Found in Florida Module Flashcards
What is the purpose of ECOA?
Prohibits discrimination in the extension of credit on the basis of race, color, religion, national origin, sex, marital status, age, or income derived from public assistance
What Regulation is ECOA?
B
What is the purpose of RESPA?
Requires various disclosures throughout the loan process, prohibits certain practices that increase the cost of settlement services, and prohibits kickbacks and regulates advertising terms
What Regulation is RESPA?
X
What are some forms that must be disclosed under RESPA?
Good Faith Estimate and the HUD-1 Settlement Statement
What was TILA designed to do?
Protect consumers in credit transactions by requiring clear disclosure of key terms and costs associated with a loan
What Regulation is TILA?
Z
What is the purpose of Gramm-Leach-Bliley?
It requires financial institutions that offer consumer financial products or services to explain their information-sharing policies and practices to protect sensitive consumer data
Under RESPA, what are some examples of disclosures?
- Settlement Cost Booklet
- Good Faith Estimate
- Hud-1 and Hud-1a Settlement Statement
- Initial Escrow Statement
- Affiliated Business Arrangement Disclosure
When must the Settlement Cost Information Booklet be given to consumers?
Due three business days after completion of a loan application
When must the GFE be given to consumers?
Due within three business days of application
When can the HUD-1 Settlement Statement be given to a consumer?
Can be given one day prior to settlement
When must the Initial Escrow Statement be given to the consumer?
Due within 45 days of closing
When must the Affiliated Business Arrangement Disclosure be given to consumers?
Due at the time of referring a loan applicant to a settlement service provider
What disclosures must be given to consumers under TILA?
- CHARM Booklet
- Early ARM Disclosure
- Initial TIL
- Final TIL
When must CHARM Booklets be given to consumers?
Within three business days of application for an ARM
When must Early ARM Disclosures be given to consumers?
Due within three business days of application
When must Initial Truth-in Lending Disclosure Statement be given to consumers?
Due within three business days after the receipt of a completed loan application
When must the Final Truth-in Lending Disclosure Statement be given to consumers?
Delivered or placed in the mail no later than the seventh business day before settlement
Conforming Loans
Meet loan limits by Fannie Mae and Freddie Mac; lower interest rates and cost less
Non-conforming Loans
Do not meet loan limits by Fannie Mae and Freddie Mac
What are the limits on loans for Fannie and Freddie?
$417k, $625,500 in high-cost areas
What is the down payment requirement for a conforming mortgage?
At least 5%; some lenders require up to 20%
If a borrower does not have efficient funds to meet the minimum downpayment for a conforming loan, what must they purchase?
Private Mortgage Insurance
When does Private Mortgage Insurance automatically terminate?
When LTV reaches 78%, Equity at 22%
When can a borrower request to cancel Private Mortgage Insurance?
Once the LTV reaches 80%
In order to be eligible for FHA insurance, a mortgage must be made by an FHA-approved lender and the amount of the mortgage must be the lesser of…?
115% of the median house price in an area
150% of the national conforming loan limit of $417k
What are the two different types of insurance premiums with FHA loans?
Upfront Mortgage Insurance Premium and Annual Mortgage Insurance Premium
When is the premium paid for Upfront Mortgage Insurance?
Paid in full by the borrower at closing (sometimes financed)
What is the downpayment requirement for FHA loans?
3.5% down
