Loan Officer

Principle of Substitution

According to this principle the value of a commodity is influenced by the cost of acquiring a substitute or comparable item

Whether the servicing of the loan may be assigned, sold, or transferred

A mortgage loan originator that receives an application for a federally related mortgage loan is required to disclose to the borrower at the time of application, or within three business days after its submission:

Discounted initial rate or teaser rate

A lower interest rate is offered by the lender during the first year or more of the loan. These interest rate concessions are used as incentive to attract borrowers to adjustable rate products:

Straw Buyer

A person used to buy a property in order to conceal the actual owner

.125%

APR disclosed must be within the allowable tolerance of

High-Priced loans

Defined by CFPB's final rule amending Regulation Z, these loans are secured by the consumer's principal dwelling with an APR that exceed the average prime offer rate (APOR) for comparable transactions by 1.5% points for a first lien conforming residential mortgage loan.

Churning

Excessive lending activity for the purpose of generating fees and commissions

Sales Price

FHA sellers are permitted to provide financing concessions up to 6 percent of the

FCRA (

Federal law was designed to protect consumers against unfair credit reporting practices and protect credit privacy

96.5% LTV the reciprocal of 3.50% down pmt

For purchase money transaction, maximum insurable FHA LTV

Dow Jones average index

Lenders base ARM rates on variety of indexes. this type of indexes is not a commonly used by lenders.

Fair and Accurate Credit Transaction Act of 2003

Law requires mortgage loan originators to implement a written identity theft preventions program to detect the warning signs or "red flags" of identity theft

31 days

Mortgage loan originators who make cold calls must comply with the requirement of the National Do-Not-Call Registry and the Do-Not-Call rules. The loan originator needs to update any download of the registry at least every:

Gramm-Leach-Bailey Act Financial Modernization Act of 1999

Protecting the privacy of consumer information held by financial institution is the heart of the financial privacy provisions

Is a consumer protection statue

Real Estate Settlement Procedures Act of 1974, as implemented by Regulation X.

Regulation Z

Regulations implementing the Truth in Lending Act

30 days after the preceding test

SAFE Act requires mortgage loan originator to pass a qualified test to obtain a license. An individual may retake the test 2 consecutive times with each consecutive taking occurring at least:

Federal Reserve System

The Consumer Financial Protection Act of 2010 establishes the Consumer Financial Protection Bureau (CFPB), as an independent entity housed within the

Immigration Status

The Equal Credit Opportunity Act, and the Federal Reserve Bureau's implementing Regulation B, prohibits discrimination in any aspect of a credit transaction on the basis of all of the following except:

Itemize all charges related to the transaction

The HUD-1 and HUD-1A must be completed by the person conducting the closing (settlement agent) and must conspicuously and clearly

Real Estate Settlement Procedures Act

The Truth in Lending Act is contained in Title I of the:

Market data approach

The appraisal approach that is used as the best indicator of value for exiting properties is:

Veterans who provide more than 20% down payment toward the purchase of the property

The law requires that the VA be paid a funding fee on guaranteed loans. The only exceptions are loans made to all of the following except

External Obsolescence

The loss of value of a property caused by factors outside the property itself

1st loan guaranty program

The major loan reforms spearheaded FHA include all except:

Loans secured parcels of 25 acres or more

Transactions exempt from RESPA

During the business day immediately preceding the day of settlement

Upon request by the borrower, the HUD-1 must be completed and mad available for inspection

Residual Income

VA's debt-to-income ratio is a ratio of total monthly debt payments (housing expense, installment debt, etc..) to gross income. It is a guide and, as an underwriter factor, it is secondary to the:

Negative Amortization

When the monthly payment is not sufficient to cover the actual interest owed and the interest is added to the ending loan balance

Dodd-Frank Wall Street Reform and Consumer Protection Act

term"qualified mortgage" was first used within this documents