Funding and Closing Flashcards
Who is the middleman between the MLO and appraiser?
Appraisal Management Company (AMC)
TRUE OR FALSE: Finished basements can be included in the finished living space on an appraisal.
False
TRUE OR FALSE: The income approach is used to appraise an investment or multi-unit property.
True
Which type of appraisal is most commonly used?
Sales approach
TRUE OR FALSE: The title report will show whether there are any tax liens on the property.
True
The simplest form of ownership
Ownership in Severalty
Which type of lien is superior to the rest?
Property Tax Liens
What is considered the repeated refinancing of loans that have no benefits to the borrower?
Churning
Which sections on page 2 of the Closing Disclosure are considered “10% tolerance”?
B. Services Borrower Did Not Shop For (majority of)
Which sections on page 2 of the Closing Disclosure are considered “zero tolerance”?
A. Origination Charges
Which sections on page 2 of the Closing Disclosure are considered “no tolerance”?
C. Services Borrower Did Shop For and “Other Costs”
TRUE OR FALSE: Conventional loans are not assumable.
True
Per Reg B of ECOA, when should the lender give the borrower a copy of the appraisal?
at least three days before closing
TRUE OR FALSE: If the fixed interest rate increases by more than 1/4th of a percent, a new disclosure is required.
False
TRUE OR FALSE: If you mail the CD on Monday, you can close the following Monday.
True
TRUE OR FALSE: MLOs should always be present at their borrowers’ closings.
False
TRUE OR FALSE: The borrower must notify the creditor if they want to rescind their loan by midnight of the third business day after closing.
True
What are the 3 types of involuntary liens?
Tax liens, mechanics liens and judgement liens
Harmful refinancing by lenders that potentially takes away a homeowner’s equity with unnecessary loans is _________.
Churning
If you issue the closing disclosure in person on a Friday, on which day could you close?
The next Tuesday
The _______________ policy must be at least equal to the original principal mortgage amount.
Lender’s title insurance
What are the 3 types of co-ownership?
Tenancy in common, joint tenancy and tenancy by the entirety
