C

Question 1

CERTIFICATE OF ELIGIBILITY (COE)

Answer 1

The document that qualified veterans must obtain from the VA in order to apply for a VA guaranteed home loan.

Question 2

CERTIFICATE OF REASONABLE VALUE (CRV)

Answer 2

A statement issued by the VA showing the property’s current market value based on a VA-approved appraisal.

Question 3

CERTIFICATE OF TITLE

Answer 3

A statement provided by an abstract company, title company, or attorney, stating that the title of real estate is legally held by the current owner.

Question 4

CHANGED CIRCUMSTANCE

Answer 4

Acts of God, war, disaster, or other emergency; information particular to the borrower or transaction relied on in providing a GFE/Loan Estimate and subsequently found to be inaccurate; new information particular to the borrower or transaction that was not relied on in providing the GFE/Loan Estimate; or other circumstances particular to the borrower or transaction. See also Act of God, Good Faith Estimate, Loan Estimate.

Question 5

CHARM BOOKLET

Answer 5

CHARM BOOKLET

A disclosure booklet used to educate consumers on the risks associated with adjustable-rate mortgages.

Question 6

CLOSED-END LOAN

Answer 6

A transaction in which the creditor disburses all funds at closing and demands repayment within a specified period of time. During the repayment period, the borrower cannot request an increase in the principal amount of the loan. An example of a closed-end loan would be a traditional mortgage loan.

Question 7

CLOSING

Answer 7

A meeting between the buyer, seller, and lender, or their agents, where funds for the purchase of real estate legally change hands.
a.k.a.: Settlement

Question 8

CLOSING COSTS

Answer 8

Expenses, over and above the price of the property, incurred by buyers and sellers when transferring ownership of a property. Closing costs normally include an origination fee, property taxes, charges for title insurance and escrow costs, appraisal fees, etc. Closing costs will vary according to the area of the country and the lenders used.

Question 9

CLOSING DISCLOSURE

Answer 9

A federal disclosure that must be provided to loan applicants no later than three business days prior to consummation. This disclosure provides a statement of the costs of a mortgage lending transaction. Effective October 3, 2015, the Closing Disclosure replaces the HUD-1 Settlement Statement and the Final TIL Disclosure previously required under RESPA and TILA for most transactions.

Question 10

CLOUD ON TITLE

Answer 10

An outstanding claim or encumbrance on the title.

Question 11

COMBINED LOAN-TO-VALUE RATIO

Answer 11

A comparison, expressed as a percentage, of the combined cost of all mortgages on a home and the value of the home used to secure the loans.

Question 12

CONFORMING LOAN

Answer 12

A loan that meets the lending limits and other criteria established by Fannie Mae or Freddie Mac.

Question 13

CONSTRUCTION LOAN

Answer 13

An interim loan used to pay for the construction of buildings or homes. These are usually designed to provide periodic disbursements to the builder as he or she progresses.

Question 14

CONSUMER REPORTING AGENCY (CRA)

Answer 14

An organization that prepares reports used by lenders to determine an applicant’s credit history.

Question 15

CONSUMMATION

Answer 15

The time at which the consumer becomes contractually obligated by a transaction. Consummation typically occurs at closing, and the two terms are frequently used interchangeably. See also: Closing.

Question 16

CONTRACT OF SALE OR CONTRACT FOR DEED

Answer 16

A contract between a purchaser and a seller of real estate to convey title after certain conditions have been met.

Question 17

CONVENTIONAL LOAN

Answer 17

A mortgage that is not insured by the FHA or guaranteed by the VA.

Question 18

CONVERSION CLAUSE

Answer 18

A provision in an ARM allowing the loan to be converted to a fixed rate at some point during its term.

Question 19

CONVEYANCE

Answer 19

The transfer of the title of real estate from one person to another.

Question 20

COST OF FUNDS INDEX (COFI)

Answer 20

The rate charged to banks for borrowing money from a Federal Reserve Bank. Each district office sets its own rate. The 11th District COFI is the rate most often used as an index for an ARM.

Question 21

CREDIT REPOSITORY

Answer 21

An organization that gathers, records, updates, and stores financial and public records information about the payment records of individuals who are being considered for credit.