Term
| The new RESPA rules changes somewhat ____ the ____ between RESPA and TILA. |
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Definition
| blur the line (I thought this would be good to know) |
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Term
| What is the traditional definition of "application" in the world of mortgage lending? |
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Definition
| an oral or written request for an extension of credit that is made in accordance with the procedures established by a creditor for the type of credit requested. |
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Term
| What 6 items of information should be enough for an originator to be able to produce an accurate GFE for a borrower? |
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Definition
1. Name
2. SSN (to obtain a credit report)
3. Gross Monthly Income
4. Property Address
5. Estimate of property value
6. The amount of the mortgage loan sought. |
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Term
| Once a good faith estimate has been delivered, a creditor can not collect any type of fee other than a credit report fee for how long? |
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Definition
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Term
| What is the penalty for violating the three day waiting period when it comes to colecting fees? |
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Definition
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Term
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Definition
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Term
| What are the first 7 things that are filled out at the top of the GFE? |
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Definition
Name of Originator
Originator Address
Originator Phone Number
Originator Email
Borrower
Property Address
Date of GFE |
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Term
| What three things are below the top boxes on the GFE. |
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Definition
1. Purpose of the GFE
2. Shopping for your loan
3. Important Dates |
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Term
| What is the stated purpose of the GFE. |
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Definition
| It is intended to give the borrower an estimate of his settlement charges and loan terms if he is approved for the loan. |
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Term
| What are important dates listed on the GFE? |
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Definition
1. Interest rate is available through _____.
2. Estimate for all other charges is available through ______.
3. After you lock your interest rate, you must go to settlement within __ days after the lock period.
4. You must lock interest rate at least __ days before settlement. |
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Term
| What is included in the summary of the loan? |
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Definition
| Loan amount, loan term, initial interest rate, can interest rate rise?, can loan balance increase even if payments are on time? Can principal, interest, and insurance rise? Prepayment penalty? Balloon Payment? |
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Term
| What are the bottom two categories on the GFE? |
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Definition
1. Escrow account information.
2. Summary of Settlement Charges |
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Term
| What is contained within the summary of settlement charges? |
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Definition
1. Adjusted Origination Charges.
2. Charges for all other settlement services. |
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Term
| What is contained within the adjusted origination charges? |
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Definition
1. Origination charges
2. Points |
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Term
| What is contained within boxes 3-7 of the settlement charges on the GFE? |
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Definition
3. Required services that we select.
4. Title services and lender's title insurance
5. Owner's title insurance
6. Required services that you can shop for
7. Government recording charges. |
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Term
| What is contained within boxes 8-11 in the GFE? |
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Definition
8. Transfer Taxes
9. Initial deposit for escrow account.
10. Daily interest charges
11. Homeowners insurance. |
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Term
| What four categories are listed on the last page of the GFE? |
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Definition
1. Understanding which charges can change at settlement.
2. Using the tradeoff table.
3. Using the shopping chart
4. If your loan is sold in the future. |
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Term
| What charges cannot increase at settlement? |
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Definition
1. Origination charge
2. points
3. Adjusted origination charges after locking interest rate.
4. Transfer taxes. |
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Term
| What charges can increase up to 10% at settlement? |
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Definition
Required services that we select
Title services and lender's title insurance
Owners title insurance
Required services that you can shop for
Govt. Recording charges. |
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Term
| What charges can change at settlement? |
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Definition
Required services that you can shop for.
Title services and lender's title insurance
Owners title insurance
Initial deposit for the escrow account
Daily interest charges
Homeowner's insurance |
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Term
| What does the section titled "if your loan is sold in the future" state? |
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Definition
| "Some lenders may sell your loan after settlement. Any fees lenders receive in the future cannot change the loan you receive or the charges you paid at settlement. |
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