Unique Texas Test Areas (10%) Flashcards
For first-lien mortgages the rate trigger is eight percentage points above the rate for Treasury securities with a comparable term. For subordinate liens, the rate trigger is ten percentage points above the Treasury securities with a comparable term.
Interest Rate Threshold
What is the 2013 points and fees trigger?
$625 or 8 percent of the total loan amount
Lenders are prohibited from offering single premium credit insurance – including life, disability or unemployment – in conjunction with a home loan unless a disclosure is provided to the loan applicant. The disclosure must be given to the applicant via hand delivery or mail no less than three business days following receipt of the loan application.
Single Premium Credit Insurance
What are the 5 Limitations and Prohibitions for High-Cost Loans?
- High-cost loans cannot contain a balloon payment within the first five years of the loan term
- With the exception of situations involving temporary forbearance, bridge loans or loan restructuring sought by the borrower, high-cost loans cannot include negative amortization
- Lenders may not make a high-cost home loan to a consumer based on the consumer’s collateral without regard to repayment ability
- High-cost home loans may not include any prepayment penalty provisions
- Lenders are prohibited from charging a borrower for service or products if the borrower does not receive those services or products.
(t) A home equity line of credit is a form of an open-end account that may be debited from time to time, under which credit may be extended from time to time and under which:
(1) the owner requests advances, repays money, and reborrows money;
(2) any single debit or advance is not less than $4,000;
(3) the owner does not use a credit card, debit card, or similar device, or preprinted check unsolicited by the borrower, to obtain an advance;
(4) any fees described by Subsection (a)(6)(E) [this subsection limits certain fees to 3% of the original loan amount] are charged and collected only at the time the extension of credit is established and no fee is charged or collected in connection with any debit or advance;
(5) the maximum principal amount that may be extended under the account, when added to the aggregate total of the outstanding principal balances of all indebtedness secured by the homestead on the date the extension of credit is established, does not exceed an amount described under (a)(6)(B) of this section [this subsection limits the loan to 80% of the home’s value at the time of the loan];
(6) no additional debits or advances are made if the total principal amount outstanding exceeds an amount equal to 50 percent of the fair market value of the homestead as determined on the date the account is established;
(7) the lender or holder may not unilaterally amend the extension of credit; and
(8) repayment is to be made in regular periodic installments, not more often than every 14 days and not less often than monthly, beginning not later than two months from the date the extension of credit is established, and;
(A) during the period during which the owner may request advances, each installment equals or exceeds the amount of accrued interest; and
(B) after the period during which the owner may request advances, installments are substantially equal.
For originating, evaluating, maintaining, recording, insuring, or servicing the extension of credit, not require the owner or the owner’s spouse to pay, in addition to any interest, fees in an amount that exceeds ___ of the original principal amount of the loan
3%
For Home Equity Loans repaid installments not more often than every ___ days and not less often than monthly. Payments must begin no later than ___ ____ from the date the extension of credit is made, and each installment must equal or exceed the accrued interest as of the date of the scheduled payment
- 14
- two months
A home equity loan secured by a homestead may not close before:
The 12th day after the later of either of the following:
o The date the owner of the homestead submits a loan application to the lender for the extension of credit
o The date that the lender provides the owner with a copy of the required “Notice Concerning Extensions of Credit”
An owner/claimant of property claimed as a homestead may not sell or abandon the homesteaded property without the consent of each owner and each owner’s spouse
Sale or Abandonment of Homestead Property
What is the net assets for each office for:
- Licensed lender
- Secondary mortgage lender
- $25,000
2. $15,000
An application for a license to make secondary mortgage loans must:
Be under oath
Give the approximate location from which business is to be conducted
Identify the business’ principal parties
Contain other relevant information that the Commissioner requires to approve an application
Include payment of a $200 investigation fee and a license fee in an amount determined by the Commissioner
A surety bond may also be required by the Commissioner. If so, the maximum amount of the surety bond may not exceed:
$50,000 for the first license
$10,000 for each additional license
A surety bond must meet the requirements of the Commissioner and be issued by…
a surety qualified to do business as a surety in Texas.
A licensee must pay an annual fee to the Commissioner for each license held no later than…
December 1st of each year.
A license holder must give written notice to the Commissioner within _______ of moving an office from the location provided on the license.
30 days
