Funding Flashcards
Interest rate charged by the Federal Reserve Bank to financial institutions that loans are made to.
Discount rate
Prime rate
Interest rate charged by banks to preferred borrowers.
Mortgage rates
Rates used for long term loans.
This is a feed paid by borrowers for loan being approved. Each point is 1% of the loan.
Origination points
This is paid by the borrower at the start of the loan in order to get a lower interest rate for the life of the loan.
Discount points
This Act was enacted by Congress in 1968 as part of the Consumer Protection Act. It’s also know as Regulation Z and applies to lenders who conduct more that 25 consumer credit transactions in a year, has more than 5 transaction sin a year with a residence used as a security, and/or offers credit to consumers.
Truth in Lending Act
Creditors are prohibited from discriminating against applicants during credit transactions on the basis of race, color, region, national origin, sex, marital status or age.
Equal Credit Opportunity Act
Financial institutions are required to make annual disclosures about home purchases, refinances, etc. regarding 1-4 unit residences.
Home Mortgage Disclosure Act
This act promotes the idea that commercial banks and saving association work to help fulfill the financial needs of consumers in all areas, low to high income.
Community Reinvestment Act
The collection, disbursement, and utilization of consumer information is regulated via this act.
Fair Credit Reporting Act
Once every 12 months, consumers are able to obtain a free credit report from each of the three credit reporting agencies (Equifax, Experian, and TransUnion).
Fair and Accurate Credit Transactions Act
Financial institutions are required to safeguard the sensitive information of their consumers as well as explain to them the company’s information-sharing practices.
Gramm-Leach-Billey Act
Creative Financing Disclosure Law
Homebuyers who accept seller financing are legally entitled to a seller disclosure form, in which all terms of the financing are detailed. Four units or less, residential properties only.
California Residential Mortgage Lending Act
Individuals licensed by CA to make or service loans on residential properties of 4 units or less are covered by this law.
What are exempt from the CA residential mortgage lending act?
CA real estate brokers, CA financiers who make or back loans (business or personal) that are backed by personal property, lenders that are already licensed by federal government, court-appointed reps, government and pension plan employees, and the trustee under a deed of trust.
