Ch. 14 Flashcards
Cash-Out Refinances
A refinance that has rolled in items such as automobile loans and credit card debt. Borrowers should compare this refinance to the streamlined refinance, which offers a lower interest rate.
Cooperate
The MD Code of Ethics encourages cooperation between different brokerage firms to create the largest market possible for consumers. LIsting agents show a willingness to cooperate when they provide information and access to the property through the MLS system – welcoming licensees from other companies to show and sell the property.
Illegal Flipping
This practice normally involves a conspiracy between a real estate agent, a loan officer, and an in-house appraiser wherein a property is falsely valued at an inflated price rather than its true value.
Maryland Home Improvement Commission (MHIC)
Licenses are issued and regulated for MD home improvement contractors by MHIC. Real estate agents who are recommending contractor to do work that requires an MHIC license are responsible for verifying the status of the MHIC license annually.
Misrepresentation
The mishandling of material facts concerning a property. This could be a case of error, exaggeration, or intentional fraud. In MD, licensees could also be charged with negligent misrepresentation when an agent did not know the pertinent information but SHOULD HAVE KNOWN.
Predatory Lending
The ethics three-hour segment taught in prelicensing and continuing education classes includes predatory lending. These practices take advantage of uninformed borrowers and often target minorities and the elderly.
Subprime Loans
A financing options that charges a higher interest rate for a loan vehicle available for high-risk borrowers who may have poor credit.
