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Gloria > MLO > Flashcards

MLO Flashcards

1
Q

Conventional Front End Ratio

Housing Expense Ratio (HER)

A

28%

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2
Q

Conventional Back End Ratio
Total Obligation Ratio (TOR)
or DTI (Debt To Income)

A

36%

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3
Q

USDA Front End Ratio

Housing Expense Ratio (HER)

A

29%

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4
Q 
"USDA Back End Ratio Total Obligation Ratio (TOR)
or DTI (Debt To Income)"
A

41%

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5
Q

VA Front End Ratio Housing Expense Ratio (HER)

A

0%

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6
Q 
"VA Back End Ratio Total Obligation Ratio (TOR)
or DTI (Debt To Income)"
A

41%

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7
Q

FHA Front End Ratio Housing Expense Ratio (HER)

A

31%

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8
Q 
"FHA Back End Ratio Total Obligation Ratio (TOR)
or DTI (Debt To Income)"
A

43%

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9
Q

Conventional Down Payment

A

“3% First time buyer

5% Others (subsequent purchases)”

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10
Q

According to Conventional loans when are you considered a 1st time home buyer after you have purchased a home previously?

A

You are considered a 1st time home buyer if you have not owned property in 3 years (36 months)

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11
Q

USDA Down Payment

A

0

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12
Q

VA Down Payment

A

0

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13
Q

FHA Down Payment

A

3.5% for credit scores 580 and above OR 10% for credit scores 500-579

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14
Q

Conventional Seller Concessions

A

“Seller Concessions/Seller Closing Costs/Seller Contribute on the LOWER of the APPRAISAL or PURCHASE PRICE
90.1%+ (LTV) is 3%
75.1% - 90% (LTV) is 6%
75% (LTV) & under is 9%
2% for Investment Property
**Tip the more the buyer puts down the more the seller can contribute”
369 Get low!

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15
Q

USDA Seller Concessions

A

“Seller Concessions/Seller Closing Costs/Seller Contribute on the LOWER of the APPRAISAL or PURCHASE PRICE
6%”

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16
Q

VA Seller Concessions

A

“Seller Concessions/Seller Closing Costs/Seller Contribute on the LOWER of the APPRAISAL or PURCHASE PRICE
4%”

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17
Q

FHA Seller Concessions

A

“Seller Concessions/Seller Closing Costs/Seller Contribute on the LOWER of the APPRAISAL or PURCHASE PRICE
6%”

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18
Q

Conventional Late Fees

A

5% of Principle & Interest ONLY

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19
Q

USDA Late Fees

A

4% of Principle & Interest ONLY

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20
Q

VA Late Fees

A

4% of Principle & Interest ONLY

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21
Q

FHA Late Fees

A

4% of Principle & Interest ONLY

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22
Q

Conventional bankruptcy waiting periods

A

“Chapter 13 wage earner’s plan - 2 years
Chapter 7 - 4 years
Foreclosure - 7 years
Short Sale - 4 years”

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23
Q

USDA bankruptcy waiting periods

A

Chapter 13 - 1 years
Chapter 7 - 3 years
Foreclosure - 3 years
Short Sale - 3 years

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24
Q

VA bankruptcy waiting periods

A

Chapter 13 - 1 years
Chapter 7 - 2 years
Foreclosure - 2 years
Short Sale - 2 years

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25
Q

FHA bankruptcy waiting periods

A

“Chapter 13 - 1 years
Chapter 7 - 2 years
Foreclosure - 3 years
Short Sale - 3 years”

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26
Q

Conventional loans have private mortgage insurance until what LTV?

A

80% consumer can request removal
78% (conforming loans) PMI drops off
77% (non-conforming loans) PMI drops

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27
Q

Conventional loans have private mortgage insurance until what equity level?

A

22%

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28
Q

Are Conventional loans assumable?

A

No - they have a due on sale clause

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29
Q

What percent level of financing do USDA loans have?

A

100%

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30
Q

A USDA loan applicant may have an income up to what?

A

115% of the Median Income

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31
Q

Do USDA loans have an upfront funding fee?

A

Yes

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32
Q

Do USDA loans require private mortgage insurance?

A

No

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33
Q

Who are USDA loans funded by?

A

Department of Agriculture

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34
Q

Do USDA loans have a prepayment penalty?

A

No

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35
Q

What is a DD-214?

A

Discharge papers or report of separation

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36
Q

What type a loan requires a DD-214 or LES (Leave & Earning Statement)?

A

All VA loans

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37
Q

Who Issues the DD-214

A

Department of Defense

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38
Q

What is a NGB 22/23

A

“Is what is given for active Air National Guard or Army reservists with at least 6 or more years of service.
**HINT - NG think National Guard”

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39
Q

What is a COE?

A

Certificate of Eligibility - Shows the Veterans amount of entitlement

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40
Q

What is Entitlement?

A

The maximum total that the VA will “guarantee” on behalf of the Veteran.

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41
Q

What is the Veterans entitlement based off from?

A

Veterans entitlement is based on 25% of the County Limit.

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42
Q

What is the VA funding fee on a first time use of a VA loan?

A

2.30%

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43
Q

What are 3 reasons that the funding fee would be waived?

A

If the Veteran is more than 10% disabled, the applicant is a surviving spouse of a veteran, or if the veteran is a Purple Heart Recipient

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44
Q

Are VA loans assumable?

A

Yes

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45
Q

What is the down payment for a VA Loan

A

0

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46
Q

Do VA loans have prepayment penalties?

A

No

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47
Q

If the Veteran is married, can the spouse’s income be considered for qualification purposes?

A

Yes

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48
Q

Are unmarried co-borrowers allowed on a VA loan?

A

No, unless he or she is also eligible Veteran who will reside in the home.

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49
Q

What are the 2 types of appraisals used for VA loans?

A

“CRV - Certificate of Reasonable Value

NOV - Notice of Value”

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50
Q

What is the upfront MIP (mortgage insurance premium) for a FHA loan?

A

“1.75%

This is included on 15 and 30 year purchase AND refinances”

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51
Q

When must a person using a FHA loan take occupancy in the home if it is purchased as an owner occupied?

A

Within 60 days of signing

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52
Q

What percentage of the loan does FHA insure?

A

100%

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53
Q

Are FHA loans assumable?

A

Yes

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54
Q

Do FHA loans require a certain appraiser?

A

Yes, they must be FHA approved

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55
Q

Do FHA loans have a maximum amount?

A

Yes, it is determined in each county TIP this amount does NOT include the UFMIP

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56
Q

If the LTV of a FHA loan is <90% how long does MIP (mortgage insurance premium) last?

A

11 years

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57
Q

If the LTV of a FHA loan is >90% how long does MIP (mortgage insurance premium) last?

A

The life of the loan

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58
Q

Resale of a FHA loan in 90 days or less after closing will not be eligible for another FHA mortgage.

A

TRUE

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59
Q

Resale of a FHA loan occurring 91-180 days after closing will be eligible for resale if what happens?

A

If an additional FHA appraisal is obtained.

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60
Q

Resales of a FHA loan after 90 days to 1 year after closing will be subject to what?

A

An additional review to establish value.

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61
Q

Section 35 is what?

A

HPML - High Priced Mortgage Loan

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62
Q

What are the percentages for a HPML?

A

“1.5% - First Lien

  1. 5% - Jumbo First Lien
  2. 5% - Subordinate Liens

TIP: Section 35 has the 3.5%”

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63
Q

What are the 3 rules that go with a HPML?

A

“1: Must have the Ability To Repay

2: No Prepayment penalty (unless in the first 2 years)
3: Require Escrow (Tax & Hazard Insurance) for the first 5 years TIP: APE”

A - ATR
P - Prepay penalty none (2yrs)
E - Escrow required

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64
Q

What type of loans fall under HOEPA? (Home Ownership & Equity Protection Act)

A

HCML - High Cost Mortgage Loans

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65
Q

What are the percentages for a HCML?

A
  1. 5% First Liens of more than 50K
  2. 5% First Liens under 50K
  3. 5% on Subordinate Liens
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66
Q

What are the 4 rules that go with a HCML?

A

“1: Most Balloons Prohibited 2:Must meet the Ability to repay

3: No Prepayment penalty allowed
4: Must Speak to a HUD Counselor

TIP: BAPS"
B - Ballon prohibited
A - ATR
P - prepayment penalty prohibited 
S - speak to counselor
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67
Q

Can a HCML include a variable rate?

A

Yes

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68
Q

What is the 1003?

A

“URLA Uniform
Residential Loan Application Loan Application”

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69
Q

What is the 1004?

A

“URAR

Uniform Residential Appraisal Report”

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70
Q

How long is the appraisal good for?

A

6 Months - but must be recertified at 4 months

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71
Q

What form is used to recertify an appraisal?

A

Form 442

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72
Q

What is the 1005

A

VOE - Verification of Employment / Payroll

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73
Q

What is the 1006

A

VOD - Verification of Deposit / Bank Statements

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74
Q

What is the 1007

A

VOR - Verification of Rent

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75
Q

What does the VOR provide?

A

This form is intended to provide the appraiser with a familiar format to estimate the market rent of the subject property.

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76
Q

What is the 1008

A

Transmittal Summary

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77
Q

What does the Transmittal Summary Do?

A

This is the top sheet sent to the underwriter to describe the file in detail.

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78
Q

What is the 1009?

A

Form used in a Reverse Mortgage

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79
Q

What are the 8 protected classes of ECOA?

A 
Sex	
Color	
Race	
Origin (National)	
Religion	
Marital Status	
Age	
Public Assistance	
(SCORR - MAP)
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80
Q

What are the 7 protected classes of FHA?

A 
Sex		
Color		
Race		
Origin (National)		
Religion		
Family Status		
Handicap/Disability		
(SCORR - FH)		
TIP FHA has the FH after SCORR
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81
Q

What is the HUD equal access rule?

A

“HUD Equal Access Rule states that a lender cannot inquire about a borrowers sexual orientation or gender identity.
*Note this is part of SEX category”

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82
Q

What are the 6 items that create a complete application?

A

1: Address
2: Loan Amount
3: Income
4: Estimated Value
5: Name
6: Social Security Number”
TIP: ALIENS or PENCIL

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83
Q

What 3 times are covered under the GLBA?

A

Safeguarding Policies
Pretexting Policies
Financial Privacy Policies

TIP: GLBA has SPF

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84
Q

TRID does not apply to what 4 things?

A

1: HELOCs
2: All Cash Sales
3: Reverse Mortgages
4: Mobile Homes not secured by real estate
TIP: HARM

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85
Q

Types of Liquid Assets

A 
Cash (Bank Accounts)	
U.S. Treasury Bills (T-Bills)	
Bonds or Notes	
Mutual Funds	
Money Market Funds	
Stocks	
Retirement investment accounts (401K's or IRA's)
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86
Q

Types of NON-liquid Assets

A 
Art	
Land
Real Estate Investments 
Equipment
Jewelry Collectibles Antiques
Vehicles
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87
Q

What is Fannie Mae’s AUS System? (Automated Underwriting System)

A

DU - Desktop Underwriter

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88
Q

What is Freddie Mac’s AUS System? (Automated Underwriting System)

A

LPA - Loan Product Advisor

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89
Q

What is USDA’s AUS System? (Automated Underwriting System)

A

GUS - (Guaranteed Underwriting System)

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90
Q

What is FHA’s AUS System? (Automated Underwriting System)

A

Total Scorecard

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91
Q

What are 7 Valid Change In Circumstances?

A 
"Act of GOD Appraised 
Value Comes In Low
Change In Loan Program 
Credit Score Declines 
Change In Loan Amount 
Change in Loan Terms
Seller Delay In Short Sale Approval"
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92
Q

What are the 2 types of Freehold Estates?

A

Fee Simple & Life Estate

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93
Q

What is the Highest Freehold Estate?

A

Fee Simple - A buyer owns the land and

all the improvements to the land.

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94
Q

What are the 12 types of Clauses?

A 
Due on Sale Clause (SOLD)
Alienation Clause (Transferred)
Acceleration Clause (Default)

Prepayment privilege clause (Pay off Early)
Prepayment penalty clause (No Pay off Early)

Exculpatory clause (Assets) Deficiency Judgement (go after Assets)
Defeasance clause (Defeat mortgage)
Escalation clause (Rate Rising)
Partial Release Clause (Parcel in parts)
Open-end clause (Future Advances)
Subordination clause (Senior -> Junior lien)
Power of Sale Clause

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95
Q

What is included in the Escrow Account?

A

Real Estate Taxes Homeowners Insurance PMI (if applicable)

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96
Q

What is the MCR

A

The MCR (mortgage call report) is a quarterly report of the condition of the business.

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97
Q

Where is the MCR Submitted?

A

Through the NMLS

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98
Q

The MCR has 2 levels - What are they?

A

“Residential Mortgage Loan Activity Report &

Financial Condition Report”

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99
Q

What is the Residential Mortgage Loan Activity Report?

A

Report completely quarterly, within 45 days of the end of the calendar quarter

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100
Q

What is the financial Condition Report?

A

Report completed annually, within 90 days of the company’s fiscal year end.

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101
Q

What are the 5 Federal Banking Agencies?

A
  1. The CFPB
  2. The Federal Reserve
  3. National Credit Union Administration(NCUA)
  4. Comptroller of the Currency
  5. Federal Deposit Insurance Corporation(FDIC)
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102
Q

3 Types of Concurrent Real Estate Ownership?

A 
Tenancy in Common
Joint Tenants (Can't sell the joint) Tenants in Entirety (Married Couple)
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103
Q

Types of Loss Mitigation

A 
Loan Modification 
Short Sale 
in Lieu of Foreclosure 
Forbearance 
Deed
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104
Q

Reasons a reverse mortgage becomes due.

A
  • Homeowner dies
  • Sell the home
  • Defaults on their taxes
  • The owner lets the home deteriorate
  • Does not live in the home for 12 consecutive months”
  • Defaults on their insurance
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105
Q

What is an IRRRL

A

Interest Rate Reduction Refinance for VA loans

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106
Q

7 Types of bad loans

A 
"Alt-A
No Doc Loans Subprime Loans
NINA (No Income No Assets) 
NIVA (No Income Verified Assets) 
SISA (Stated Income Stated Assets)
 SIVA (Stated Income Verified Assets) 
VBM (Variable Balance Mortgage)"
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107
Q

A Subprime borrower may have 1 or more of the following items?

A

“A bankruptcy in the last 5 years A foreclosure in the last 24 months
One or more 60 day delinquencies in the last 24 months”

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108
Q

Items included in Escrow

A

“Real Estate Taxes

Insurance (HOI - Homeowners Insurance) PMI (if applicable)”

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109
Q

TRID (LE&CD) does not apply to?

A 
HARM	
HELOCs	
All Cash Sales	
Reverse Mortgages	
Mobile Homes (not secured by real estate)
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110
Q

What does RESPA not deal with?

A 
BCC NAVITA		
Bridge Loans                            
Commercial	Loans                                      
 Construction	Loans                                       
Non-Owner	Occupied Properties		
Agriculture - 25+ Acres of land		
Vacant Land		
Investment Properties		
Temporary Financing		
All Cash Sales
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111
Q

3 Types of Construction Disbursements

A

VFW Voucher
Fixed
Warrant

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112
Q

5 Indices

A 
Prime US Treasury
COFI (cost of Funds Index)
SOFR (Secured Overnight Financing Rate)
**SOFR was previously 
LIBOR 
COSI (Cost of Savings Index
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113
Q

4 Types of Land Survey

A

Monument Method
Government Land Survey
Lots & Blocks
Metes & Bounds

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114
Q

What is the most commonly used type of land survey?

A

Lots & Blocks
**Tip Remember there are LOTS AND
LOTS of baby BLOCKS They are very common

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115
Q

What is the most accurate form of land survey?

A

“Metes & Bounds

** Tip if you order a steak (your mete) you want it to be cooked accurately”

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116
Q

What 4 items make a valid contract?

A

Competent Party
“Consideration Mutual
Agreement Legal Object
**TIP - remember this sentence: Competent parties are considering a”
mutual agreement for a legal object)

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117
Q

How long do you keep documents?

A

ECOA - 25 Month
“DNC - 2 Years
MAP - 2 Years
TILA - 2 Years
Escrow Cancellation - 2 Years
Partial Payment Policy - 2 Years
MCR - 2 Years
The 3 L’s - keep for 3 years
LAR - 3 Years
LE - 3 Years
Loan Compensation - 3 Years
The 5 BIG deals - Keep for 5 years
CD - 5 Years
SAR, CTR, CIP - 5 Years
AFBA - 5 Years
*****Just remember the 3 bold items EVERYTHING ELSE is 2 years”

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118
Q

Fraud for profit schemes

A

“Flipping Straw Buyer Churning
Equity Skimming Contract Kiting Builder Bailout Flopping
Short Sale Fraud”

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119
Q

FHA Deals with 4 main things

A

“Redlining
Reverse Redlining
Steering
Blockbusting”

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120
Q

What was FHA Previously known as?

A

Civil Rights Act of 1866 and/or Title 8 (VIII)

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121
Q

What year did the Civil RIghts Act become FHA?

A

1968

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122
Q

Bi-Monthly

A

24 times a year

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123
Q

Bi-Weekly

A

26 times a year

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124
Q

Weekly

A

52 Weeks

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125
Q

5 reasons under FCRA someone can receive a free credit report

A

“Adverse Action (Denial) Public Assistance Unemployed
Fraud Identity Theft (Errors)
**** TIP remember this sentence:
I am unemployed and on public assistance, I have had an adverse action due to errors and fraud on my credit report.”

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126
Q

What items does your NMLS # go on?

A

“1003 (URLA) Promissory Note Mortgages
All DIsclosures Advertisements Trust Deeds”

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127
Q

Types of Rate Caps

A

“Initial CAP
Periodic CAP
Lifetime CAP (Ceiling)”

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128
Q

Items that Create a Qualified Mortgage?

A

“Qualified SAFE Mortgage - Rule of 3’s Points and Fees can’t exceed 3% ATR (Ability to Repay is 3 letters) Back End Ratio can’t exceed 43%
Prepayment Penalty is limited to the first 3 years on a fixed rate QM ( 2% of the outstanding balance)
No Terms over 30 Years
No Toxic Features (3 Kinds) No Balloons, No Negative Amortization, No Interest Only Protects the lender with a SAFE Harbor”

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129
Q

4 Sections of RESPA to know

A

“6 (S) Mortgage Servicing & Abuses 8(K) Fee splitting/Kickbacks/Unearned Fees 9(T) Title (Treble Damages)
10 (E) Escrow
***TIP - SKTE (looks like Skate)”

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130
Q

FHA 203B

A

“FHA Fixed Rate Loan

**B is for BASIC loan”

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131
Q

FHA 203G

A

“203G - Good Neighbor Next Door Program

**G is for the GOOD people”

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132
Q

FHA 203K

A

“203K - Rehab Loan

** Remember that Rehabs cost thousands (K) or you need to rehab a Krack house”

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133
Q

FHA 234C

A

“234C - Condo

**C is for CONDO”

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134
Q

FHA 251

A

“251 - ARM Loans

***Area 51 is where they keep the alien ARMS)”

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135
Q

255 HECM

A

HECM (Home Equity Conversion Mortgage) Reverse Mortgage

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136
Q

FHA 245

A

“Graduated Payment Method
**Payments start so small that it starts as negative amortization then the payments gradually grow larger and the loan ends with positive amortization.”

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137
Q

FHA 245A

A

Growing Equity Mortgage

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138
Q

Streamline Refinance

A

“No Appraisal, No Income, No Credit

.55% UFMIP”

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139
Q

EEM

A

Energy Efficiency Mortgage

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140
Q

FHA 2-1 Buydown

A

Temporary interest rate buydown.
Example if the starting rate is 7% the first
years payments would be at 5 % (-2% of
start rate) the
2nd years payments would be 6 % (-1% of start rate) and
3rd till end of loan will be back to
original rate (7%).

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141
Q

What are the 8 items that create the Ability To Repay (ATR)

A 
MICE DOES have the ATR		
Monthly Mortgage		
Income/Assets		
Credit		
Employment                                     
 Debt- To- Income (DTI)		
Other Debt(child support/credit cards/Student loans)		
Expenses (Monthly Taxes & Insurance)		
Simultaneous Mortgage
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142
Q

Regulation H

A

Secure and Fair Enforcement Act AKA Title V (5) - SAFE ACT

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143
Q

HERA

A

Housing and Economic Recovery Act

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144
Q

Regulation Z

A

Truth In Lending Act - TILA (Credit, APR & Advertising)

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145
Q

Regulation C

A

Home Mortgage Disclosure Act - HMDA

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146
Q

Regulation B

A

Equal Credit Opportunity Act - ECOA

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147
Q

Regulation V

A

“Fair Credit Reporting Act - FCRA &

Fair and Accurate Credit Transaction Act - FACTA”

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148
Q

Regulation O

A

Mortgage Assistance Relief Services - MARS

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149
Q

Regulation N

A

Mortgage Acts and Practices - MAP

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150
Q

Regulation P

A

Gramm Leach Bliley Act (GLBA)

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151
Q

Regulation X

A

Real Estate Settlement Procedures Act - RESPA

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152
Q

How long must public assistance continue if it were to be considered income?

A

3 years

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153
Q

Is public assistance grossed up?

A

Yes

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154
Q

How much is public assistance grossed up?

A

25%

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155
Q

How many months of deposits of child support must be verified?

A

6 months

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156
Q

Examples of public assistance

A

“Retirement Child Support Disability Pension

Social Security Unemployment Alimony”

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157
Q

How long must seasonal unemployment be verified to be considered income?

A

2 years

158
Q

Section of the 1003

A

“Section 1 - Borrower Information
Section 2 - Financial Information / Assets & Liabilities
Section 3 -Real Estate
Section 4 - Loan & Property Information
Section 5 - Declarations
Section 6 - Acknowledgements & Agreements
Section 7 - Military Service
Section 8 - Demographic Information
Section 9 - Loan Originator Information”

159
Q

How can you ask about Marital Status?

A

Married Unmarried Separated

160
Q

VOM

A

Verification of Mortgage

161
Q

VOR

A

Verification of Rent

162
Q

VOE

A

Verification of Employment

163
Q

VOD

A

Verification of Deposit

164
Q

Red Flag Rules

A

Section 114

165
Q

Loan Flipping is also known as?

A

Equity Stripping

166
Q

Blockbusting is also known as?

A

Panic Selling

167
Q

What is the note also referred to as?

A

Promissory Note

168
Q

What is the Hello Letter?

A

Your Initial Escrow

169
Q

What does Per Diem mean?

A

Per Day

170
Q

What is another term for Adverse Action?

A

Denial

171
Q

The APR is also known as what term?

A

Effective Rate

172
Q

What other 2 terms can the Interest rate be known as?

A

Note Rate or Nominal Rate

173
Q

What are the 3 CRA’s (Credit Reporting Agencies)

A

Transunion Equifax Experian

174
Q

What are the 3 appraisal approaches?

A

Cost - to replace or build
Income - Income Property
Sales Comparison - 3 comps used in comparison

175
Q

4 types of involuntary liens

A

Tax Lien
Mechanics Lien
Judgements
Attachments

176
Q

What is a voluntary lien

A

a mortgage

177
Q

What are the 5 C’s of underwriting?

A 
"Capacity (ATR based on income) 
Capital (Cash/Reserves)
Credit (Report/Score)              
 Collateral (Property Value)
Character (Willingness to repay)"
178
Q

What is the 4506 - C

A

“Request for Transcript of Tax Return

**Tip - Previously known as the 4506 -T”

179
Q

What is the IRS 8821

A

Tax Information Authorization

180
Q

MDIA

A

Mortgage Disclosure Improvement Act - Also known as the 373 Rule

181
Q

MARI

A

Mortgage Asset Research Institute

182
Q

SFHA

A

Special Flood Hazard Area

183
Q

CFPB

A

Consumer Financial Protection Bureau

184
Q

FHFA

A

Federal Housing Finance Agency

185
Q

Who took control of Fannie and Freddie in 2008?

A

FHFA

186
Q

CSBS

A

Conference of State Bank Supervisors

187
Q

LAR

A

Loan Application Register

188
Q

SAR

A

Suspicious Activity Report

189
Q

HVCC

A

Home Value Code of Conduct - Under Dodd Frank

190
Q

MBS

A

Mortgage Backed Security

191
Q

HLACSD

A

Home Loan Application Credit Score Disclosure

192
Q

FFIEC

A

Federal Financial Institutions Examination Council

193
Q

E-Sign Act

A

“The Electronic Signatures in Global & National Commerce Act

(Dry Signature)”

194
Q

Wet Signature

A

Signing in actual pen - in person

195
Q

CTR

A

Currency Transaction Report

196
Q

CRA

A

Community Reinvestment Act

197
Q

NPI

A

Nonpublic Personal Information (GLBA)

198
Q

CIP

A

Customer Identification Program (UNDER BSA)

199
Q

PITI

A

Principal, Interest, Taxes, Insurance

200
Q

USPAP

A

Uniform Standard of Professional Appraisal Practice

201
Q

DVA

A

Dept of Veteran Affairs

202
Q

CTC

A

Clear to Close

203
Q

HECM

A

Home Equity Conversion Mortgage

204
Q

TIP

A

Total Interest Percentage

205
Q

EBR

A

Established Business Relationship

206
Q

FinCEN

A

Financial Crimes Enforcement Network

207
Q

UDAAP

A

Unfair, Deceptive, Abusive Acts or Practices

208
Q

Is a Refinance an Open or Closed End Loan?

A

Closed End

209
Q

Is a Reverse Mortgage an Open or Closed End loan?

A

Open End

210
Q

Is a Mortgage an Open or Closed End Loan?

A

Closed End

211
Q

What 7 item are NOT included in the APR?

A

“Acronym TENACTS Title Insurance Escrow
Notary Fee
Appraisal Credit
Report Termite
Inspection Seller
Credits”

212
Q

What Fees are included in the APR?

A

“Acronym PODIUM Processing Fees Origination Fees Discount Points
Interest (pre-paid/per-diem) Underwriting Fees Mortgage Broker Fees”

213
Q

4 purposes of the Dodd Frank Act

A

“Financial Stability End to big to fail

Protect the taxpayer - no bailout Protect against abusive practices”

214
Q

What are the Settlement Services?

A 
Acronym - PAPER CLIP CAST	
Preparation of Documents	
Appraisals	
Pest Inspections	
Examination (Title examination)	
Real Estate Services	
Credit Report	
Loan Origination Fee	
Insurance (Title Insurance)	
Processing Mortgage	
Closing Settling Mortgage	
Attorney Services	
Surveys	
Title Searches
215
Q

What 2 item make the LE?

A

GFE (Good Faith Estimate) & Initial TIL

Truth in Lending

216
Q

What two items make the CD?

A

Final TIL (Truth in Lending) & HUD 1

217
Q

Where to do you find the Rate Lock?

A

On the Loan Estimate

218
Q

How Long is the Loan Estimate good for?

A

10 business days

219
Q

Who is ultimately responsible for the delivery of the Loan Estimate to the borrower?

A

The Creditor

220
Q

Who holds the Flood Maps?

A

FEMA

221
Q

What are the 5 Flood Zones?

A

A, B, C, V or X

222
Q

What are the high risk flood zones?

A

“A & V Insurance

is mandatory”

223
Q

What are the moderate risk flood zones?

A

B & X (Insurance is optional)

224
Q

What are the low risk flood zones?

A

C & X (insurance is not required)

225
Q

Who is flood insurance purchased from?

A

NFIP - National Flood Insurance Program

226
Q

The Service Transfer Disclosure Statement is also known as what?

A

The Goodbye Letter

227
Q

What are 2 other terms for Escrow?

A

Impound or Reserve Accounts

228
Q

What is another word for Seller Concessions?

A

Seller Contributions

229
Q

What is a POA?

A

“Power of Attorney

** Could also be known as Court Appointed Guardian or Attorney In Fact”

230
Q

What are all the initial disclosures?

A 
Acronym MWALLK (moonwalk)
Mortgage Servicing Disclosure (RESPA)
When your home is on the line (TILA)
AFBA (RESPA) 
List of HUD Counselors (RESPA)
Loan Estimate (TILA)
Know before you owe handbook (RESPA)
231
Q

Tell me all about FHA’s 2-1 Buy Down Points (Temporary Points)

A

“NOT the same as Discount Points This program buys down the rate for only the first 2 years
1st year the interest rate will receive 2% off starting rate
2nd year the interest rate will receive 1% off starting rate
3rd + years will be the original rate”

232
Q

Tell me all about Discount Points.

A

“Discount Points are calculated on the LOAN AMOUNT Discount
Points are calculated on the LOAN AMOUNT 1 Discount point = .25% off the interest rate.
Discount points are usually paid by the borrower. It can be paid for by seller or builder
Fixed discount points - lowers the interest rate the LIFE of the loan
The cost of the point is a CLOSING COST Discount Points are paid to the LENDER Discount Points ARE calculated into the APR”

233
Q

Who states that if a creditor receives a payment they must post that payment the date it is received?

A

RESPA

234
Q

In how many days must a creditor respond to a payoff notice?

A

7 Business Days

235
Q

A creditor must disclose forced placed insurance at & days prior to billing?

A

30 & 45 days

236
Q

“Appraisals can only change by what amount?

Line, Net & Gross?”

A

“Line - 10%
Net - 15%
Gross - 25%”

237
Q

A Loan Estimate must be delivered or mailed no later than days after a loan application is submitted?

A

3 Business Days

238
Q

What Items have 0% Tolerance?

A 
Acronym - TRAIL	
Transfer Taxes (Real estate)	
Report (credit)	
Appraisal	
Interest Rate	
Loan Origination
239
Q

What Items have 10% Tolerance?

A

Acronym - TAG
Title Insurance (on the lenders list)
Anything off from the lenders list
Government Recording Fees

240
Q

What Items have NO Tolerance?

A

“Acronym - PITT
Per Diem Fees (Prepaid Mortgage Interest)
Insurance - Hazard
Title Insurance (NOT on the lenders list)
Termite Inspection”

241
Q

If a tolerance is exceeded from the LE to the CD how long does the lender have to pay back the borrower?

A

60 Business Days

242
Q

If a tolerance is exceeded from the LE to the CD how long does the lender have to grant a corrected CD?

A

60 Calendar Days

243
Q

What is the penalty for obtaining personal information?

A

5 years and a 10k fine for individuals and 100k fine for institutions

244
Q

What is the penalty for sending an unauthorized fax?

A

$500 /$1,500 (Treble) Knowingly/Willingly Sending the fax

245
Q

What is the penalty for violating RESPA?

A

$10,000 and or 1 year in jail

246
Q

What is the penalty for violating ECOA?

A

$10,000

247
Q

What is the penalty for violating TILA?

A

“$5,000 Single $25,000 Reckless

$1,000,000 Knowingly Violating TRID”

248
Q

What is the penalty for violating the SAFE act?

A

$28,474 (2020) each time / $30,058 (2021) / $31,928 (2022) each time

249
Q

What is the penalty for violating the DNC?

A

“$42,530 (2020) per call/ $43,792 (2021) per call”

250
Q

What is the penalty for violating HMDA?

A

Calculated based on a penalty matrix, which considers good faith, previous violations, and financial resources

251
Q

What is the penalty for violating FACTA?

A

$5,000 or 1 year or both

252
Q

What is the penalty for violating FCRA?

A

$1,000

253
Q

What is the 2022 Conforming Loan Limit?

A

$647,200

254
Q

What is the 2022 Reverse Mortgage Limit?

A

$970,800

255
Q

What is section VIII also known as?

A

HMDA Monitoring Section

256
Q

What are the steps in a QWR? (Qualified Written Request)

A

“1 - lender acknowledge request by 5 business days
2 - seek to resolve the issue/concern within 30 days
3 - 15 day extension if needed in connection to notices of error submitted by the borrower”

257
Q

Who was chartered by Congress in 1970 to support the U.S. housing finance system and to help ensure a reliable and affordable supply of mortgage funds across the country.

A

Freddie Mac (FHLMC)

258
Q

Who was established in 1968 as part of the U.S Department of Housing and Urban Development (HUD) to promote affordable homeownership

A

Ginnie Mae (GNMA)

259
Q

Fannie Mae (FNMA)

A

FHLMC

260
Q

Federal National Mortgage Association

A

GNMA

261
Q

HER

A

Housing Expense Ratio

262
Q

TOR

A

Total Obligation Ratio

263
Q

PITI

A

Principle, Interest, Taxes & Insurance

264
Q

Monthly Housing Expense

A

PITI - Principle, Interest, Taxes & Insurance

265
Q

A Natural Person is also known as?

A

An Individual

266
Q

According to CTR - Financial Institution must report if cash transaction exceeds?

A

$10,000

267
Q

“According to SAR (suspicious activity report) MLO’s must report if exceeds
?”

A

$5,000

268
Q

Who are SAR’s (suspicious activity report) Reported to?

A

FinCen (within the FBI)

269
Q

What is KAMILAS?

A 
-RESPA Disclosures
Know before you owe handbook
Affiliated Business Arrangement
Disclosure
Mortgage Servicing Disclosure Statement
Initial Escrow
List of 10 HUD Counselors
Annual Escrow
Service Transfer Statement
GFH/HUD (non-purchases)
270
Q

What is BRAWLCCT?

A

TILA Disclosures

Balloon Notice	
Right of Rescission	
ARM Disclosure	
When your home is on the line	
Loan Estimate	
CHARM Booklet	
Closing Disclosure	
Transfer of Mortgage Notice
271
Q

What are the 4 Initial RESPA Disclosures?

A 
Know before you owe handbook		
AFBA - Affiliate Business Arrangement		
Disclosure		
Mortgage Servicing Disclosure Statement		
List of 10 HUD Counselors
272
Q

What are the 2 initial TILA disclosures?

A

When your home is on the line & The Loan Estimate.

273
Q

When is the ARM Disclosure given?

A

60 days prior to a rate change that affects the payment.

274
Q

What type of loans received a right of rescission?

A

a refinance, home improvement loan, HELOC, or second mortgage loan

275
Q

What type of loans do NOT receive a right of rescission?

A

Purchases, 2nd Homes & Investment Property

276
Q

When is the Initial Escrow Statement GIven?

A

At closing or within 45 days of closing

277
Q

When is the Transfer of Mortgage Notice given?

A

Within 30 days of acquisition - On Primary Mortgages Only

278
Q

How many pages is the Loan Estimate?

A

3 pages

279
Q

Where do you find the partial payment policy?

A

On the Closing Disclosure

280
Q

CHARM means what?

A

Consumer Handbook On Adjustable Rate Mortgages

281
Q

What does HELOC mean?

A

Home Equity Line Of Credit

282
Q

What is the Hello Letter?

A

The Initial Escrow

283
Q

When do you need to give the AFBA?

A

“AFBA is an initial disclosure that is given within 3 business days or time of referral
- If there is more than 1% ownership in the affiliate company that you are referring.”

284
Q

Revised Loan Estimate is received at least days prior to consummation of the mortgage

A

4 Business

285
Q

When it comes to outstanding debt balances the lender will use what payment if there is not one on the credit report?

A

5% of the outstanding balance

286
Q

Lender will use of the outstanding balance on Student Loan on Conventional Fannie, Freddie and on FHA

A

“1% & .5% & .5%

Lender will use 1% of the outstanding balance on Student Loan on Conventional Fannie and .5% Freddie and .5% on FHA”

287
Q

If you have a loan with LESS than payments - it is not counted in the applicants debt structure

A

10

288
Q

If you have a lease, youcount the payments even if it is 1 payment toward the applicants debt structure

A

ALWAYS

289
Q

What is another name for Regulation?

A

Rule or Law

290
Q

“A borrower is entitled to a copy of the appraisal report at least
days before closing”

A

3 Business

291
Q

after a complete application, lenders have days to notify a borrower of their right to receive a copy of any appraisal or valuation

A

3 Business

292
Q

“If credit is denied based on the Appraisal The borrower has days to request a copy and the lender
hasdays deliver it.”

A

90 & 30

293
Q

A creditor must provide an answer on a credit application days after receipt of a completed application.

A

30 Business

294
Q

An applicant can request a statement of reasons withindays of receiving the original denial notice

A

60 Days

295
Q

If taking an application face to face who dictates the collection of the HMDA data?

A

ECOA - the interviewer MUST specify the applicant’s race, ethnicity and sex

296
Q

According to the DNC - What are the hours a creditor can call a number on a call list?

A

8am-9pm in the receiver’s time zone

297
Q

How often must the DNC lists be updated?

A

Every 31 days

298
Q

How long are the DNC records kept?

A

2 years

299
Q

What are 3 other names for Closing?

A

Consummation or Doc Signing or Settlement

300
Q

What is section 1 of the 1003?

A

Borrower information

301
Q

What is section 2 of the 1003?

A

Financial information - Assets & Liabilities

302
Q

What is section 3 of the 1003?

A

Real Estate

303
Q

What is section 4 of the 1003?

A

Loan and Property Information

304
Q

What is section 5 of the 1003?

A

Declarations

305
Q

What is section 6 of the 1003?

A

Acknowledgments & Agreements

306
Q

What is section 7 of the 1003?

A

Military Service

307
Q

What is section 8 of the 1003?

A

Demographic Information

308
Q

What is section 9 of the 1003?

A

Loan Originator Information

309
Q

Who Enforces MARS?

A

Consumer Finance Protection Bureau - CFPB

310
Q

Who Enforces ECOA?

A

Consumer Finance Protection Bureau - CFPB

311
Q

Who Enforces TILA?

A

Consumer Finance Protection Bureau - CFPB

312
Q

Who Enforces RESPA?

A

Consumer Finance Protection Bureau - CFPB

313
Q

Who Previously Enforced RESPA?

A

HUD

314
Q

Who Enforces TRID?

A

Consumer Finance Protection Bureau - CFPB

315
Q

Who Enforces MAP?

A

Consumer Finance Protection Bureau - CFPB

316
Q

Who Enforces HMDA?

A

Consumer Finance Protection Bureau - CFPB

317
Q

Who Enforces FCRA?

A

Federal Trade Commission - FTC

318
Q

Who Enforces FACTA?

A

Federal Trade Commission - FTC

319
Q

Who Enforces GLBA?

A

Federal Trade Commission - FTC

320
Q

Who Enforces E-Sign Act?

A

Federal Trade Commission - FTC

321
Q

Who Enforces DNC?

A

Federal Trade Commission - FTC

322
Q

Who Enforces SAFE Act?

A

CSBS, AARMR & CFPB

323
Q

Who Enforces FHA?

A

HUD

324
Q

Who Created the DNC?

A

FCC & FTC

325
Q

Who Created TILA?

A

Federal Reserve Board

326
Q

Who Created HMDA?

A

Federal Reserve Board

327
Q

Who Created the Red Flag Rules?

A

FTC & FACTA

328
Q

Who Created the CFPB?

A

Dodd Frank Act & Consumer Financial Protection Act

329
Q

Who Created TRID?

A

CFPB

330
Q

Who Created MAP

A

CFPB

331
Q

Who Created RESPA?

A

HUD

332
Q

Who Created FHA (Fair Housing Act)?

A

Civil Rights Act of 1866 —-Title VIII Civil RIghts Act of 1968

333
Q

Who Created the SAFE Act?

A

HERA - Title V (5)

334
Q

Who Created the US Patriot Act?

A

US Department of Treasury

335
Q

Who Created the FINCEN

A

Secretary of the Treasury

336
Q

In a transfer of title who is the Grantor?

A

The Grantor is the owner of the property transferring the title away.

337
Q

In a transfer of title who is the Grantee?

A

They are the party receiving the title

338
Q

In the promissory note who is the maker?

A

The party making the payment

339
Q

In the promissory note who is the payee?

A

The party receiving the payment

340
Q

Are mortgages Judicial or Nonjudicial?

A

They are Judicial

341
Q

In a mortgage who is the Mortgagor?

A

The party that holds equitable title and/or the borrower

342
Q

In a mortgage who is the Mortgagee?

A

The party that holds legal title and/or the Lender who holds the mortgage and the note

343
Q

Does the Note include the APR?

A

No

344
Q

Does the Note include the legal description of the property?

A

No

345
Q

Does the note include balloon riders?

A

Yes

346
Q

Does the Note include the index used?

A

Yes

347
Q

Does the Note include prepayment penalties?

A

Yes

348
Q

Does the Note include the interest rate?

A

yes

349
Q

In Trust Deeds who is the Trustor?

A

The Borrower/Owner

350
Q

In Trust Deeds who is the Trustee?

A

the 3rd party disinterested that holds legal title for lender benefit.

351
Q

In Trust Deeds who is the Beneficiary?

A

The Lender that holds the deed of trust and the note.

352
Q

In an Assignment of Mortgage who is the assignor?

A

Party transferring the rights

353
Q

In an Assignment of Mortgage who is the Assignee?

A

Party receiving the Contractual rights

354
Q

If a consumer is closing their escrow account, the servicer must send information to the borrower within how many days?

A

3 Business Days

355
Q

If a borrower rescinds and there is money collected in an escrow account the lender has how many days to refund the borrower?

A

20 Calendar Days

356
Q

“During the annual review of an escrow account the servicer finds a surplus of
$50.00 or more. How many days does the servicer have to refund the overage?”

A

30 Business Days

357
Q

If a LE to CD tolerance is exceeded how many days does the lender have to refund the borrower?

A

60 Business Days

358
Q

It an applicant makes an inquiry or completes an application to a company, the company can call this person for how long?

A

3 month - also considered a customer

359
Q

A company that has an establish relationship with the consumer, how long can the company call this consumer?

A

18 months from the consumers last purchase or payment. - ONLY caveat to that is if the consumer asks not to be called.

360
Q

A Yield Spread Premium used to be what?

A

Compensation for the Loan Officer for closing a loan above par.

361
Q

What is a Yield Spread Premium currently?

A

A lender credit given to the borrower for choosing a interest rate above par.

362
Q

When is a SAR due if the person is identifiable?

A

30 Calendar Days

363
Q

When is a SAR due if the person is unidentifiable?

A

60 Calendar Days

364
Q

What is another term for permanent financing?

A

Take out loan OR Stand-Alone Construction

365
Q

A suit of quiet title can also be referred to as what?

A

Quiet Title Action

366
Q

What is Restrictive convenance?

A

Deed Restrictions

367
Q

In regards to the foreclosure process - when does the lender need to make contact with the borrower if they have missed a payment?

A

The lender must make LIVE contact within 36 days of the missed payment

368
Q

In regards to the foreclosure process - when does the lender need to give workout options to the borrower?

A

With in 45 days

369
Q

A creditor/lender may not start the judicial foreclosure process for at least how many days?

A

120 calendar days

370
Q

Within how many days must a creditor/lender notify the borrower after a completed loan workout application of the decision?

A

30 days

371
Q

When is the notice of default sent to the borrower?

A

Day 90 there is a breach letter or Notice of Default sent to the borrower from the lender explaining that they are in default and that legal action is possible.

372
Q

What form initiates the foreclosure process?

A

Lis Pendens

373
Q

What is the illegal process of processing a loan application modification and filing for foreclosure at the same time called?

A

Dual Tracking

374
Q

When is a balloon notice given?

A

90 days prior to a balloon payment being due

375
Q

How do you ask a borrower how many children they have legally?

A

How many dependents do you have?

376
Q

What is another name for USDA loans?

A

Section 502

377
Q

What is FACTA Section 112?

A

Fraud Alert/Freeze - Section 112

378
Q

What is FACTA section 113?

A

Truncation - Section 113

379
Q

What is FACTA section 114?

A

Red Flag Rules - Section 114

380
Q

What is FACTA section 216

A

What is FACTA section 216

381
Q

What groups are EXEMPT from FHA

A

Member only organizations
Private Clubs
Owner Occupied home with no more than 4 units
Single family homes rented or sold w/o a broker service

382
Q

What are the 3 types of Discrimination?

A

“Overt Discrimination - Blatant/obvious Disparate Treatment - The way you treat someone
Disparate Impact - shown through statistical analysis”

383
Q

What types of transactions do you get a right of recission?

A

“RRHHS
Refinance Reverse HELOC
Home Improvement Second Mortgage”

384
Q

What is an encumbrance?

A

Encumbrances impact the transferability and/or use of subjected properties

385
Q

What is Positive Amortization?

A

you are paying more than the amount owed so you will pay the loan off earlier then the term specified so you have positive equity.

386
Q

What is Negative Amortization?

A

not paying enough interest so the remaining interest get applied to the balance

387
Q

What is Fully Amortization?

A

is when the borrower is fully paying off the loan with the regular scheduled payments over a set amount of time.

388
Q

What is partial Amortization?

A

a portion of the debt is paid with regular monthly payments; then, a “balloon payment”—a large lump sum—is made on the loan maturity date.

389
Q

What is Non Amortization?

A

An interest-only loan is a loan where the borrower pays only the interest throughout the term of the loan, with the principal being left unchanged.

390
Q

When is a CHARM booklet given?

A

When the borrower is considering an ARM loan

391
Q

Where do you find the YSP?

A

On the LE & CD

Gloria (1 decks)

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