CH 17 ten more

Question 1

loan-to-value ratio is an important underwriting criterion for the reason?

Answer 1

the lender wants to ensure the loan is fully collateralized

Question 2

The Equal Credit Opportunity Act (ECOA) requires lenders to?

Answer 2

consider the income of a spouse in evaluating a family’s creditworthiness.

Question 3

purpose of an income ratio in qualifying a borrower?

Answer 3

safeguard against over-indebtedness.

Question 4

A borrower’s debt ratio is derived by?

Answer 4

dividing one’s debts by one’s gross income

Question 5

take-out loan commitment?

Answer 5

A lender’s commitment to lend funds to a borrower in order to retire another outstanding loan

Question 6

At the closing of a mortgage loan?

Answer 6

the parties complete all loan origination documents and the loan is funded.

Question 7

Truth-in-Lending laws?

Answer 7

laws or regulations require mortgage lenders to disclose financing costs and annual percentage rate to a borrower before funding a loan

Question 8

The Equal Credit Opportunity Act?

Answer 8

prevent mortgage lenders from discriminating in extending credit to potential borrowers based on race, color, religion, national origin, sex, marital status, age, and dependency on public assistance

Question 9

the Real Estate Settlement Procedures Act?

Answer 9

require mortgage lenders to provide an estimate of closing costs to a borrower and forbid them to pay kickbacks for referrals

Question 10

The Federal Reserve System regulates the money supply in?

Answer 10

Buying securities, changing the discount rate, and controlling banking reserves