Ch 10 - Residential Lending Process Flashcards
Loans that meet the standard requirements of the secondary mortgage market are known as:
conforming loans.
A conforming loan is a:
loan that meets the standard requirements to be offered for sale on the secondary market.
The Truth in Lending Act is implemented by:
Regulation Z.
In an adjustable rate mortgage, the difference between the index rate and interest rate charged to the borrower is known as the __________ .
margin
A REIT is:
an unincorporated association of real estate investors.
The California state-sponsored residential finance program for veterans is called the:
California Veterans Farm and Home Purchase Program.
A percentage amount of a loan charged at the beginning of the loan to increase the lender’s yield is called:
discount points.
The relationship, expressed as a percentage, between the loan amount and the sales price or appraised value of the property (whichever is less) is the:
loan-to-value ratio.
The Department of Veterans Affairs will issue a __________ based on the results of an appraisal by a VA appraiser.
Certificate of Reasonable Value (CRV)
A mortgage broker:
brings lenders and borrowers together.
Conventional loans with a loan-to-value ratio that exceeds 80% generally require:
private mortgage insurance.
A Cal-Vet loan:
has established maximum loan amounts that vary from county to county.
may offer the veteran the option to purchase life insurance.
is owned and serviced by the California Department of Veterans Affairs.
All of the above
A loan structured to gradually pay off the entire loan debt by regular installment payments of principal and interest is known as a:
fully amortized loan.
When a property is being purchased by a veteran wanting to finance the property with a VA loan, the veteran must be in possession of a __________ obtained from the Department of Veterans Affairs.
Certificate of Eligibility
APR refers to:
the annual percentage rate after all finance charges have been applied
