Term
| GFE has 4 fee areas, name them |
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Definition
Lender charges
Title charges
Government Charges
Prepaid & Deposits (real-estate tax, homeowner ins, flood ins) |
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Term
Housing & Economic Recovery Act (HERA) 2008
Moved GSE's (government sponsored enterprise)
oversight to what organization? |
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Definition
| FHFA - Federal Housing Finance Agency |
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Term
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Definition
| Government sponsored entity (i.e. Freddie & Fannie) |
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Term
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Definition
Fair Housing Finance Agency
Created in 2008
Governs GSE's |
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Term
| FTC red flag rules are promulgated under? |
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Definition
| FACTA (Fair and Accurate Credit Transactions Act) |
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Term
| What does RESPA section 6 cover? |
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Definition
Servicing after the loan has closed
(i.e. transfers of loan service) |
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Term
| Government monitoring is most likely found |
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Definition
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Term
| How many types of mortgage fraud (name them) |
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Definition
2
Fraud for profit (Industry insider fraud)
Fraud for Housing |
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Term
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Definition
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Term
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Definition
Freddie Mac
Federal Home Loan Mortgage Corporation
Promotes Mortgage availability across the nation |
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Term
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Definition
| Principle, interest, tax & ins |
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Term
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Definition
| Transferring property to a new owner who takes responsibility for the existing mortgage debt sans incurring any change in terms. |
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Term
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Definition
| The transfer of ownership of real-estate from one owner to another |
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Term
| What is seller carry-back? |
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Definition
Seller acts as the bank, provides financing to the buyer.
It is a second mortgage. |
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Term
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Definition
| It is the transfer of real property that takes place when the mortgage loan is fully paid off. |
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Term
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Definition
Home Owners Equity Conversion Mortgage
A reverse mortgage |
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Term
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Definition
Mortgage insurance premium - required by FHA
It is required for 5 years |
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Term
| Define Non-Traditional Loan |
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Definition
| Interest-only mortgages, payment option adjustable rate mortgages (ARMs) and subprime mortgages. |
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Term
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Definition
| The most common FHA loan. |
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Term
| What is a loan sans buyback provision called? |
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Definition
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Term
| What is a reverse loan acceleration clause? |
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Definition
acceloration clauses cause a Reverse mortgage loan to become due & payable.
clauses:
Adding an owner
taking out new debt
renting out the home |
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Term
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Definition
| It has a fixed rate during the first few years of the loan. When the fixed rate period expires the loan becomes adjustable rate loan. |
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Term
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Definition
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Term
| What is a right to cancel notice? |
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Definition
Under Tila, it is the recission notice.
Only owner occupied property loans are subject to recission. |
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Term
| Who prosecutes cases of mortgage fraud? |
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Definition
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Term
| S.A.F.E is a component of what parent legislation? |
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Definition
HERA 2008
Housing & Economic Recovery Act
Establishes Nationwide licensing registry & education standards. |
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Term
| What is the fine for violation of the Telemarketing Sales Rule? |
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Definition
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Term
TILA triggering terms:
When minimum payments as low as... are advertised
what must be included in the ad? |
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Definition
| Balloon payments may result if payments above the minimum are not made. |
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Term
| What does section 32 of TILA deal with |
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Definition
Section 32 (aka HOEPA)
2 thresholds that create added protections & provisions.
1 Points & fees threshold
2 APR threshold |
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Term
| How often must a business update its do not call registry? |
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Definition
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Term
| According to GLB when does a customer relationship exist? |
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Definition
| As soon as a borrower provides nonpublic, personal information. For mortgages this happens at application. |
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Term
| What does section 10 of RESPA prohibit? |
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Definition
States the max amount of deposits collected in escrow cannot exceed 1/6 of total annual disbursements.
The servicer is prevented from overcharging anymore than 2 months. |
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Term
| What legislation requires originators to ask for information to be collected to monitor for discriminatory lending practices? |
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Definition
| HMDA Home Mortgage Disclosure Act |
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Term
| Under ECOA a broker is defined as? |
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Definition
| A person who regularly refers applicants to creditors or selects or offers to select creditors to whom requests for credit can be made. |
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Term
| SAFE Act licensee financial responsibility is measured by? |
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Definition
Credit Report
net worth
surety bond
payment to state fund (licensing fee) |
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Term
| Under TILA what is not covered under right to rescind? |
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Definition
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Term
| What is the first act to combat predatory lending? |
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Definition
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Term
| On a conforming loan how long does the purchaser have to establish residency? |
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Definition
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Term
| What kind of loans are typically covered by HOEPA section 32? |
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Definition
| Refinance and home equity |
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Term
| A consumer report is defined under what act? |
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Definition
FCRA
Fair Credit Reporting Act |
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Term
| A PMI payment made after PMI is cancelled must be returned in ___ days |
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Definition
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