Affinity Power Points #2 Flashcards
Affiliated business arrangement is a situation where a person in a position to refer settlement services has an affiliate relationship with or a direct ownership interest of more than ___ in a provider of settlement services and refers business to that provider.
1%
Lenders must perform escrow account analyses how many times a year and what must they notify the borrower of?
once a year and notify borrowers of any shortage.
– Any excess of $50 in the escrow account must be returned to the borrower
At settlement what disclosure gets sent out?
Final Closing Disclosure
Initial Escrow Statement (within 45 days of closing)
What is sent out within the 3 days while you run out the credit report?
SCIB
LE
ISTD
ABA
The TILA-RESPA Integrated Disclosures were implemented to?
Help consumers become better and more informed shoppers
How many days should the servicer notify the borrower of Servicing Transfer?
15 days
when is Sales comparison approach used?
To help determine value by comparing similar, recently sold properties
When is cost approach used?
To determine the amount necessary to construct a replica of that property. The appraiser must consider the following:
Site valuation
Replacement cost
Depreciation
When is income approach used?
Income approach is the preferred way of appraising a rental value by using an estimate of the rent that property could earn
What is need for a complete application?
PENCIL
What must be available for at least 10 business days from when the loan estimate is provided
Estimate of charges and terms for settlement services
What does TILA overview?
- the disclosure of interest rates or finance charges imposed by lenders
- APR and Advertising
- 3-day right of rescission
- applies to transactions that are for more than 4 installments.
How long must TILA disclosure be kept for?
2 years
What is a note?
A promise to repay debt
What is a mortgage?
A mortgage is the pledge of collateral to secure the loan
