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borrower can see hud1 settlement

1 day before settlement

time to bring respa 8 and 9 lawsuits

1 year

LPMI

Lender Paid Mortgage Insurance. Insurance paid by the lender instead of the borrower. This is accomplished by the lender increasing the mortgage interest rate.

What are the LTV percentages for standard/conventional ARM loans?

Owner occupied: * 1 family - 90% * 2 family - 90% * 3 to 4 family - 80% Second home: n/a Investment: n/a Non res perm alien: 75%

calculation for monthly income required for loan payment and current debt load

PITI plus monthly recurring debt, divided by the back ratio.

poc

Paid outside of closing. charges that were paid outside of closing.

PMI

Private mortgage insurance. required when LTV is greater than 80%. Annual premiums are .5%.

covered account

a credit acount with defered payment.

deed in lieu

a deed given by a morgager to stisfy a debt

warranty deed

a deed in which the grantor warrants that good title is being conveyed.

trust deed

a document where a specific financial interest in title to real property is transferred to a trustee, which holds the deed as security for a loan .

entitlement of va program

a dollar amount tha can be used to buy a house.

loan originator fees

a fee charged to lenders to cover loan processing costs, often equl to 1 percent of the value of a loan

mortgage banker

a firm that conducts mortgage lending activitie from its own funds

hud 1 closing statement

a form that shows all charges imposed on borrowers

lien

a legal claim of a creditor to a property as security for a debt

nonconforming mortgage loan

a loan in which does not conform with fnmae or freddie mac

seasoning

a loan which several payments has been collected

closing agent

a person or org that has a fiduciar responsibility to see that terms of contract are carried out.

bankruptcy

a person relieved of debts, after the surrender of all assets to a court appointed trustee. chapter 7 covers liquidation of businesses. chapter 11 covers reorg of buisinesses. chapter 12 covers farms. chapter 13 covers individuals.

straw borrower

a person who may or may not exist

defeasance clause

a promise by lender to give the borrower all interest in a proeprty once the loan is paid in full

survey

a property inspection that determines the proision of a tract of land

index

a refularly published rate, indpenednt of the lending institution, that measures the cost of funds

respa affiliated business arrangement disclosure

a required disclosure when the consumer is referred to a business which the referring party has 1% or more interest . gives an estimate of the second providers charges, and informs the borrower they are not requried to use the reffered provider.

entitlement

a right due an individual. used with VA loans

service transfer statment

a statement issued when servicers transfers the servicing of a loan

ecoa adverse action

a statement of reasons is due customer

initial escrow statement

a statment that itemizes the estimated taxes, insurance premiums and other charges anticipeted to be paid from the escrow account durning the first 12 months of the loan. lender has 45 days from settlement to deliver it.

earnest money

a sum of money given to bind a sale of real estate.

payment buydown

a third party pays part of the PITI so borrower has a smaller payment

qualified written request

a written inquiry regaring escrow account made under respa section 6

URLA

Uniform residential loan application. 1003.

VA guaranteed loan

VA guarantees the repayment of morgage loan, granted vets. Low or no down payment requried.

certificate of reasonable value

Va's version of an appraisal

what is an acceleration clause

a clause giving lender the poer to declare loan due

due on sale

a clause in a morgage stating that if the morgager sells then the morgagee can accelerate loan.

mortgagee clause

a clause that may be attached to an insurance policty stipulating that the lender will receive a portion of insurance proceeds suffient to satisfy the unpaid amount of a loan in the event of loss.

under fcra, what must mlo provide to applicant upon taking adverse action

a clear notice of their right to obtain disclsoure regarding the nature of the information used to make the decision by making written request within 60 days of notification.

right of recission

a consumer has a right of rescission in any transaction in which security interst is given in the consumers primary residence(HELOC) except new construction.

cfpb

consumer financial protection bureau. responsible for regulating the financial industry.

farmers home administration

an agency within the department of agriculture that provides financing to farmers

buy sell agreement

an agreement between an interim and permanent lender for the sale of a mortgage to the the permant lender upon the completion of a building

commitment

an agreement, between a lender and borrower to loan money

discount point

an amount payable to buy down the rate

GFE

an estimate of all costs associated with a mortgage. 10 days minimum good.

treasury bill index

an index based on rate being paid for treasury bills

silent second mortgage

an unrecorded second lien.

api

annual percentage interest.

APR

annual percentage rate. expresses the annual cost of borrowing as a percentage of teh loan amount. it factors the interst rate and fees associated with the loan.

what is a financial institution under graham leach bliley

any kind of financial compnay.

nontraditional loan

any loan other than a 30 year fixed loan

respa 's definition of things of value

any payment, andvnce, funds, loan , service, or other consideration.

investor

any person who invests

nontraditional mortgage product

anything other than a 30 year fixed

ecoa notice required at

application

documents used to determine collateral forunderwriter

appraisal, survey, title search, plat maps

fannie mae recs from du

approve and eligible approve and ineligble refer and eligible refer and inelgible refer with caution

what are trigger points for section 32 loans under TILA

apr exceeds 8 points onf first. 10 on second. 8 points fees.

section 35 hpml of reg z tila

apr exceeds average prime offer rate by 1.5 percent for a 1st lien, or a 3.5 for a second lien.

fair market value

arms length transaction between willing buyer and willing seller

where can lawsuits for violations of RESPA section 6,8,9 be filed?

at any federal district court in the districtin which the property is located.

when must mlo provide mortgage servicng transfer disclsoure to loan applicatn

at time of application

cert of occupancy

authorization of municiplaity allowing a newly built building to be occupied

FHA AUS

automated underwriting system. morgtgage score card

loans exempt from respa

business loans, vacant land, large tracts of land 25 acres or more, certain loan assumptions. construction only loans. governments

truth in lending disclosure

costs of loan

what sorts of documents are used to determine a borrowers character

credit repeorts, bankruptcy papers, letters of explanation

ecoa evidence of disparate impact

equal application of policy that results in an adverse impact on applicants from a protected group.

ECOA

equal credit opportunity act. overseen by consumer financial protection bureau (CFPB)

security doc

establishes real proeprty as collatoeal for a loan

valuation

estimate of a properties price thorugh apprisal

under writer

evaluates whether or not to makea particular loan

hpa

homeowner protection act A law passed by congress in 1999 which requires lenders to cancel private mortgage insurance once the LTV reaches 78% of the original property value. One exception is with FHA loans, which require mortgage insurance to be in place for 5 years.

national association of mortage brokers

honest, professional conduct, honesty in ads, confidentiality, compliace with law, disclosure of financial interests.

hud

housing and urban development.

tax certificates

issue by taxing authorities to closing agent to verify taxes due are paid at clsoding. taxes are included in closing costs

FBI fraud warning

it is illegal for aperson to make any false statement...

calculate rental income

monthly income x .75

mbs

mortgage backed security. investment instruments bundled and sold on wall street

conventional financing

mortgage financing which is not insured or gauranteed by a governmental agency

settlement services

mortgage industry

impounds (escrow funds)

mortgage insurance amounts required upfront for most loans above 80% ltv. they include 3-6 months property taxes, and 2 months hazard insurance and 2 months mortgage insurance. included in closing costs

fha title ii 203 b loans

most widely used. fixed rate

heloc fraud

multiple helocs on one asset.

under facta what must mlo do with credit reports not reatined in a customers file

must have policy for desctruction

what restrictions apply to higher priced mortgage loans under hpml section 35 of the reg z?

must takeinto account buyers ability to pay must verify income and assets. must verify the borrowers ability to pay using largest payment during first 7 years prepayment penaliteis are only allowed for the first two years of the loan must establish escrow account.

vesting

name of borrowers and the manner they hold title

nmls

nationwide mortgage licensing system. the record for mortgage industry licensing.

does va cahrge mi?

no

under hmda regulations, is the applicant requried to provide the hmda info

no

4 catagories of credit score

payment history. 35%. available credit. 30 % credit history. 10% credit inquiry. 10%

4 ways forclosure can end

pays of default amount a thrid party buys the property at public auction. lender takes ownership of the proeprty aka reo

short sale scheme

premeditated short sale. a straw buyer is used to buy a home with no intention of making payments. the perp offers to buy the house from the bank on short sale terms.

par

price of 100% of face value

piti

principle, interest, taxes and insurance

financial statements

profit and loss statments

affordable housing programs

programs offered by communities that offer lower rates, have higher qualifying ratios, easier underwriting requirements

collateral

property pledged as security for a debt

waive right to rescind

provide lender with writen dated statement describing the emergency signed by all parties entitled to rescind.

USDA rural development guaranteed program

provides gurantee on approved private lenders loans. offers programs for moderate income applicants with 0 down, no pmi, and 102 ltv

pih

public indian housing. like fha

section 9 RESPA violation

requiring buyers to purchase title insurance from a particular company

TILA purpose

requrieds disclosore of information

laws in place to regulate residential lenders

respa, hoepa, tial, ecoa, fair credit act

what reg requires good faith

respa, reg x.

easment

right to enjoyment of land held by another

junior liens

second mortgage, suboridinate financing

respa section 10

section ten sets limits on the amounts a lender may require a borrower to put into an escrow

what timeframes is the lender under when receiving a qualified written request?

servicing lender must notify borrower of reciept of the request within 20 biz days. the lender has 60 days to investigate the complaint and provide a response.

GFE contents

settlment charges including ysp

service release premium

similar to ysp, but only available to direct lenders. srp not shown on hud-1. paid after closing when loans are sold on secondary market.

pledged asset

something of value pledged as collateral for a loan

under respa 3 things required of lenders provide at time of application

special info booklet. gfe, morgage serviceng disclosure statement. must be mailed within 3 days of revieving app unless loan is denied, then they are not requried to be sent.

portfolio loan program

special loan program offers special features that cant be offered in traditional conforming loans.

patriot act purpose

stop money laundering,

shotgunning

taking out multiple loans for the same hoem simultaneously

lifetime cap

themax amount a rate increase that can happen over the lifetime of an arm loan

reg z is also

tila

advice to help improve credit score

time, credit balances, no additional credit, on time payments

where will the appraisal independence rule be added

to TILA (reg z)

seller provided funds

transaction costs paid by the seller except the real estate agents fees.

conveyance

transfer of legal title

undisclosed kickbacks

two parties conspire to exchange cash outside of closing.

urar f

uniform residential appraisal report form 1004

urar

uniform residential appraisal report.

urar

uniform residential appriasal report

neg am

unpaid interest added to principle amount

form used to collect hmda data

urla 1003

fha title 11 section 234c loans

used for condos, rate may be fixed or adjustable

under ecoa, once a person applies for aloan, how long until mlo provides written notification to the action that will be taken

within 30 days

notice of default

written notice to a borrower that a default has occurred and legal action may be taken

safegaurd rules of graham leach blilbey act

written policies to protect customer info

ysp

yeild spread premium. an amount paid to a broker for bringing a morgage application to them.

does borrower have a right to a copy of their appraisal

yes, ecoa gives that right. they can request a copy within 90 days of notice of adverse action

how long must a lender reatin hud1

5 years, unless loan is sold. then purchaser must retain for 5 years.

how long does a borrower have to decide whetehr to sing the loan agreement after recieving the special section 32 disclosures for hoepa

3 biz days

once a complete loan app, how long does the mlo have to provide a gfe

3 biz days

when must an mlo privide the hud settlement cost booklet to loan applicant

3 biz days

how long does an indivdiual have to bring a private law suit for a violation of respa section 6

3 eyars

how long to file suit under respa section 6

3 years

fraud vs predatory lending

fraud is cheating institutions. predatory lending cheating consumers

fhlmc

freddie mac. federal home loan mortgage corportation. mortgages offered under freddie mac are called conforming.

loan prospector

freddie macs automated underwriting system

hmda

home mortgage disclosure act. an act of law that requires lneders to upoload app data to identify discrimination

hvcc

home valuation code of conduct. rules outlining interactions between lenders and appraisers.

COE

issude from department of vererans affairs that establishes vets eligibility for va loan

fraud aler on credit file

mlo must take steps to confirm applicants identity

closing costs

money paid by borrower in connection wiht the closing of a mortgage loan

two types of title insurance

owners policy, lenders policy

servicer

party who services loan

initial borrower interest rate

the first payments rate

under ecoa, what time period must discrimination lawsuit be initiated

within 2 years

when must money a customer has given be returned if the customer recinds

within 20 days

what does fha require for downpayment and closing costs

3.5.

terms for rural development gurantee program

30 year, no down payment.

mdia corrected disclosures

3rd day after delivery, closing can occur.

hoepa disclosures

1. A written notice stating the loan does not have to be completed even though the borrower has signed the loan application and received the disclosures. 2. That the borrower could lose the home and any money put into it if they fail to make payments. 3. The APR, the regular payment amount (including any balloon payment), the loan amount, and that the rate and monthly payment may increse (only in the case of variable rate loans).

What are the restrictions on HOEPA loans (Home Ownership and Equity Protection Act)

1. Balloon payments on loans with a term of less than 5 years. This does not apply to loans of less than 1 year if the loan is a bridge loan connected with the acquisition or construction of a dwelling intended to become the consumer's principal dwelling. 2. Negative amortization cannot be allowed. 3. Advance payments from the loan proceeds. 4. Adjustable rate mortgages (ARMs) are not allowed. 5. Rebates of intrest from loan acceleration are not allowed. 6. Prepayment penalties are not allowed. 7. Due on demand clauses are not allowed. 8. All covered loans must establish an escrow account for payment of taxes and insurance and become part of their PITI.

what form does irs have to requrest transcript of a tax return

4505-t

Under what circumstances ARE prepayment penalties allowed on a HOEPA loan (Home Ownership and Equity Protection Act)?

1. If the penalty can be exercised in the first 5 years. 2. If the source of prepayment funds is not a refinancing by the creditor or an affiliate. 3. If the consumer's total monthly debt at the loan's consummation does not exceed 50% of their total monthly income.

fair houseing act restrictions

1. It is illegal to threaten, coerce, intimidate, or interfere with anyone exercising a fair housing right or assiting others who exercise that right. 2. Advertising shall follow the same guidlines regarding discrimination (which applies to single-family and owner-occupied housing that is otherwise exempt). 3. Landlords must allow tenants to make reasonable modifications for the sake of handicap accessibility at their own expense.

subprime risk indicators

2 30 day delinquincies in the last 12 months. judgement int he past 24 months bankruspty last 5 years high default probablity by 660 or below credit dti 50% or greater

copies of right to recind?

2 to each borrower.

vor how long

2 years

years of employment

2 years

under ecoa, how long does a lender have to retain a copy of any submitted application for credit

25 months

max urar adjustment

25%

critera for loan to be covered by hoepa

1. orignial mortgage must exceed treasury rate by more than 8 points. 2. second loan lien must exceed the reasury rate by ten points. 3. total fees and points payable by the consumer closing exceed the larger of 611 or 8% of the total loan amount.

tolerance apr under TILA

1/8th of one percent

what are the tolerance limits on disclosures made on fge

10%

ecoa penalties

10,000. or 500000

penatly for respa 8 violations

10k or one year in prison

eligibility for usda rural development gurantee

115% medium income max. reasonable credit histories.

sercicing transfer statement

15 days before the effective date of the loan transfer.

max net adjustment allowed on app

15%

fha pmi must be in place

5 years

VA max gurantee

50750 or 25%

max ltv for fha loans

580 is 96.5 500 90%

penalty for willingly giving false informaition under tila

5k fine or imprisonment for 1 year

how long must a lender keep all collected data under hmda

5years

time to improve credit score

6-9 months

under ecoa how long does a person have to request explanation of reasons they were denied credit

60 days

under the mdia, once early disclosure a re mailed how soon can a loan close

7 biz days

credit report info

7 years

state requried licenisng requrienments

8 hours of ce each year

FHA 251 loans

ARM 1 year t-bill index. 1-4 units.

AARMR

American Association of residential mortgage regulators. an association of state agencies regulating the residential mortgage industry.

Which agency enforces FCRA

CFPB consumer financial protection bureau

COFI

Cost of funds index. an average of rates paid on checking and savings accounts by a regional sample of us banks. one of several indexes used to set interest rates for arms

ECOA and marital status

ECOA allows inquiry about marital status to determine the applicants rights and remedies.

SAFE ACT

Established by the State bank of supervisors and the american asociation of residential mortgage regulators

FCRA

Fair credit reporting act. Reporting agencies use procedures which are fair and quitable regarding confidentiality, accuracy and relevancy of personal info.

GNMA

Government national mortgage association. the actual guarantee agency for federally guranteed morgages by VA, FHA, RHS, and PIH. Ginne Mae's mortgage backed securities are the only MBS that are guaranteed by the federal government.

watchdog federal agency

HUD

HOEPA

Home ownership protection act. Amendment to TILA. addresses deceptive practices. rules for these loans are contained in section 32 of reg z for high rate/high fee loans.

no requirement complete statement is requried by what act?

MDIA. morgage disclosre improvement act

act requiing this statmentL you are not required to compled this agreement merely because you have recied these disclosures or signed a loan application"

MDIA. mortgage disclosure improvement act

TILA non trigger terms

No down payment APR

What act requires GFE

RESPA

Equal Credit Opportunities Act

Requires notice of adverse action to be given to an applicant.

2/1 buydown

This is a process used by lenders to help borrowers qualify for a loan. It can be used on almost any fixed rate loan. The borrower's loan payments for the first 24 months are subsidized. The 2-1 reeferes to the equivalent payment for an interest rate below the actual note rate. The note rate may be 7%, which would mean the first year they rate would be 5%, and the second it would be 6%, staying at 7% from the third year onward. The borrower may qualify at the lower first-year rate for higher LTV loans. A subsidy account is set up by the lender and can be funded by borrower, seller, or lender.

TILA

Truth in lending act. requiring APR, term, totcal costs to be disclosed on docs

hmda

home mortgage disclosure act. requires aplication data to be provided to federal reserve to identify discrimination.

section 8 violation under respa

accepting an item of value outside of closing

va eligibility

active duty for 90 days or 181 days during peacetime

net adjestments are calculated on URAR

adjustment divieded by original price

how can rate caps be written

adjustment period cap precedes the lifetime cap. 2/6 means 2% increase per adjustment period, 6% over the life of the loan

Standard components of a title commitment

agreement to issue policy. schedule a: commitment date, policies to be issued, interest in the land, legal description. schedule b: requirements for issuance, exceptions.

purchase contract

agreement to purchase

requirements for mortage insurance under fha

all loans are required to have morgage insurance. upfront premiums are a perenctage of the loan amount and added into the loan. mip must remain for atleas 5 years and ltv must be 78% or less in order to drop mip

conversion option of an arm

allows borrower to convert arm into fixed.

what is section 6 of respa

allows for qualified written requests regarding escrow accounts.

alta

american land title association. the national trade association of the abstract and title insurance industry. created standards and forms used by title companies. every title policy is an alta policy

how is hazard insurance calsculated

amount x insurance factor divided by 12

prime rate

best rate available to a lenders best customer.

warehousing

borowing funds on a short term basis to fund loans until they are sold

complete application: BLAMES

borrower name loan amount address monthly income estimated value of property social security

to assure a given rate at settlement

borrowers must lock in rates by paying a fee when they apply for financing

BPO

broker price opinion. written opinion of value offered by a licensed real estate agent

cash back scheme

buyer and seller collude to to decieve the lender to the true sale price of the property. the seller gives the buyer cash back outside of closing

dodd frank added 3 prohitions for mlo compensation

cannot be based on loan terms or conditions. cannot come from both consumer and lender. cannot be based on particular types of loans.

documents used to determine capital

cash, bank statements, stock account statements

what agency oversees tila

cfpb

redislcosing gfe

changes greater than tolerance.

occupancy fraud

claims to be owner occupied

4 c's of underwriting

collateral, capacity, character, capital

cRA

community reinvestment act. Encourages depository institutions to meet credit needs of communitites in which they operate.

different appraisal method

comparison, cost , income

comparables

comps. other properties used to determine value

how long after bankruptsy before new homeloan

conforming 4 years from discharge. fha and va 2 years from discharge

hoepa

home ownership equity protection act. the law addresses certain deveptive and unfair lending.

appraisals are good for

days

how might a depository insittuion be penalized for a poor cra community reinvestment act

denied requests to open new branches

what authority oversees and enforces the patrio act

deparment of homeland security

VA

department of vererans affairs. guarantees loans for vets.

community reinvestment act

depository insitutions meet credit needs of communitites

what is a fannie maes autamated underwriting system

desktop underwriter

fha title ii section 203 h loans

destoryed by naureal dissaster, red taged and have certificate from fema, delcared area a disaster area, 100% fiancning fixed or adjustable

Graham leach bililey

disclosure on an annual basis of their policies for collectin and sharing nonpublic information. possibility for consumers to opt out of disclosures of their nonpublic information to nonaffiliated third parties. cannot disclose account access info of consumers to 3rd party marketers.

fha gifts

docmunet relationship, source and transfer

TILA trigger terms

down payment amount any payment number of payments period of repayments amount of finance charge Required Disclosures If any triggering term is used in a closed-end credit advertisement, then the following three disclosures must also be included in that advertisement: 1. The amount or percentage of the down payment; 2. The terms of repayment; and 3. The "annual percentage rate,"using that term spelled out in full. If the annual percentage rate may be increased after consummation of credit transaction, that fact must be disclosed.

prohibited by ecoa

dsicrimination b/c race, color, religion, national origin, sex, marital status or age, source of income, or made a complaint under ecoa.

respa section ten escrow accounts

each month the lender may require the borrower to pay 1/12th of the total of all disbursements payable during the year plus an amount necessary to pay for any shortage inthe account.

what act requires a request for credit to be given within 30 dyas

ecoa

what reg requires right to a copy of appraisal?

ecoa

how did the financial insitutions reform recovery and enforcement act adjust the requirements of the home morgage disclosure act?

expanded coverage of hmda to include more insititutions. required reporting data regarding applications for mortgages and home improvement loans. required lenders to identify the race

legislation requires the credit score information disclosure

facta. fair and accurate credit transactions act

facta

fair and acurate credit transaction act. additions to the fair credit reporting act. help fight identity theft

frca

fair credit reporting act. a law requiring lenders rejecting loan requests because of credit information to inform the borrower of the source of such information.

fcra

fair credit reporting act. requries credit reporting agencies to be fair in reporting

fnma

fannie mae.GSE to increase access to mortgages.

what tells consumer they have a right to fair representation of their credit history?

fcra. fair credit reporting act.

ffiec

federal financial insittions examination council collects demographic data submitted by lenders under hmda

freddie mac

federal home loan mortgage corporation

fha

federal housing administration. a divisuion of hud. insures morgages.

va loan funding fee

fee paid by borrower to help cover the costs of foreclosure. may be included into the loan.

MIP

fha mortgage premium. upfront mip and monthly .

FICO

fiar isaac corporation. credit score.

settlement

finalizing all dealings.

firrea

financial insitutions reform, recovery, and enformcent act. created regulatory entities to oversee thrifts and created guidlines for qualified thrift lenders

concessions

financing concessions: help borrower offset some closing costs associtated with loan. My come from sellers or real estate agents. Sale concessions: property or contract related concessions. carpet allowance, repair allowance. The value of concessions are considered when calculating the max loan amount and can result in a lower loan amount because the amount of concessions will be deducted from the property value before calculating the max mortg amount.

MLO Licensing Requirements

fingerprinting, credit report, criminal record, preslicense education, passing test by 75%

Fees telemarketers pay in order to recieve copties of do not call list

first 5 area codes are free. $58 after. 15, 962 for entire list annualy.

verification employment form

fnam 1005

application

fnma 1003, fhlmc 65 hud 92900, va 26/1802a

Fannie mae stands for

fnma. federal national mortgage association

fannie mae

fnma. largest mortgage investor

required monthly payment income

front ratio divided by monthly payment

alienation clause

gives lender rights when property is sold or transfered.

what are fha title ii section 245a loans

gpm. graduated payment mortgages. loan has scheduled negative amortization.qualify at intitial monthly payment.

gpm

graduated payment mortgage. payments start loaw and increase before leveling out. involves neg am

financial modernization act aka

graham leach bliley act

what legislation requires financial pricay act notice to be given

graham leach bliley act

glbA

graham leach bliley act. established privacy rules and how creditors handle nonpublic information.

Front end ratio. front end DTI

gross monthly income X .28. Compare the answer to the project house payment.

max payment

gross monthly income x front ratio.

when are active military personeel eligible for a va loan

have having served on a continuous active status for at least 90 days

section 32 loan

high cost loans which require additional disclosures

section 32 mortgages

high rate or high fee loans addressed and governend in section 32 of TILA

hpml

higher prices mortgage loans section 35 reg z aka tila. average prime offer rate. a survey based estimate of aprs currently offered on prime morgage loans of comparagle type.

the regulation which requires lenders to indentify race sex color

hmda home mortgage disclosure act...as adjusted by the financial insitutions reform recovery and enfrocement act.

who do predatory lenders target

hoemowners with equity, credit problems, who need cash. people in financail need e

tenancy

holding of realestate under any kind of title.

HECM

home equity conversion mortgage. a section 255 FHA loan. Reverse mortgage.

hecm loan mature

home equity conversion mortgage. borrower sells. last person passes away. last person oves away

HECM loan

home equity conversionmortgage. 62, principle, meet fha standards, no other leins, attend hud approved hecm counseling program.

heloc

home equity line of credit

under respa when does mol not have to mail disclosures

if credit app is denied proir to the 3 business day deadline

under fcra is written authorition to obtain a credit report required

if the infomration is being gathered for the purpeose of extending credit, a written authorization is not requried

5 key elements of arm

indiex, margin, adjustment period, rate caps, start rate

disclosure

information relevant to specific transactions as required by law

hazard insurance

insurance to provide compensation incase of property loss or damage.

fha again

insures residential mortgages

joint tenancy

interest goes to surving tennatn

teaser rate

introductory rate to entice the borrower into the loand

hecm responsibilities

keep property insured. pay property taxes. keep property in good repair.

what is covered by section 8 of respa

kickbacks and other fees that drive up the cost of products to consumers

respa

law governs lending practice and disclosure. GFE and HUD within 3 days of loan app

federal privacy law title V of the graham leach bliley act

law imposing restrictions on the useof customers nonpublic personal information

mortgagee

lender

sub prime lending

lending to weakened credit borrowers

payment adjustment period

length of time between changes to arm

delinquency

loan in which payment is overdue but not yet in default

llpa

loan level pricing adjustments. up front fee charged for mortgage loans with higher risk profiles to offset potential losses.

prohibited acts covered by hoepa

loan proceeds cannot be paid directly to the home improvement contractor. selling a loan without disclosre to the purchaser could be liable for all claims and defenses. refinancing one hoepa loan with antoher to the same borrower within the first 12 months. extending credit to the borrower based on the colateral without regard to their ability to repay. hoepa loans cannot be reloving credit type oans.

conforming loan

loan that conforms with fannie and freddie

dodd frank mlo presentation requiriements

loan with lowest interest rate. lowest total costs. loan with lowest rate without negative features. must show loans where apr cannot increase, can increase, and reverse mortgages, a reasonable number of loan options.

conventional loans

loans not insured by fha, va, or sub prime

libor

london interbank offered rate. used as arm index

depreciation

loss of value due to all causes. physical deterioration, functional obsolescence and economic obsolescence.

how can hecm payouts happen

lump sum, line of credit, term payments, tenure payments a combo of any of the above.

purpos of ecoa

make credit available with fairness

mortgage fraud

material misrepresentation to deceive a lender

NIV

no income verification loan.

can a borrower be penalized for making apayment to the old servicer

no, as long as they made a timely payment within 60 days of the loan transfer

what is the loan called when it exceeds conforming limits

non conforming, and jumbo

what does fair houseing act require of proeprty owners

non discrimination for sale or rental based on race, color, national origin, sex famly status or handicap

noo

non owner occupied

under facta, what must an mlo provide an applicant when obtaining a credit report on them

notice to home loan applicant, credit score disclosure.

what is pmi underwritin

once loan is underwritten, pmi is underwritten

basis point

one hundreth of one percent.

points

one time one percent.

what fees can be charged the consumer prior to recieving the TIL disclosure

only a fee for the actual cost of the credit report.

what extent can a mlo inquire about age, marital status, source of income etc...

only to determine applicants legal capacity.

under the fcra, can mlo give a copy of the credit report obtained

only when the credit info used for the credit decision differs fromt he info obtained in the credit report

hecm fees

origination fee. closing costs, upfront mortgage insurance. monthly orgage insurance

employmentincome fraud

overstating income

o/o

owner occupied

ltv for conforming

owner occupied: 90, 95, 80. second home:95. investment property: 90 90

property flipping fraud

purchasing, falsely appraising property for a higher value, then selling. requires collusion with an appraiser or falsified documentation that inflates the value of the home.

yield

ratio of investment income to total mount invested over a period of time

RESPA

real estate settlement procedures act. prohibits kickbacks. requires lenders to provide gfe, and hud-1, or hud-1a,

elements of a adverse action statemetn

reason for denial of credit. identity of persons or office from which statement may be obtained.

redlining violates what statutes

refusing to make loans in particular neighborhoods. violates ecoa and fha

ecoa is also known as

reg b ALSO KNOWN AS REG B: to promote the availability of credit to all creditworthy applicants without regard to * race, * color, * religion, * national origin, * sex, * marital status, * age * public assistance * exercised any right * prohibits creditor practices that discriminate on the basis of any of these factors. * requires creditors to notify applicants of action taken on their applications * to report credit history in the names of both spouses on an account * to retain records of credit applications * to collect information about the applicant's race and other personal characteristics * to provide applicants with copies of appraisal reports used in connection with credit transactions.

respa aka

reg x

what is the ecoa also known as

regulation b

what is resp aka

regulation x.

TILA regulations

regulations regarding advertisements offering credit.

fha ttile ii 203 k loans

rehab loans min 5k

dti

relationship between the borowers long term debt payments and the monthly income

ammortization

repayment of amortgage debt with equal payments.

title report

report consisting of a survey, a phusical inspection of the collateral, and a search of the records

consideration

required element of all contracts by which a legal right or promiseis exchanged for the act or promise of another person.

gfe block 3

required services lender selects. cannot change more than ten percent

tcpa,

telephone consumer protection act. do not call list

personal information disclosure

tell where information is shared within the lending company and how to limit that sharing if desired

tolerance for block 5 on gfe

ten percent

what agency oversees FACTA

the CFPB consumer financial protection bureau

capacity

the ability a borrower to repay. documented by tax returns, w2 forms, pay stubs, and bank statements.

reconveyance

the acto fo a lender giving the borrwer interest in the property upon loan fulfillment

margin called spread

the amount lender adds to the index to determine the fully indexed rate.

mortgagor

the borrower

what bureau did dodd frank create

the cfpb. consumer fiancial protection bureau. and indpendent bureauwithin the federal reserve system

Construction to permant loan

the conversion of a construction loan to a longer term tradition mortgage after construction has been completed.

deficiancy

the deifference between outstanding balance an proceeds from sale

back ratio

the dti ratio a lender will allow for piti and regular monthly debt.

ltv

the loan amount divided by the value of the property

dodd frank created

the office of fair lending and equal opportunity

prepayment

the payment of all or part of a mortgage before it is due.

term

the period of time between commencement date and termination date of a note. / contract.

float

the period of time between the reipt of the borrowers funds and the remittance of those funds to investors

subordination

the process of a creditor taking a lower priority position for collection of their debt

Loan servicing

the process of recieving payments, customer service, administering escrow, investor accounting, collections, and foreclosures.

if consumer is not made aware of their right to rescind

the recission period will lapse on the earliest of the folowing 3 events: 1. the expiration of 3 years after consummation of the transaction. 2. transfer of all consumers interest in the property. 3. sales of consumers interest in the property.

fee simple

the right dispose of property or pass it on to ones' heirs

collection

the servicing procedure followed to bring a delinquent mortgage

net worth

theasests minus liablities

equity skimming

using a straw borrower to sign a property over to a rea borrower by quit claim deed. buyer rents out property until forclosure takes place

blockbusting

using race to induce panic selling

VOD

verification of deposit. FNMA form 1006, is asking to berify funds availability for down payment

where must employer send voe

verification of employment. directly to the lender

vom

verification of rent (mortgage) a form used ro verify retnal payments.

price fixing

when 2 or more entities agree to se tthe price of certain services

what is the failure to disclose liabilites

when a borrower conceals financial obligations.

builder bailout scheme

when a fuilder inflates the cost of ahome he is trying to sell. the lender loans on the actual value but believes the builder to have already been given the inflated amount as a down payment.

balloon morgage

when a loan balance is due before fully maortizes

pattern or practive of discrimination under ecoa

when evidence establishes discriminatory actions were the regular practice.

when a new til

when the apr become inacurate. must be revieved no later than 3 days before consummation

under mdia when are early disclosures condidered to have been delivered

when they are delivered to the consumer or when they are placed in the mail


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