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Real Estate > TRID 2 > Flashcards

TRID 2 Flashcards

1
Q

The Loan Estimate

A
  • Consumer Financial Protection Bureau
  • www.consumerfinance.gov/owning-a-home/loan-estmate
  • Check and make sure everything is accurate.
  • If there is a need to redo this document your buyer will need to wait three days after three days before they settle resulting often missing deadlines and section 24 of your real estate purchase contract..
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2
Q

Check the spelling of your name.

A

Make sure that the date issued is correct and the applicants that their names are spelled correctly the address is correct city state and zip are all correct make sure the property address is correct and also please make certain that this is correct sales price.

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3
Q

Check loan term, purpose, product & loan type

A

Check the loan term purpose product and Loan types which is right here and is the rate locked.

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4
Q

Is your rate locked?

A

Yes and it will stay until when and at what time so that is very important and obviously we need to make sure that if we’re getting ready to close this transaction we need to make sure that the rate is locked.

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5
Q

Loan Terms Tab

A

Tells you exactly what’s going on in the section., remember these documents were created after the fall out of the mortgage meltdown of 2008 to create greater transparency in terms of clarity and
expectations for the buyers.

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6
Q

Interest Rate Fixed Or Adjustable?

A

Can this amount increase after closing? No. In the event that it was an ARM or an adjustable rate mortgage this would say yes amount increase.

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7
Q

Monthly Principal & Interest

A

Amount and can that amount increase
after closing?

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8
Q

Prepayment Penalty?

A

Does your loan have a prepayment
penalty?
*Those are pretty rare in today’s lending environments but for now the example
says yes but in reality you’re not going to.

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9
Q

Balloon Payment

A

Does your loan have a balloon payment?
Most often it will be marked no.

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10
Q

Estimated Total Monthly Payment

A

Does this match your expectations?

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11
Q

Projected Payments Tab

A

Principle And Interest
Insurance monthly
Estimated Escrow Amount
Estimated Total Monthly Payment
* Totals of Principle & Interest, Mortgage
Insurance & Estimated Escrow

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12
Q

Estimated Taxes, Insurance
and Assessments

A

Amount can increase over time due to takes
* What is included: such as property taxes,
homeowners insurance and Other
* escrow section g on page 2 for escrowed
property costs

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13
Q

Costs at Closing Tab

A

Do you have enough cash on hand to pay your
Estimated Cash to Close?

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14
Q

Estimated Cash To Close

A

This is the amount you will have to pay at closing, in addition to any money you have already paid

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15
Q

The acronym “RESPA” stands for:
A: Real Estate Special Protection Act
B: Real Estate Settlement And Procedures Act
C: Real Entitlement Standard Procedures Act
D: Real Estate Standard Procedures Act

A

B: Real Estate Settlement And Procedures Act

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16
Q

Estimated cash to close is:
A: The Amount You Have To Pay At Closing In Addition To Any Money You Had Already Paid
B: This Is The Amount Of Money You Pay At
C: The Amount Due To The Brokerage
D: All Of The Above

A

A: The Amount You Have To Pay At Closing In Addition To Any Money You Had Already Paid

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17
Q

A _________ is a larger-than-usual one-time payment at the end of the loan term
A: Large Payment
B: Balloon Payment
C: Brokerage Agreement
D: All Of The Above

A

B: Balloon Payment

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18
Q

Fixed Interest Rate loan is a:
A: Loan Where The Interest Rate Doesn’t Fluctuate During The Fixed Rate Period Of The Loan
B: Loan Where The Interest Rate Does Fluctuate
C: Depends On The Lenders Approval
D: All Of The Above

A

A: Loan Where The Interest Rate Doesn’t Fluctuate During The Fixed Rate Period Of The Loan

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19
Q

The ________table provides the loan balance, interest charges, and the amount of principal that you pay off.
A: Balance Table
B: Amortization Table
C: Financial Payments Table
D: None Of The Above

A

B: Amortization Table

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20
Q

Loan Estimate Page 2

A

Section I -Total of other costs
Section J -Total of Sections d-l = total closing costs.
Must match total from page 1
Section k -Cash to close
(final proceeds for the transaction)

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21
Q

Compare

A

Compare the origination charges to loan
estimates from other lenders
Compare the Services you cannot shop
for to and estimates from other lenders Review the services you can shop for and shop for these services

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22
Q

Accuracy

A

Is the homeowner’s insurance premium accurate?
Are the Property taxes accurate?
Does your loan include lender credits?
Is the Estimated Cash to Close what was expected?

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23
Q

Loan Estimate Page 3

A

Lender and MLS #
Comparisons
APR
Other considerations
Homeowners Insurance
Refinancing
Signed and dated
The Loan officer MLS# email & phone
Amortization Schedule
Total Interest paid over the loan term Whether the loan is assumable or not.
Loan Payment Late Fees
Confirm Receipt

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24
Q

Closing Disclosure

A

Page 1 of the Closing Disclosure covers the: Statement of final loan terms and documents, this is given minimum of three
days prior to settlement.

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25
Q

Transaction Information

A

Borrowers name and address, sellers
name and address, the lender

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26
Q

Loan Information Section

A

Loan term, product and loan type, loan
ID MIC#

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27
Q

Closing Information Section

A

Date Issued, closing date, disbursement date, settlement agent, file #, property and appraised property value.

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28
Q

Loan Terms Section

A

Loan amount, Interest Rate, Monthly
Principal and Interest. Prepayment
Penalty, Balloon Payment.

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29
Q

Projected Payments Section

A

Payment Calculation - Principle & Interest,
Mortgage Insurance, Estimated Escrow. Estimated Total Monthly Payments, Estimated
Taxes, Insurance & Assessments.

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30
Q

Cost at Closing

A
  • Closing costs include loan costs, other costs and lender credits.
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31
Q

Loan Costs

A

For each of these: * The borrower paid at closing and before closing, the seller paid before and after closing, and the other paid before and at closing.

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32
Q

Loan Costs Structure

A

A. Origination Charges
B. Services Borrower Did Not Shop For
C. Services Borrower Did Shop For
D. TOTAL LOAN COSTS (Borrower Paid)
Loan Costs subtotals (A+B+C)
E. Taxes and other Government Fees - specific
F. Prepaids
G. Homeowners insurance premium
H. Mortgage Insurance Premium
I. Already Paid for
J. Total Closing Costs Buyer Paid
Must match the bottom of page 1 ( Cost at Closing)

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33
Q

Federal Law requires that the Closing Disclosure be given to a buyer at least how many days prior to Settlement:
A: 3 Days
B: 4 Days
C: 5 Days
D: 6 Days

A

A: 3 Days

34
Q

The first section on Page 1 of the Closing Disclosure is the:
A: Loan Costs
B: Loan Terms
C: Calculating Cash To Close
D: Loan Calculations

A

B: Loan Terms

35
Q

The first section on Page 2 of the Closing Disclosure is the:
A: Loan Costs
B: Loan Terms
C: Calculating Cash To Close
D: Loan Calculations

A

A: Loan Costs

36
Q

The transaction information consists of:
A: Borrowers Name, Address, Sellers Name And Address, Lender
B: Only The Lender, And Lender’s Information
C: Brokerage Information
D: All Of The Above

A

A: Borrowers Name, Address, Sellers Name And Address, Lender

37
Q

Summary of Transactions

A

Includes two columns, one for the buyer
and one for the seller.

38
Q

Loan Disclosures Assumptions

A

If you sell or transfer this property to another person, your lender will allow, under certain conditions this person to assume this loan on the original terms. Will not allow assumption of this loan on the original terms

39
Q

Demand Feature

A

Your loan either has a demand feature or does not, which permits your lender to require early repayment of this loan. You should review your note for details.

40
Q

Late Payment

A

If your payment is more than__ days late, your lender will charge a late fee of__

41
Q

Negative Amortization

A

(INCREASE IN LOAN AMOUNT)
Under your loan terms, you Are scheduled to make monthly payments that do not pay all of the interest due that month. As a result, your loan amount will increase (negatively amortize), and you loan amount will likely become larger than your original loan amount. Increase in your loan amount lower the equity you have in this property.

42
Q

Partial Payments

A

Your lender May accept payments that are less than the full amount due
(partial payment and apply them to your land. May hold them in a separate account until you pay the rest of the payment, and then apply the full payment to your loan.
Does not accept any partial payments.
If this loan is sold you may have a different policy

43
Q

Security Interest

A

You are granting a security interest in: You may lose this property if you do not make your payments or satisfy other obligations for this loan

44
Q

Escrow Account

A

For now, your loan will have an escrow
account (also called an “impound” or “trust” account) to pay the property costs listed below.

45
Q

Failure to Pay

A

If you fail to pay your property taxes, your state or local government may (1) IMPOSE FINES AND PENALTIES OR (20 place a tax lien on this property. If you fail to pay any of your property costs, your lender may(1) add the amounts to your loan balance, (2) add an escrow account to your loand, or (3) require you to pay for
property insurance that the lender buys on your behalf

46
Q

Loan Calculations

A

Include Total of Payments, Finance Charge, Amount Financed, APR, Your costs and TIP

46
Q

Total of Payments:

A

Total you will have paid after you make all payments of principal, interest, mortgage insurance, and loan costs, as scheduled.

47
Q

Finance Charge

A

The dollar amount the loan will cost you.

48
Q

Amount Financed.

A

The loan amount available after paying
your upfront finance charge

49
Q

APR

A

Annual Percentage Rate

50
Q

Your costs

A

Over the loan term expressed as a rate.
This is not your interest rate.

51
Q

TIP

A

Total Interest Percentage (TIP) The total amount of interest that you will pay over the loan term as a percentage of your loan amount.

52
Q

Other Disclosures

A

Appraisal, Contract Details, Liability after Foreclosure, Balance on the loan, additional debt, Refinance

53
Q

Appraisal

A

If the property was appraised for your loan, your lender is required to give you a copy at no additional cost at least 3 days before closing. If you have not yet received it, please contact your lender at the information listed below.

54
Q

Contract Details

A

Contract Details - See your note and security instrument for information about, failure to pay, default on loan, early repayment, rules for paying before due date.

55
Q

Liability after Foreclosure

A

If your lender forecloses on this property and the foreclosure does not cover the amount of the unpaid balance on this loan, State law may protect you from liability for the unpaid balance, unless you refinance or take on
additional debt on the property.

56
Q

Refinance

A

Refinancing this loan will depend on your future financial situation, the property value, and market conditions. You may not be able to refinance this loan.

57
Q

Contact Information

A

For Lender, Mortgage Broker, and Settlement Agent: Name, Address, NMLS ID, Contact, Contact NMLS ID, Contact license ID, Email and Phone number.

58
Q

Confirm receipt

A

By signing you are only confirming that you have received this form. You do not have to accept thisloan because you have signed or received this form. Appliance sigs, date
This document has to be provided with a minimum of 3 days to only the buyer, with no exceptions.

59
Q

The first section on Page 3 of the Closing Disclosure is the:
A: Loan Costs
B: Loan Terms
C: Calculating Cash To Close
D: Loan Calculations

A

C: Calculating Cash To Close

60
Q

The first section on Page 4 of the Closing Disclosure is the:
A: Loan Costs
B: Loan Terms
C: Calculating Cash To Close
D: Loan Disclosures

A

D: Loan Disclosures

61
Q

The first section on Page 5 of the Closing Disclosure is the:
A: Loan Costs
B: Loan Terms
C: Calculating Cash To Close
D: Loan Calculations

A

D: Loan Calculations

62
Q

The bottom line on page 1, “Cash to Close,” is itemized on what page?
A: Page 2
B: Page 3
C: Page 4
D: Page 5

A

B: Page 3

63
Q

The Section on the Closing Disclosure where an agent will find their commission itemized can be found in:
A: Section E
B: Section F
C: Section G
D: Section H

A

D: Section H

64
Q

The Section on the Closing Disclosure where the buyer can locate whether or not the loan is Assumable is on:
A: Page 2
B: Page 3
C: Page 4
D: Page 5

A

C: Page 4

65
Q

A _______is a five-page form that provides final details about the mortgage loan you have selected. (loan terms, projected monthly payments, and fees/other costs)
A: Closing Disclosure
B: Final Statement Page
C: Mortgage Final Details Page
D: None Of The Above

A

A: Closing Disclosure

66
Q

________is an insurance policy which compensates lenders/investors for losses due to the default of a mortgage loan.
A: Mortgage Insurance
B: Loan Policy Insurance
C: Brokerage Insurance
D: None Of The Above

A

A: Mortgage Insurance

67
Q

A larger than normal, one time payment at the end of the loan term is often called:
A: Balloon Payment
B: Final Payment
C: End Of The Loan Payment
D: None Of The Above

A

A: Balloon Payment

68
Q

Home Loan Toolkit

A

Mortgage Lenders must provide consumers with this 28 page tool kit. It spells out specifics to determine if home ownership is right for them as well as info on CFPB.

69
Q

What’s in Home Loan Toolkit

A

Talks about financials about the true cost of home ownership
Worksheets that
1. To help determine the estimate total monthly home payment.
2. Estimate the percentage of your income spent on your monthly payment
3. Estimate what is left after subtracting your monthly debts.
4. Your choice
Understanding Credit
Picking your mortgage
Choosing the right down payment
Advantages of prepayment
Comparison charts on how points affect interest rate

70
Q

Which federal law requires that consumers receive a closing disclosure at least 3 days prior to settlement?
A: Equal Credit Opportunity Act (ECOA)
B: Real Estate Settlement And Procedures Act (RESPA)
C: Truth In Lending Act (TILA)
D: Sherman Anti-Trust Act

A

B: Real Estate Settlement And Procedures Act (RESPA)

71
Q

The primary purpose of the Closing Disclosure is to:
A: Make Certain The Escrow Officer Does Their Job
B: Make Sure The Title Company Does Their Job
C: Create Complete Transparency In The Transaction To Account For All Funds Involved In The Transaction
D: Communicate To The Buyer How Much Their Closing Costs Will Be

A

C: Create Complete Transparency In The Transaction To Account For All Funds Involved In The Transaction

72
Q

In which section will the seller locate what their final proceeds will be for the transaction:
A: Section M
B: Section N
C: Section K
D: Section L

A

B: Section N

73
Q

On which page will the buyer locate the amount they will need for Cash to Close?
A: Page 1
B: Page 2
C: Page 3
D: Page 4

A

A: Page 1

74
Q

What does the acronym “TIP” stand for?
A: Total Investment Property
B: Taxable Insurance Protection
C: Taxable Interest Payments
D: Total Interest Percentage

A

D: Total Interest Percentage

75
Q

Where will a consumer locate the name and number of the Real Estate Broker?
A: Page 2
B: Page 3
C: Page 4
D: Page 5

A

D: Page 5

76
Q

Where will a consumer locate the amount of their late payment fee?
A: Page 2
B: Page 3
C: Page 4
D: Page 5

A

C: Page 4

77
Q

Where will a consumer locate their Annual Percentage Rate?
A: Page 2
B: Page 3
C: Page 4
D: Page 5

A

D: Page 5

78
Q

In which section on the Closing Disclosure will the buyer find their Earnest Money Deposit?
A: Section A
B: Section C
C: Section H
D: Section L

A

D: Section L

79
Q

In which section on the Closing Disclosure will the Seller’s payoff of their first and second mortgages be located?
A: Section N
B: Section M
C: Section K
D: Section L

A

A: Section N

Real Estate (52 decks)

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