter?

Back 597

Credit Score

Front 598

What term is associated with transferring title?

Back 598

Conveyance

Front 599

What are Service Release Premiums?

Back 599

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 600

A second mortgage is also known as a subordinate lien.

(True or False)

Back 600

True, also known as a junior mortgage.

Front 601

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 601

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 602

What is a Home Equity Conversion Mortgage (HEMC)

Back 602

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 603

What factor does not affect the money received in a HECM loan?

Back 603

Age of property

Front 604

Best appraisal approach to use when determining value of a rental property?

Back 604

Income Approach

Front 605

What is securitization?

Back 605

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 606

What are service release premiums?

Back 606

The revenue earned from the resell of pools of loans to investors?

Front 607

Can a VA loan be assumed?

Back 607

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 608

LIBOR stands for?

Back 608

London Interbank Offered Rate

Front 609

Margin for ARM’s are set by:

Back 609

Investor/Lender

Front 610

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 610

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 611

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 611

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 612

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 612

70% LTV

78% CLTV

83% LTV

Front 613

What type of loan is open-ended?

Back 613

HELOC

Front 614

Which lien takes precedence on title?

Back 614

The mortgage recorded first

Front 615

What type of lien has priority over all others?

Back 615

Taxes

Front 616

Who earns SRP?

Back 616

Lender

Front 617

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 617

True

Front 618

What is the note rate?

Back 618

The stated interest rate on a mortgage or loan agreement.

Front 619

What information is not provided on the Notice of Adverse Action Letter?

Back 619

Credit Score

Front 620

What term is associated with transferring title?

Back 620

Conveyance

Front 621

What term is associated with a lender releasing their lien upon full payment?

Back 621

Recoveyance

Front 622

What are Service Release Premiums?

Back 622

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 623

A second mortgage is also known as a subordinate lien.

(True or False)

Back 623

True, also known as a junior mortgage.

Front 624

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 624

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 625

What is a Home Equity Conversion Mortgage (HEMC)

Back 625

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 626

What factor does not affect the money received in a HECM loan?

Back 626

Age of property

Front 627

Best appraisal approach to use when determining value of a rental property?

Back 627

Income Approach

Front 628

What is securitization?

Back 628

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 629

What are service release premiums?

Back 629

The revenue earned from the resell of pools of loans to investors?

Front 630

Can a VA loan be assumed?

Back 630

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 631

LIBOR stands for?

Back 631

London Interbank Offered Rate

Front 632

Margin for ARM’s are set by:

Back 632

Investor/Lender

Front 633

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 633

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 634

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 634

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 635

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 635

70% LTV

78% CLTV

83% LTV

Front 636

What type of loan is open-ended?

Back 636

HELOC

Front 637

Which lien takes precedence on title?

Back 637

The mortgage recorded first

Front 638

What type of lien has priority over all others?

Back 638

Taxes

Front 639

Who earns SRP?

Back 639

Lender

Front 640

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 640

True

Front 641

What is the note rate?

Back 641

The stated interest rate on a mortgage or loan agreement.

Front 642

What information is not provided on the Notice of Adverse Action Letter?

Back 642

Credit Score

Front 643

What term is associated with transferring title?

Back 643

Conveyance

Front 644

What term is associated with a lender releasing their lien upon full payment?

Back 644

Recoveyance

Front 645

What document is used to release a mortgage lien?

Back 645

Satisfaction of mortgage

Front 646

What are Service Release Premiums?

Back 646

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 647

A second mortgage is also known as a subordinate lien.

(True or False)

Back 647

True, also known as a junior mortgage.

Front 648

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 648

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 649

What is a Home Equity Conversion Mortgage (HEMC)

Back 649

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 650

What factor does not affect the money received in a HECM loan?

Back 650

Age of property

Front 651

Best appraisal approach to use when determining value of a rental property?

Back 651

Income Approach

Front 652

What is securitization?

Back 652

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 653

What are service release premiums?

Back 653

The revenue earned from the resell of pools of loans to investors?

Front 654

Can a VA loan be assumed?

Back 654

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 655

LIBOR stands for?

Back 655

London Interbank Offered Rate

Front 656

Margin for ARM’s are set by:

Back 656

Investor/Lender

Front 657

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 657

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 658

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 658

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 659

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 659

70% LTV

78% CLTV

83% LTV

Front 660

What type of loan is open-ended?

Back 660

HELOC

Front 661

Which lien takes precedence on title?

Back 661

The mortgage recorded first

Front 662

What type of lien has priority over all others?

Back 662

Taxes

Front 663

Who earns SRP?

Back 663

Lender

Front 664

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 664

True

Front 665

What is the note rate?

Back 665

The stated interest rate on a mortgage or loan agreement.

Front 666

What information is not provided on the Notice of Adverse Action Letter?

Back 666

Credit Score

Front 667

What term is associated with transferring title?

Back 667

Conveyance

Front 668

What term is associated with a lender releasing their lien upon full payment?

Back 668

Recoveyance

Front 669

What document is used to release a mortgage lien?

Back 669

Satisfaction of mortgage

Front 670

What equity position is PMI removed automatically?

Back 670

22%

Front 671

What are Service Release Premiums?

Back 671

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 672

A second mortgage is also known as a subordinate lien.

(True or False)

Back 672

True, also known as a junior mortgage.

Front 673

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 673

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 674

What is a Home Equity Conversion Mortgage (HEMC)

Back 674

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 675

What factor does not affect the money received in a HECM loan?

Back 675

Age of property

Front 676

Best appraisal approach to use when determining value of a rental property?

Back 676

Income Approach

Front 677

What is securitization?

Back 677

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 678

What are service release premiums?

Back 678

The revenue earned from the resell of pools of loans to investors?

Front 679

Can a VA loan be assumed?

Back 679

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 680

LIBOR stands for?

Back 680

London Interbank Offered Rate

Front 681

Margin for ARM’s are set by:

Back 681

Investor/Lender

Front 682

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 682

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 683

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 683

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 684

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 684

70% LTV

78% CLTV

83% LTV

Front 685

What type of loan is open-ended?

Back 685

HELOC

Front 686

Which lien takes precedence on title?

Back 686

The mortgage recorded first

Front 687

What type of lien has priority over all others?

Back 687

Taxes

Front 688

Who earns SRP?

Back 688

Lender

Front 689

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 689

True

Front 690

What is the note rate?

Back 690

The stated interest rate on a mortgage or loan agreement.

Front 691

What information is not provided on the Notice of Adverse Action Letter?

Back 691

Credit Score

Front 692

What term is associated with transferring title?

Back 692

Conveyance

Front 693

What term is associated with a lender releasing their lien upon full payment?

Back 693

Recoveyance

Front 694

What document is used to release a mortgage lien?

Back 694

Satisfaction of mortgage

Front 695

What equity position is PMI removed automatically?

Back 695

22%

Front 696

What law prohibits kickbacks and referral fee’s?

Back 696

RESPA

Front 697

What are Service Release Premiums?

Back 697

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 698

A second mortgage is also known as a subordinate lien.

(True or False)

Back 698

True, also known as a junior mortgage.

Front 699

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 699

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 700

What is a Home Equity Conversion Mortgage (HEMC)

Back 700

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 701

What factor does not affect the money received in a HECM loan?

Back 701

Age of property

Front 702

Best appraisal approach to use when determining value of a rental property?

Back 702

Income Approach

Front 703

What is securitization?

Back 703

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 704

What are service release premiums?

Back 704

The revenue earned from the resell of pools of loans to investors?

Front 705

Can a VA loan be assumed?

Back 705

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 706

LIBOR stands for?

Back 706

London Interbank Offered Rate

Front 707

Margin for ARM’s are set by:

Back 707

Investor/Lender

Front 708

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 708

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 709

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 709

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 710

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 710

70% LTV

78% CLTV

83% LTV

Front 711

What type of loan is open-ended?

Back 711

HELOC

Front 712

Which lien takes precedence on title?

Back 712

The mortgage recorded first

Front 713

What type of lien has priority over all others?

Back 713

Taxes

Front 714

Who earns SRP?

Back 714

Lender

Front 715

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 715

True

Front 716

What is the note rate?

Back 716

The stated interest rate on a mortgage or loan agreement.

Front 717

What information is not provided on the Notice of Adverse Action Letter?

Back 717

Credit Score

Front 718

What term is associated with transferring title?

Back 718

Conveyance

Front 719

What term is associated with a lender releasing their lien upon full payment?

Back 719

Recoveyance

Front 720

What document is used to release a mortgage lien?

Back 720

Satisfaction of mortgage

Front 721

What equity position is PMI removed automatically?

Back 721

22%

Front 722

What law prohibits kickbacks and referral fee’s?

Back 722

RESPA

Front 723

Under what circumstance is it okay to discriminate based on age?

Back 723

Too young to enter a legally binding contract.

Front 724

What are Service Release Premiums?

Back 724

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 725

A second mortgage is also known as a subordinate lien.

(True or False)

Back 725

True, also known as a junior mortgage.

Front 726

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 726

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 727

What is a Home Equity Conversion Mortgage (HEMC)

Back 727

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 728

What factor does not affect the money received in a HECM loan?

Back 728

Age of property

Front 729

Best appraisal approach to use when determining value of a rental property?

Back 729

Income Approach

Front 730

What is securitization?

Back 730

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 731

What are service release premiums?

Back 731

The revenue earned from the resell of pools of loans to investors?

Front 732

Can a VA loan be assumed?

Back 732

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 733

LIBOR stands for?

Back 733

London Interbank Offered Rate

Front 734

Margin for ARM’s are set by:

Back 734

Investor/Lender

Front 735

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 735

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 736

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 736

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 737

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 737

70% LTV

78% CLTV

83% LTV

Front 738

What type of loan is open-ended?

Back 738

HELOC

Front 739

Which lien takes precedence on title?

Back 739

The mortgage recorded first

Front 740

What type of lien has priority over all others?

Back 740

Taxes

Front 741

Who earns SRP?

Back 741

Lender

Front 742

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 742

True

Front 743

What is the note rate?

Back 743

The stated interest rate on a mortgage or loan agreement.

Front 744

What information is not provided on the Notice of Adverse Action Letter?

Back 744

Credit Score

Front 745

What term is associated with transferring title?

Back 745

Conveyance

Front 746

What term is associated with a lender releasing their lien upon full payment?

Back 746

Recoveyance

Front 747

What document is used to release a mortgage lien?

Back 747

Satisfaction of mortgage

Front 748

What equity position is PMI removed automatically?

Back 748

22%

Front 749

What law prohibits kickbacks and referral fee’s?

Back 749

RESPA

Front 750

Under what circumstance is it okay to discriminate based on age?

Back 750

Too young to enter a legally binding contract.

Front 751

What type of loan has a fixed rate of 6.5% for the first five years and 7.5% for the remaining 25 years?

Back 751

Variable rate

Front 752

What are Service Release Premiums?

Back 752

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 753

A second mortgage is also known as a subordinate lien.

(True or False)

Back 753

True, also known as a junior mortgage.

Front 754

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 754

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 755

What is a Home Equity Conversion Mortgage (HEMC)

Back 755

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 756

What factor does not affect the money received in a HECM loan?

Back 756

Age of property

Front 757

Best appraisal approach to use when determining value of a rental property?

Back 757

Income Approach

Front 758

What is securitization?

Back 758

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 759

What are service release premiums?

Back 759

The revenue earned from the resell of pools of loans to investors?

Front 760

Can a VA loan be assumed?

Back 760

Yes, VA may be assumable. The buyer must meet credit qualifications, but doesn’t have to be a veteran.

Front 761

LIBOR stands for?

Back 761

London Interbank Offered Rate

Front 762

Margin for ARM’s are set by:

Back 762

Investor/Lender

Front 763

A borrower has given $10,000 as earnest money on a home he is purchasing for $375,000. In addition he is going to put down $78,000 from the sale of his current home, which will also go towards closing costs. What is the percentage of the down payment?

Back 763

23% which is the down payment and closing as cash to closing.

10,000 +78,000= 88,000

88,000 / 375,000 = 23.4%

Front 764

A man has applied for a loan and his home appraised for $225,000, he is taking out a loan for $165,150 and has agreed to pay 1 discount point on the loan and 2.5% broker fee, what is the total loan amount he will pay in discount and broker fees?

Back 764

Discount point: selling price x 1%

165,150 x .01 = 1651.50

Broker fee: selling price x 2.5%

165,150 x .025 = 4128.75

1651.50 + 4128.75 = 5780.25

Front 765

A homeowner wants to refinance his home which appraised for $300,000. He has a HELOC for $40,000 with a balance of $25,000, a first mortgage with a balance of $210,000, what is the LTV, CLTV, and TLTV?

Back 765

70% LTV

78% CLTV

83% LTV

Front 766

What type of loan is open-ended?

Back 766

HELOC

Front 767

Which lien takes precedence on title?

Back 767

The mortgage recorded first

Front 768

What type of lien has priority over all others?

Back 768

Taxes

Front 769

Who earns SRP?

Back 769

Lender

Front 770

Margins on ARMS are not subject to change during the entire term of the loan?

(True or False)

Back 770

True

Front 771

What is the note rate?

Back 771

The stated interest rate on a mortgage or loan agreement.

Front 772

What information is not provided on the Notice of Adverse Action Letter?

Back 772

Credit Score

Front 773

What term is associated with transferring title?

Back 773

Conveyance

Front 774

What term is associated with a lender releasing their lien upon full payment?

Back 774

Recoveyance

Front 775

What document is used to release a mortgage lien?

Back 775

Satisfaction of mortgage

Front 776

What equity position is PMI removed automatically?

Back 776

22%

Front 777

What law prohibits kickbacks and referral fee’s?

Back 777

RESPA

Front 778

Under what circumstance is it okay to discriminate based on age?

Back 778

Too young to enter a legally binding contract.

Front 779

What type of loan has a fixed rate of 6.5% for the first five years and 7.5% for the remaining 25 years?

Back 779

Variable rate

Front 780

How long is a Loan Estimate Good from issuance?

Back 780

10 years

Front 781

What are Service Release Premiums?

Back 781

Fees which lenders may receive for selling or transferring their mortgage loan servicing rights.

Front 782

A second mortgage is also known as a subordinate lien.

(True or False)

Back 782

True, also known as a junior mortgage.

Front 783

What is the primary difference between the Good Faith Estimate (GFE) and the HUD-1 Settlement Statement?

Back 783

GFE is an estimate of the cost at closing and the HUD-1 is the cost at closing.

Front 784

What is a Home Equity Conversion Mortgage (HEMC)

Back 784

Allows an older homeowner to use the equity in their home to receive fixed monthly payments, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD-approved HECM counselor in order to obtain the loan.

Front 785

What factor does not affect the money received in a HECM loan?

Back 785

Age of property

Front 786

Best appraisal approach to use when determining value of a rental property?

Back 786

Income Approach

Front 787

What is securitization?

Back 787

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBSs) and are sold on the secondary market.

Front 788

How long is a Loan Estimate Good from issuance?

Back 788

10 days

Front 789

What is a permanent change in a borrowers loan terms in response to their long term inability to pay known as?

Back 789

Loan Modification

Front 790

What loss mitigation strategy is a temporary reduction of a borrowers payment while they pay past due amounts?

Back 790

Forbearance

Front 791

What loss mitigation strategy is a temporary reduction of a borrowers payment while they pay past due amounts?

Back 791

Forbearance

Front 792

When does an ABA form have to be given to a client?

Back 792

At the time the referral is made by the referring party.

Front 793

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 793

Lifetime of the loan

Front 794

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 794

Lifetime of the loan

Front 795

What would keep property from transferring free and clear?

Back 795

Failing to pay off a loan (lien)

Front 796

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 796

Lifetime of the loan

Front 797

What would keep property from transferring free and clear?

Back 797

Failing to pay off a loan (lien)

Front 798

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 798

LP (Loan Prospector)

Front 799

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 799

Lifetime of the loan

Front 800

What would keep property from transferring free and clear?

Back 800

Failing to pay off a loan (lien)

Front 801

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 801

LP (Loan Prospector)

Front 802

What type of loan cannot be repurchased?

Back 802

No Bid

Front 803

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 803

Lifetime of the loan

Front 804

What would keep property from transferring free and clear?

Back 804

Failing to pay off a loan (lien)

Front 805

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 805

LP (Loan Prospector)

Front 806

What type of loan cannot be repurchased?

Back 806

No Bid

Front 807

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 807

43%

Front 808

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 808

Lifetime of the loan

Front 809

What would keep property from transferring free and clear?

Back 809

Failing to pay off a loan (lien)

Front 810

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 810

LP (Loan Prospector)

Front 811

What type of loan cannot be repurchased?

Back 811

No Bid

Front 812

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 812

43%

Front 813

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 813

Fully indexed rate or start rate whichever is lower.

Front 814

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 814

Lifetime of the loan

Front 815

What would keep property from transferring free and clear?

Back 815

Failing to pay off a loan (lien)

Front 816

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 816

LP (Loan Prospector)

Front 817

What type of loan cannot be repurchased?

Back 817

No Bid

Front 818

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 818

43%

Front 819

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 819

Fully indexed rate or start rate whichever is lower.

Front 820

Lenders must notify borrowers of their right to receive a copy of the appraisal within?

Back 820

3 days of application (and provide promptly but no later than 3 days prior to closing)

Front 821

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 821

Lifetime of the loan

Front 822

What would keep property from transferring free and clear?

Back 822

Failing to pay off a loan (lien)

Front 823

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 823

LP (Loan Prospector)

Front 824

What type of loan cannot be repurchased?

Back 824

No Bid

Front 825

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 825

43%

Front 826

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 826

Fully indexed rate or start rate whichever is lower.

Front 827

Lenders must notify borrowers of their right to receive a copy of the appraisal within?

Back 827

3 days of application (and provide promptly but no later than 3 days prior to closing)

Front 828

What is the maximum net adjustment allowed on the appraisal?

Back 828

15%

Front 829

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 829

Lifetime of the loan

Front 830

What would keep property from transferring free and clear?

Back 830

Failing to pay off a loan (lien)

Front 831

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 831

LP (Loan Prospector)

Front 832

What type of loan cannot be repurchased?

Back 832

No Bid

Front 833

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 833

43%

Front 834

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 834

Fully indexed rate or start rate whichever is lower.

Front 835

Lenders must notify borrowers of their right to receive a copy of the appraisal within?

Back 835

3 days of application (and provide promptly but no later than 3 days prior to closing)

Front 836

What is the maximum net adjustment allowed on the appraisal?

Back 836

15%

Front 837

What is the fully indexed rate on a 3/1 buydown with a start rate of 4%?

Back 837

7%

Front 838

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 838

Lifetime of the loan

Front 839

What would keep property from transferring free and clear?

Back 839

Failing to pay off a loan (lien)

Front 840

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 840

LP (Loan Prospector)

Front 841

What type of loan cannot be repurchased?

Back 841

No Bid

Front 842

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 842

43%

Front 843

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 843

Fully indexed rate or start rate whichever is lower.

Front 844

Lenders must notify borrowers of their right to receive a copy of the appraisal within?

Back 844

3 days of application (and provide promptly but no later than 3 days prior to closing)

Front 845

What is the maximum net adjustment allowed on the appraisal?

Back 845

15%

Front 846

What is the fully indexed rate on a 3/1 buydown with a start rate of 4%?

Back 846

7%

Front 847

325BPS translates to what interest rate?

Back 847

3.25%

Front 848

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 848

Lifetime of the loan

Front 849

What amount does Flood Insurance cover?

Back 849

100% of structure

Front 850

What would keep property from transferring free and clear?

Back 850

Failing to pay off a loan (lien)

Front 851

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 851

LP (Loan Prospector)

Front 852

What type of loan cannot be repurchased?

Back 852

No Bid

Front 853

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 853

43%

Front 854

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 854

Fully indexed rate or start rate whichever is lower.

Front 855

Lenders must notify borrowers of their right to receive a copy of the appraisal within?

Back 855

3 days of application (and provide promptly but no later than 3 days prior to closing)

Front 856

What is the maximum net adjustment allowed on the appraisal?

Back 856

15%

Front 857

What is the fully indexed rate on a 3/1 buydown with a start rate of 4%?

Back 857

7%

Front 858

325BPS translates to what interest rate?

Back 858

3.25%

Front 859

How long does MIP stay on an FHA where the borrower puts less than 10% down?

Back 859

Lifetime of the loan

Front 860

What amount does Flood Insurance cover?

Back 860

100% of structure

Front 861

What is the minimum amount of flood insurance required?

Back 861

80% of dwelling

Front 862

What would keep property from transferring free and clear?

Back 862

Failing to pay off a loan (lien)

Front 863

What automated underwriting system (AUS) does (FHLMC) Freddie Mac use?

Back 863

LP (Loan Prospector)

Front 864

What type of loan cannot be repurchased?

Back 864

No Bid

Front 865

In order for a loan to fall under the Safe Harbor rules of a Qualified Mortgage, what is the maximum allowed debt ratio?

Back 865

43%

Front 866

Under the QM rules lenders must use what rate to determine if a borrower meets the ability to repay rules?

Back 866

Fully indexed rate or start rate whichever is lower.

Front 867

Lenders must notify borrowers of their right to receive a copy of the appraisal within?

Back 867

3 days of application (and provide promptly but no later than 3 days prior to closing)

Front 868

What is the maximum net adjustment allowed on the appraisal?

Back 868

15%

Front 869

What is the fully indexed rate on a 3/1 buydown with a start rate of 4%?

Back 869

7%

Front 870

325BPS translates to what interest rate?

Back 870

3.25%

Front 871

A for profit entity offering to assist a borrower with a loan modification, short sale or principal reduction is known as?

Back 871

(MARS) Mortgage Assistance Relief Service

Front 872

A for profit entity offering to assist a borrower with a loan modification, short sale or principal reduction is known as?

Back 872

(MARS) Mortgage Assistance Relief Service

Front 873

When can a MARS collect payment for service?

Back 873

After the modification is complete.

Front 874

A for profit entity offering to assist a borrower with a loan modification, short sale or principal reduction is known as?

Back 874

(MARS) Mortgage Assistance Relief Service

Front 875

When can a MARS collect payment for service?

Back 875

After the modification is complete.

Front 876

Title X of the Dodd Frank Act created which new regulatory entity?

Back 876

(CFPB) Consumer Financial Protection Bureau

Front 877

A for profit entity offering to assist a borrower with a loan modification, short sale or principal reduction is known as?

Back 877

(MARS) Mortgage Assistance Relief Service

Front 878

When can a MARS collect payment for service?

Back 878

After the modification is complete.

Front 879

Title X of the Dodd Frank Act created which new regulatory entity?

Back 879

(CFPB) Consumer Financial Protection Bureau

Front 880

What percentage of a company must an applicant own in order to request their tax returns for verification of income?

Back 880

25% or more