Level 2 practice-financing Flashcards
a national banking system which helps to control inflation and deflation by regulating interest rates and reserve fund requirements of its member banks.
Federal reserve system
The market where banks that originate loans operate
primary mortgage market
Where loans are sold, held, and serviced
secondary mortgage market
The lender in a mortgage
mortgagee
The borrower in a mortgage, usually the homeowner.
mortgagor
Pledging a property as collateral for a loan.
hypothecation
The theory that a lender owns the property until the underlying loan is paid off.
title theory
Similar to a mortgage, in this document the borrower conveys title for the property to a trust, which holds it as security for the lender.
deed of trust
Paying off the mortgage in full.
satisfaction of mortgage
The paying off of a debt with regular installments over a fixed repayment schedule
amortization
Mortgage payments, including principal and interest, on a loan.
debt service
What does PITI stand for
Principle interest taxes insurance
amount of payment stays the same over the life of the loan and the amount that goes toward the principal increase as the amount of interest owed decreases is what type of loan
Amortized loan
portion that applies to the principal remains the same and the amount of interest varies according to loan balance is what type of loan
Straight loan
What program provides a stay of foreclosure proceeding while borrower gets housing counseling and loans to help them get current
Homeowner emergency assistance program (hemap)
