General Lending Flashcards
What is the default closing time?
9:00am
What is ALWAYS the answer to “is early wire required?”
Yes
What do you put for first payment?
First day of the month following closing or within 45 days after closing.
What is a great resource for loan procedures?
Intranet —> Loan Submission Procedures
What are the two places you can pull a KROLL report?
Platform or KROLL Website (www.factualdata.com)
What is a term sheet?
A non binding letter of intent
If a loan is below the loan amount for a jumbo what is it considered?
Conforming
What must be documented when calling on maturing or past due loans?
Must log conversation notes
Right to Cure for loans gives customer _________ days to make payment before action by the bank is taken.
20
Where can you look for more information regarding credit reports and alerts on them?
Procedures and Manuals —> Accounts —> Transunion Guides
For bridge loans what should be included in the “loan purpose comments” section?
Whether the loan will be followed by permanent financing.
On a FIRM5 and FIRM7 what must be done in regards to interest rates?
They must be adjusted to the fully indexed rate
How are fully indexed rates obtained?
By taking the 1 yr CMT and adding it to the current set margin.
Where are margins and FIRM5 and 7 rate adjustments found?
Intranet—> Investment Property Mortgages Excel Sheet
What must we do with a FIRM 5 OR FIRM7 rate when underwriting?
Calculate the fully indexed rate
How is a fully indexed rate calculated?
Adding the 1 year CMT and Current Margin
What is the 1 year CMT?
The current 10 year treasury bill
Where can you find the current margin?
Investment property mortgages excel sheet on the intranet
How much can interest rate increase the first year after a FIRM5 moves to variable?
2%
How much can an interest rate increase the first year after moving to variable in a FIRM7?
3%
How much can an interest rate increase over the life of the loan on a FIRM5 or FIRM7?
5%
What is the cost for a modification?
1% of current loan amount
What is the doc prep fee on a modification?
$200
What is an interest long term rate?
10 year T Bill
What is a short term interest rate?
Prime
What is different between the APR and the Stated Rate on loan docs?
APR is ‘wholeistic’ while stated rate is just the rate. This means APR includes all fees throughout the loan. This gives an ‘actual’ payment feel.