MLO Cheat Sheet Flashcards
Uniform Residential Loan Application
- URLA
- 1003
- Loan Application
Uniform Residential Appraisal Report
- URAR
- 1004
- Appraisal Report
- Form 442 (Recertify-4months)
Verification of Employment
- VOE
- 1005
- PayStubs
- Payroll
Verification of Deposit
- VOD
- 1006
- Bank Balance
- Bank Statements (you need to work b4 you get paid)
Verification of Rent
- VOR
- 1007
- Single Family Comp-Rent Schedule
This form is intended to provide the appraiser with a familiar format to estimate the market rent of the subject property
Transmittal Summary
*1008
Top sheet sent to underwriter to tell the story of the borrow to the underwriter.
Reverse Mortgage
*1009
ECOA (8) Vs. FHA (7)
Sex, Color, Origin (National) ,Race, Religion
ECOA- MAP (marital status, Age, Public Assistance)
FHA- FH (Family Status, Handicapped/ Disability (HIV&Aids)
ALIENS
*Complete Application A. Address L. Loan Amount I. Income E. Estimate Value N. Name S. Social Security
TRID (Harm)
*TRID (LE & CD) does not apply to (HARM)
H. Heloc
A. All cash Sales
R. Reverse Mortgage
M. Mobile Homes not secured by real estate.
1003 Sections “URLA”
- Borrower Info
- Financial Info./ Assests & Liabilities
- Real Estate
- Loan & Property Information
- Declarations
- Acknowledgments & Agreements
- Military Service
- Demographic Information
- Loan Originator Information
What Does RESPA Not Deal With?
BCC Navita*
B. Bridge C. Commercial C. Construction N. Non Owner Occupied Properties A. Agriculture-25+ acres V. Vacant Land I. Investment Properties T. Temporary Financing A. All Cash Sales
How Long to Keep Documents
Ecoa- 25 months DNC Docs- 2yrs Map- 2yrs TILA-2yrs Escrow Cancellation- 2yrs Partial Payment Policy-2yrs MCR- 2yrs (due quarterly- unless they specify state or entity level) LAR- 3yrs (Due March) LE- 3yrs Loan Comp- 3yrs (Under TILA) CD- 5yrs SAR- 5yrs
Tip: 3Ls = 3yrs (LE, Loan Comp, LAR)
Construction Disbursements
VFW
- Voucher
- Fixed
- Warrant
4 Types of Land Surveys
**MMGL*
Monument
Metes & Bounds (most accurate)
Gov’t Land Survey
Lots & Blocks (most common)
4 Items of a Valid Contract
Remember: “Competent parties are considering a mutual agreement for a legal object”
- Competent Party
- Consideration
- Mutual Agreement
- Legal Object
Federal Banking Agencies (4) + CFPB under FFEIC
- The Federal Reserve & CFPB
- National Credit Union Admin. (NCUA)
- Comptroller of the Currency
- Federal Deposit Insurance Corporation (FDIC)
Initial Disclosures (MWALLK)
M. Mortgage Servicing Disc. (RESPA) W. When your home is on the line (TILA) A. AFBA (RESPA) L. List of 10 HUD counselors (RESPA) L. Loan Estimate (TILA) K. Know before you owe handbook (RESPA)
*GFE/HUD- (Non purchases)
5 Reasons for Free Credit Report under FCRA
- Adverse Action (Denial)
- Public Assistance
- Fraud (Identity theft)
- Unemployed 5. Errors
Remember: “ I am unemployed and on Public Assistance, and I have had an Adverse Action due due to Errors and Fraud on my credit report.”
6 Payment Terms to Know for Math Purposes
Bi-Monthly= 24 times per year Bi- weekly= 26 times per year Monthly= 12 times a yr Semi Annually= 6months Quarterly= 4 month Weekly= 52 weeks
RATE CAPS
CAP (Floor)
Periodic CAP
Lifetime CAP (Ceiling)
Reverse Mortgage Initial Disclosures
GM LAW
G. GFE/HUD (non purchases) M. Mortgage Servicing Disclosure L. List of 10 HUD Counselors A. AfBa W. When your home is on the line
Initial Disclosures When Purchasing
KMALL
K. know before you owe handbook M. Mortgage Servicing Disclosure A. Afba L. List of 10 HUD Counselors L. Loan Estimate
Types of Liquid Assets
*CUMMBRS
C. Cash (Bank accounts) U. US Treasury Bills (T-bills) M. Mutual Funds M. Money Market Funds B. Bonds or Notes R. Retirement Investment accounts (401ks, IRAs) S. Stocks
Types of Non Liquid Assets
**LJCAAVES
L. Land and real estate investments J. Jewelry C. Collectibles A. Antiques A. Art V. Vehicles E. Equipment
SAR FACTS
Suspicious Activity Report Facts
Due 30 Calendar days if identifiable Due 60 Calendar Days If unidentifiable MLO must report if exceeds $5000 Financial Institutions must report if cash transactions exceed $10,000 SARS are kept for 5 years Reported to FinCEN (within FBI)
2021 MLO Changes
High cost fee threshold ($22,052)
Conforming loan Limit ($548,250)
Reverse Mortgage Limit ($822,375)
DNC (Do Not Call) Fine ($43,280/$43,792)
VA Entitlement ($144,000)
HMDA Monitoring Section (Section 8 of the 1003)
4 Index’s (Indices)
PRIME
COFI
LIBOR
COSI
Nmls # Goes on What?!?
*TMAP1003**
Trust Deeds Mortgages Advertisements Promissory Note 1003 URLA
4506 T / IRS 8821
Is now Known as 4506-C
Request for transcript of tax return
IRS 8821 (Tax information Authorization)
Appraisal Approaches
Cost- to replace/ build
Income- income property
Sales Comparison- 3 comps
Appraisals can only change by what amount?!?
Line- 10%
Net- 15%
Gross- 25%
What are the 5 Cs of Underwriting
- Know the meaning of each of them (fact 548-552)
1. Capacity
2. Capital
3. Credit
4. Collateral
5. Character
3 CRA’s
Transunion
Equifax
Experian
Qualified written Request (QWR)
Lender acknowledge request by 5 biz days
Seek to resolve the issue/ concern within 30 days
15 day extension if needed in connection to notices of error submitted by the borrower
4 Types of Involuntary Liens
Judgements
Mechanics Lien
Attachments
Tax Liens
Voluntary Lien
Mortgage
Flood Zone Information
Fema holds the flood maps
Flood insurance- purchased from NFIP ($100k-$250k)
High risk (zone A& V) -insurance is mandatory
Moderate (zones B & X) -insurance optional
Low Risk (zones C or X)- not required
Mortgage Call Reports
A quarterly report, conditions of biz., entity submits thru Nmls
Residential Mortgage Loan Activity Report
Completed quarterly, within 45 days of the end of the calendar quarter
Financial condition report
Completed Annually, within 90 days of the company’s fiscal year end.
Included in Escrow
Real Estate taxes
Insurance (HOI)
Pmi ( if applicable)
Concurrent Real Estate Ownership
Tenancy in common
Joint tenants- cannot be sold or Willed
Tenants in entirety
Reasons a reverse mortgage comes due
Dies Sells the Home Doesn’t live in home for 12 consecutive months Defaults of their taxes Owners let home deteriorate Last surviving borrower dies
A subprime borrowers may have 1 or more of the following items
A bankruptcy in the last 5 yrs
A foreclosure in the last 24 months
One or more 60-day delinquencies in the last 24mnths
Public Assistance Facts
Non-taxable income (gross up by 25%)
Must continue for 3yrs
Is grossed up by 25%
Child Support-verify for last 6 months
Examples: Retirement, Child Support, Disability, Pension…etc
Types of Clauses
Due on Sale Clause Alienation Clause Acceleration Clause Escalation Clause Partial Release Clause Prepayment Release Clause Defeasance Clause Exculpatory Clause Prepayment privileges clause Open- end clause Subordination clause
Discount Point (BuyDowns) Info.
DP are calculated on the LOAN AMOUNT DP cost 1% of the Loan Amount 1 DP=.25% on the interest rate DP are usually paid by borrower. It can be paid for by the seller or builder. Fixed DP- lowers interest rate 4 the life of the loan The cost of the point is a CLOSING COST DP are paid to the LENDER DP are calculated into the APR
FHAs 2-1 Buy Down Points (Temporary Points)
Not the same as DP points They only buy down the rate for 2yrs 1st yr the interest will receive 2% off 2nd yr the interest rate will receive 1% off 3rd+ yrs will be the original rate
Fraud For Profit Schemes
Flipping Straw buyer/ borrower Churning Equity skimming Contract Kiting Builder Bailout
Loan Estimate Facts
Available for 10 business days
Only place to find the Rate Lock
GFE + Initial TIL = LE
Delivered or mailed no later than (3) business days after loan application is submitted
Revised LE is received at least 4 biz. Days prior to consummation of the mortgage
The creditor is ultimately responsible for the delivery of the LE to the borrower.
FHA Deals with 3 Main things
Redlining (reverse redlining)
Steering
Blockbusting/ panic selling
Civil Rights act of 1866 (viii) became title 8 Fair Housing Act in 1968
Outstanding Debt (4 payment Purposes)
Lender will use 5% of the outstanding balance on credit
Lender will use 1% of outstanding balance on student loan on conventional and .5% on FHA
If you have a loan with less than 10 payments - it is not counted
If you have a lease you always count the payments even if it’s 1 payment
How to ask marital status (ECOA)
Married
Unmarried
Separated
4 Purposes of Dodd Frank Act
Financial Stability
End to big to Fail
Protect taxpayer-no bailouts
Protect against abuse practices
Open/ close end mortgage terms
Refi- Closed End
Heloc- Open End
Cash out Mortgage- closed end
Mortgage- closed end
