section 17
Identify the five items that should be included in a property management agreement.
-0wner's covenants Property manager's scope of authority Description and location of property Insurance provision Property manager's fee
South Carolina High Cost and Consumer Home Loan Act
-Prohibits lenders from flipping loans within 42 months unless a tangible benefit is provided to the borrower -Prohibits lenders from charging points or fees to borrowers who are refinancing from the same lender -Limits points or fees of more than 2.5% for borrowers refinancing through a different lender than the lender financing their current loan -Prohibits prepayment penalties on loans of $150,000 or less -Prohibits balloon payments
Some borrowers may qualify for a foreclosure intervention. What are the requirements?
-borrower lives on property - it is their primary residence
RESPA doesn't apply to transactions for land tracts of ___ or more acres.
25
Consolidates consumer financial protection into one agency. Regulates the actions of large banks as well as non-bank financial institutions. Works to educate consumers about how credit works.
CFPB
Requires financial institutions to invest in the communities they serve
CRA
Requires lenders to invest in development and rehabilitation of the communities they serve
CRA- community reinvestment act
Recovery act that includes SAFE and MDIA
HERA
What's the purpose of the Community Reinvestment Act?
It requires that lenders invest in development and rehabilitation efforts that enable low- and moderate-income individuals and families to afford a home.
Eliminates illegal referral fees among settlement service providers
RESPA
protectsconsumersfromunconscionablelendersandloanpractices. Thelaw takes effect January 1, 2004.
South Carolina High Cost and Consumer Home Loan Act
What is TRID?
TILA-RESPA Integrated Disclosures
Joyce and Danny purchased a home in 2009 for $280,000. They received a homebuyer credit of $8,000. Their friends Margie and Scott purchased a home in 2010 for $320,000. Margie and Scott didn't receive a homebuyer credit. Why not?
The homebuyer credit was part of the stimulus package enacted in 2009 and was only effective between January and December of 2009.
Under RESPA, a rebate of a licensee's commission may be offered to a transaction party, provided which of the following is true?
The rebate is not required for referral of business.
he Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______.
The subprime mortgage crisis and economic meltdown of 2007-2008
When Stacy's clients ask her if she can recommend a mortgage broker, she promptly gives them the name of the best mortgage broker she knows, Gary Jones. Later, she always receives a check from Gary as payment for the referral. Is this legal or illegal under the Real Estate Settlement Procedures Act?
This is illegal under RESPA because it's considered a kickback between settlement service providers.
equires agencies to keep the public informed of their organization, procedures, and rules.
administrative procedure act- APA
This is the legal process of discharging or restructuring a borrower's debts.
bankruptcy
alternatives to foreclosure include deed in lieu of foreclosure, short sale, or ______.
bankruptcy
Which of the following is a tactic used by a predatory lender?
encouraging debt
requires that a borrower be provided with a disclosure statement within three days of receiving his/her loan application.
regulation Z
The borrower pays all amounts owed (and possibly the entire loan amount).
repayment
Zack and April are purchasing a home. They apply to three different lenders and review the Loan Estimates they receive. Each form includes a field identifying the National Mortgage Licensing System ID number for the lender. What is the act that requires this licensing identification to be available to consumers?
safe act
This option results in proceeds insufficient to cover the amount the borrower owes and has to be negotiated with the lender.
short sale
With this alternative to foreclosure, borrowers receive permission from their lender to sell the property for less than the amount owed on the borrower's mortgage.
short sale
A major component of the Housing and Economic Recovery Act was the HOPE for Homeowners program, which aimed to ______ by helping subprime borrowers refinance into more affordable fixed-rate mortgages.
stabilize the housing market
The borrower has equitable title, but the lender or trustee holds legal title to the property.
title theory
in sc, If a deficiency judgment will be sought, bidding will remain open for 30 days after the foreclosure sale. t/f
true
The Mortgage Disclosure Improvement Act gives applicants a three-day ______ to review and approve the Loan Estimate and Closing Disclosure form.
waiting period
The American Recovery and Reinvestment Act provided mortgage assistance to ______.
wounded service men and women
in SC foreclosures, A Notice of Sale must be published for the ____ leading up to the sale.
3 consecutive weeks
The maximum legal interest rate in the state is If a prepayment penalty is legally charged, it can't exceed Transfer fees are _____ per $500 of the purchase price.
8.75 percent 2 percent $1.85
Erin is purchasing a new house in South Carolina for $160,000. She's financing 90% of the sales price. What does the Consumer Protection Code permit in terms of prepayment penalties?
A prepayment penalty isn't permitted on Erin's loan because the loan is for $150,000 or less.
What's the acronym for the legislation that established processes and procedures for how federal agencies propose and enforce regulations?
APA administrative procedures act
Called the "stimulus package," its goals were to create and save jobs, spur economic activity, and increase accountability and transparency in government spending
ARRA
The ______ was enacted in 1946 in response to the creation of several new federal agencies. It established a process for how the agencies could propose and establish regulations.
Administrative Procedure Act
The ______ was a response to the practice of redlining and was enacted in 1977.
Community Reinvestment Act
created the CFPB to support its mission of providing stricter regulation of the financial services industry
Dodd frank act
Prohibits lenders from denying credit to applicants on the basis of protected class status
ECOA
Which of the following is part of the Consumer Financial Protection Bureau's mission of consumer protection?
Enforce consumer financial protection laws.
Your buyer clients, the Thompsons, told you about a problem they ran into with the lender that handled their mortgage. The Thompsons, who are African American, were given less favorable loan terms than a white couple they know who used the same lender. You know the Thompsons have excellent credit. Which act should you make them aware of?
Equal Credit Opportunity Act
Included the SAFE Mortgage Licensing Act and Included the Mortgage Disclosure Improvement Act
HERA
was created to address the subprime mortgage crisis.
HERA
Requires financial institutions to report their mortgage data
HMDA
What's the acronym for the legislation that requires financial institutions to document and publicly disclose lending practices?
HMDA
Allows review of lending data to evaluate where mortgages are given and where they are not
HMDA- The Home Mortgage Disclosure Act (
This act amends TILA to require specific timing related to disclosures that give consumers time to think about the loan they're about to obtain
MDIA
Foreclosure sales usually take place on the first ______ of each month at the courthouse.
Monday
What's the acronym for the legislation that regulates closing costs and settlement procedures?
RESPA
Regulation Z codifies the rules of the ______.
Regulation Z codifies the rules of the ______.
sets a minimum standard for licensing and registering mortgage loan originators (MLOs)
SAFE act
help to provide improved consumer protection by giving borrowers better information when applying for a loan
SAFE; MDIA
The Mortgage Disclosure Improvement Act amends ______ in terms of the timing of lender disclosures.
TILA
was created to ensure that consumers had access to all of the information needed to make informed purchasing decisions in their financing.
TILA- truth in lending act
was a response to discriminatory practices by lenders that made credit unavailable to people or offered less favorable terms based on protected class status, and not on their credit-worthiness.
The Equal Credit Opportunity Act (ECOA)
creates a level playing field for real estate licensees and protects consumers from increased costs due to illegal kickbacks and referral fees among settlement service providers.
The Real Estate Settlement Procedures Act (RESPA)
The _______ requires lenders to disclose financing terms to consumers in a manner that's not misleading or deceitful.
Truth in Lending Act
Dawn and Steve are planning to purchase a home, but are wary of the commitment of a mortgage. However, they have no other way to make home ownership a reality, so they decide to educate themselves on the process for obtaining a mortgage loan. Where would you recommend they go for clear, consumer-oriented education on this topic?
cfpb website
RESPA doesn't apply to _____
commerical loans
Because of the Mortgage Disclosure Improvement Act, the only advance fee that a creditor can charge to a consumer before providing required loan disclosures is a(n) ______ fee.
credit report
The borrower surrenders the deed to the lender.
deed in lien of foreclosure
A third party holds legal title to Jackie and Tom's house until their loan is paid off. What type of security instrument was used to secure the real estate transaction?
deed of trust
The mortgagee goes after the mortgagor for the amount owed and not covered by an auction sale.
deficiency judgment
if a lender seeks a ______________, the borrower may be liable for the difference between the foreclosure sale amount and the lien amount on the property, and possibly even costs associated with the foreclosure sale.
deficiency judgment
What happens if the foreclosure sale isn't enough to pay off the mortgage lien against a property? Some states allow lenders to seek _________ to recoup the difference
deficiency judgments
Requires the lender to file a lawsuit to initiate a foreclosure sale
judicial
South Carolina uses a _____ foreclosure process.
judicial
Because of the Secure and Fair Enforcement for Mortgage Licensing Act, borrowers can determine if mortgage loan originator is ______.
licensed and registered
SC is a ____ theory state
lien
The borrower holds legal and equitable title, and the lender has a lien against the property.
lien theory
Which two of these are the names of the disclosure forms related to RESPA?
loan estimate closing disclosure
Which practice involves talking the consumer into refinancing over and over so a lender can charge fees?
loan flipping
The borrower works with the lender to restructure or change the terms of the existing loan.
loan modification
A borrower in a title theory state will likely sign different types of loan documents than a borrower in a lien theory state. what will they sign if it is lien? what if title?
mortgage deed of trust
Are there currently any federal or South Carolina laws in place to protect tenants of residential properties going through foreclosure?
no; The federal Protecting Tenants at Foreclosure Act of 2009 expired in 2014.
The Dodd-Frank Act created the CFPB in part to regulate ______, which were among the largest originators of subprime mortgages prior to the financial crisis of 2007‒2008.
non-bank lenders
It may be used if the deed of trust includes a power-of-sale clause.
non-judicial foreclosure process
Most often following a foreclosure sale, the proceeds are used to pay off the _________. If funds remain, proceeds are used to pay off ________ in order of lien priority. If proceeds remain after all liens are paid off, that money will be returned to the _______
property's mortgage loan; junior liens; mortgagor
