Real Estate Finance
Up to what amount will the FDIC insure
$250,000
FHA Requirements
13% of total debt ratio that doesn't exceed 43% and a minimum credit score of 500 to 620
FHA insures the adjustable rate mortgages under section
251
Credit Scores range between
300 to 850
PMI loan to value ratio is in excess of
80% must meet Freddie Mae and Fredi Mac guidelines
Albert wants to sell his house to his cousin, who is willing to assume his FHA loan. What clause in Albert's mortgage requires him to obtain lenders approval to do this?
Alienation Clause
Affects Real Estate Supply
Construction
Freddie Mac targets
Conventional Loans from thrifts and mortgage related securities
Corporate Bonds
Corporate Assets
Stimulus Package
Created the American Recovery and Reinvestment Act 2009 (ARRA)
U.S Department of Housing and Urban Development
Creates strong, sustainable, jnclusive communities and qualify affordable homes for all.
Factors that influence property value
DUST
HMDA, Home Mortgage Disclosure Act
Documents and publicly disclose lending practices
CFPB was created
Dodd Frank act protects consumers of financial services
Alienation Clause
Due on sale Clause
Prohibits Lender discrimination
ECOA
Prohibits lenders from denying credit to applicants on the basis of their protected class?
ECOA, Equal Credit Opportunity
Protected Class
Equal Credit Opportunity
Created as a result of the Housing Economic Recovery Act
FHFA, The Federal Housing Finance Agency
Illegal property flipping
Falsely inflated appraisal
Secondary Market
Fannie Mae, Ginnie Mae, Freddie Mac, national instutions of the Federal Home Loan Bank. (FHLB)
Freddie Mac is regulated by the
Federal Housing Finance Agency
Recourse
Gives the lender the right to file a judgement lien on the borrower for conveyance of the property. 9==\]][=-
Celia was obtaining a conventional loan, and she put down $50,000 as a down payment. Why might her lender also requiire her to obtain PMI
Her down payment of $50,000 is not at least 20% of the purchase price. When loan to value ratios exceed 80% lenders will require PMI
Creates a second mortgage
Home equity
Second step in appraisal
Identify the data needed
Appraiser may way more heavily on a factor of __________________ when appraising a three unit rental property
Income
CFPB, Consumer Financial Protection Beureau
Investigates Consumer Complaints regarding Financing Services
If someone is being sued for a dog bite
Involuntary General
Farm Credit System
Is a Government Sponsored Enterprise
Interest Rate Reduction Refinance
Is not required to submit a COE, get a new appraisial, or verify income for veterans using them.
The purpose of the COMMUNITY REINVISEMENT ACT is to
It requires that lenders invest in development and rehabilitiaton efforts that enable low and moderate income individual and families to afford a home
Armitage Bank is placing the Kellermans in default for failure to pay their home owners insurance. The lender is concerned about property damage and _____________?
Judgement Liens
What is another name for an Installment Sale Contract
Land Contract
Which of the following is part of the other disclosures section
Liability after foreclosure
Federal Housing Finance Agency established percentage targets and _______________________ for loans made to low to moderate income borrowers?
Limits for conforming loans
Page four of the closing disclosure
List penalty for late payments, whether a demand feature applies, wheather the loan can be assumed, the use of an escrow account
Reflects on real estate demand
Loan availibility
Chinese
Majority of forigin investors in U.S. real estate
Loan adjustments or modifications are recasting and
Moratorium or forbearance are all options of being behind on their mortgage.
Unsolicited call from a company offering to reduce a loan
Mortgage Compassion scam
Texas Veterans
Must serve at least 90 days active duty days
Foreclosure by Advertisement
Notification of pending auction, public auction, notice of eviction
Partnership where lender is financer and partner
Partnership between morgagees and mortgagors
Torrens System,
Perform Title Search
individual entrepreneurs
Private loan resources
Non-Recourse
Prohibits the lender from going after the borrower for a foreclosure sell.
Residnetial property owners don't often default on property taxes due to
Property taxes are usually paid with monthly mortgage payments.
Two most common methods used when a bank fails are the payout method and the _________________ Method " A bank may become insolovent"
Purchase and assumption
Regulates Closing Cost, and Settlement Procedures
RESPA, Real Estate Settlement Procedures Act
Federal Reserve
Receives Paper Currency, Once the Bureau of engraving and printing prints the Federal Reserve Notes, they are shipped to the Federal Reserve.
Property under valued and large supply of homes on the market
Recovery Phase
To remove PMI from a FHA loan you can
Refinance to a conventional loan
Judicial Foreclosure
Requires court involvement
Adjustable Rate Mortgage
Section 251
Fewer Properties
Sellers Market
Fewer properties available in the market than there are interested buyers
Sellers Market
First step in appraisal
State the problem
The FDIC will not insure
Stocks
When a veteran assumes a VA loan, the ________________ agreement can restoroe the original buyers level of entitlement as if the loan were repaid in full.
Substitution of entitlement
When the Torrens system is used to perform a title search, who acts as title guarantor in case a claim is filed?
The State
Disclosure
The Truth in Lending Act requires lenders to make certain _________________ to consumers?
voluntary conveyance of a deed
The borrower hands over the property to the lender rather than forclosure proceedings.
New Homes
The construction of which items has the largest influence on the country's economy?
Many lenders slowed their lending activities. Why
The economy headed into recession
To get a loan modification
The lender will perform a title search to make sure there are no other liens
The right of a borrower to redeem the property by paying amounts owed plus costs, even after the foreclosure sell
The statutory right of redemption
When does mortgage insurance requirement end for a VA loan
There is not mortgage insurance requirement for a VA loan
VA Loans and Buydowns
They are allowed only on fixed rate loans
Federal Housing Administation FHA is part of the
U.S Department of Housing and Urban Development
Ginnie Mae, mortgage backed securities
U.S. government agencies
Guidelines Appraisers must folloow
USPAP
Substitution of Entitlement
When the new borrower agrees to use their own entitlement when asssuming the loan, the original borrower's entitlement is completely restored. The agreement that is signed is called substitution of entitlement.
Liability after foreclosure
Which of the following is part of the other disclosures section
International buyers 3 types
Work Visas, looking for a second home, looking for a home as investment
Disintermediation
a period of time during which banks experience more withdrawals than deposits
Dodd Frank 2010
created stricter regultion of the financial services
Farm Credit System
government sponsored enterprise
Ginnie Mae
gurantees HUD programs allows mortgage lenders to obtain a better price for their mortgage loans
Foreclosure may occur
if you do not pay a lien against your property
Page 2 Closing disclosue
list amounts,borrower, seller, other
FHLB Banks
members can borrow up to one year without collateral
Alienation Clause
requires the property owner to obtain lender permission for a buyer to assume the loan, or risk having the loan accelerated.
FHLBanks, in addition to lending money, what else must they do
set rules and regulation that member banks must follow, which includes reserve requirements.
One of HUD's goals
to strengthen the housing market and bolster the econoomy
Consumer Financial Protection Bureau
uses education, enforcement, and research to promote fairness and transparency for consumer financial services.
Community Reinvisement Act
was a response to the practice of redlining and was enacted in 1977
When do borrowers face default on their loan
when they miss payments, let property go into disrepair
Buydown
will cost more than a temporary buy down
