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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.

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
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.
7 business days
25
What is the fee for a skip payment on a home equity?
$25
26
What document is sent up to the county to record AFCU as a lienholder on the property?
Trust deed
27
True or false. A GFE (good faith estimate) is required on a home equity line of credit.
False
28
What is the fee for a change in terms on a home equity amendment?
$50
29
What form is given to the member to show how the variable rate closed end loan is figured?
Variable rate form disclosure
30
What department do you call for an appraisal fee?
Home equity
31
What 3 things must be done before disbursing a home equity loan?
3 day recission has lapsed Trust deed recorded Recission form not signed
32
What affidavit does the member sign if they have an AKA on their Home Equity documents?
Signature affidavit
33
True or false. An NMLS number is required to start a Home Equity application for the member.
True
34
What notice is sent with the trust deed that notifies AFCU if the member is behind on their mortgage?
Notice of default
35
Can an amendment be used to increase the loan amount on a home equity product?
No
36
What documents at needed from the member before starting an application?
``` VOI Home owners insurance Trust docs Mortgage statement Tax notice ```
37
Does the member have to pay closing costs on a home equity first mortgage?
No
38
What is the minimum limit for a standard home equity term loan?
$5000
39
True or false. Life and disability insurance is not available on home equity products.
False
40
For a skip payment/change in terms fee on a closed end home equity product where is the fee taken from?
Savings or checking
41
True or false. Loans on manufactured homes cannot be older than 10 years.
True
42
What is the minimum limit for home equity line plus?
$10000
43
What three types of loans are covered under the HMDA?
Refi Home improvement Purchase
44
HMDA provides the public with loan data that can be used to:
Make sure we aren't discriminating
45
True or false. On an open ended home equity product the skip payment/change in terms fee is applied to the limit.
True
46
When the member is applying for a home equity loc what pamphlet reds to be given to the member?
Home equity loc
47
What is the maximum the rate will go on a variable rate home equity loan?
18%
48
True or false. AFCU will pay the $14.00 overnight fee unless it is non owner occupied or a manufactured home
True
49
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.
6 months
50
What events do not constitute a changed circumstance for a GFE?
Property address changes in city/county Market place fluctuates Appraisal or title fee increase or AFCU error
51
What is the term for the home equity balloon product?
240/63
52
The required payment on a home equity line of credit is _____% of the outstanding balance.
1.25%
53
True or false. The settlement statement (hud 2010) is required on all home equity lines of credit.
False

Home Equity Lending Study Guide (1 decks)

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