Miscellaneous Flashcards
20 HR PE Breakdown
Acronym
Breakdown
Prescribed by…(what)
20 HR, Pre-licensing Education (PE)
Fed Law + Regulation - 3 HRS
Ethics - 3 HRS
Non-trad. Mortgages - 2 HRS
Undefined Education - 12 HRS
The Safe Act requires it
(CE)
- Acronym
- Who it applies to
- # + Breakdown
- Continuing Education (CE)
- Licensed MLO must take 8 hours of cont. educ. to keep license up to date
- 8 HOURS
3 HRS - Fed Law/Regulation
2 HRS - Ethics
2 HRS - Non-Traditional Mort. Standards
1 HR - Undefined education
Name of Test taken in order to receive license
(Acronym and Full)
Who participates?
Uniform State Test (UST)
All 50 states participate (pg. 47 = wrong)
5 possible categories included in UST Exam
- Mortgage Loan Origination (MLO)
- General Mortgage Knowledge (GMK)
- Federal Laws
- Ethics
- Uniform State Content (USC)
How many minutes to complete exam?
190 minutes
of times a test can be taken, prior to 6 month wait
3
(MU) Form
Mortgage Uniform Form
- form MLO’s fool out during the registration/licensing process in order to request the necessary license
Two different DTI calculations + their AKA’s
General Equations
Details of what’s included
- Housing DTI Calc (AKA Front End Ratio)
(PITI + Housing Expenses) / (gross monthly income) = Front End DTI
- Housing Expenses includes HOA
2. Total DTI Calc (AKA Back End Ratio)
(Total Monthly Expenses) / (gross monthly income) = Back End DTI
- legal monthly credit obligations that can’t be cancelled
Interest
How much a client pays to borrow money
Arrears
Paying now, for the use of money from the previous month
T/F
Borrower Hazard insurance is required by all lenders
True
Adjustable Rate Mortgage (definition)
A mortgage loan with a variable rate, that fully amortizes.
VERIFY
pg. 63 - A mortgage loan with a variable rate, that does not have a complete amortization schedule at the start of repayment
Ex: of such product
VERIFY HELOC
Appraiser follows what guidelines?
(USPAP) Uniform Standards of Professional Appraisal Practice
T/F - Appraisers are licensed separately at state level, but may be required to be licensed/registered within local jurisdiction too.
True (pg 20)
AKA for lender
Hint: legal terminology
Mortgagee
AKA for Borrower
Hint: Legal terminology
Mortgagor
Direct Lender
Lender/Company/Entity that originates and funds the loans we write
Regulator (definition)
Two different kinds in general for mort. industry originations
Person or institution that supervises/controls for fairness, efficiency, and financial stability of a financial system
State and Federal regulators
T/F - consumers and customers are required to have the same documentation provided to them
Pg. 21
False - Customers with a direct relationship, as opposed to a shopping consumer that has yet to commit, are not required to have the same information provided to them, at the same time (Think Disclosures)
Cost of financing
Pg. 23 -
Additional fees involved in cred. transaction + the fee the Bor pays for financing the loan
APR
Annual Percentage Rate
Cost of full loan terms, distributed annually and expressed as percentage
The owner of the loan is also known as…
…the bondholder (p. 51)
