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New York Real Estate > Chapter 12 > Flashcards

Chapter 12 Flashcards

1
Q

Who originates a loan?

A

Mortgage banker

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2
Q

Is a mortgage banker registered or licensed by NYS banking department ?

A

Licensed

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3
Q

Is a mortgage broker registered or licensed by NYS banking department ?

A

Registered

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4
Q

Who is registered by NYS BAnking department?

A

Mortgage broker

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5
Q

Who is licensed by New York State banking department?

A

Mortgage banker

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6
Q

Who brings borrowers and lenders together for free?

A

Mortgage brokers

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7
Q

What do mortgage brokers do?

A

Being borrowers and lenders together for a fee

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8
Q

Refers to a pending loan in which a mortgage broker believes that, based on preliminary interview and a credit report, the borrowers will PROBABLY be able to meet loan requirements of lender

A

Pre qualification lender

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9
Q

What is a pre qualification letter?

A

Mortgage broker believes that based on a preliminary interview and credit report, borrowers will probably be able to meet a lenders loan requirements

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10
Q

What is a Pre approval letter ?

A

Documents are on file and there is a strong probability that there are no credit or income versus stopping a loan from closing

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11
Q

What is the difference between a preapproval letter and a prequalification letter?

A

Pre approval says there is a STRONG PROBABILITY that there’s no issue stopping a loan from closing

Prequalification says there is a PRELIMINARY interview and loan will PROBABLY be able to meet loan requirement

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12
Q

Which is better: pre qualification letter or pre approval letter

A

Pre approval letter is better

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13
Q

What is underwriting?

A

Lender evaluates a prospective borrowers location through verification of employment, financial information, analysis of credit, and appraisal reports

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14
Q

What are the four evaluations in underwriting?

A
  • verification of employment
  • financial information
  • analysis of credit
  • appraisal reports
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15
Q

Who evaluates what in underwriting?

A

The lender evaluates a prospective borrowers application

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16
Q

Who issues a mortgage commitment ?

A

An underwriter ( underwriting)

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17
Q

Lender issuing a loan commitment letter to the borrower to demonstrate willingness to fund the loan is known as what letter?

A

Mortgage commitment

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18
Q

What is a mortgage commitment letter?

A

Lender issuing a loan commitment letter to the borrower

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19
Q

What step is after a mortgage commitment?

A

A closing

20
Q

What comes after a pre qualification or pre approval letter?

A

You can start showing buyers around for properties and then the underwriter comes in once you have a meeting of the minds

21
Q

The ability to place, negotiate, solicit, and process residential or commercial mortgage loans describes
A. A mortgage banker
B. A mortgage broker
C. Residential sharing agent
D. Residential vendor information agent 

A

A mortgage broker

22
Q

Unlike a mortgage broker, a mortgage banker
A. Originate loans
B. Negotiates loans
C. Guarantees loans
D. Insures loans 

A

Originates loans

23
Q

Lenders willingness to fund a loan is known as
A. Preapproval
B. Promise to close
C. A loan guarantee
D. A mortgage commitment 

A

A mortgage commitment

24
Q

Which is a qualification for mortgage banker licensing?
A. Five years of residency in New York
B. Five years experience as a real estate sales person
C.  net worth of no less than $250,000

A

C, net worth no less than $250,000

25
Q

How many years of previous tax returns do lenders require of loan applicants when underwriting loans?
A. 1
B. 2
C. 3
D. 4

A

2

26
Q

A mortgage broker determines a prospective borrowers credit worthiness and ability to repay a loan in a process called

A

Pre approval

27
Q

When a mortgage broker is also a real estate licensee, the potential for what exists?

A

Dual agency

28
Q

If you find yourself in a dual agency as both a mortgage broker and a real estate licensee then what should you present the buyer with?

A

Mortgage broker dual agency disclosure form

29
Q

Do you mortgage bankers or mortgage brokers utilize their own funds?

A

Mortgage BANKERS

30
Q

Who utilizes their own funds, generally comprised of borrowed funds, two originate loans?

A

Bankers

31
Q

How do you qualify as a mortgage banker (2)? 

A

A net worth no less than $250,000

An open line of credit of no less than $1 million provided by an insurance company or institutional bank

32
Q

What are these two qualifications for?

A net worth no less than $250,000

An open line of credit of no less than $1 million provided by an insurance company or institutional bank

A

To be a mortgage banker

33
Q

What are the two categories of loan financing?

A

Debt financing

Equity financing

34
Q

Which of the two loan financing categories is most common for borrowed funds?

A

Debt financing

35
Q

What? + the borrowers down payment (initial investment) = The purchase price required by the sale

A

The debt placed on the property

36
Q

Debt on property + borrowers down payment = ?

A

The purchase price required by the sale

37
Q

Borrowed funds in debt financing = ?

A

Loan amount

38
Q

Borrower funds in debt financing = ?

A

down payment

39
Q

In equity financing (mezzanine financing), When borrowing occurs on real property, the lender will originate the loan amount as either blank or blank?

A

Either the purchase price or the appraised value, WHICHEVER IS LESS

40
Q

What is the purpose and role of the mortgage broker and a real estate transaction?

A

To obtain a mortgage commitment

41
Q

What is a mortgage commitment?

A

I lender issues a loan commitment letter to the borrower to demonstrate willingness to fund the loan

42
Q

 Who assists the borrower and accumulating the necessary paperwork for the lender to underwrite alone?

A

A mortgage broker

43
Q

What is underwriting?

A

The evaluation process of verifying all borrower information necessary for the lender to issue a mortgage commitment

44
Q

How many years of previous tax returns does a lender require for paperwork to underwrite a loan?

A

2 years

45
Q

If I am a lender doing paperwork to underwrite a loan and I already included two years of previous tax returns or entity borrowing the money, then what else do I need?

A

A personal financial statement indicating the borrowers net worth, listing assets, and liabilities

46
Q

In order for the borrower to certify the rent/income to a property, the lender may require what certificate from the tenant?

A

Estoppel certificate

47
Q

Is a mortgage banker a mortgage broker REGULATED by the NYS banking department? 

A

In reality, it would be both

New York Real Estate (20 decks)

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