Federal Mortgage Related laws

Question 1

Annual Percentage Rate (APR)

Answer 1

Relationship between the cost of borrowing & the total amount financed, represented as a percentage.

Question 2

Cost of Fund Index

Answer 2

Is an index that reflects the cost of borrowing money as per the 11th district Federal Home Loan Bank. This index is used by Fannie Mae when purchasing ARM loans

Question 3

Community Reinvestment Act

Answer 3

Federal law emphasizing that regulated financial institutions have a continuing obligation to help meet the credit needs of the local communities in which they operate, especially in low-income neighborhoods.

Question 4

Certificate of Reasonal Value

Answer 4

A document issued by the VA which states the value of the subject property based on an approved appraisal. The VA loan amount cannot exceed the CVR

Question 5

Equal Credit Opportunity Act

Answer 5

Federal law that prohibits discrimination in granting credit to people based on sex, age, martial status, race, color, religion, national origin, or receipt of public assistance.

Question 6

Environmental Impact Statment

Answer 6

Study required for all federal & federally related projects by the national Environment Policy Act, which details a development project’s impact on energy use, sewage system, drainage, water facilities, school & other environmental, economics & social areas.

Question 7

Fair & Accurate Credit transaction Act

Answer 7

Amendment to the federal fair credit reporting act intended primarily to help consumers fight the growing crime of identity theft; included provisions for fraud alerts & credit freezes

Question 8

Federal National Mortgage Association

Answer 8

The nation’s largest privately owned, investor in residential mortgages.

Question 9

Federal Deposit Insurance corporation

Answer 9

A public corporation, established in 1933, that insures up to $250,000 for each depositor for most member commercial banks & S&L’s. FDIC has its own reserves and can also borrow from the U.S Treasury.

Question 10

Farmer’s Home Administration

Answer 10

Former name of the program now called Rural Economic Community Development (RECD)

Question 11

Federal Reserve Board
Or
Board of Governors

Answer 11

The body responsible for U.S monetary policy Maintaining Economic Stability and Regulating Commercial Banks.

Question 12

FIRREA

Answer 12

A federal law passed in 1990 in response to the crisis in the savings and loan industry. It revised the regulation of thrifts (S&L’s) & created several new agencies, such as office of thrift supervision (OTS) & resolution trust corporation (RTC)