MLO Timeline Flashcards
What are the 4 C’s?
Capacity, Collateral, Credit, Capital
What is a CRA?
Credit Reporting Agency
What is the “Capacity?”
A client’s affordability. (How much they can afford).
What is a PITI payment?
Principal Interest Taxes Insurance
What is Front-End Ratio?
Housing expense ratio
What is back-end ratio?
All expenses related to the home + all contractual monthly debt / GMI (Gross Monthly Income)
What does GMI mean?
Gross Monthly Income
What is the Prequalification step in the mortgage process?
Identifying a loan problem that meets the clients goals
Underwriting means?
Ensures that the client and property match eligibility requirements.
What is a home inspector?
Determines if the home is in good condition, and warns of “money pits.” (Works for the Lender).
What is a home appraiser?
Determines the market value of the home.
3-1-1 approach (3 similar homes, 1 mile radius, 1 sold in the last year). INDEPENDENT CONTRACTOR
What is URLA?
ALIENS - Uniform Residential Loan App - 1003. The URLA, gives the Lender enough information from the borrower to proceed in the process.
3 Pages, and everything is estimated
Loan Estimate
What is Lender Points?
The borrower could buy down their “Par” rate, but purchasing Lender Points.
What is a Lender Rebate or Credit?
Monies paid by the Lender to help cover your closing costs. Results in a higher interest rate.
What is LTV?
Loan to Value
What does TAN mean?
Traceable, Accessible, Not a liability
What does CLTV mean?
Combined Loan to Value
What does HCLTV Mean?
High Combined Loan to Value
What is reconveyance?
The borrower has paid off the debt based on the agreed upon terms as the Lender has now removed the lien from the Title.
