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Home Equity Lending Study Guide > Home Equity > Flashcards

Home Equity Flashcards

0
Q

If a member signs their he docs on Monday, what day would their loan disburse?

A

Friday

It takes 3 full business days and then funds the next day

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1
Q

What is the acceptable loan to value on an IDEAL HOME EQUITY LOAN?

A

100%

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2
Q

The payment due date for a home equity line of credit is the _______ of the month.

A

30th

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3
Q

What disclosure informs the member that their home equity loan will always be serviced by AFCU and that we will not sell the loan off to another lender?

A

Servicing disclosure

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4
Q

What is the acceptable loan to value on a STANDARD HOME EQUITY loan?

A

80%

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5
Q

True or false. When a member is applying for an Ideal Home Equity loan they are required to pay for the appraisal.

A

True

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6
Q

The minimum credit limit for a Home Equity Line Plus is ______________.

A

$10000

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7
Q

What disclosure details fees that the member needs to pay out of pocket and lists where in the account to pull fees from?

A

Good faith estimate

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8
Q

The reconveyance fee for a home equity loan is _____.

A

$250

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9
Q

America first is able to loan money on homes in which states?

A

Utah
Idaho
Arizona
Nevada

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10
Q

True or false. The HMDA allows lenders to ask about race, sex, and ethnicity.

A

True

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11
Q

On which amendment changes is it permissible to write “per member request” on the signature line?

A

Skip payment and change in rate

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12
Q

True or false. A balloon payment requires the loan to be paid in full after a specified amount of time.

A

True

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13
Q

If more than one borrower has the right to rescind, do all borrowers have to exercise that right?

A

Yes

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14
Q

True or false. A home equity loan cannot be disbursed until we have the signed right of rescission form back confirming that the member wants to go through with he loan.

A

False

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15
Q

If a members home is worth $185000.00 and they currently owe $105000.00 on their first mortgage, how much do they have available if they want the STANDARD home equity loan?

A

$43,000

Value x .80 - balance

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16
Q

If a members home is worth $280000.00 and they currently owe $220000.00 on their first mortgage and they want a second mortgage of $25000.00, what product will the member get?

A

Ideal

88% LTV

balance + requested / value

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17
Q

On a non-owner occupied loan being used for a second home or an investment property, we can go up to what LTV?

A

65%

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18
Q

A legal instrument used to release one’s right, title, or interest to another is a _____________.

A

Quit claim deed

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19
Q

Private mortgage insurance (PMI) is generally required on all mortgages with a down payment less than ______.

A

20%

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20
Q

A member can add payment protection to their loan within ____ days without having to fill out a Statement of Insurability.

A

30 days

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21
Q

The trust deed note discloses what information to the member?

A 
Loan amount
Interest 
Term
Due date
Monthly payment
Fees
22
Q

The required payment on a Regular line of credit is ____% of the outstanding balance.

A

3.5%

23
Q

List the items that can be changed on an Amendment to Home Equity Contract Fixed Rate.
(4)

A

Change payment
Convert HELOC to a closed end fixed rate
Change from variable to fixed rate
Chang to a lower payment

24
Q

On a home equity loan we are required by law to allow ____ business days to pass from the date of application until the day the member signs closing documents.

A

7 business days

25
Q

What is the fee for a skip payment on a home equity?

A

$25

26
Q

What document is sent up to the county to record AFCU as a lienholder on the property?

A

Trust deed

27
Q

True or false. A GFE (good faith estimate) is required on a home equity line of credit.

A

False

28
Q

What is the fee for a change in terms on a home equity amendment?

A

$50

29
Q

What form is given to the member to show how the variable rate closed end loan is figured?

A

Variable rate form disclosure

30
Q

What department do you call for an appraisal fee?

A

Home equity

31
Q

What 3 things must be done before disbursing a home equity loan?

A

3 day recission has lapsed
Trust deed recorded
Recission form not signed

32
Q

What affidavit does the member sign if they have an AKA on their Home Equity documents?

A

Signature affidavit

33
Q

True or false. An NMLS number is required to start a Home Equity application for the member.

A

True

34
Q

What notice is sent with the trust deed that notifies AFCU if the member is behind on their mortgage?

A

Notice of default

35
Q

Can an amendment be used to increase the loan amount on a home equity product?

A

No

36
Q

What documents at needed from the member before starting an application?

A 
VOI
Home owners insurance
Trust docs 
Mortgage statement 
Tax notice
37
Q

Does the member have to pay closing costs on a home equity first mortgage?

A

No

38
Q

What is the minimum limit for a standard home equity term loan?

A

$5000

39
Q

True or false. Life and disability insurance is not available on home equity products.

A

False

40
Q

For a skip payment/change in terms fee on a closed end home equity product where is the fee taken from?

A

Savings or checking

41
Q

True or false. Loans on manufactured homes cannot be older than 10 years.

A

True

42
Q

What is the minimum limit for home equity line plus?

A

$10000

43
Q

What three types of loans are covered under the HMDA?

A

Refi
Home improvement
Purchase

44
Q

HMDA provides the public with loan data that can be used to:

A

Make sure we aren’t discriminating

45
Q

True or false. On an open ended home equity product the skip payment/change in terms fee is applied to the limit.

A

True

46
Q

When the member is applying for a home equity loc what pamphlet reds to be given to the member?

A

Home equity loc

47
Q

What is the maximum the rate will go on a variable rate home equity loan?

A

18%

48
Q

True or false. AFCU will pay the $14.00 overnight fee unless it is non owner occupied or a manufactured home

A

True

49
Q

If a member has had an appraisal done on the property located in Utah in the last ___________ we can send a copy to home equity to see if they can use it.

A

6 months

50
Q

What events do not constitute a changed circumstance for a GFE?

A

Property address changes in city/county
Market place fluctuates
Appraisal or title fee increase or AFCU error

51
Q

What is the term for the home equity balloon product?

A

240/63

52
Q

The required payment on a home equity line of credit is _____% of the outstanding balance.

A

1.25%

53
Q

True or false. The settlement statement (hud 2010) is required on all home equity lines of credit.

A

False

Home Equity Lending Study Guide (1 decks)

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