Section 4 (Part II)
Cassie is helping her buyer client, Gus, prepare for closing. What should she encourage him to verify as soon as he receives the form?
That the borrower and seller names, the property address, and the sales price are accurate and spelled correctly
Maria is a borrower reviewing her Closing Disclosure. She notices that the appraisal fee is listed under "Paid by Others" and has an L listed with the amount. What does this mean?
The L indicates that the creditor pays the item at consummation.
Because the buyer traditionally pays for this, page three of the Loan Estimate includes information about a consumer's right to receive a copy of the ______ from the lender.
Appraisal
Buyer Ed is reviewing the Loan Estimate he received from the lender he's working with. He notices the loan terms include a prepayment penalty. Because he's a savvy consumer, which of the following does Ed do?
Ask the lender if there are other options available that would not involve a prepayment penalty.
The Farm Credit System is ______.
A government-sponsored enterprise
Kendra and her real estate agent are preparing to close on the property she's purchasing on Thursday. Kendra will sign the paperwork with her lender to close on the loan at the same time. When does the lender need to provide Kendra with the Closing Disclosure form?
At least three business days prior to closing on the loan
Robert is a rancher. He was told about the USDA Farm Service Agency offerings. What can he use an approved loan for?
Building a new hay barn
How does Farmer Mac support agricultural producers?
By creating a secondary market for agricultural loans, making it possible for agricultural lenders to fund more loans
Farmer Mac is an entity that ______ for agricultural property loans, rural utility loans, and certain loans guaranteed by the U. S. Department of Agriculture.
Creates a secondary market
______ creates a secondary market for agricultural loans by buying the loans, pooling them, and selling them as securities.
Farmer Mac
Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.
Guaranteed loans
Which of the following could be different from the amount on the initial Loan Estimate and can impact the monthly payment?
Interest rate
Lewis is reviewing his Loan Estimate and notices under "Other Costs" that there are items listed that don't include an amount. What does this mean?
Lewis should ask his lender about it.
Closing costs are itemized on page two of the Closing Disclosure, and all amounts are ______.
Listed according to who paid them: the borrower, seller, or other
Under the "Projected Payments" section of the Loan Estimate, the consumer can view what is included in the monthly payment. Which of the following may be part of the total payment other than the principal and interest?
Mortgage insurance
What information is included on the Loan Estimate form so that the consumer can confirm the reputation of lending institution and individual?
Nationwide Mortgage Licensing System IDs
Which is one of the benefits of the USDA loan program?
No down payment is required.
The section on the Loan Estimate called "Services You Cannot Shop For" includes fees for services ______.
Performed by a third party that the lender selects
Page one of the Loan Estimate includes a section called "Costs at Closing." The amount shown as estimated cash to close is ______.
The estimated amount the client will pay by cashier's check or wire transfer at closing
The final page of the Closing Disclosure provides loan calculations that tell the consumer how much ______.
The loan costs, including total payments, finance charge, and TIP
Why does the federal government have agricultural lending programs?
To ensure that credit is available to agricultural producers, who often can't meet conventional underwriting standards due to the nature of their work
Buyers Romy and Steven are looking over closing documents and don't know if the Loan Estimate matches everything on the Closing Disclosure. Usually, amounts shown on the Closing Disclosure that don't exactly match the figures on the Loan Estimate will be due to _______.
Updates to reflect the terms of the borrower's legal obligation when the loan closes
Page four of the Closing Disclosure lists specific disclosures about the loan, such as the penalty for late payments, whether a demand feature applies, whether the loan can be assumed, and ______.
Whether partial payments are accepted
Although the Closing Disclosure lists all amounts as accurately as possible, some costs must be estimated. Why?
Property taxes and insurance may change over the life of the loan, resulting in changes to the required escrow amounts.