Key Terms Unit 13 Flashcards
Covers more than one parcel or lot. Usually used by a developer to finance a subdivision.
Blanket Loan
A way to temporarily lower interest rate on a mortgage of deed of trust loan.
Buydown
States the properties current market value based on a VA-approved appraisal.
Certificate of reasonable value (CVR)
The responsibility of financial institutions to help meet their communities needs for low income and moderate income housing.
Community Reinvestment Act of 1977 (CRA)
Finance construction of improvements on real estate (office buildings, homes, apartments). The lender disburses payments as draws during construction.
Construction Loan
The most secured loan because their LTV are lower. 80% of the value of the property of less because the borrower pays at least a 20% down payment. A loan with less then 20% requires PMI.
Conventional Loan
Prohibits discrimination
Equal Credit Opportunity Act (ECOA)
___ buys from a lender a block or pool of mortgages that may then be used for collateral for mortgage-backed securities that are sold on global market.
Fannie Mae
A secondary market for agricultural and rural development loans.
Farmer Mac
Deposits in insured institutions are covered up to the specified limit, currently $250,000 per depositor, per account, by the _____.
Federal Deposit Insurance Corporation (FDIC)
Their role is to maintain sound credit conditions, help counteract inflationary and deflationary trends, and create a favorable economic climate.
Federal Reserve System (Fed)
A loan that is insured by the agency.
FHA-Insured Loan
Continues to provide a secondary market for mortgage loans, primarily conventional loans.
Freddie Mac
Administers special assistance programs and guarantees investment securities issues by private offerers. They do not buy or sell loans.
Ginnie Mae
Organizations created by the fed government to help increase loan opportunities for buyers. Fannie Mae, Freddie Mac, Farmer Mac, Ginnie Mae
Government-sponsored enterprises (GSEs)
A source of funds that takes advantage of the equity buildup in a home. Only the amount borrowed will be subject to the higher interest rate.
Home equity loan
The FHA insurance that is a percentage of the loan amount that the borrower is charged as a premium.
Mortgage insurance premium (MIP)
Govern’t agency which sets standards and regulations for fiduciary lenders.
Office of the Comptroller of the Currency (OCC)
Provides a security interest when a note is executed by the borrower to the lender and future advances from the lender to the borrower.
Open-end loan
Loans that include real and personal property as part of the sales price of the home. ie home, drapes, furniture, dishwasher.
Package loan
Made up of the lenders that originate mortgage loans. These lenders make money available directly to borrowers.
Primary mortgage market
the borrower purchases an insurance policy that provides the lender with funds in the event of borrower default on the loan.
Private mortgage insurance PMI
Requires that credit institutions inform borrowers of the true cost of obtaining credit.
Regulation Z
The buyer becomes the landlord (new owner) and the original owner (the seller) becomes the tenant.
sale-and-leaseback
