Finance Flashcards
Freddie Mac is a federally chartered corporation as the Federal Home Loan Mortgage Corporation (FHLMC) established in what year?
1970
The Federal National Mortgage Association (FNMA) known as the Fannie Mae began on what year?
1938
The Government National Mortgage Association (GNMA) or Ginnie Mae was established when?
1968
Loans originated to adhere to Fannie Mae, Freddie Mac, Ginne Mae requirements for purchase are called _____.
Conforming loans
The market where borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction is called ______.
Primary Market
Examples of the primary market lenders are:
savings
loans
commercial banks
mutual savings banks
mortgage companies
credit unions
individuals
any person or business that provides cash for someone seeking a mortgage.
Bonds
an instrument of corporate or governmental debt
Mortgage brokers
typically specialize as middlemen between borrowers and lenders
Correspondent lender
Someone who processes, underwrites, closes and funds their own files in their name and then sells the loans to other mortgage lenders
Mortgage loan originators can be broken down into three categories:
Mortgage Bankers
Mortgage Brokers
Correspondent Lenders
Government Bonds are also known as _______
municipal bonds
The ______ mortgage market is made up of the businesses that lend to borrowers for the purchase of real estate.
Primary
A ______ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes.
mortgage banker
Which act increased the insurance coverage on all federally insured credit union accounts up to $250,000.
Dodd-Frank Wall Street Reform Act
Define encumbrance
A claim, lien, charge, or liability attached to and binding real property.
define lien
a right given by law to certain creditors to have debts paid out of the property of a defaulting debtor, usually through a court sale.
A mortgage is
a pledge of real estate as security for repayment of a debt.
A borrower is
known as the mortgagor
The lender
is known as a mortgagee
portfolio
not sold in the secondary market.
Deficiency Judgment
the unpaid balance of a foreclosed mortgage, payable by court order
Foreclosure
Legal procedure by which secured properly may be sold to satisfy an unpaid note
A promissory note is also known as _________.
the note
Any excess money left over from sale is given to the
debtor
Power of Sale
This type of foreclosure, also known as statutory foreclosure
Judicial Foreclosure
the lender files suit with the judicial system
Federal Housing ACT
statutes prohibits housing discrimination based on race, color, national origin, sex, religion, families with children and disabilities
HUD enforces what programs:
FHACT
Foreclosure is also know as ______.
force sale
Any excess money left over from the foreclosure/forces sale is given to the
debtor
Redlining
the practice of refusing to provide financing in particular area because of the location.
RMLOs
Residential mortgage loan originators
RMLOs must be registered with the _______.
National Mortgage Licensing System and Registry (NMLSR)
NMLSR
National Mortgage Licensing System and Registry
Federal Fair Housing ACT (FHACT)
Prohibit housing discrimination based on race, color, national origin, sex, religion, families with children, and disabilities.
All residential mortgage loan originators (RMLO) must be registered with what agency?
National Mortgage Licensing System and Registry (NMLSR)
Texas Department of Housing and Community Affairs (TDHCA)
is an agency responsible for affordable housing.
Texas Veterans Land Board (VLB)
the Veteran must have been honorably discharged.
Housing Assistance Program
Veteran, military members, and their surviving spouses may receive up to $424,100.
Closing Disclosure Form
The creditor must ensure must that the consumer receives the Closing Disclosure Form at least three business days before the consumer closes the loan
