REF Final

FHA 203k

. Funds are placed in an escrow account and paid out to contractors as the work is completed.

In a judicial foreclosure, if a deficiency judgment will be sought, how soon after the Notice of Levy is recorded can the Notice of Sale be issued?

20 days

Up to what amount will the FDIC insure?

25 w

California Residential Mortgage Lending Act

? Ca's federal safe act

SEP IRAs

A SEP IRA is a type of traditional IRA for self-employed individuals or small business owners.

blanket mortgage,

A blanket loan, or blanket mortgage, is a type of loan used to fund the purchase of more than one piece of real property. Blanket loans are popular with builders and developers who buy large tracts of land, then subdivide them to create many individual parcels to be gradually sold one at a time.

Participation certificate

A lease-financing agreement is used by a municipality or local government to acquire real property. Under the agreement, the local government makes regular payments over the annually renewable contract for the acquisition and use of the property. A lease-financing contract is typically made available in the form of a certificate of participation (COP).

Qualified endorsement

An endorsement without recourse

Which of the following is a form of commercial bank revenue related to mortgage financing?

Demand deposits Commercial banks derive most of their funds for mortgage lending from demand deposits.

COE - Certificate of entitlement

Determine the amount of entitlement the veteran borrower has available

COV - Certificate of reasonable value

Determine the value of the loan that the VA will guarantee

Community Development Block Grant program assist in supporting HUD's mission

Distributes grant funding to help meet community needs as determined by state and local governments

On an FHA 203(k) loan, the combined cost of home value and rehab must ______

Fall within the FHA mortgage limit for the area where the property is located.

Ginnie Mae

Ginnie Mae allows mortgage lenders to obtain a better price for their loans in the capital markets,

part of the Homeowner Affordability and Stability Plan

Home Affordable Modification Program (HAMP)

another name for California's Foreclosure Reduction Ac

Homeowner Bill of Rights

Holden Act

Known as the Housing Financial Discrimination Act of 1977 - stamping out redlining, - the right to credit based on consistent and nondiscriminatory standards. Multiple Choice Question

native american va loan's name

Native American Direct Loan (NADL) Program

protected from a deficiency judgment

Purchase money loans issued on or after January 1, 2013 offer protection from deficiency judgments. A refinance of a refinance is not a purchase money loan.

no tax when withdrawl

Roth IRA

Tax-deferred

SEP IRA Simple IRA Traditional IRA

*What are the key differences between promissory notes and security instruments?

Security instruments require collateral/security A promissory note can be enforced even if it isn't accompanied by a security instrument.

Under the SAFE Act, every mortgage loan originator must be fully licensed and carry a mortgage ______ bond.

Surety

require federal agency follow specific process or procedure

The Administrative Procedure Act (APA)

Farm Credit System

The Farm Credit System is a government-sponsored enterprise that provides financing to purchase rural homes through a network of financial cooperatives. The loans are extended from locally owned banks that belong to the Farm Credit System. The money for the loans comes not from deposits, but from the sale of debt securities in the U.S. and international money markets.

Homeowner's Protection Act

The PMI Act of 1998

Promissory note

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______.

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

housing choice vouchers

The housing choice voucher program provides assistance to very low-income families to afford decent, safe, and sanitary housing.

consumer credit protection act

The restrictions on wage garnishment guard employees from discharge by their employers because their wages have been garnished for any one indebtedness.

how are real estate investment trust sold

This also distinguishes a REIT from shares of stock.

IRRR

This program allows a VA loan to be refinanced in order to obtain a lower interest rate.

What's the purpose of California's Covered Loan Law?

To curb predatory lending practices

The purpose of the Seller Financing Disclosure Law

To ensure that all parties are educated about loan terms and about who will be compensated for arranging credit The following items must be disclosed under the law: note terms, security instrument, description of senior encumbrances and terms, any balloon payment information and buyer information, including employment, income, credit score or a statement from the credit arranger making no representation about the buyer's credit-worthiness.

USDA Loan Programs in the Farm Service Agency

USDA loan programs are offered through the Farm Service Agency, which provides direct farm ownership loans to allow farmers to buy farmland, construct buildings, and make improvements on their farms. The program requires no minimum loan amount and offers loans of up to $300,000. To be eligible, applicants must have participated in the day-to-day management of a farm or ranch for at least three years.

Power of sale

a clause written into a mortgage authorizing the mortgagee to sell the property in the event of default in order to repay the mortgage debt. Power of sale is permitted in many states as part of a lender's rights to seek a foreclosure.

A cash-out refinance is

a mortgage refinancing option where the new mortgage is for a larger amount than the existing loan to convert home equity into cash.

farmer mac

a player in the secondary mortgage market,

ab·stract of ti·tle

a summary giving details of the title deeds and documents that prove an owner's right to dispose of land, together with any encumbrances that relate to the property

Acceleration

a term that fully matures the performance due from a party upon a breach of the contract.

usda

allow farmers to buy farmland, construct buildings, and make improvements on their farms. T

Participation certificates

are what Freddie Mac calls their mortgage-backed securities.

Interest Rate Reduction Refinance

aren't required to submit a COE, get a new appraisal, or verify income.

S corporation

ay individual income tax on both his personal income and the business profits

mortgage banker

business is regulated by ______. California Residential Mortgage Lending Act

USDA Farm Service Agency

buy farmland, construct and repair buildings, and make farm improvements.

Fannie Mae

buys primarily conventional loans from large commercial banks

what Fannie pay to commercial banks?

collection fee

California's Foreclosure Reduction Act

commonly referred to as the Homeowner Bill of Rights,

alienation clause

due on sale clause

Alienation

due-on-sale clause

Community Reinvestment Act (CRA)

encouraging depository institutions to help meet the credit needs of surrounding communities

Good Neighbor Program

firefighters, emergency medical technicians and teachers

which institutes created by congress as federal home loan mortgage corporation 1970

freddie mac

Which type of lien is specific lien?

general: -Estate and inheritance tax liens -deceased person lien -judgment lien specific: -property tax

farmer credit system

government-sponsored enterprise that provides financing to purchase rural homes through a network of financial cooperatives money from the sale of debt securities in the U.S. and international money markets.

The borrower (mortergator)

holds legal title to the property that secures the loan when a mortgage instrument is used.

A power of sale provision

is a clause in the deed of trust or mortgage in which the borrower pre-authorizes the sale of property by way of a nonjudicial foreclosure to pay off the balance of the loan in the event of a default. With a power of sale foreclosure, the lender can foreclose without court oversight.

A blanket mortgage

is when two or more properties are pledged as security for repayment of the loan.

California is a

lien theory state, made the mortgage =the deed of trust state law modified the way the deed of trust works It creates a lien on the property, and the borrower, not the trustee, holds legal title.

Financial advisor

no fiduciary responsibility

Community Development Block Grant program

provides annual grants on a formula basis to entitled cities and counties to develop viable urban communities by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons.

Homeowner's Protection Act

reduce the unnecessary payment of private mortgage insurance (PMI) by homeowners who are no longer required to pay it.

Cash Out Refinance program

requires a credit check, new appraisal and income verification.

Home Mortgage Disclosure Act (or HMDA

requires certain financial institutions to provide mortgage data to the public.

Home Mortgage Disclosure Act

requires many financial institutions to publicly disclose information about mortgages, allowing public officials to make informed policy decisions and revealing potentially discriminatory lending patterns.

Page four of the Closing Disclosure lists

s the penalty for late payments, whether a demand feature applies, whether the loan can be assumed, The use of an escrow account

alienation

sold or otherwise transferred from one party to anothe

property tax

specific, involuntary

Late charges

that will apply if the borrower doesn't pay on time are a standard part of the promissory note. included in the promissory note rather than the security instrument

usury law

the state usury law prohibits the interest rate charged from exceeding a specified maximum.

Equal Credit Opportunity Act

unlawful for any creditor to discriminate against any applicant,

interim financing

临时筹资

for compensation for

要求赔偿损失的诉讼

Promissory Notes

"A promissory note is a written promise to repay a debt A promissory note used in a real estate transaction doesn't need to contain a legal description of the property, because the note concerns only the debt, not the property. Because the promissory note doesn't concern the property, it ordinarily isn't recorded. The borrower who signs the note is called the maker, and the lender is called the payee The legal documents used in conjunction with most real estate loans are a promissory note and a security instrument, which is either a mortgage or a deed of trust. Basic Provisions. "A promissory note states the loan amount (the principal), the amount of the payments, when and how the payments are to be made, and the maturity date—when the loan is to be repaid in full." "In most cases, a promissory note is a negotiable instrument, which means that the payee—the lender—has the option of assigning the debt to someone else by endorsing the note. Endorsing a promissory note transfers the right to payment to another party, in the same way that endorsing a check does.