Chapter 18. Flashcards
Mortgage Banker
A company, individual or institution that originates mortgages. Mortgage bankers use their own funds, or funds borrowed from a warehouse lender, to fund mortgages.
Mortgage Broker
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.
Mortgage Broker Dual Agency Disclosure Form
A banking department form required when a person is acting as a mortgage broker and a real estate broker in the same transaction.
Mortgage Commitment
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.
Lender Rebate
A payment to a mortgage broker by a lender.
Non-conforming Loan -
A loan that fails to meet bank criteria for funding.
Pre-application and Fee Agreement
A form used between mortgage brokers or mortgage bankers and a home buyer that provides certain disclosures prior to the application of a mortgage.
Pre-approval
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.
Pre-qualification
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.
Rate Lock
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.
Underwriting
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan.
This document is the most important document in a loan package, also known as a 1003…?
Loan application form
This organization licenses mortgage bankers and brokers throughout the U.S….?
NMLS
Which of the following has the least amount of value in the loan origination process…?
Pre-qualification
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…?
Mortgage Broker
A payment to a mortgage broker by a lender is known as a…?
Lender Rebate
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what…?
Underwriting
Which of the following has the least amount of value in the loan origination process…?
Pre-qualification
Mortgage brokers do NOT do what in a transaction…?
Issue a loan to a borrower
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…?
Pre Application and Fee Agreement
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…?
Mortgage broker
Which of the following is issued after a bank pre-approves a buyer…?
Commitment letter
Abby is trying to obtain a non-conforming loan. Who should you recommend Abby contact to better her chances of obtaining the loan…?
Mortgage broker
This document is the most important document in a loan package, also known as a 1003…?
Loan application form
Abby is trying to obtain a non-conforming loan. Who should you recommend Abby contact to better her chances of obtaining the loan…?
Mortgage Broker
A loan that fails to meet bank criteria for funding is known as what…?
Non-conforming Loan
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what…?
Underwriting
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…?
Verify that the client can obtain financing on the property
The process by which a lender decides whether a potential creditor is creditworthy and should receive a loan is known as what…?
Underwriting
