Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

58 Cards in this Set

  • Front
  • Back
Per ECOA-B Lender may consider child support or separation maintenance , alimony , but the borrower is not required to to share information if they don't want to, also they may use gross.

A teaser rate occurs in a Arm when the starting rate is less than the FULLY INDEXED RATE

Based on observation criteria lenders may decline a loan where area may be declining, but not for discretionary reasons. This will NOT BE CONSIDERED REDLINING

ECOA- B aka Reg B. Equal credit opportunity act prohibits asking questions regarding child bearing intentions or birth control

Which Act of 1968 guidelines and restrictions regarding the financing selling and renting real property?

The Civil Rights Act of 1968


Title VIII of the Civil rights act


Title VIII


The Fair Housing Act

Of the following Which is not required to be disclosed on the TIL statement ?

APR, note rate, finance charges, .Amount financed, total payments

Note Rate is NOT required

Prohibited public and private racial discrimination in any way property transaction and was expected in 1968 in which act ?

The Civil Rights Act of 1968
Title VIII of the Civil rights act
Title VIII
The Fair Housing Act

On convention Mortgage loans, The Underwriter makes all final decisions regrading approvals and counter offers .

RESPA-X REG.B applies to all 1-4 family property types

HOEPA stands for Home Ownership and Equity protection act.

Fannie is 28 and Mae is 35, Mae likes to date younger women .

28 maximum housing expense /36 total obligation ration for FNMA

28/36 ration

internal do not call list updates need to be done every 30 days

Va Permits secondary financing if the second loan pays all or party of the down payment or the 2nd loan is at a lower rate then the VA loan .

Va Guaranteed loans may conditioners residential income in addition to the total debt service ratio when qualifying borrower

Per Homeowner's Protection Act (HPA), Borrower can accelerate the cancellation date of required PMI premium by paying reducing the LTV

Home Mortgage Disclosure Act ( HMDA-B ) AKA Regulations B,requires finical institutions to submit a report called a LAR Loan Application register, Supervisory agencies on loan by loan application by application basic every March

PMI is required when a loan exceeds 80%

conveyance transfers title from one person to the next person.

Reg Z aka TILA-Z and the ATR ability to repay in a arm the creditor must use the highest rate possible to qualify

Illegal Flipping when a property is sold at a higher price for no reason

Flipping per, FNMA the process of purchasing exciting with the intention of immediately selling

Predatory lending ill informed consumer though excessive high fees miss representative loan terms frequently refinancing that doesn't benefit the borrower.

ARM - START rate 5% 2/6 cap is 6% higher from Start rate 11% is highest

GLB -ACT Gramm Leach bliley act aka

The financial modernization act of 1999 which includes provisions in title V to protect the regulate the disclosure of consumer personal financial information.

Car lease and student loans are considered debts because they Can't be canceled

FACTA the fair and accurate credit transaction act of 2003 includes the red flag rules.

Balance in real estate market occurs when there is slightly more properties available then borrowers

43% dti. Is the highest dti. Ratio allowed for qualified mortgage per TiLA-Z

FCRA - V is aka as regulation V

FCRA-V the fair credit reporting act entities a free copy of your credit report once a year

Fixed loans remain fixed for the life of the loan also called traditional loan.

FACTA the fair credit reporting act of 2003 allow consumer the right to freeze there credit to prevent information from showing on credit reports

A high cost loan under the Dodd Frank act exceeds the Apor by 6.5% for a 1st mortgage. A high priced loan in a first lien priority exceeds the apor by 1.5%

Equity is the value minus the debt on the property

The community reinvestment act is a federal act that deals with financial institution having a continued obligation to help meet the credit needs of local community's in Which they operate

A straw buyer is a person who gets paid for the use of there name and credit history in a loan transaction usually for frud purposes.

Chapter 7 bankruptcy will stay on your credit report for 10 years

Section 502 loan program - the usda loan program that either guarantee loans by approved private lenders or makes direct loans.

primary housing expense / back end total obligatory

In a ARM a lenders cost plus profit would be included in the margin

a secondary market entity would usually buy a lon from a primary market entity

Subornation - the clause that allows a change in lien position from superior to Jr. position

Conversion an option allows a borrower to change adjustable to fixed rate

FACTA- fair and accurate credit transaction act of 2003, the act that requires business serve and dispute of sensitive personal information regard credit reporting

No license is required for descriptive purposes

AfBA disclosure must be presented to a borrower at or prior to the time of referral

Per- Ecoa-b the age of an applicant can be considered if it allow a creditor to favor applications 62 years and over

RESPA- X section 9 buyer to use outside title company

residual income - the income reaming after subtracting taxes housing expanses and all recurring debt and obligation

FNMA - guild-lines commission income must have been received for 12 months in order to us it to qualify

purpose of PMI is to obtain a loan with a low down payment

FCRA - a consumer reporting agency may provide information to those with legitimate business needs

Mortgage broker may ask questions regarding a former spouse who is not a co applicant when the applicant is including child support for income

HUD-A 1 is for refinance / HUD-1 is for purchase

anyone owning 25% of any business is considered self employed

redlining - for none discriminatory geographer reason is not a violation if fair lending law

ECOA - prohibits redlining that is reusing to lend in a specific area

Steering - telling a buyer they would be more comfortable to a specific area is a volition of the fair housing act

Per TILA-Z which of the follwoing are not included in the fince charges

1. interest

2. points

3. loan fees.

4. seller points

5. credit reporting fee

If a creditor violates ECOA the victim has 2 years to to act action .

Mortgage broker and lender - both need to send out disclusred in regards to GFE

HPA - Homeowner protection Act estabalished a diffrent disclurer regiment on fixed rate and adjustable rate mortgages when it comes to PMI loans and None PMI loan

The GFE can use both estimated cost and actual cost on the hud-1 settlement statement

FCRA- fair credit reporting act responsibility is to protect consumer privacy when reporting credit

RESPA does not limit origination Fees

( Really)

a refinance of a borrower resident that close on a Monday will fund on a Friday - 3days

Hud 1 - settlement statement may be request by the borrower 1 day before closing

Respa-x sections 8 prohibits kickbacks and referral fees

GLBA- require the consumer be given a reasonable period of time to OPT-OUT

When Purchasing a primary resident Respa-x requires borrower to be given a copy of HUD's Buying your home settlement cost and helpful information

Ecoa-b must notify borrower of adverse action in 30 days

RESPA- X discloses are not required for land purchases, businesses, or farms only for 1-4 units

HPA required that PMI be automatically dropped at 78% LTV

APR can be found on The TIL disclosure

TILA -Z ensures creditors provide consumer a clear disclose of credit terms

under what circumstance can a lender with an Afba require a borrower to use a specific third party service provider

if there are no kickbacks or referral fees and the service provider is an attorney credit reporting agency or appraiser the lender can require that the borrow uses the provider

Service must notify the borrower 15 days prior to transfer of service

MLO - who fails the exam 3 times must wait 6 months to retake it

service disclose to be provided to the borrower 3 business days of application

FBI Mortgage Fraud Warning notice- $1 million fine and 30 years in prison

RERSPA - X lender can take 2 months cushion surplus anything over $50 must be returned with in 30 day 1/6th

HMDA - Home mortgage disclosure act report detailed loan information and demographic information

Right to rescind, extents to anyone with ownership interest.

3 people own a house it only takes one person to rescind the loan

RESPA- X an annual escrow statement is required to determine shortage and surplus in a escrow account.

Higher then

1/8 .125% fixed / 1/4 .25% adjustable rate you must re-disclose / wait 3 days

YSP - is disclosed on the GFE

right of rescission extents from 3 days to 3 years if disclose is not correct

Maxim origination fee on a FHA loan of $150,000 is 1%

Respa-x a loan applications must include a property address and estimated value

PMI and MIP can automatically be canceled at 78% ltv

Sex and Race are optional questions on FNMA 1003, MLO must then just guess

A property sells for $300,000 and requires a 20% down payment the origination fee will be two points how much is the origination fee


FHA requires Mortgage insurance on all loan for 5 years

forced placed insurance protect the lender

The Appraiser make a flood zone determination

Per Ecoa-b 5 items needed to make a complete application

3.gross month income

4. property

5. loan amount

Frud - to legally influence judgment of an appraisal

refuse - to take a application when some say they will submit fake documents

Section 8

RESPA-X violation , when a mortgage company selling information to a real-estate company

Section 8

RESPA- X Violation- nothing of value can be exchanged for referral , between realtor title company or mortgage company

1003- uniform residual loan app

FNMA - federal national mortgage association

FHLMC - federal home loan mortgage corporation form 65

Borrower switches to a different loan, the lender / broker must re-disclose documents start all over

RESPA-X borrower and co borrower apply for a loan only 1 hud booklet regarding settlement cost is to be provided

RESPA- X a Hud settlement cost book can not be merged with other documents or disclosue

RESPA- X residential loan are between 1- 4 units

RESPA - X The Real Estate settlement Producing act

deals with settlement fees

TILA- was amended by the MDIA mortgage disclose-er improvement act in 2009

RESPA- X legitimate referral fee , the provide must be license to revive fee, they must disclose and provide a legitimate and beneficial service

Consequent to a enail of FACTA requires disclosed of credit score but the ECOA-B does not although it does require disclosure of the reason for denial.

Questions regarding religion and child bearing is prohibited

Per ECOA- if a 1st lien loan a borrower is entitled to a copy of the appraisal upon completion but no later then 3 business days prior to closing

Adverser actions , borrower has the right per ECOA-B for a copy of the appraisal, and must request a copy within 90 days

Credit must be disclosed as a dollar amount and percentage along with finance charge of the APR

Identify Theft - red flag rule, FTC Pursuant to FACTA

Right to rescind- extend to all borrows