Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

NMLS > Last Minute Deck > Flashcards

Last Minute Deck Flashcards

1
Q

What are the different forms and what are they for?

A
  • 1003 - URLA - Loan Application
  • 1004 - URAR Appraisal - Form 442
  • 1005 - VOE Payroll - Paystubs
  • 1006 - VOD Bank Balance - Bank Statements
  • 1007 - SFR Rent Schedule
  • 1008 - Transmittal Summary - Sent to UW
  • 1009 - Reverse Mortgage
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What are the different sections of the 1003 URLA?

A
  • Section 2: Purpose of the Loan - Property Info
  • Section 3: Borrower Information
  • Section 4: Employment
  • Section 5: Monthly Income/Housing Expense
  • Section 6: Assets and Liabilities
  • Section 7: Details of Transaction
  • Section 8: Declarations
  • Section 9: Acknowledgement and Agreement
  • Section 10: HMDA Reporting
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What items makes a complete loan application?

A

ALIENS

  • Address
  • Loan Amount
  • Income
  • Estimated Value of Home
  • Name
  • Social Security
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What are the different flood zones, risks, and insurance requirements?

A
  • High-risk – Zones A and V (insurance is mandatory)
  • Moderate – Zones B and X (insurance is optional)
  • Low-risk – Zones C or X (not required)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is property flipping vs. property flopping?

A

Flopping is the latest in mortgage fraud, in which sellers actually want as low a price as possible. Then an accomplice can flip the home for a big gain. Flipping is when a con artist buys a property with the intent to re-sell it an artificially inflated price for a considerable profit, even though they only make minor improvements to it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the conditions/features of a HCML (HOEPA)?

A
  • 6.5% First Lien 50K+
  • 8.5% First Lien 50K or less
  • 8.5% on a subordinate lien
  • Must see HUD Counselor
  • Must have ATR
  • No Prepay penalty
  • No Balloon payment
  • Can include Variable Interest Rate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What are the conditions/features of a HPML (TILA)?

A

-1.50% - first lien loans - non-jumbo
-2.5% - Jumbo first -lien loans
-3.5% - Subordinate Liens
-Require Escrow Tax & Hazard ins.) for the first 5
years
-No Prepayment Penalty (unless in
the first 2 years)
-Must have ATR (Ability to Repay)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What does RESPA NOT deal with?

A
  • Bridge Loans
  • Construction Loans
  • Temp Financing
  • Commercial Property
  • Vacant Land (unless it will be built on within 2 yrs
  • 25+ Acres of Land
  • Rental Units 4+
  • All Cash Sales
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What does TRID does not apply to?

A
  • HELOC
  • Reverse Mortgage
  • Mobile Homes not secured by real estate
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What are all of the initial disclosures?

A
  • K/H - Know before you owe handbook
  • A - AfbA
  • M - Mortgage Servicing Disclosure
  • L - List of HUD counselors (10)
  • L - Loan Estimate
  • W - When your home is on the line
  • GFH/HUD (Non-Purchases)
  • No K/H or LE for Reverse Mortgages*
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What are the RESPA Disclosures and when must they be sent?

A
  • K/H - Know before you owe handbook -> Initial
  • A - AfbA -> Initial (at time of referral)
  • M - Mortgage Servicing Disclosure -> Initial
  • I - Initial Escrow -> Give at closing or within 45 days
  • L - List of HUD approved counselors (10) -> Initial
  • A - Annual Escrow -> Done annually
  • S - Servicing Transfer Disclosure - HELLO -> 15 days prior to transfer/60 days grace. No Credit Ding and No Late Fee
  • GFH/HUD (Non-Purchases) -> Initial - Reverse
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What are the TILA Disclosures?

A
  • B - Ballon Notice
  • R - Right to Recession
  • A - ARM disclosure” Given 60 days prior
  • W - When your home is on the line Initial
  • L - Loan Estimate
  • C - CHARM
  • C - CD (Includes Partial Payment Policy)” Initial
  • T - Transfer of Mortgage Notice.(ownership) Other - 30 days Prior
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How long must docs be kept with a specific lender or agency?

A

How long to keep docs

  • TILA docs 2 years
  • MAP - 2 years/24 months
  • Escrow Cancellation - 2 Years
  • Partial Payment Policy - 2 Years
  • MCR - 2 years
  • DNC Documents - 2 Years
  • ECOA - 25 Months
  • Loan Compensation - 3 years
  • LAR – 3 years - Due in March
  • LE - 3 years
  • CD - 5 years
  • SAR – 5 years
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the 4 main indexes?

A
  • PRIME
  • COFI
  • LIBOR
  • COSI
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What documents must you put your NMLS number on?

A
  • 1003 URLA
  • Promissory Note Mortgages
  • Advertisements
  • Trust Deeds
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What are the conditions for a Qualified Mortgage?

A
  • 3% Points & Fees Max, & ATR
  • 43% Ratio
  • PP Penalty limited to first 3 years on fixed rate QM not over 30 years
  • No Toxic Features - No Balloon, No Interest Only, No Neg Am
  • Protects Lender
17
Q

What determines whether a seller has the Ability to Repay? What is looked at?

A

MICE DOES have the ATR

  • Monthly Mortgage
  • Income/Assets
  • Credit
  • Employment
  • Debt to Income DTI
  • Other Debt
  • Expenses - Monthly
  • Simontaous Mortgage
18
Q

What agencies enforce FCRA, ECOA, TILA, and RESPA?

A
  • FCRA (1970) is enforced by Federal Trade Commision
  • ECOA (1974) is enforced by CFPB
  • TILA (1968) is enforced by CFPB
  • RESPA (1974) is enforced by CFPB (used to be HUD)
19
Q

What agencies/regulations implemented/created the DNC, TILA, HMDA, and the Red Flags Rules?

A
  • DNC (Do Not Call) - Created by FCC & FTC
  • TILA is implemented by Federal Reserve Board
  • HMDA (1975) in Implemented by - Federal Reserve Board
  • Red Flag Rules created by FTC & FACTA
20
Q

When did the Civil Rights Act become the Fair Housing Act?

A

Civil RIghts Act of 1866 became Fair Housing Act in 1968

21
Q

What items on the Loan Estimate that have 0% Tolerance?

A 
0% Tolerance = TRAIL
T - Transfer Taxes
R - Report (Credit)
A - Appraisal
I - Interest
L - Loan Origination
22
Q

What items on the Loan Estimate that have 10% Tolerance?

A

10% Tolerance

  • Gov’t recording fees
  • Title Insurance
23
Q

What items on the Loan Estimate that have no tolerance?

A

No Tolerance (3rd party)

  • Hazard Insurance
  • Termite Inspection
  • Title Insurance
  • Per Diem Fees (pre-paid mortgage interest)
24
Q

What fees/costs are included in APR?

A 
Included in APR:
• Origination fees
• Discount points
• Tax service fees
• Underwriting fees/Processing fees
• Prepaid/per diem interest
• Mortgage insurance premium
• Mortgage insurance impounds/reserves
• Warehouse fees
• VA funding fees
• FHA UFMIP
• Buydown
• Flood certification fees
• Closing fees
• Courier fees (Lender)
25
Q

What fees/costs are NOT included in APR?

A 
NOT included in APR = ENACTT
E - Escrow
N - Notary Fee
A - Appraisal  
C - Credit Report
T - Termite Inspection
T - Title Insurance
26
Q

What do prepaid finance charges include?

A

PREPAID FINANCE CHARGES INCLUDE:

  • Loan origination
  • Discount points
  • Commitment fees
  • Underwriting fees
  • Processing fees
  • Tax service fees
  • Courier fees (if paid to creditor)
  • Buy-down funds
  • Prepaid interest
  • Any prepaid PMI, FHA UFMIP, VA funding fee, or USDA guarantee fee
27
Q

What do prepaid finance charges NOT include?

A

FINANCE CHARGES DO NOT INCLUDE

  • Points paid by the seller
  • Bona fide and reasonable fees
  • Security interest charges (if itemized and disclosed)
  • Credit Report fee
  • Appraisal fee
  • Notary fee
28
Q

What are the different RESPA Sections?

A 
RESPA Sections:
6 - Mortgage Servicer & Abuse 
8 - Fee Splitting/Kickbacks/Unearned Fees
9 - Title (Treble Damages) 
10 - Annual Escrow Analysis
11 - Appraisals
29
Q

How soon must a Lender respond to a Qualified Written Request (QWR)?

A

Qualified Written Request (QWR)

  • Lender acknowledge request by 5 business days
  • Seek to resolve the issue/concern within 30 days

15 day extension if needed in connection to notices of error submitted by the borrower

30
Q

What are the main Loan Estimate Facts?

A

Loan Estimate Facts

  • Available for 10 business days
  • Only place to find the Rate Lock
  • Old GFE + Initial TIL = LE
  • Must be delivered or mailed no later than (3) three business days after a loan application is submitted.
  • Revised Loan Estimate is received at least four (4) business days prior to consummation of the mortgage
  • The creditor is ultimately responsible for the delivery of the LE to the borrower
31
Q

What is a note?

A

This is an unsecured promise to pay back the lender. A promissory note provides the financial details of the loan’s repayment, such as the interest rate and method of payment.

32
Q

What is the relationship between a mortgage, deed, and trust?

A

A promissory note is a promise to pay and the lender retains it while the deed of trust/mortgage gets recorded at the courthouse. Since a promissory note is not secured to satisfy the transaction, a mortgage (aka the security instrument) is needed to attached the note to a specific property (as collateral). A mortgage specifies the procedure that will be followed if the borrower doesn’t repay the loan.

33
Q

What are the 5 types of Liens and are they Voluntary or Involuntary?

A
  • Mortgage = Voluntary
  • Attachments = Involuntary
  • Judgements = Involuntary
  • Mechanics Liens = Involuntary
  • Tax Liens = Involuntary

NMLS (41 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions