A7 Flashcards
When a borrower is qualifying for a VA guaranteed loan, what would not apply?
PMI
Funding fee, certificate of reasonable value, and certificate of reasonable value all relate to VA loans. PMI does not
FHA Title I was created for what reason?
Home Improvement loans
The interest on a conventional loan is?
Simple
The total amount of the VA guaranteed loan entitlement is?
Determined by Congress
A veteren wishes to place a refinance loan on his existing home with a VA loan. The lender will make the loan at 10% and 2 points. What is true.
The veteran may take the loan and pay the points.
Is US citizenship required for an FHA insured loan
No, US citizenship is not required
The maximum VA loan limit is?
Determined by the lender
PMI covers?
Portion of the loan over 80%
When a variable rate loan quotes a specific margin, what is true?
The margin is set at the time of the loan
The main appeal of FHA loans to the borrower is?
Minimum down payment
A variable rate loan is characterized by what?
amortized payments
The back-end ratio of a loan would apply to what?
Total monthly obligations divided by gross monthly income
When a lender is allowed to determine if a borrower qualifies for FHA insurance the process is called?
Direct Endorsement
According to RESPA a lender must disclose what?
If the loan will be sold
Which law requires Disclosure of Affiliated Businesses?
RESPA
Which law pertains to NO BAIT AND SWITCH advertising
Truth in Lending
Which law restricts kickbacks and referrals?
RESPA
What is a lender required to give a borrower under RESPA?
Loan estimate and the closing disclosure
Who is responsible to deliver the RESPA information to the buyer?
Lender
When a new VA loan is created, who pays for the Tax Service Fee
Seller
When a buyer obtains a new VA loan, who pays for the document preparation fee?
Seller
What must show on a settlement sheet according to RESPA?
Origination fee
Which law would govern residential close of escrow disclosures?
Real Estate Settlement Procedures Act
When a borrower is qualifying for a VA guaranteed loan, what would not apply?
PMI
When a borrower takes a variable rate mortgage, what is true regarding the margain
It remains constant for the life of the loan
What would not be covered by Regulation Z
Seller carryback financing
What is the most frequently used FHA insured loan?
203B
Interest paid on an amortized real estate mortgage is paid…
in arrears
APR is regulated by what?
Reg Z
According to Reg Z and RESPA what is not prorated in escrow?
Title Insurance
What regulation required the lender to show the true interest rate?
Reg Z
A three day right to rescind originates from?
Reg Z
The purpose of RESPA is to
Disclose a loan estimate in 3 days
When a lender’s advertising is considered bait and switch it would be regulated by?
Truth in Lending
How do you determine the front end ratio of a loan?
Monthly PITI divided by gross monthly income
