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MEC > Mortgage Acronyms > Flashcards

Mortgage Acronyms Flashcards

1
Q

ARM

A

Adjustable Rate Mortgage

5 parts of ARM loan are
Program 
Caps
Margin
Index
Fully indexed rate
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2
Q

ATR

A

Ability to repay

1 current or reasonably expected income or assets

2 current employment status

3 Monthly mortgage payments for the loan

4 monthly payments on any simultaneous loan secured for the property

5 monthly property and insurance, HOA, ground rent

6 borrowers’ debts, alimony, child support

7 monthly DTI or residual income

8 credit history

must verify

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3
Q

APR

A

Annual Percentage Rate

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4
Q

BSA

A

BANK SECRECY ACT 1970

money laundering
identify borrower
terrorism watch list

SAR- suspicious activity report
submitted to FinCEN within 30 days

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5
Q

CFPB

A

Consumer Fraud Protection Bureau

federal regulatory authority
Primary enforcer and supervisor of the mortgage industry.

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6
Q

CLTV

A

Combined Loan to Value

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7
Q

COE

A

Certificate of Eligibility

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8
Q

COFI

A

Cost of Funds Index

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9
Q

DTI

A

Debt to Income

Amount owed ÷ gross income = DTI

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10
Q

LTV

A

Loan to Value

Amount borrowed ÷ Appraisal amount/purchase price (lowest)t= LTV

Includes
Housing, PITI, Flood
HOA dues

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11
Q

NMLS

A

Nationwide Muliti-state Licensing System (&Registry)

Does not approve license application
It is only a database

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12
Q

SAFE

A

Secure And Fair Enforcement Act for Mortgage Licensing Act of 2008

The Model Law gives each state a template to use to create its own SAFE Act

the federal law that regulates the licensing process and responsibilities of MLO

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13
Q

Federal Reserve

A
  • Created in 1913

- Established a Federal Charter for banks that permitted them to make real estate loans

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14
Q

Federal Home Loan Bank Act

A
  • created in 1932

- allowed Federal Home Loan Banks to lend money to finance mortgages

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15
Q

BankingAct of 1933

A
  • Assisted in creating the FDIC (Federal Deposit Insurance Corporation)
  • insure deposits & protect consumers against bank default
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16
Q

FHA

A

Federal Housing Act 1934

  • helped the housing industry recover from the Great Depression
  • FHA mortgages are guaranteed by the Federal Government and offered by banks/lenders
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17
Q

ECOA

A

Equal Credit Opportunity Act

*EBOA Regulation B

  • Illegal for any lender to discriminate against an applicant based on race, religion, national origin,sex etc.
  • also prevents
    redlining
    Reverse redlining
    Overt discrimination
    Disparate treatment
    Disparate impact
    Comparative Evidence

-Borrower receives a copy of appraisal 3 business days before closing

Adverse action- 30 days to tell borrower that they do not qualify.

  • enforced by the CFPB (Consumer Fraud Protection Bureau)
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18
Q

FACRA / FACTA 1970

Reg V

Key words

A

Fair Credit Reporting Act / Fair and Accurate Credit Transactions Act

  • FACRAV Regulation V
  • Federal law that regulates how consumer credit reporting agencies use consumer information
Credit reporting
Permission / access
Accuracy, Dispute, Delete, How long items report (7yr, 10yr)
Safeguard
free report if denied
ID theft, Public Assistance, Unemployed
Adverse Action 30 days (credit only)
Risk Based Pricing Disclosure (LLPA)
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19
Q

FHLMC

A

Federal Home Loan Mortgage Corporation
aka (Freddie Mac)

  • “Conforming” mortgage
  • a Corporation authorized by congress in 1970 to provide a secondary market for residential mortgages
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20
Q

FinCEN

A

Financial Crimes Enforcement Network

SAR goes to them

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21
Q

FNMA

A

Federal National Mortgage Association
*aka Fannie Mae
“Conforming” mortgage

Government sponsored entity created in 1968 by congress to increase access to mortgages

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22
Q

GLBA 1999

A

Graham-Leach Bliley Act

  • P each Regulation P
  • Leach Peach non-public personal

-Protects non-public personal information

key words
Privacy -Safeguard, OPT-OUT, Pretexting

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23
Q

GNMA

A

Government National Mortgage Association
aka *Ginnie Mae

Government National Mortgage Association is a federal corporation that guarantees principal and interest payments on mortgage-backed securities issued by approved lenders.

Government lending program

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24
Q

GSE

A

Government Sponsored Enterprise

Financial services corporation created by Congress
Fannie & Freddie

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25
Q

HELOC

A

Home Equity Line of Credit

  • The lender agrees to lend a maximum amount within the agreed loan term
  • Collateral is the borrower’s equity in his/her house
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26
Q

HMDA 1975

Reg C

A

Home Mortgage Disclosure Act

*CHMDA Regulation C

1- gather data to serve the housing needs of the community

2- assist in distributing public investments

3- identify discriminatory lending practices
redlining and reverse redlining, Blockbusting, Disparate Treatment/Impact

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27
Q

HOA

A

Home Owners Association

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28
Q

HOEPA

A

Home Ownership & Equity Protection Act
*section 32 of Reg Z (TILA)

-Regulates high-cost home loans aka Predatory Lending

Disclosure to consumer at least three business days prior to consumation

HOEPA also restricts risky loan features for high cost mortgages including, balloon payments, prepayment penalties, due on demand features

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29
Q

HOPA or HPA

A

Homeowners Protection Act
*HOPA-PMI

-Regulates the cancellation of PMI (Private Mortgage Insurance)
PMI 80% down before closing
or
Loan balance reaches 78% paid

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30
Q

HPML

A

High Priced Mortgage Loan

*section 35 of Reg Z

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31
Q

HUD

A

US Dept. Of Housing and Urban Development

HUD is the primary Housing and Lending regulatory authority

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32
Q

IRRRL

A

Interest Rate Reduction Refinance Loan

VA Refinance only

.5% cost

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33
Q

MARS

A

Mortgage Assistance Relief Services
* Reg O

prohibits unfair and deceptive acts or practices with respect to mortgage-loan or foreclosure-relief services.

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34
Q

PITI

A

Principal
Interest
Taxes
Insurance

-4 main components of monthly mortgage payment

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35
Q

PMI

A

Privated Mortgage Insurance

Required when 20% or less down payment made
or
any conventional Conforming loan over 80% LTV

  • can be put into you monthly mortgage payment or calculated into your rate
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36
Q

QM

A

Qualified Mortgage

A type of loan that requires the lender to make sure that the borrower can repay the loan

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37
Q

SAR

A

Suspicious Activity Report

Report required when Suspicion of money laundering or fraud.
Report filed with FinCEN as per BSA (Bank Secrecy Act) within 30 days

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38
Q

SISA

A

Stated Income Stated Assets

Stated- no verification

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39
Q

TILA

A

Truth In Lending Act 1968
*reg Z tila zilla

Applicant receives within 3 days of filing application

The Truth in Lending Act (TILA) protects you against inaccurate and unfair credit billing and credit card practices. It requires lenders to provide you with loan cost information so that you can comparison shop for certain types of loans

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40
Q

TRID

A

TILA- RESPA Integrated Disclosure rule

LE (Loan Estimate) and CD (Closing Disclosure)
replaces GFE, TIL, HUD-1

2015

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41
Q

UFMIP

A

Upfront Mortgage Insurance Premium

Mortgage Insurance premium paid in lump sum upfront on an FHA loan

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42
Q

VOE

A

Verification of employment

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43
Q

MLO

A

Mortgage Loan Originator

An individual who for compensation or gain or expectation of

  • Takes a residential mortgages loan application
  • Offers or negotiates terms of a residential mortgage loan
  • must be licensed and sponsored by licensed mortgage lender/broker
  • can only be sponsored by one company and not as an independent contractor
  • Must have NMLS #
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44
Q

Loan processor or underwriter

A
  • Collection and distribution and analysis of information common for processing or underwriting of a residential mortgage loan
  • communicating with consumer to obtain information for the processing and underwriting of a loan

They are not required to be licensed

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45
Q

Mortgage broker

A

A firm that brings borrowers and lenders together

Can take applications and process loans

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46
Q

Mortgage lender

A

An entity that provides funds for a mortgage

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47
Q

Mortgage Servicer

A

Performs servicing functions including collecting mortgage payments, paying investor, collecting and paying the borrowers taxes and insurance and manages escrow accounts

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48
Q

Mortgage Loan life cycle

3 stages

A

First stage- borrower decides to obtain mortgage

Second stage- borrower goes to lender/ broker & originates loan

Third stage- loan goes to secondary market like FannieMae or FreddiMac

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49
Q

Regulatory Authority

A

Power to

  • investigate
  • impose penalties
  • provide supervision

Or a combination of all three.

State regulator
Federal regulator

Example is the CFPB (Consumer Fraud Protection Bureau)

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50
Q

Needs to become a licensed MLO

Pre Licensing education

A 
20 hours of education must include:
 3 hrs - Federal law
 3 hrs- Ethics
 2 hrs- non traditional 
12hrs-  elective or state related
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51
Q

In case of Pre- Licensing educational expiration…

A

You must retake 20 hours of prelicensure education to be eligible for a license if they,

  • Fail to acquire a valid state license or federal registration as an MLO within 3 years from the date of taking the 20 hours
  • Fail to acquire a valid state license or federal registration as an MLO within 3 years from the last state of licensure or registration as an MLO
  • Are licensed in a state where the 20 hour course has to be retaken if the MLO has not taken it in the last 3 year
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52
Q

To become a licensed MLO You must pass the national test with

A

A 75% or higher on the test.
The test contains a 120 questions 5 of which are not counted for a total of 115 graded questions

Applicants can take the test 3 consecutive times.
Each attempt must be 30 days apart.
If the applicant fails 3 consecutive times,
they must wait 6 months before they can retake the test
If an MLO Leaves the business for more than 5 years they must retake the exam.

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53
Q

MU4

A

Application for licensing

Needs 10 years of residential and employment history

Credit report

Fingerprints

Any administrative, civil, or criminal findings by any governmental jurisdiction

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54
Q

CRA

A

Community Reinvestment Act

Reach out to the community it serves (re-invest)

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55
Q

After 2008 market meltdown, the government created……

A

Dodd-Frank Wall Street Reform Act of 2010

Created a new regulator… CFPB (Consumer Fraud Protection Bureau

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56
Q

License renewal every year by

A

Dec 31st

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57
Q

Yearly Continuing Education

A

8 hours a year

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58
Q

Mortgage test covers

A

1 Federal law & regulation

2 Ethics

3 Fraud, consumer protection, fair lending, non-traditional mortgages

4 State law and regulation

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59
Q

Issuance of insurance

A

Surety bond- insurance policy, protects borrower

Net worth - assets

State fund - recovery fund held by state

60
Q

Temporary Authority- Licensing in multiple states

A

Allows MLO to operate in another state while license is being processed

61
Q

Continuing education requires…..

A

8 hours minimum

3 hrs Federal law & regs

2 hrs Ethics
including instruction on fraud,consumer protection and fair lending issues

2 hrs non traditional loans

1 hrs elective or state specific

  • CE only counts in year taken
  • can’t take same course in successive years
62
Q

Any MU4 changes

A

You have 30 days to update your info.

Violation if not

63
Q

6 parts of mortgage application

A

P property address

E estimated property value

N name of borrower

S SSN

I income

L loan amount requested

64
Q

2 types of mortgages

A

Fixed

Adjustable

65
Q

ARM interest rate adjustment caps

A

First adjustment - allow rate to increase or decrease

Subsequent - specific percentage

Lifetime - limits number of total upward adjustment

Example
First adjustment + lifetime cap = lifetime max interest rate

66
Q

Margin/cost + Index = fully indexed rate

A

1.25 margin + .50 = 1.75 full indexed rate

67
Q

CSBS

A

Conference of state bank supervisors

68
Q

AARMR

A

American Association of Residential Mortgage Regulators

created the NMLS

69
Q

Construction loan

A

Usually higher interest rates

Loan can be converted to a conventional mortgage loan

70
Q

Bridge loan

A

Temporary financing against equity of the borrowers present home to make a down payment on a new home or start building a new home.

Typically interest only

71
Q

Balloon mortgages

A

These loans generally have P&I payments before the Ballon comes due

Inherently risky but still exist

Minimum term 5 yrs

72
Q

Graduated Payment mortgage GPM

A

Low initial monthly payment that increases overall specified time

Uses negative amortization

Good choice for young professionals (Doctor or Lawyer)

Example of a GMP, 2/1 Buydown

73
Q

Maximum down-payment for Sellers to contribute

A 
Investment 2%
Conventional  3%
VA 4%
FHA 6%
USDA 6%
74
Q

Bankruptcy

A

Ch. 7 - liquidates all debt

Ch. 11 - reorganizes all debt
Usually businesses

Ch. 13 - adjustments of debt
For individuals w/reg income for payback to collectors

75
Q

ARM & CAPS

A

ARM. 5/1

5-how long rate stays same

1- after initial term, how often it can adjust

CAPS. 3/2/8

3‐ How much it can first adjust
2- subsequent adjust
8- max CAP

76
Q

2/1 Buydown

A

2% reduction in rate yr 1
1%reduction in rate yr 2
Regular rate yr 3

77
Q

Disparate treatment

A

Occurs when one protected group is treated differently from another similarly situated group

Overt evidence- openly discriminates

Comparative evidence- protected class applicant is treated less favorably than others. Often not intentional (though it could be)

78
Q

Disparate impact

A

Facially neutral policy or practice applied equally to all applicants. Adversely impacted protected groups unintentionally

79
Q

Conventional mortgage requirements

A

Min down payment 3%
Max DTI 28-36%
PMI - Required over 80 %

Bankruptcy- Ch. 13 1 yr from discharge
Ch. 7 4 yrs (2 yr w/extenuating. circumstances)

Foreclosure - 2 yrs

LTV - 85% max

Seller concessions - 3%

80
Q

FHA mortgage requirements

A

Min down-payment- 3.5%

Max DTI - 31-43%

Mortgage Insurance- REQUIRED

UFMI - REQUIRED

Bankruptcy - Ch 13. 1 yr
Ch 7. 2 yr
Foreclosure - 3 yrs

LTV - 85% MAX

Seller concessions ‐ 6%

81
Q

UFMIP

A

Upfront mortgage insurance premium is 1.75% of base loan amount

82
Q

MMI

A

Monthly mortgage insurance stays on:

11 yrs. for all loans under 90% LTV
Loan term for all loans greater then 90% LTV

83
Q

RESPA

A

REAL ESTATE SETTLEMENT PROCEDURES ACT 1974
RESPAX…… regulation X

seeks to reduce unnecessarily high settlement costs by requiring disclosures to homebuyers and sellers, and by prohibiting abusive practices in the real estate settlement process. All borrowers must be given information about real estate transactions, settlement services, and relevant consumer protection laws, as well as the possibility of mortgage servicing being transferred. Borrowers are entitled to initial and annual escrow account statements, as well as itemized statements of actual settlement costs.

RESPA section 8 outlaws kickbacks, referral fees, and unearned fees, prohibits sellers from requiring borrowers to purchase title insurance from specific companies, and does not allow loan servicers to require excessively large escrow accounts.

84
Q

GPM

A

Graduated Payment Mortgage

Lower payments at the beginning of the loan which then increase gradually

Lower payments could result in negative amortization

May be good for young higher paid professionals Dr., lawyer

85
Q

Dodd Frank 2010

A

created CFPB
Consumer Fraud Protection Bureau

supervise the mortgage industry

86
Q

Mortgage Lender

A

entity that provides funds for a mortgage

They take the loan from the application through closing

87
Q

Mortgage Broker

A

takes loan applications and processes loans

puts borrowers in contact with lenders

88
Q

Mortgage Servicer

A 
performs servicing functions including
collecting mortgage payments
paying investor
collection and paying the borrowers taxes and insurance
manage escrow accounts
89
Q

Secondary Mortgage Market

A

mortgage loans and mortgage backed securities are bought and sold

FNMA Fannie Mae GSE
FHLMC Freddy Mac GSE

GNMA Ginnie Mae Gov owned entity only purchases FHA, VA, USDA

90
Q

Mortgage loan life cycle

A

1 borrower decides to obtain a mortgage loan

2 borrower goes to a lender/broker to obtain a loan

3 secondary market, allows lender to replenish their cash by selling the loan to an investor like Fannie or Freddie

91
Q

regulatory authority

A

power to

investigate
impose penalties
provide supervision or a combination of all three

92
Q

state regulatory authority

A

supervision and enforcement of state laws regarding the mortgage industry

93
Q

CFPB federal regulatory authority

A

governments primary enforcer and supervisor of the mortgage industry

94
Q

20 hour pre licensing education must include

A

3 hrs federal law
3 hrs ethics
2 hrs non-traditional
12 hrs elective and/or state licensing

95
Q

Surety bond

A

If an MLO or an entity harms a borrower and that borrower sues them and wins, that borrower will be paid out by that surety bond.

employer surety bond cover MLO

96
Q

Net worth

A

show net worth and maintain that net worth throughout their time as a licensee

97
Q

State fund

A

State fund pays borrowers who are harmed by an MLO or an entity

98
Q

Issuance of a license

A

Applicant can not have

  • ever had their license revoked in another state
  • been convicted of or pled guilty or no contest to any felony in the past 7 years
  • or crime involving an act of fraud, dishonesty, breach of trust, or money laundering
  • a non-financial felony, the applicant would be eligible after 7 yrs from date of the conviction
  • applicant must demonstrate financial responsibility, character, and general fitness that commands the confidence of the community
  • completed their CE requirements
  • passed the National test Componant UST
  • Net worth, surety bond or state fund requirement-
99
Q

applicant must not have

A

Foreclosure in the past 3 yrs

or a pattern of seriously delingquent accounts within the past 3 yrs

100
Q

Temporary Authority

A

The SAFE act permits temporary authority which allows for an MLO, licensed in another state, to operate in a new state while the license application is processed

can end 120 days after the application submission if the application is incomplete

101
Q

MLO is required to renew their license by

A

December 31st

102
Q

License maintenance

A

continue to meet the minimum standards, financial responsability, clean criminal background

satisfy CE requirements

Pay all fees

103
Q

Continuing Education CE

A

MLO’s must complete at least 8 hours of CE

3 hrs federal law
2 hrs ethics
2 hrs non-traditional
1 hr elective or state-specific

CE only counts in the year it was taken

MLO cannot take the same CE course in successive years

104
Q

Reinstatement

A

some states allow for reinstatement, which must be completed by March 31st

if you are going through reinstatement, you cannot act as an MLO, as your license is technically expired

105
Q

MU4 changes

A

you have 30 days to update it or you could be inviolation

106
Q

Prohibited conduct

A

defraud
mislead
unfair or deceptive practice
obtain property by fraud or misrepresentation
soliciting best efforts
unlicensed activity
failing to make disclosures
make false or deceptive statements or representation
bait and switch
Lie on MU4 form
threat any person to influence the independent judgment of the person in connection with a residential mortgage loan
collect or charge any prohibited fee
truthfully account for monies…..like collectin money for an appraisal and pay your car payment

107
Q

Closing Disclosure (CD) must be kept for

A

5 years after consummation for compliance with TRID

108
Q

SAFE Act violation is

A

$25,000 per violation

109
Q

SAFE
Safe and Fair Enforcement for Mortgage Licensing Act 2008

key words

A

NMLS;
MLO licensing vs registered
$25k fine

110
Q

Dodd- Frank 2010

key words

A

CFPB, regulation, oversight, enforcement
ATR
QM
TRID

111
Q

Real Estate Settlement Procedures Act 1974
RESPA
Reg X

key words

A

Escrows
Referrals/kickbacks (Sec8)
Servicing
Fees charged (>$) no padding
Disclosures
(Transfer of servicing
AfBA
Homeownership counseling)
$10k/ 1 yr
Section 6 regulates the servicing of mortgage loans
Section 8 prohibits referral fees and kickbacks
Section 9 prohibits requiring the pruchase of settlemnt services as a condition for sale of a property
Section 10 regulates the Escrowing of property tax and insurance
Requires Disclosures- Tranfer of servicing(now with LE/CD, Escrow(now w/CD)
AfBA

112
Q

Loan Originator Compensation Rule 2014
LO Comp
TILA Reg Z

key words

A

Bonus
Anti-Steering Disclosure
Lender paid vs Borrower paid
Not paid = terms, rate, loan type, features, profitability
OK paid + volume, units, salary, performance

113
Q

TILA - RESPA Intergrated Disclosure Rule 2015
TRID

key words

A 
6 elements of an application
LE, CD
Changed Circumstance - Zero/ 10%/ No
LE- 3 business days after application
7-day waiting period
Saturday rule business day definition
3 day mailbox rule
intent to proceed
CD - 3 days prior to consummation
business day definition
114
Q

Qualified Mortgage
QM
Ability to Repay
ATR

TILA Reg Z 2014

A

ATR; Income/Assets, Employment, Debts, PITIA, Credit, DTI, Balloon QM, General QM, Safe Harbor and Rebuttal Presumption

115
Q

Home Ownership Equity Protection Act
HOEPA
Sec 32 of TILA

A

Regulates High Cost Home loans

counseling required

3 tests - APR,
points and fees
prepayment penalty

116
Q

Sec 35 of TILA Reg Z

A

higher-priced mortgages

APR test

117
Q

Equal Credit Opportunity Act 1974
Reg B

key words

A 
Fair lending
discrimination (9classes)
redlining
disparate treatment/impact
Comparative Evidence
Appraisals
Notice of Adverse Action
(30 days all reasons)
118
Q

Fair Housing Act 1968

key words

A

Fair housing,
Discrimination (7 classes)
Disparate treatment / impact

119
Q

FACTA 2003

Reg V

A

ID theft rights, score, free annual credit report
Red Flags Rule (prevent and protect ID theft)
Fraud Alert; Opt-out
Notice to Home Loan Applicant (score, range, model, factors)
Summary of Consumer’s Rights
Disposal Rule; Neg Report

120
Q

Mortgage Act and Practices 2011
MAP
Reg N

A

Advertising
MLO communication
2 yrs records retainment

121
Q

Anti Money Laundering / Bank Secrecy Act 1970

AML/BSA

A

money laundering
Identity
FinCEN
SAR

122
Q

UDAAP

A

Unfair Deceptive Abusive Acts and Practices Rule

Dodd-Frank created
CFPB regulates it

123
Q

Patriot Act 2001

A

Money Laundering & Terrorism
Identification
CIP
OFAC

124
Q

E - Sign Act 2000

A

e signatures

consent

125
Q

Telemarketing Rule 1991

A

Do Not Call List 2003
18/3 mo
$42,530 fine
List- purge 31 days

126
Q

Mortgage Assistance Relief Services 2010
MARS
Reg O

A

Loan modifications
foreclosure prevention
disclosures & prohibits upfront fees

127
Q

Loan Originator Compensation 2014 is a section of TILA

A

Dodd - Frank Wall Street Reform Act originally mandated it
Prohibits compensation based on a proxy for a term of a transaction
no steering
no dual compensation
keep compensation records for 3 yrs
NMLS ID #’s must appear on applications
cannot be paid by both the lender and borrower. Only by one or the other
keep all closing records for 3 yrs

128
Q

Safe Harbor means

A

that these types of compensation are allowed and would not be in violation of the LO Comp rule

129
Q

Steering

A

steers a borrower into the loan they think is the best and could potentially harm them for the sole purpose of obtaining a higher commission

130
Q

For an MLO to be sure they are not steering

A

loan options presented to the consumer

  • lowest interest rate
  • lowest points and fees
  • lowest rate the consumer qualifies for

no risky features
prepayment penalty
negative amortization
balloon payment in first 7 years

131
Q

LO Comp requires loan originators to provide their unique identifiers on loan documents

A
132
Q

AARMR

A

America Association of Residential Mortgage Regulators

created NMLS

133
Q

AML

A

Anti Money Laundering

134
Q

APOR

A

Average Prime Offer Rate

rate used to determine whether a loan is high cost or higher priced

135
Q

AfBA

A

Affiliated Business Arrangement

must be disclosed (RESPA) within 3 business days of informing the borrower of the conflict of interest

as little as 1% ownership interest

136
Q

CAIVRS

A

Credit Alert Verification Reporting System

federal database on people who have delinquent federal debt

137
Q

DU

A

Desktop Underwriter

Automated underwriting system used by Fannie Mae

138
Q

HECM

A

Home Equity Conversion Mortgage

Reverse Mortgage

139
Q

Homeowners Protection Act

A

Regulates the cancellation of PMI

140
Q

Loan Product Advisor

LP

A

Automated underwriting system for Freddie Mac

141
Q

Mortgage-Backed Securities

MBS

A

investment instruments that are bundled by Fannie, Freddie and Ginne for sale on Wall St

142
Q

MIP

A

Monthly Insurance Premium

FHA loan

143
Q

PPP

A

Pre Payment Penalty

a penalty charged to a borrower if they pay their loan in full before the end of its term

144
Q

YSP

A

Yield Spread Premium

Paid to broker for giving a higher interest rate on a loan in exchange for lower up front costs generally paid in origination fee, broker fees or discount points

145
Q

4506T

A

form to retrieve tax returns, W-2 and 1099 transcripts that are on file with the IRS

146
Q

For a reserve to be considered seasoned and acceptable, the funds must be on deposit in a financial institution in the borrowers name for

A

60 days

MEC (1 decks)

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