Nmls

25 months

When the number is disconnected, reassigned or when the consumer chooses to remove it.

2 months cushion

Reviewed annually and if the account has more than $50 in overage it will be refunded

Single, 1-4 family dwellings, condo's and manufactured homes places on a lot.

Amount collected for escrow accounts

A rate is quoted or present

Limit amount in escrow, eliminate kickbacks and educate borrowers on the closing cost, it does NOT regulate interest rates

$10,000 and/or 1 year prison terms for each incident.

Federal Trade Commission (FTC Red Flag Rules)

When the principal Balance reaches 78% of the original value or purchase price

Before or at the time of the referral

TILA REG Z

Gramm-Leach Bailey Act

True

Failing to lend to certain geographic areas

An Affiliated Business Disclosure Statement as mandated by RESPA

GLB Acts Safeguards Rule

GLB Acts Safeguards Rule requires all companies to design, implement, and maintain Safeguards to protect customers information from theft on the disposal of consumer report

Loans secured by a first or subordinate lien on a residential property that meets stated RESPA criteria. The definition is so broad it covers virtually every home loan secured by a mortgage.

Notice of right to financial privacy and right to opt out of sharing personal information

Prohibited against giving or receiving a fee, kickback, or anything of value pursuant to an agreement or understanding for the referral of settlement business

An arrangement in which one person refers applicants to a settlement service provider with whom the referring person has ownership interest of 1% or more

Protect consumers by ensuring borrowers know the amount they are to deposit into escrow by preventing lenders from overcharging borrowers for escrow deposits

Up to $10,000 and/or one year in prison

ECOA is intended to promote the availability of credit to all creditworthy applicants and prohibit discrimination

1 day; After August 1, 20th the closing disclosure is required to be given 3 days prior to closing

It is unlawful not to accept an application due to the type of income it is not however unlawful to turn them down if the income is not enough to qualify them for repayment

Regulation B (B for Borrower is protected)

All businesses and individuals that regularly extend consumer credit that is primarily from family or household purposes. Regularly extend credit means more than 5 mortgages per year

A lender or service provider marking up 3rd party costs from the purpose of retaining the additional funds

Always

30 days from receipt of a loan application

Credit scores

FCRA (Fair Credit Reporting Act)

Fair Housing Act

HMDA regulation Cindy (Home Mortgage Disclosure Act)

FCRA ( Fair Credit Reporting Act )

Telemarketing sales rule

To establish an identity theft prevention program outlining methods to prevent security breaches at a company wide level

False, nothing of value, regardless of the amount

When you do not advertise a rate, Payment terms or amount of a finance charge in conjunction with the General Advertising term

No, Reg Z (TILA) specifically prohibits the use of advertisements that include any misleading get statements regarding tax benefits of a home equity plan

A property is bought and resold within a very short period of time, sometimes the same day typically with a inflated appraised value

An individual who accepts a free to provide his/her name, SSN and other personal information for use on a mortgage application, the motivation is to cover the true identity of the person sitting at the closing table

An individual who accepts a fee to falsely claim ownership to a property. Falsified documents are normally used to complete the transaction (title and deeds)

A loan obtained on a property where a structure does not exist yet has been presented as having a property on the lot.

Occurs when a mortgage industry employee forges a deed transfer and obtains a new lien on the property without the homeowners knowledge

When a fraudulent real estate investor obtains a contract on a property with an inflated cause and offers to sale the contract to an unknowing buyer for a fee.

Fraudulent information on loan application is the most common committed by borrowers

A through the "common sense" analysis of the application information and documents relating to the mortgage loan request

To detect watermarks and printed fraud prevention patterns. Technology allows to produce high quality fraudulent documents . Most have incorporated prevention techniques.

Buyer beware - if the buyer is provided all the info and disclosures, they will ultimately be responsible for understanding the terms

If any format of fraud related activity takes place around a particular loan, the originator (broker) is responsible from buying the loan back

It occurs when loans are made to homeowners based solely on the equity in their homes with no regard to other credit. This is an unethical practice because it can "strip" homeowners of their equity and leave them with larger loans than they can pay for

Failing to lead to certain geographic areas or segments of the population

Targeting consumers to charge them more than in rates and fees

Never, they remain permanently as of the DNC Improvement Act of 2007

90 days from taking an application or 18 months from a completed transaction are okay to contact.

"Suspicious Indentification Information" such as an address that doesn't match the address on the credit report, a SSN identified in the report states a being invalid

Within 3 days of application

True, in writing or electronic form. Clearly describe the institution's practice of sharing nonpublic personal information

RESPA (Reg X) (X stands for X-ray of your RESPA'tory system)

The most attractive features of a credit plan such as: rate, finance charges, payment terms, down payments, and monthly payments

TILA requires clear and conspicuous presentation of relevant terms when triggers are used. Other relevant terms must have equal prominence so the consumer doesn't have to read the fine print.

Reg B

To make credit applications equally available and to allow the request of credit without fear of discrimination of protected classes

2 years

$10,000 each violation and $25,000 for patterns of misconduct

Home Mortgage Disclosure Act ( Regulation C)

X-ray of your RESPA'tory system

"Zila the TILA "or " unTIL I Z you again"

Regulation Z, TILA

$5,000 and/or 1 year imprisonment unless class action then $500,000 or 1% of net worth

Fair Credit Reporting Act

Do Not Call Registry

Every 31 days

Rate is presented or quoted

Permanently unless consumer removes number or the number is assigned to another person

The consumer

Secure and Fair Enforcement

Gramm-Leach Bliley Act

GLBA or Gramm-Leach Bliley Act

20/8 hours

Obtaining customer information by flash pretenses (Known as pre-texting)

As often as necessary

Anything other than a 30 year fixed rate loan

No waiting period

7 years

2 for 1

2 hours

Approve or Deny

$25,000

MLO

Federally registered MLO's

State licensed MLO's

NMLS unique identifier

Only 1

Unlimited

An advertisement

5 years

30 days in between each failed attempt

6 months

Best Efforts Contract

Bait and Switch

Annual

December 31st

Make/Arrange

NMLS/R

The loan estimate provides estimated cost to close and the closing disclosure shows the actual costs at closing

A permanent change in the terms of a loan (either term, interest rate, or both) in response to a borrower's long-term inability to make payments

A loan on which the payments cover the principal and interest required to pay the loan balance off the schedule

Mortgage that requires the borrower to make one large Payment at the end of the loan term. This payment may also be referred to as a "call","demand", or a "bullet"

The margin in an ARM is a fixed number (index + margin = new rate)

The agreed upon adjustment frequency established in the ARM

A limit on the amount an interest rate can change over the life of an ARM ( aka rate ceiling)

No index usually associated with an ARM

$417,00 (this limit goes up to $625,500 for high cost areas)

A limit on the amount that the interest rate can change during any adjustments periods

A limit on the amount that the interest rate can increase during the first adjustment period for an ARM

A monthly mortgage payment is not large enough to pay all of the interest due on the mortgage therefore the balance is not reduced, also known as deferred interest

One extra payment. Bi-weekly collects payments every two weeks resulting in 13 payments

A conventional loan, (one NOT insured by the government) that meet the guidelines for purchase established by FNMA or FHLMC

A mortgage with an interest rate that may change one or more times during the life of the loan

A conventional loan that does not meet the FNMA or FHLMC guidelines

VA has a funding fee. The fee ranges from .5 to 3.3 but is waives for qualifying disabled veterans. Remember, a non-conventional loan is one that is insured by the federal government

The maximum VA home loan guarantee is 25% of conforming VA home loan amount

A limit on the amount the payment can change during one adjustment period on an ARM

A loan NOT insured by the government. (NOT a FHA,VA, or USDA loan)

4 times the amount listed on COE

No...FHA and VA do not not make loans they insure(FHA) or guarantee (VA)

USDA (US Department of Agriculture) aka Guaranteed Rural Housing Loans

True, it's also referred as the COE

Yes, in addition to the primary fixed rebate program for the purchase or refinance of 1-4 family dwellings, FHA offers programs for the purchase of a condominium

Non-conventional loans are government insured loans while non-conforming loans are conventional loans (non government loans) that don't mean FNMA and FHLMC underwriting guidelines

60 days

True, FNMA and FHLMC do not allow borrowers to obtain seller financing also known as concessions. Seller concessions are limited to 6% with a buyer paying 10% or higher down payment or limited to 3% for less than 10%

A purchase transaction, often involving an assumable mortgage, in which the party selling the property provides or part of the financing. Also knows as Owner Financing

In an ARM, the interest rate indicated by adding the current index value and the margin

Periodic payments on a loan requiring Payment for enough principal and interest to ensure complete repayment of the loan by the end of the loan term

Examples of some standard items that are never included in finance charges are: charges payable in comparable cash transactions, such as fees for appraisals, documents preparation, title insurance, pest inspections, seller's point and membership fees

Transaction Fees, Originator Fees, Consumer Points, and Broker Fees

Also known as a permanent buy buydown, a rate discount allows the borrower to pay a discount point (s) to permanently reduce the rate of the mortgage

1% of the loan amount is equal to a point. Example, 1 point on a $100,000 loan would be equal to $1,000 and 3 points would be equal to $3,000

Before or during the referral by the referring party

The paying of fees (buying) to reduce (down) the payments on a mortgage and qualifying for a larger loan. A buy down may be permanently or temporary.

A person or entity to whom an obligation is owed, such as a loan

Finance Charge is a uniform measurement of the cost of a loan expressed in a dollar amount and an APR is measurement of the cost of a loan including interest and financed cost of closing, expressed in a yearly percentage

True

Market approach is also know as Sales Comparison Approach or Market Data Approach

FNMA uses Desktop Underwriter(DU) answer FHLMC uses Loan Prospector (LP)

The worst case scenario is the highest interest rate the loan could produce over the life of the loan based on the interest rate and adjustment cap

An adjustable rate mortgage that uses the Cost of Funds Index (COFI) for interest rate adjustments

Also known as the Fully Indexed Accurate Rate (FIAR). This is the "real" or "true" interest rate of an ARM. ARM's often. Have introductory or temporary discounted rates. The full indexed rate is the result of adding the index and margin.

One of the ways to own property by more than one person (concurrent ownership). The co-owner must be husband and wife, both of whom own the whole property. When one of the two dies their interest goes to the surviving spouse

Zero - 0%

Borrower places funds in escrow is an amount sufficient to offset the monthly payment required by the terms of the loan for the desired period. These funds temporarily reduce the payment amount, the note rates doesn't change during the buy-down period

GSEs- Government Sponsored Enterprises, which are not government agencies but have the implied support of the government, they purchase pools of loans that conform to their guidelines, and sell mortgage backed securities

Funding fee

True

Brokers arrange loans through a banker or lender and brokers don't funds the loans. Bankers originate and fund loans in their own name for resale in the secondary market

78% LTV. A homeowner can request the lender from PMI when the LTV reaches 80% but PMI is not automatically dropped til 78% (22% equity position)

PMI is Private Mortgage Insurance is required by lenders on conventional loans where the LTV is more than 80% and MIP is Mortgage Insurance Premium is required on FHA loan regardless of the LTV

Planned Unit Development. Most commonly a subdivision having common areas reserved for the use of some or all of the property owners in development

An agreement made by a lender to hold (lock-in) specified number of points whole processing an applicants loan

Equal and undivided ownership of a property by 2 or more individuals, taking possession together and acquiring title at the same time. When one co-owner dies, their interest goes to the other co-owner(s)

A loan that exceeds the maximum loan limits backed by FNMA and FHLMC ( loans in excess of $417,000)

Primary is made up of all activities involved in the origination and closing of loans. The secondary is where previously made loans are bundled and sold to investors

A type of lock in agreement that allows the interest rate or points to rise and fall with the market while the processing the loan. You may lock in rates and float points, lenders may agree to float both

Loans made to borrowers whose debt to income ratio (DTI) or credit characteristic do not meet the guidelines of Fannie Mae or Freddie Mac

PMI - private mortgage insurance

Fee simple implies that the property being purchased includes the improvements and the land. Leasehold implies that the property being purchased only includes improvements. The land it sits on would be leased.

Principal, Interest, Taxes, and Insurance (PITI)

Note (or promissory note). Neither a mortgage or a deed of trust contains a contractual promise to pay

True

Published interest rate that is used as the basis upon which the note rate of an ARM will adjust. Typical indices are Treasury Bills Index, the 11th District Cost of Sunday Indexes (COFI) and the London Interbank Offered Rate (LIBOR)

The use of discount points to lower the rate of interest of the full term of loan

Judicial - the mortgage includes a clause that requires the lender to file a lawsuit, requesting the court to enter an order to foreclosure.

Non-judicial - the deed of trust includes a power of sale clause allowing the lender to being foreclosure without filing suit.

A uniform measurement of the cost of the loan expressed as a dollar amount

A loan that requires only interest payments. At the end of the loan, the borrower essentially owns a balloon payment at the entire principal of the loan

A purchase transaction, often involving and assembly mortgage in which the party selling the property provides all or part of the financing

When the lender agrees to reduce pay off on a loan when the subject property is sold

Yes, VA may be assumable. The buyer must meet credit qualifications, but does not have to be a veteran

The stated interest rate on a mortgage or loan agreement

Fees which lenders may receive for selling or transferring a mortgage loan servicing rights

True, also known as a junior mortgage

GSE is an estimate of cost at closing and HUD1 is the cost at closing

Allows an older homeowner to use the equity in their home to received fixed monthly payment, line of credit or a combination of payments and credit line. Borrowers must complete counseling with a HUD approved HECM counselor in order to obtain the loan.

Age of property

Income approach

The bundling of mortgage loans to resell to investors, they become mortgage backed securities (MBS) and are sold on the secondary market

The revenue earned from the resell of pools of loans to investors

London Interbank Offered Rate

The Investor/Lender

23% which is the down payment and closing as cash to closing

$5,780.25

70% LTV

78% CLTV

83% TLTV

HELOC

The mortgage recorded first

Taxes

Lender

True

Credit score

Conveyance

Reconveyance

Satisfaction of mortgage

22%

RESPA

Too young to enter a legally binding contract

Variable rate

10 days

Loan modification

Forbearance

At the time the referral is made by the referring party

Lifetime of the loan

Failing to pay off a loan

LP loan prospector

No bid

43%

Fully indexed rate or start rate whichever is lower

Three days of application and provide probably no later than 3 days

15%

7%

3.25%

100% of structure

80% of dwelling

MARS (Mortgage Assistance Relief Service

After the modification is complete

CFPB Consumer Financial Protection Bureau

25% or more

Notice from the FBI that fraud is investigated by FBI and is punishable by up to 30 years in federal prison and 1 million dollars or both

Copies of income tax returns for the past two years and information on current income of commissions represent 25% or more of the annual income

RESPA requires within three business days after the application

It's the standard application for a mortgage loan

At the time of the referral

VOE verifies employment and year to date income and the VOD verifies the status and balance of financial account (s)

The likelihood (express as %) that the servicing on a mortgage will be sold or transferred to another party

A self-employed applicant must show through adjusted gross income on tax returns that he has maintained and income for two years in order to qualify for a mortgage loan

RESPA - Regulation X. States that it must be provided within 3 business days after application on purchase transactions

RESPA requires a 15 day notice prior to the effective date of the transfer. New services is to also provide notice 15 days after the transfer

Front is the housing payment (PITI)calculated from the gross monthly income and the back end is the house payment plus the consumer debt as compared to the monthly gross income

Gross Monthly Income

$3,120 per month - breaks down as $18 per hour X 40 X 52 / 12

As long as the borrower has been receiving overtime for two years and employer can verify it will continue

$2,925: $1,350 x 26 weeks ÷ 12 months gives monthly average

If court ordered and shows a stable history of receiving payments. Must show proof and 3 year continuance

Voluntary is one that the owner give consent to the lien such as a mortgage.

Involuntary is one such as a Tax lien, or other unpaid debt

Debt Ratio, Debt to Income Ratio (DTI), Bottomed Ratio or Total Ratio

Unmarried

Loan amount requested or principal balance divided by appraised value or purchase price (which ever is less)

LTV takes into consideration only the first mortgage balance and the CLTV considers both the first and all other mortgages on the home

When the applicant resides in, or if the property is located in, a community property state

It considers the house payment and all other consumer debt (recurring debt) and divided by gross monthly income (PITI + Recurring Debt/ gross monthly income = Back end ratio)

Vacancy factor is 25%, so 75% will be used unless otherwise noted on the 1040 Schedule E-Real Estate

Uniform Residential Appraisal Report

Sales approach looks at recent sales in the area that have similar characteristics to the subject home and the COST approach assumes used to it cost to construct a substitute residence that has the same utility and uses the subject property being appraised

Unmarried

Only one person would need to execute the rescission notice

No, however their debt will be considered into the debt to income ratio (Community property states, each spouse is responsible for the other debt even if they didn't sign on to the obligation)

Net is 15%

Single line adjustment is 10%

Gross adjustment is 25%

Housing Ratio, Housing Expense, Ratio to Top Ratio

Income approach

Title Theory - a Deed of Trust is executed and borrower gives legal title (ownership) to the lender while retaining use of the home until the debt is paid off.

Lien Theory - borrower retains both legal and equitable title. The mortgage serves as a lien against the property

Private Insurance Carriers

31/43

A record of all transfers of ownership of subject property

ECOA - 30 days from application

Yes, a loan becomes eligible for funding three business days after closing. Those days are aren't day other than Sunday and legal public holiday

NA/41%

There is not front end ratio for VA loans

A legal remedy to void a contract between two parties, restoring each to the position held prior to the transaction

Any person signed on the note or who has ownership interest in the property being used to secure the love must be given two copies

Sunday and federal public holidays. If the feds don't work they don't enforce

28 / 36

7 years

A type of wholesale lending arrangement when mortgage brokers are permitted to originate, and close a loan in their name for a wholesaler who has made the credit decision and funded the loan with an immediate assignment by the broker after closing

Consumer Reporting Agencies (CRS's), Equifax, Experian, and Trans union

15 days from the seller of the loan and 15 days after the loan has been transferred is the new servicer required to send the notice

GNMA is a government agency, the others are not.

GNMA insures FHA,VA, USDA, and HECM. FNMA and FHLMC purchase conventional mortgage loans

Indefinitely, however, some jurisdictions ha e different requirements with greater consumer protections

Chapter 7 - 10 years

Chapter 13 - 7 years from discharge

Chapter 11 is not reported

A loan that starts with a payment based on a rate 2% lower than the actual rate for the first year, 1% for the second year and at the actual casual rate year three and at the actual rate year three and beyond. It is a fixed rate product

HECM or reverse mortgages

False

Payment Options Arms: allows a borrower to choose from 4 options to make their payment each month...30 year payment, 15 year payment, interest only payment or a minimum payment resulting in negative amortization.

Yes, as long as the buyer qualifies and the funding fee is .5% for the VA assumption

Notice of Value (NOV)

2.15 for active duty (first time users) and 2.4 for reserve or guard

3.3%

Yes, is case of a service connected disability or surviving spouse of a veteran who had a service connected disability

Funding fee are returned is miscalculated or if the veteran would have been exempt

Federal Housing Administration

VA loans

60 days

VA Loans

A loan that is backed by a federal government

Service Release Premium: this is the amount a lender would receive over and above the current outstanding hence as a premium on sale of loan in the secondary market

Balloon Mortgage; 30 year amortization with a 15 year ballon

6.5%

5.5%

96.5%

3.5%

31%/43%

100%

4 times the COE

$36,000

1%

29%/41%

100%/102%

2%

30 years

No

1008

Credit, Capacity, and Collateral

Divorced

25%

Federal Emergency Management Agency

4506T

Right away, zero days

Martial status

Paid out of closing

Pre-paid Finance Charge

Government National Mortgage Association

Federal National Mortgage Association

Federal Home Loan Mortgage Corporation