MLO Flashcards
0
Q
Loan origination points are also referred to as:
A
Loan fees.
1
Q
What info is always found on credit report?
A
Borrower’s name and address
2
Q
What are discount points?
A
Paid by borrower to reduce interest rate below the par rate.
3
Q
Which assets cannot be used for closing costs and down payment with FHA loans?
A
Cash advance on credit card because it will have to be repaid. Must instead be something owned outright
4
Q
The two parties to real estate transaction that can receive title insurance policy are:
A
Purchaser and lender
5
Q
Prepaid finance charges include all of the following except: Discount fee Appraisal fee Tax service fee, or Mortgage insurance escrow?
A
Appraisal fee, since paid to third party, are not a finance charge
6
Q
What is a prepaid finance charge?
A
Fees and charges required to be paid in association with getting financing
