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GMK Flashcards

1
Q

Mortgagee

A

Lender

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2
Q

Mortgagor

A

Borrower

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3
Q

COE

A

Certificate of Eligibity for VA loans

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4
Q

YSP

A

Yield Spread Premium- Profit broker makes when selling loans above par

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5
Q

SRP

A

Service Release Premium- Profit the lender makes when selling the loan on the secondary market

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6
Q

GPM

A

Graduated Payment Mortgage aka 2/1 buy down

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7
Q

HECM

A

Home Equity Conversion Mortgage AKA Reverse mortgage

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8
Q

VOE

A

Verification of employment

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9
Q

VOM

A

Verification of Mortgage

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10
Q

VOD

A

Verification of Deposit

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11
Q

VVOE

A

Verbal Verification of Employment

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12
Q

DD214

A

Discharge papers showing snapshot of military tenure

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13
Q

CRV

A

Certificate or Reasonable Value (appraisal for VA loan)

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14
Q

NOV

A

Notice of Value (appraisal for VA loan)

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15
Q

AE

A

Automated Endorser- AUS for VA loan

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16
Q

AUS

A

Automatic Underwriting System

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17
Q

LTV

A

Loan to Value (Loan amount divided by Value of Property)

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18
Q

DTI

A

Debt to Income, (Monthly housing expenses divided by Gross Monthly Income

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19
Q

DTI for VA Loan

A

41%/41%

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20
Q

VA funding fee for regular military

A

2.15% for first time 3.3% for subsequent use

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21
Q

VA funding fee for Reserves or National Guard

A

2.4% for first time 3.3% for subsequent use

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22
Q

DTI of USDA loan

A

29%/41%

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23
Q

PITIA

A

Principle, Interest, Taxes, Insurance, Association

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24
Q

What are the Flood Insurance Types?

A

Zone A and Zone V

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25
Q

CRA

A

Consumer Reporting Agencies

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26
Q

What are the three CRA?

A

Equifax, Transunion, Experian

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27
Q

GSE

A

Government Sponsored Enterprise

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28
Q

FNMA

A

Federal National Mortgage Association (Fannie Mae)

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29
Q

FHLMC

A

Federal Home Loan Mortage Corporation (Freddie Mac

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30
Q

GNMA

A

Government National Mortgage Association (Ginnie Mae)

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31
Q

Non-Conventional Loans

A

FHA, VA, USDA

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32
Q

Types of Conventional Loans

A

Conforming and Non-Conforming

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33
Q

Conforming Loans

A

Fannie and Freddie

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34
Q

Non-Conforming Loan

A

Jumbo, Subprime, Alt-A

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35
Q

Standard Loan Limit

A

$484,350

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36
Q

High Balance Loan Limit

A

$726,525

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37
Q

Jumbo Loan Limit

A

$726,526 - $2,000,000

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38
Q

TLTV

A

Total Loan to Valve

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39
Q

HLTV

A

High Balance Loan to Value (synonymous with TLTV)

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40
Q

DTI of Conforming Conventional Loan

A

28%/36%

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41
Q

DTI of FHA Loan

42
Q

HELOC

A

Home Equity Line of Credit

43
Q

HEL

A

Home Equity Loan

44
Q

Piggy Back Loan

A

80/20 or 80/10/10 2nd lien to avoid PMI

45
Q

Rate and Term Refinance

A

When the borrower wants to change either the interest rate or length of term of existing mortgage

46
Q

Cash Out Refinance

A

When the borrower is looking to convert some of the equity in the home into cash. Increase LTV

47
Q

Front End DTI

A

PITIA divided by Gross Monthly Income

48
Q

Back End DTI

A

PITIA + Non-Cancellable Debt divided by Gross Monthly Income

49
Q

Mortgage Lenders and Banks…

A

Lend own money

50
Q

Mortgage brokers…

A

Arrange loans they lend against other banks money

51
Q

Mortgage servicer…

A

Collect mortgage payments

52
Q

MLO

A

Mortgage Loan Originator; Takes application, negotiate rates and fees for compensation

53
Q

Processor and Underwriters

A

Perform Clerical and Support Duties

54
Q

Processors can…

A

Can discuss loan conditions and ask for documentation

55
Q

Underwriters can…

A

Make the decision on the loan (Approve of Deny); Assess the risk of the application

56
Q

Rental/Vacation loans must have…

A

Minimum 85% LTV and 6 months reserve PITIA

57
Q

What is the MAX LTV for cash out on a Conforming Conventional Loan?

58
Q

What is a mortgage?

A

A mortgage is a written instrument using real property to secure repayment of a debt

59
Q

Mortgage lending is based on what factors

A

Credit Based Lending and Layered Risk (LLPA)

60
Q

What is a Hard pull and Soft Pull?

A

Hard pull is a credit check from all 3 credit bureau;

Soft pull is a credit check from 1 credit bureau

61
Q

What are the 4 C’s?

A

Credit, Collateral, Capacity, Capital

62
Q

What are conforming loans?

A

Fannie and Freddie

63
Q

What are conventional loans?

A

Fannie and Freddie

64
Q

What are non-conforming loans?

A

Jumbo, Subprime, Alt-A

65
Q

What are non-Conventional loans?

A

FHA, VA, USDA

66
Q

What is a traditional loan?

A

30 year FIXED

67
Q

What is the standard loan limit?

68
Q

What is a High Balance loan limit?

A

$726,525 (150%)

69
Q

What are the different occupancy type?

A

Owner Occupied, Second Home, Investment property/Non-Owner Occupied

70
Q

What are loan transaction types?

A

Purchase, Rate and Term, Cash Out Refinance, and Streamline(FHA)/ IRRRL (VA)

71
Q

What is an escrow?

A

Impound account for Realestate taxes and insurance premiums

72
Q

NMLS/R

A

Nationwide Mortgage Licensing System and Registry

73
Q

SRR

A

State Regulatory Registry

74
Q

CSBS

A

Conference of State Bank Supervisors

75
Q

AARMR

A

American Association of Residential Mortgage Regulators

76
Q

“Person”

A

an individual, corporation, business trust, estate, LLC, ETC.

77
Q

“Individual”

A

a natural person

78
Q

ABA

A

Affiliated Business Arrangement

79
Q

ABA

A

Affiliated Business Arrangement

80
Q

MSDS

A

Mortgage Servicing Disclosure Statement

81
Q

ISDS

A

Initial Servicing Disclosure Statement

82
Q

PENCIL

A 
P.roperty address
E.stimated value of property
N.ame of Borrower
C.redit or SSN#
I.ncome
L.oan amount
83
Q

ABC

A

Agriculture, Business, and Commercial

84
Q

Finance Charge Rate

85
Q

What is an encumbrance?

A

A claim against real property that is held by someone who is not the legal owner

86
Q

What is a voluntary financial encumbrance?

A

Mortgage, HELOC,HEL, Bridge

87
Q

What is an involuntary financial encumbrance?

A

Tax lien , HOA, Mechanic’s Lien

88
Q

What is a physical encumbrance?

A

Easements (ex. Telephone Pole, fire hydrant)
Public or private restrictions (ex. driveway, sidewalk, stairway
Encroachment (ex. fence, tree, shed)

89
Q

What are the different appraisal approaches?

A

C.S.I.

Cost Approach, Sales Approach, Income Approach

90
Q

What is a sales approach appraisal?

A

Appraising based on similar local home sales in area, 3 within 1 mile SOLD in last 12 months

91
Q

What adjustments can be made on a sales approach appraisal?

A

10% per line item
15% net adjustment
25% gross adjustment

92
Q

What is a promissory note?

A

The promise to repay the loan, mortgage, deed of trust

93
Q

What is Reconveyance?

A

When the borrower pay off their mortgage and the lien is released. Clear title is be re-conveyed back to the borrower

94
Q

What is Conveyance?

A

when your transfer ownership from one party to another (ex. when you sell your property)

95
Q

What is Hypothecation?

A

Giving up ownership without giving up possession

96
Q

What is Loan Modification?

A

Permanent change in the terms of a loan

97
Q

What is Forbearance?

A

Temporary agreement where the borrower pays a reduced amount while also not paying past due amount (interest does accrue)

98
Q

What is a Late Payment Clause?

A

Most lenders allow up to a 15 day “grace” period

99
Q

What is a Due on Sale Clause?

A

If you sell the home, Then you must payoff the outstanding balance AKA Alienation Clause

100
Q

What is Acceleration Clause?

A

Gives the lender the ability to accelerate the loan (pay in full) if the borrower defaults on the loan

ACES (22 decks)

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