General Mortgage Knowledge

Question 1

Verifications (MEDIA)

Answer 1

Mortgage, Employment, Deposit (liquid), Income, Asset (non-liquid)

Question 2

Uniform Residential Loan Application

Answer 2

1003, LP65

Question 3

Uniform Residential Appraisal Report

Answer 3

1004, LP70

Question 4

Applications (ALIENS)

Answer 4

• Address, Loan amount, Income, Estimate of property value, Name, SSN
• Can be unverified verbal estimates

Question 5

Creditworthiness - Prime

Answer 5

GOOD!

Question 6

Creditworthiness - “A-“

Answer 6

credit blemish (life happens)

Question 7

Creditworthiness - Subprime

Answer 7

complete and utter dog sh*t

Question 8

Alt-A

Answer 8

Alternate documentation standards

Question 9

ALTA

Answer 9

American Land Title Association (title paperwork forms)

Question 10

Flood Zone - A or V

Answer 10

high risk, forced placement

Question 11

Flood Zone - B or X

Answer 11

moderate risk, lender can require

Question 12

Flood Zone - C or X

Answer 12

low risk, cannot be required

Question 13

FEMA develops what?

Answer 13

F.I.R.M (topographical)

Question 14

Seller-Financing = what?

Answer 14

Purchase-Money-Mortgage

Question 15

Seller-Financing: How many a year is okay?

Answer 15

3 or fewer

Question 16

Purchase-Money-Mortgage CANNOT HAVE

Answer 16

negative amortization

Question 17

Financing Instrument

Answer 17

Note = Loan

Question 18

Security Instrument

Answer 18

Mortgage = Lien

Question 19

Deed

Answer 19

Title

Question 20

Convey (or Conveyance)

Answer 20

transfer

Question 21

Hypothecate

Answer 21

verb for “pledge collateral”

Question 22

Instrument

Answer 22

Document

Question 23

Clause

Answer 23

Paragraph

Question 24

Point

Answer 24

1% of loan amount

Question 25

Basis Point

Answer 25

.01%

Question 26

Balloon

Answer 26

360/180 or 360/120

Question 27

Temporary Buydown

Answer 27

2/1

Question 28

Closing

Answer 28

paperwork

Question 29

Consummation

Answer 29

becoming legally obligated

Question 30

AWC

Answer 30

approved with conditions

Question 31

CTC

Answer 31

clear to close

Question 32

discount point

Answer 32

permanent buydown = charge to the borrower

Question 33

What does YSP stand for?

Answer 33

Yield Spread Premeium

Question 34

What is YSP?

Answer 34

Higher rate in return for bonafide reduction in closing cost = credit to the borrower

Question 35

Acceleration

Answer 35

• Must contact borrower by day 36 of delinquency
• Must offer loan modification by day 45 of delinquency
• Fastest acceleration can occur is 120 days fully delinquent
• Seek HUD Counseling = 90 day freeze

Question 36

Applications or “compliance with disclosure requirements”

Answer 36

2 years

Question 37

MARS Rule

Answer 37

2 years or 24 months

Question 38

ECOA-B records of complaints

Answer 38

25 months

Question 39

MLO Compensation

Answer 39

3 years

Question 40

QM/ATR Compliance

Answer 40

3 years

Question 41

Final CDs/Consummated Files

Answer 41

5 years

Question 42

BSA / AML / SARs

Answer 42

5 years

Question 43

PATRIOT Act

Answer 43

7 years

Question 44

How frequently is the Mortgage Statement given?

Answer 44

monthly

Question 45

How frequently is the Escrow Statement given?

Answer 45

annually

Question 46

When is the Initial Escrow Statement given?

Answer 46

within 45 days of closing

Question 47

CFPB MAX civil penalty

Answer 47

$25,000 per violation

Question 48

AG / FBI Criminal

Answer 48

$1,000,000 and/or 30 years