Affinity Video / Artricia Woods Flashcards

Question

How long must TILA disclosures be kept on file?

Answer 1

``` 2 Years (All *Loan Estimate (3 Years) and Closing Disclosure (5 Years) ```

Answer 2

- Loan Estimate - Closing Disclosure - CHARM Booklet (only when they get ARMs) - When Your Home is on the Line (only when you get HELOC or Refinance)

Answer 3

Effective Rate

Answer 4

- Nominal Rate | - Note Rate

Answer 5

- 5K a day for single violations - 20K a day for reckless violations - 1M for violating TRID

Answer 6

- Also called the 373 Rule - 3 Days for Initial Disclosures to go out - 7 Day gap needed between closing and initial disclosures going - 3 Day waiting period for significant changes to CD/LE * 3 Day Rule Redisclosure not required for Bonafide Financial Emergency*

Answer 7

All Calendar Days except for Sundays and Legal Holidays | *For purposes of Initial Loan Estimate Business Day is any day the bank is open for business*

Answer 8

0-9 days - Business Days | 10-30 days - Calendar Days

Answer 9

Under TILA, If an ad uses a number to describe credit terms, and that number is NOT APR, then it triggers.

Answer 10

- Also called safe-harbor | - Government protects lenders from foreclosure and repays lenders if the borrower meets the QM terms

Answer 11

- 43% DTI Back End Ratio - No Doc Loans or NINA loans NOT ALLOWED - Loan originator cannot charge more than 3 discount points - Loan term cannot be more than 30 years - No Interest Only Loans - No Prepayment Penalties - No Negative Amortization

Answer 12

- Income and Assets - Employment Status - Monthly Mortgage Payment (PI) - Monthly Mortgage-Related Payment (TI and HOA) - Monthly Payment on Simultaneous Loan - Debts (on a credit report), Child Support, Alimony - DTI or Residual Income - Credit History

Answer 13

- Average Prime Offer Rate | - AKA What are the average rates today?

Answer 14

-Hard money loans

Answer 15

- ECOA (Discrimination on a credit application) | - Fair Housing Act (discrimination on sale and rental of property)

Answer 16

- Sex - Race - Color - Religion - National Origin - *Age - *Marital Status - *Receiving Public Assistance (Welfare, SS, Disability Child Support, Alimony)

Answer 17

- Sex - Race - Color - Religion - National Origin - *Familial Status - *Disability

Answer 18

-Are you married, unmarried or separated?

Answer 19

25 Months | *Someone would need to sue within 24 months

Answer 20

They have to request it within 90 days and the lender has to provide it within 30 Days

Answer 21

They have to get it 3 days prior to doc signing/closing?

Answer 22

- Blockbusting (REAs trying to induce an owner to sell because minorities are moving in) - Steering (REAs trying to get someone to buy in a neighborhood because of their race, religion etc.) - Redlining (Lenders denying financial services in certain neighborhoods based on race, religion etc.)

Answer 23

Redlining laws

Answer 24

- FHA - 1 Year | - ECOA - 2 Y-ar

Answer 25

- Request: When the LTV has reached at 80% or paid down by 20% - Cancel: When the LTV has reached at 78% or paid down by 22%

Answer 26

-Every 30 days/Monthly

Answer 27

-Don't get this mixed up, FCRA is about a credit REPORT while ECOA is about a credit APPLICATION

Answer 28

- Written Adverse Action Notice - Credit Report (free) - Credit Score (not free) - Dispute Incomplete/Inaccurate Info - Limit Pre-Screen Offers

Answer 29

-Name -Address -Phone Number of Credit Reporting Agency

Answer 30

- Denial of credit - Victim of Identity Theft - Victim of Fraud - Unemployed - On Public Assistance

Answer 31

FCRA, then it was determined more laws were needed to protect consumers so FACTA was introduced later.

Answer 32

- Verify the validity of any change of address - Businesses must shorten your account number - Allows you to place a credit freeze or password on your credit report - Must burn, shred, or keep locked client information

Answer 33

- No conditions but you can only get it once a year. | - Annualcreditreport.com

Answer 34

- DOB - SS# - Ethnicity

Answer 35

Make sure to remove names of people before cold-calling and make sure you update the list every 31 days

Answer 36

16K per violation

Answer 37

People who you have an Established Business Relationship with (meaning they bought something from you)

Answer 38

- The law that deals with foreclosures, short sales, loan mod scams - Bans the collection of fees until a buyer accepts an offer - Bans sellers telling buyers they can't speak to their lenders

Answer 39

-Anytime you spend or deposit more than 10K you go on a list to track money laundering activity or terrorist activity

Answer 40

A traditional mortgage is a 30-year fixed and a non-traditional is everything BUT a 30-year fixed.

Answer 41

Conforming loans CONFORM to the standards of Fannie and Freddie, therefore they can sold on the secondary market. whereas non-conforming loans don't conform and they cannot be sold on the secondary market. Non-conforming loans are AKA as jumbo loans.

Answer 42

Subprime loans basically allow for more risk, where as prime loans have less risk.

Answer 43

- Interest Only Note AKA Straight Note - Partially Amortized Note - Balloon Payment - Negative Amortization Note - Principal grows - Fully Amortized - AKA Self Liquidating Loan

Answer 44

An acceleration cause speeds up when the payment is due because of default/late payments (immediately) while an alienation clause gives the lender the right to have loan payment due due to a transfer of ownership (sale or gift).

Answer 45

Index - This is what changes (LIBOR, COFI) Margin - Stays the same, set by the lender Rate - Index + Margin

Answer 46

- Discounts paid to get a lower rate - AKA Points - Based on loan amount (1% of loan amount)

Answer 47

- Balances of the loan increases, while the equity decreases - Borrower has to at least be 62 - FHA Reverse Mortgage is a HECM - Tenure Method - Monthly payments received vs a large lump sum

Answer 48

- Borrower passes away - Borrower sells the home - Borrower ceases to live in the property for consecutive 12 months - They don't pay their taxes and insurance

Answer 49

A loan that has smaller payments initially but then requires a larger payment be due at the end of the loan

Answer 50

A loan that can be fixed and adjustable. Typically will be fixed initially and then change to ARM

Answer 51

A borrower has to make 26 payments instead of 12, every other weeks

Answer 52

A blanket mortgage covers more than one parcel of land

Answer 53

A bridge mortgage bridges the gap between mortgage and another. Typically happens when borrower is selling one house to move into another but they don't yet have the proceeds of the home sale. So they take out a short term mortgage to cover the closing costs of the new home.

Answer 54

- The loan starts completely over, meaning the terms change - Loan that requires a net tangible benefit, has to make sense for the borrower in the long run, meaning they are saving money

Answer 55

An open end HELOC means you can get more money over and over again (revolving) but a closed end means once you use the whole amount you were approved for, you cannot get more.

Answer 56

- AKA an interim mortgage - Loan to build the house, and buy materials, labor but it's not the loan on the house - You still have to get a loan for the house and that's the permanent financing (called a take out loan)

Answer 57

- AKA Shared Appreciation Mortgage - Lender gets part of the equity of the home once it ever becomes sold - Typically a loan modification

Answer 58

- A mortgage that includes personal property - It includes the appliances, furnitures or upgrades in a home - Typically type of loan for new construction

Answer 59

- The existing mortgage is retained by the lender and then the lender gives the borrower a new larger loan - This is not a refinance - Not common since it does not really make sense

Answer 60

1. Loan Origination 2. Processing 3. Underwriting 4. Closing/Funding

Answer 61

The loan is now in servicing which includes simply paying the principal, interest, taxes and insurance on a regular basis.

Answer 62

- Fannies uses Form 1003 | - Freddie uses Form 65

Answer 63

- Automated Underwriting (AUS) | - Manual Underwriting

Answer 64

- Fannie uses Desktop Underwriter (DU) | - Freddie uses Loan Product Advisor/Loan Prospector

Answer 65

- They are not insured -> like FHA - They are not guaranteed -> like VA - DTI Ratios 28%/36% - PMI is required for <80% LTV - Late Fee is 5% of PI only not TI

Answer 66

- They are insured by FHA - They have MIP and UFMIP (1.75%) - Down Payment is 3.5% - DTI Ratios 31%/43% - Maximum seller credit is 6% - Brwr must move in within the first 60 days and agree to stay a year - Late Fee is 4% of PI only not TI

Answer 67

- They are guaranteed (Max is 25% of the PP or Value) - Documents Needed: Discharge Paperwork and Certificate of Eligibility (shows eligible amount) - DTI Ratio 41% - VA Appraisals: Certificate of Reasonable Value - Non-refundable Variable Funding Fee (unless disables or surviving spouse) - No Down Payment Necessary - Brwr must move in within the first 60 days and agree to stay a year - Brwr must have residual income - Maximum Lender can charge in fees is 1% - Late Fee is 4% of PI only not TI

Answer 68

- 100% financing to buy in rural areas - Does not come from the bank it comes from the Department of Agriculture - No Max Loan Amount - Late Fee is 4% of PI only not TI

Answer 69

1. Cost Approach - For Vacant Land, New Builds or Unusual (Weird Architecture) or Special Purpose (Hospital or School) 2. Income Approach - Purpose of the property is to generate income (businesses) 3. Market Approach/Sales Comparison - Most common and needs Min of 3 Comparables

Answer 70

-2 Years of Tax Returns

Answer 71

- 2 Years of the same line of work | - If not must show certification of schooling for new industry

Answer 72

Proof that payments will continue over the next 3 years

Answer 73

Fixed income/Tax-Free income like Social Security can be grossed up by up to 25%

Answer 74

75% of rental income

Answer 75

Form a lender uses to get a tax transcript of the borrower's tax returns

Answer 76

Form a lender uses to get the borrower's complete tax returns

Answer 77

- Always start with a gross monthly income - Understand the difference between bi-weekly (26) and bi-monthly (24) - Always use the lesser of the sales price and appraised value - Question on Ratio = Division - Question on Monthly Payment = Multiplication

Answer 78

Loan Amount / Lesser of Sales Price and Appraised Value

Answer 79

1st + 2nd Loan Amount / Lesser of Sales Price and Appraised Value *This one only uses what's been disbursed from the Line of Credit Amount*

Answer 80

1st + 2nd Loan Amount / Lesser of Sales Price and Appraised Value *This one uses the full Line of Credit Amount not just what's disbursed*

Answer 81

- AKA Housing Expense Ratio | - PITI / Gross Monthly Income

Answer 82

- AKA Back-End Ratio - PITI + Debts* / Gross Monthly Income * Debt that shows on a credit report, lease payments, and due for more than 10 months

Answer 83

1. Gross x Front-End Ratio 2. Gross x Back-end Ratio - Debt 3. Pick the Lowest One

Answer 84

Actual fraud is done on purpose (creating fake check stubs) while constructed fraud shows no intent and someone just following directions.

Answer 85

- Fraud for Property is committed by homeowner's and borrowers with the intention of trying to obtain property not money (Lying on Applications, creating false documents, or using straw buyers) - Fraud for Profit is committed by Industry insiders with intention of trying to obtain money and not property (Charging a borrower to verify employment or Appraiser charging to change the value)

Answer 86

Getting a loan on a property that does not exist

Answer 87

When you get scammed out of your deed for some benefit like fixing credit

Answer 88

Selling one property to two different lenders on the secondary market without the other lender knowing and then dissolving the corporation

Answer 89

A silent second mortgage is a second mortgage placed on an asset (such as a home) for down payment funds that are not disclosed to the original lender on the first mortgage. The second mortgage is called "silent" because the borrower does not disclose its existence to the original mortgage lender.

Answer 90

Making a rescue loan to a borrower who you know cannot repay that loan

Answer 91

- A straw seller is an individual who accepts a fee to falsely claim ownership to a property. Straw sellers are sometimes used in conjunction with straw buyers in elaborate mortgage fraud schemes. - A straw buyer is a person who accepts a fee for the use of his/her Social Security Number and other personal information on a mortgage application.

Answer 92

Telling a borrower an alluring offer and once they commit switching the offer to something more costly to the borrower

Answer 93

Telling your customers you have an offer or deal for products/items you actually carry

Answer 94

AARM and CSBS

Answer 95

- You are taking loan applications and negotiating on a mortgage - *Timeshare loans and loans for family members excluded

Answer 96

Only doing clerical or administrative duties under a loan originator

Answer 97

If you represent an FDIC insured bank you are REGISTERED but if you represent yourself or a company you have to be LICENSED. Ask yourself, How do they represent themselves?

Answer 98

- Felonies from non-financial crimes 7 Years | - Felonies from financial crimes - NEVER

Answer 99

20 Hours (3 Federal 3 Ethics 2 Non-Traditional)

Answer 100

8 Hours (3 Federal 2 Ethics 2 Non-Traditional)

Answer 101

You cannot take the same class year over year and get credit for it

Answer 102

- They can NOT issue prison sentences - They can take your license - They can give you a fine

Answer 103

- Required a surety bond or - Required to have a minimum net worth or - Required to give to a state fund

Answer 104

- Defraud Borrowers - Practice without a license - Threaten the appraiser - Steal a borrowers deposit money