Chapter 32 Flashcards
A mortgage broker must provide which of the following disclosures to each person applying for a mortgage loan ?
The amount of compensation the mortgage broker will receive from the lender.
A mortgage broker MUST provide information about the amount or compensation he or she will receive from the lender to each person applying for the mortgage loan.
The longer the length of the rate lock , …
The higher the interest rate will be.
Longer lengths of the rate lock will result in a higher interest rates or points.
All of the following statements are true EXCEPT …
A) Mortgage bankers can be a person , corporation or firm licensed by the New York banking departments to make residential mortgage loans.
B) Mortgage bankers use depositor money to make loans.
C) Mortgage bankers often specialize in originating FHA and VA loans in areas where mortgage money is tight.
D) A mortgage banker can act as a mortgage broker.
B) Mortgage bankers use deposition money to make loans.
Mortgage bankers DO NOT use depositor money to make loans.
Which of these components is not part of a lock in ?
A) Points
B) Appraisal
C) Loan Program
D) Interest Rate
B) appraisal.
The four components to a rate lock are
The loan program
The interest rate
Points
The length of the lock
Mortgage brokers are classified as mortgage loan originators under which New York law ?
NY banking law
Article 12-E of the bee York banking law classifies mortgage brokers as a mortgage loan originators. (MLO)
In what section or the mortgage broker dual agency disclosure does the broker indicate the amount of mortgage lenders he or she uses ?
Under “Your rights under dual agency” section .
In addition to spelling out the rights of the buyer and seller , the tour rights under dual agency sections contains space for the mortgage / real estate broker to indicate the number or mortgage lenders he or she uses.
Most mortgage companies obtain their income from …
Loan origination and loan servicing.
Most mortgage companies are privately owned and yet their income from roomy loan origination and servicing those loans.
Why are mortgage companies less regulated then traditional institutional lenders ?
They are not lending depositors’ money.
Mortgage companies are less regulated then traditional institutional lenders because they are not lending money that belongs to depositors but rather often lend their own money from funds they borrow on a line of credit from a commercial bank.
The mortgage broker is required to disclose all of the following to the borrower except which one ?
The penalty for defaulting on the loan
To become a mortgage broke , an individual must do all of the following except …
Pass a certification examination
The process through which the lender evaluates the buyers financial date is called the …
Underwriting stage
