Documentation Flashcards
This form allows the lender to collect information about the borrower/property.
Uniform residential loan application
This serves as protection for the creditor, motivation for the debtor – make sure terms of notes are fufilled and note is paid as agreed.
Promissory note
This requires debtor to hypothecate property as condition of the loan (pledge property as collateral without giving up possession of the property).
Promissory note
An estimate or opinion of value as of a certain date that is supported by objective data.
Appraisal or 1004
This appraisal approach is often used in evaluating residential property. It also requires a minimum of three comparables.
Sales comparison approach
This form is required to give the lender permission to request copies of federal tax returns.
4506 – T
The borrower is called the trustor, the lender is the beneficiary who retains the note and deed of trust, in the trustee holds legal title to secure the property described and deed of trust subject to terms of trust for a wonder benefit.
Trust deeds or deed of trust
Overtime and bonus pay must be consistently received for a period of how long in order to be used for income qualification?
Two years
What percentage of ownership in the business is considered self-employment?
25%
The rate lock is really shown on which document?
Loan estimate
W-2 employees should have continuous employment for at least how many years in the same field?
2
What percentage of income derived from a 1099 income is considered self-employment?
25%
This note is typically accompanied by a security instrument.
Promissory note
This document generally must contain the actual terms in costs of the transaction.
Closing disclosure
A loan estimate can only be revised based on one of what three valid changes of circumstance?
- An event that is beyond the control of a creditor or borrower, such as a natural disaster which increased settlement costs.
- Information that was Nona or provided at the time of the application changed, such as interest rate increase loan terms or settlement service provider charges
- New information regarding the borrower or the loan that the creditor did not rely on one supplying the loan estimate, such as the borrower becoming unemployed prior to closing.
An appraisal must be recertified if it is how old the closing?
Four months or more
If a revised loan estimate is needed, it will need to be mailed or given to the borrower no later than when?
Three business days after the creditor learns of the reason for the revision.
This appraisal approach compares the property being appraised with other similar properties, comparables or comps, sold recently in the same market area, best for residential properties.
Sales comparison approach
What five documents can be considered other documentation?
Appropriate W-2, original paystub’s, verification of employment, verification of deposit, verification of rent, verification of mortgage.
This appraisal approach is used when evaluating the cost to replace property that was damaged due to natural disasters. It is also called the replacement cost approach.
Cost approach
A final closing disclosure is delivered win?
At closing
If the borrower doesn’t provide all data on this document during initial consultation, missing information must be provided at a later date, which will delay the loan process.
Uniform residential loan application
According to the real estate settlement procedures act these two documents must be given out after settlement.
Annual escrow statement and servicing transfer statement
Pay stubs are required for what amount of time?
30 days
Non-numeric clerical error’s in tolerance violations trigger a new closing disclosure that must be delivered when?
Within 60 calendar days following loan closing
This is signed by the borrower and evidence is a promise to pay (the borrowers obligation to repay the debt to the lender).
Promissory note
This appraisal approach calculates the cost of the land, site improvements, the cost to build the structure on the land, and the cost of any depreciation to the property to reduce the property. The best for relatively new construction or four unusual or special purpose.
Cost approach
Freddie Mac’s uniform residential loan application.
Form is 65