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Real Estate > Chapter 18. > Flashcards

Chapter 18. Flashcards

1
Q

Mortgage Banker

A

A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages.

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2
Q

Mortgage Broker

A

An intermediary ( შუამავალი) who brings mortgage borrowers and mortgage lenders together, but does not use its own funds to originate mortgages. A mortgage broker gathers paperwork from a borrower, and passes that paperwork along to a mortgage lender for underwriting and approval. The mortgage funds are then lent in the name of the mortgage lender. A mortgage broker collects an origination fee and/or yield spread premium from the lender as compensation for its services.

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3
Q

Mortgage Broker Dual Agency Disclosure Form

A

A banking department form required when a person is acting as a mortgage broker and a real estate broker in the same transaction.

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4
Q

Mortgage Commitment

A

A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.

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5
Q

Lender Rebate

A

A payment to a mortgage broker by a lender.

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6
Q

Non-conforming Loan -

A

A loan that fails to meet bank criteria for funding.

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7
Q

Pre-application and Fee Agreement

A

A form used between mortgage brokers or mortgage bankers and a home buyer that provides certain disclosures prior to the application of a mortgage.

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8
Q

Pre-approval

A

An evaluation of a potential borrower by a lender that determines whether the borrower qualifies for a loan from the lender, or the maximum amount that the lender would be willing to lend.

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9
Q

Pre-qualification

A

A process whereby a loan officer takes information from a borrower and makes a tentative assessment of how much the lending institution is willing to lend them.

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10
Q

Rate Lock

A

An agreement between a borrower and a lender that allows the borrower to lock in the interest rate on a mortgage over a specified time period at the prevailing market interest rate.

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11
Q

Underwriting

A

The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan.

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12
Q

This document is the most important document in a loan package, also known as a 1003…?

A

Loan application form

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13
Q

This organization licenses mortgage bankers and brokers throughout the U.S….?

A

NMLS

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14
Q

Which of the following has the least amount of value in the loan origination process…?

A

Pre-qualification

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15
Q

An intermediary who brings mortgage borrowers and mortgage lenders together, but does not use his/her own funds to originate mortgages is known as a…?

A

Mortgage Broker

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16
Q

A payment to a mortgage broker by a lender is known as a…?

A

Lender Rebate

17
Q

The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what…?

A

Underwriting

18
Q

Which of the following has the least amount of value in the loan origination process…?

A

Pre-qualification

19
Q

Mortgage brokers do NOT do what in a transaction…?

A

Issue a loan to a borrower

20
Q

A form used between mortgage brokers, or mortgage bankers, and a home buyer that provides certain disclosures prior to the application of a mortgage is known as…?

A

Pre Application and Fee Agreement

21
Q

Michael is seeking to purchase his first home using bank financing. Who should Michael work with to get the best terms possible for his mortgage…?

A

Mortgage broker

22
Q

Which of the following is issued after a bank pre-approves a buyer…?

A

Commitment letter

23
Q

Abby is trying to obtain a non-conforming loan. Who should you recommend Abby contact to better her chances of obtaining the loan…?

A

Mortgage broker

24
Q

This document is the most important document in a loan package, also known as a 1003…?

A

Loan application form

25
Q

Abby is trying to obtain a non-conforming loan. Who should you recommend Abby contact to better her chances of obtaining the loan…?

A

Mortgage Broker

26
Q

A loan that fails to meet bank criteria for funding is known as what…?

A

Non-conforming Loan

27
Q

The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what…?

A

Underwriting

28
Q

You have a client who is interested in purchasing a coop in Manhattan. As a real estate agent, what should you do before showing prospective properties to your client…?

A

Verify that the client can obtain financing on the property

29
Q

The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what…?

A

Underwriting

Real Estate (23 decks)

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