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Loan Signing Agent Document Overview > Refinances > Flashcards

Refinances Flashcards

Studying the documents of a refinance, what to share, what to notarize, general idea of each document.

1
Q

What is a Closing Disclosure?

A

A legal document that provides the financial details of a loan.

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2
Q

How many days before close should the lender receive the CD?

A

3 Days

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3
Q

What is the monthly principal in real estate?

A

The monthly amount paid towards the loan without an escrow, taxes, fees, or interest.

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4
Q

What is escrow?

A

An account from which taxes, fees, and/or property insurance are paid. A small piece of the monthly mortgage payment is placed in escrow for these fees.

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5
Q

What is a balloon payment?

A

A lump sum loan made at the end of a loan term that is larger than usual. - Will be a term/condition on the CD.

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6
Q

What is a prepayment penalty?

A

A fee that a lender charges when the borrower pays most or all of their mortgage down early.

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7
Q

What is a Note?

A

A loan document promising that the buyer will repay the money borrowed.

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8
Q

What should always be double checked on all documents?

A

Whether the document needs to be initialed. All initials will be at the bottom right corner of the document.

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9
Q

What are all of the documents that must be notarized in a refinance?

A

The mortgage/deed of trust, compliance agreement, Signature Affidavit and AKA Statement, The Occupancy and Financial Status Affidavit, The Limited Power of Attorney/Correction Agreement

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10
Q

What is the Mortgage/Deed of Trust?

A

A document that gets recorded to the county. Secures the lender’s interest in the property. Details that lenders are giving money for the loan and holding the home for collateral until the loan is paid off

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10
Q

What is unique about the mortgage/deed of trust?

A

All of the documents are standard for everyone who has ever signed a mortgage. These are the rules and regulations under the terms of the loan.

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11
Q

What is the Universal Residential Loan/1003?

A

A document detailing all information the borrower submitted to the lender when applying for the loan.

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12
Q

What is the Payment Letter to Borrower/First Payment Letter?

A

A detailed breakdown of the total monthly payment. Specifies due date for the 1st payment and provides instructions where to send it.

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13
Q

What is the compliance agreement?

A

A document stating that if anything needs to be redrafted or resigned, the borrower would cooperate and do so.

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14
Q

What is the Right to Cancel/The Right of Recession?

A

A document in the loan packet that states the borrower has 3 full days to cancel their transaction.

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15
Q

How long does a signer have to cancel the loan transaction?

A

3 business days. Must be completed by midnight of the third day.

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16
Q

What types of properties are funded on the same day as the loan signing?

A

Second homes and Investment properties

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17
Q

What type of signing includes the Right to Cancel/The Right of Recession document?

A

Refinances only.

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18
Q

Where must the borrower sign on the Right to Cancel?

A

At the bottom of the document. Not in the box.

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19
Q

What type of real estate transactions give the signer 3 full business days to cancel?

A

Refinances, Home Equity Loans, and Reverse Mortgages.

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20
Q

What is a Signature Affidavit and AKA Statement?

A

A loan document that lists variations of the borrower’s name that they must sign and verify.

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21
Q

What document would a borrower sign NKA (Never Known As)? In what circumstance?

A

On a Signature Affidavit and AKA Statement. If the borrower sees a name listed that they have never gone by, they will sign NKA (never known as)

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22
Q

What does NKA stand for?

A

Never Known As

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23
Q

Where are the names listed on the Signature Affidavit and AKA Statement generated from?

A

The 3 Credit Bureaus.

24
Q

What is The Occupancy and Financial Status Affidavit?

A

A loan document stating whether the borrower will be occupying the property as a primary residence, second home, or investment property. Also confirming the borrower’s financial status hasn’t changed since the loan application.

25
Q

Which loan document is an overview of the final loan terms and closing costs?

A

The Closing Disclosure (CD)

26
Q

Which document is a promise to pay the lender for any money borrowed?

A

The Note

27
Q

Which document secures the lender’s interest in the property?

A

The Mortgage/Deed of Trust

28
Q

Which document details all of the information the borrower submitted to the lender when they applied for the loan?

A

The Universal Residential Loan Application (AKA the 1003)

29
Q

What is another name for the 1003?

A

The Universal Residential Loan Application

29
Q

What is another name for The Universal Residential Loan Application?

A

The 1003

30
Q

Which document provides a breakdown of the total monthly payment and instructions for the 1st payment?

A

The First Payment Letter

30
Q

Which document asks that if there are any errors in the loan packet, the borrower will cooperate with the lender to correct them?

A

The Compliance Agreement

30
Q

What does E&O stand for?

A

Errors & Omission

31
Q

The Compliance Agreement is also known as…

A

Error & Omissions Agreement, Document Correction Agreement, Correction Agreement

32
Q

Which document states that the borrower has 3 full business days to cancel their transaction?

A

The Notice of Right to Cancel.

33
Q

Which loan document lists variations of the borrower’s name for verification?

A

The Signature Affidavit and AKA Statement.

34
Q

What is the Limited Power of Attorney/Correction Agreement?

A

Loan document that authorizes the lender to make corrections to minor clerical errors. (etc. misspelled names, typos, clerical mistakes hat don’t affect the loan/interest rate)

35
Q

Which document authorizes the lender to make corrections to minor clerical errors?

A

The Limited Power of Attorney/Correction Agreement

36
Q

What are some examples of corrections the lender can make per the Limited Power of Attorney/Correction Agreement?

A

Misspelled names, typos, incorrect house numbers, minor clerical mistakes. Can not affect the loan or interest rate in any way.

37
Q
A
38
Q

Which loan docs do you NOT go over with the borrower?

A

The USA Patriot Act

39
Q

What do you use to fill out the USA Patriot Act?

A

The borrower’s forms of ID. The lender will detail how many are required on the form.

40
Q

What if the borrower doesn’t have the required number/type of IDs as listed on the USA Patriot Act?

A

They can use their medical insurance card as a form of ID.

41
Q

What is your title when asked on any document?

A

Notary.

42
Q

What is The Borrowers Certification and Authorization?

A

A loan document that certifies all information the borrower provided to the lender is complete and true. Also authorizes the lender can release loan information if the loan is sold in the secondary market.

43
Q

Which loan document authorizes the lender to release loan-specific information if the loan is sold to an investor?

A

The Borrowers Certification and Authorization

44
Q

Which loan document certifies that all the information the borrower provided to the lender is complete and true?

A

The Borrower’s Certification and Authorization.

45
Q

Which loan document outlines what goes in and out of the borrower’s escrow account?

A

The Initial Escrow Account Disclosure.

46
Q

What is The Initial Escrow Account Disclosure?

A

A loan document that outlines the monthly payments to be deposited into an escrow account and a detailed list of what will be paid from the escrow account during the 1st year.

47
Q

What is Hazard Insurance Authorization and Requirements?

A

A loan document that states homeowners insurance is required on the property for the life of the loan.

48
Q

What are the homeowners insurance requirements?

A

Homeowners insurance is required for the life of the loan. The insurance carrier must be rated A or better by the Bests Insurance Guide.

49
Q

Which document states that the homeowner’s insurance carrier chosen must be listed A or better?

A

The Hazard Insurance Authorization and Requirements

50
Q

Which loan document states that the lender will report late payments to the credit bureaus?

A

The Notice Concerning the Furnishing of Negative Information to Consumer Reporting Agency

51
Q

What loan document can be considered the Late Payment Notice?

A

The Notice Concerning the Furnishing of Negative Information to Consumer Reporting Agency

52
Q

What is The Notice Concerning the Furnishing of Negative Information to Consumer Reporting Agency?

A

A loan document that states that the lender will report any late payments and/or missed payments to credit bureaus.

53
Q

What is The Impound Authorization?

A

A document that states whether the escrow account is required by the lender or requested by the borrower and what the escrow account will be used for.

54
Q

Which document states whether the escrow account is required by the lender or requested by the borrower?

A

The Impound Authorization

Loan Signing Agent Document Overview (1 decks)

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