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58 Cards in this Set
- Front
- Back
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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.
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A teaser rate occurs in a Arm when the starting rate is less than the FULLY INDEXED RATE |
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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 |
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Which Act of 1968 guidelines and restrictions regarding the financing selling and renting real property? The Civil Rights Act of 1968 AKA Title VIII of the Civil rights act AKA Title VIII AKA 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 |
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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 AKA Title VIII of the Civil rights act AKA Title VIII AKA The Fair Housing Act |
On convention Mortgage loans, The Underwriter makes all final decisions regrading approvals and counter offers . |
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RESPA-X REG.B applies to all 1-4 family property types |
HOEPA stands for Home Ownership and Equity protection act. |
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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 |
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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 |
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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
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PMI is required when a loan exceeds 80% |
conveyance transfers title from one person to the next person. |
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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 |
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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. |
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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. |
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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. |
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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 |
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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 |
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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 |
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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 |
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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. |
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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. |
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primary housing expense / back end total obligatory |
In a ARM a lenders cost plus profit would be included in the margin |
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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 |
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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 |
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No license is required for descriptive purposes |
AfBA disclosure must be presented to a borrower at or prior to the time of referral |
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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 |
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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 |
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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 |
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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 |
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anyone owning 25% of any business is considered self employed |
redlining - for none discriminatory geographer reason is not a violation if fair lending law |
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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 |
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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 . |
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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 |
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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 |
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RESPA does not limit origination Fees ( Really) |
a refinance of a borrower resident that close on a Monday will fund on a Friday - 3days |
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Hud 1 - settlement statement may be request by the borrower 1 day before closing |
Respa-x sections 8 prohibits kickbacks and referral fees |
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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 |
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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 |
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HPA required that PMI be automatically dropped at 78% LTV |
APR can be found on The TIL disclosure |
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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 |
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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 |
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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 |
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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 |
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Right to rescind, extents to anyone with ownership interest. |
3 people own a house it only takes one person to rescind the loan |
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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 |
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YSP - is disclosed on the GFE |
right of rescission extents from 3 days to 3 years if disclose is not correct |
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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 |
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PMI and MIP can automatically be canceled at 78% ltv |
Sex and Race are optional questions on FNMA 1003, MLO must then just guess |
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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 $4800 |
FHA requires Mortgage insurance on all loan for 5 years |
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forced placed insurance protect the lender |
The Appraiser make a flood zone determination |
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Per Ecoa-b 5 items needed to make a complete application 1.name 2.ss# 3.gross month income 4. property 5. loan amount |
Frud - to legally influence judgment of an appraisal |
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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 |
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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 |
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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 |
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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 |
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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 |
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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. |
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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 |
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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 |
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Identify Theft - red flag rule, FTC Pursuant to FACTA |
Right to rescind- extend to all borrows |
