Chpt. 15, Governent Involvement Flashcards
Creates a secondary market for agricultural mortgage loans
Farmer Mac
Lenders who originate loans by making money available to borrow
Primary mortgage market
Thrifts, savings associations 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 markets
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 wholly government 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 Fed makes to banks
Discount rate
The ratio of debt to the value of the property
Loan to value (LTV)
Fiduciary lenders are subject to the standards and regulations established by this office
Office of the comptroller of the currency
The type of loan viewed as most secure because of its 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
Buy down
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
A national system of banking districts designed to maintain sound credit conditions and a favorable economic climate
Federal reserve
Federal government regulates the lending practices of mortgage lenders through this act
Truth in Lending Act
Implements the Truth in Lending Act, requiring credit institutions to inform borrowers of the true cost of obtaining credit
Regulation Z
The federal law that requires certain disclosures to consumers about mortgage loan settlements. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees
Real Estate Settlement Procedures Act (RESPA)
The law providing that a loan applicant who is rejected must be provided with a statement of the reasons for the rejection within 30 days
Fair Credit Reporting Act
The conservatorship of Fannie Mae and Freddie Mac is the responsibility of the …
Federal Housing Finance Agency
