MIXED DECK Flashcards
Are utilities and cell phone considered debt obligation?
Monthly utilities and cell phone bills are not included in debt calculations. They are exempt from DTI ratios
What is TRID
The TILA and RESPA Integrated Disclosure
Are Alimony, Child Support, Separate Maintenance Payments considered debt obligation?
YES, considered debt obligation. When the borrower is legally required for more than 10 months to pay alimony, child support, or maintenance payments.
Note: voluntary payments do not need to be taken into consideration.
Is Business Debt in Borrower’s Name considered debt obligation?
NO, not considered debt obligation (when confirmed). A self-employed borrower may claim a monthly obligation (that appears on their personal credit report) is being paid by the borrower’s business. In this instance, you must confirm it was paid by company funds (12 months cancelled checks) and that this was considered in its cash flow analysis of the borrower’s business.
A good payment history under the Home Owners Protection Act (HPA) means no ___ lates in the last 24 months and no _____ lates in the past 12 months.
60 day lates in the past 24 months; 30 day lates in the past 12 months
For VA loans, the funding fee for a borrower using their entitlement for the first time putting down less than 5% is
2.15%
In the event of default, the VA will guarantee up to ____% of $____
25% of $510,400 (conforming loan max amount)
on a va guaranteed loan the max. entitlement that is reflected on the certificate of eligibility is:
$36K
The up-front mortgage insurance on a full qualifying FHA loan is:
1.75%
The most popular FHA loan program is the Section _____ insured mortgage
203B
Max. seller contributions towards closing cost or prepaid items on a FHA loan are:
6%
For fannie mae, a borrower can use ___ of stock portfolio account for reserves
60%
Fannie Mae requires insurance coverage equiaty to the less of ____% of the insurable value of the improvements as determined by the insurer OR the unpaid principal balance as long as it equals ___% of the insurable value
100/80
for fannie mae, income qualifying requires the verification of the most recent ____ days of earnings
30
for fannie mae, a limited cash out refi allows the borrower to get cash pack, the lower of $___ or ____%
2,000/2%
the exterior only appraisal for a single family unit is a fannie mae form number ____
2055
the max seller contributions for an investment property under fannie mae is
2%
for fannie mae, if the LTV is equal to or greater than 90% the max. seller contributions is____% of the lower of the sales price or appraised value
3%
the number of months non-traditional credit is evaluated for loan approval is:
12months
if a debt has no payment associated with the debt, the underwriter will allocate ____ of the debt as a qualifying payment
5%
the temporary 2/1 buydown loan means that the note rate is reduced by ____% in year one and ____% in year two
2%/1%
A biweekly payment plans has ___ monthly payments in a year
13
an adjustable rate mortgage that has a fixed rate for 5 years and can change annually is a ____ ARM. The rate is rounded to the nearest ____
5/1; 1/8th
conventional confirming loan limit for a single family unit is
510,400 for 2020
liability for violating ECOA could result in a penalty of up to $___ and in a class action law suite $___ and ____% of net worth whichever is less
10K, 500K, 1%
ecoa requires a notice of action taken within ___ days of a counter offer that is not accepted
90
ecoa requires a copy of an appraisal or any evaluation of the subject property within ___ days prior to the loan closing and ___days after it is determined the loan will not close
3/30
the red flag identity theft program is a mandatory program and includes ___ red flag items created by the FTC
26
the equal credit opportunity act (ecoa) is title ___ of the consumer credit protection act
7
payment history makes up what percentage of the credit score?
35%
the range of the credit scores is
300-850
under reg v, if a lender collects credit scores on a borrower, the lender discloses the scores to the borrower and must also give ___ reasons for each score.
4
a one phone call fraud alert request can include an alert on a credit file for ___ year(s) and ____year(s) if a police report is filed and submitted to the CRA
1/7
fcra was permanently extended by the Fair and Accurate Credit Transaction Act (FACTA) in
2003
the fair credit reporting act (fcra) is title___ of the consumer credit protection act
6
Violation of the Fair Housing Act could result in criminal penalties of up to $___ and/or ___ year(s) in prison
100,000/1
the home mortgage disclosure act (hmda) requires reporting data by March ___ of the following year
1
the min. time a creditor must keep a loan and not sell it to maintain QM status for small creditor QM and Balloon QM is
3 years
under the dodd frank act, the max points and fees for a 100K loan or greater qualified mortgage is
3%
the dodd frank act title ___ regulates the mortgage industry
4
the potential criminal penalty for mortgage fraud is up to $____ and ____ in prison or both
1million, 30 years
per safe act, the regulatory department over residential mortgage financing can charge a civil penalty for non-compliance up to $____ per violation
25K
a loan that exceeds the hoepa thresholds for apr and points and fees is subject to section ___ of TILA/reg Z
32
under hoepa, if points and fees charged by the lender exceed ____% of the loan amount then the loan is a high cost loan
5%
TILA is title ____ of the Consumer Credit Protection Act
1
the record retention period for retaining TILA disclosures is ___
2 years
under TILA, the civil penalty for a class action suit is $____ or ___% of net worth whichever is less
500K or 1%
the criminal penalty for violating TILA is up to $___ fine and/or ___ years in prison
5K/1
if a loan is a HPML, then the min. period to escrow for taxes and insurance regardless of the LTV is ___ years
5
under respa, a services must acknowledge a written request from a borrower within ___ days and respond to the issue within ___ days
5/30
respa does not cover loans on properties that are ___ acres or more
25
the criminal penalty for violating respa is up to $___ and ___ year in prison or both
$10K/1
according to TRID, a revised loan estimate must be delivered to the applicant no later than ___ days prior to consummation
4
under TRID, the period to provide a refund for a tolerance violation on the LE is ____days after consummation
60
under TRID, the borrower has the right to review the closing disclosure ___ day(s) before consummation
1
most 3rd party fees on the Loan Estimate (LE) have a ___% tolerance
10
respa records must be retained for a period of ___ years
5
usda income limits are 115% of
us median income
the usda housing expense ratio and dti ratios are
29/41
for usda loan what is the upfront guarantee fee and the annual guarantee fee; is it refundable
upfront is 1% of the loan amount; .35% of the unpaid principal balance for the life of the loan; non-refundable
What is MSL
Model State Law, created to assist states with the implementation of the SAFE Act on a state level
What is the CSBS
Conference of State Bank Supervisors
What is the AARMR?
American Association of Residential Mortgage Regulators
Who enforces the Dodd Frank Act?
the CFPB
The SAFE Act is Reg __ for non-depository institutions and Reg ___ for depository institutions
H/G
The safe act is title ___ of HERA
5
What does NMLS stand for
Nationwide Mortgage Licensing System
Independent contractor processors and underwriters must
register as a loan originator and obtain an unique identifier from the NMLSR and maintain a valid license from a state
the unique identifier must be included on:
credit application, note or loan contract, business cards, email, security instrument, applicable advertising
What is the deed related to
sale
what is the mortgage related to
loan
typically a lender will allow for what type of power of attorney in real estate transactions
specific power of attorney
TRID applies to lenders who close more than ___ loans annually
5
deed of trust is mostly used in a ___ theory state
title
mortgage is mostly used in a ___theory state
lien
non conforming loans are not purchased by fannie & Freddie and are generally purchased by
private investors
the fannie mae conventional conforming loan limit for 2020 is
510,400
conventional conforming loans are not backed by the
federal government
conventional conforming loans are not backed by the
federal government
nonconforming loans exceed the:
max limit for conforming set by fannie/freddie
why are conventional loans not assumable?
they have a due on sale clause
negative amortization is:
interest is deferred during a period of the loan and the borrower still owes the deferred amount and the principal has increased
interest only loans are:
where p&i payments are due just the interest is paid. the principal remains the same when an interest only payment is paid.
home mortgage disclosure act ensures
fairness on a larger scale by looking at patterns of discrimination
gramm, leach, Bliley act protects consumers information from
identity theft
fair and accurate credit transaction act protects consumers information from
identity thieves
fair and accurate credit transaction act protects consumers information from
identity thieves
fair credit reporting act ensures accuracy of credit related information and how its
collected and reported
homeowners protection act (hpa) ensures the right to have what terminated
private mortgage insurance
telemarketing sales rule ensures the right to
place a number on a registry avoid solicitations called Do not Call list
National flood insurance program ensures the requirement to carry flood insurance when a consumers structure is in an area that has ___% change of flood waters in any given year
1%
Mortgage Acts and Practices (MAP) regulates the advertising practices of what type of institution?
requires non-depository institutions to avoid deceptive advertising when promoting mortgage loan products
Mortgage Acts and Practices (MAP) regulates the advertising practices of what type of institution?
requires non-depository institutions to avoid deceptive advertising when promoting mortgage loan products
RESPA regulations and disclosures related to:
the cost of services
TILA regulations and disclosures relating to:
the cost of financing
TRID regulations and disclosures for lenders that close more than ____ annually
5 loans
Home Ownership and Equity Protection Act (HOEPA) and HPML regulations and disclosures for lenders that offer loans that exceed
thresholds like interest rates and fees
fully indexed rate means
the interest rate based on the index + margin
apr is
the amount finances and the cost to finances
qm points and fees are limited to
3% for 109K+ loans
the dti for a qm loan is
43%
the penalty for violating gramm leach Bliley act is
up to 100K for financial institutions and criminal penalties up to 5 years
under respa section 10 the lender has ___days to deliver the initial escrow statement
45
