Chapter 13 vocab Flashcards
A national system of banking districts designed to maintain sound credit conditions in a favorable economic climate
Federal reserve
create a secondary market for agricultural mortgage loans
Farmer Mac
lender who originate loans by making money available to borrow
Primary mortgage market
Thrifts and commercial banks
Fiduciary lenders
Intermediaries who bring borrowers and lenders together
Mortgage brokers
Investors who buy and sell loans after the loan is funded
Secondary mortgage market
A method of providing a lender with part of a conventional loan balance in the event, that a borrower defaults on the loan
Private mortgage insurance
A governmental agency organized as a non-stock corporation that administers special assistance programs and guarantees mortgage-backed securities using FHA and VA loans
Ginnie Mae
The rate charged for loans, the bed makes to banks
Discount rate
The ratio of debt to the value of the property
loan-to-value ratio(LTV)
Fiduciary lenders are subject to the standards and regulations established by this office
Office of the Comptroller of the currency(OCC)
The type of loan viewed as most secure, because if it’s low loan-to-value ratio
Conventional loan
The document that determines the maximum VA loan, guarantee to which a veteran is entitled
Certificate of eligibility
A form of seller financing, whereby the buyer gives the seller a note and mortgage
purchase-money mortgage
A loan that finances the purchase of both real and personal property
Package loan
A method of financing the purchase of property that temporarily (or permanently) lowers the interest rate through the payment of a lump sum of cash to the lender
Buydown
lending law prohibiting discrimination based on marital status or sex
equal credit opportunity act
type of mortgage used by developers, securing the loan with several parcels
Blanket loan
law that is designed to ensure that buyer and seller are both fully informed of all closing costs
Real estate settlement procedures act
Law that requires lenders to reveal the true cost of borrowing money
Truth in lending act
