unit 13

Question 1

What are conventional mortgages?

Answer 1

debt repayment is based solely ont he borrowers ability to repay
max LTV is 80%

Question 2

What is insured conventional mortgages?

Answer 2

a borrower morgagor pays PMI when the LTV is above 80%

Question 3

what is PMI

Answer 3

private mortgage insurance

Question 4

Federal Housing administration FHA insured loan program

Answer 4

provides morgage default insurance
insures the lender against loss due to borrower defaul
no prepayment penalty

Question 5

What is a primary mortgage market?

Answer 5

lends to consumers
morgage bankers provide financing they are direct lenders

mortgage broekrs bring together borrowers and lenders

Question 6

secondary morgage market

Answer 6

loans are bought and sold

Question 7

Truth in lending act (TILA) loan costs

Answer 7

covers all consumer lending not just real estate

annual percentage rate is the true cost of credit and lender charges

Question 8

RESPA

Answer 8

real estate settlement procedures act

covers real estate processionals including agents lenders title companies and closers

Question 9

Truth in lending act (TILA) also the Regulation Z

Answer 9

to promote the informed use of consumer credit by requiring advance disclosures of loan terms and costs

Question 10

TILA right of recession

Answer 10

requires a three day right of recession or refinances of owner occupied one to four unit properitys and home equity loans

Question 11

Equal Credit Opportunity Act (ECOA)

Answer 11

make cocnsumer credit available with fairness and impartiality
protects agains race, color religion, national origin, sex, marital status, dependence on public assistance, and age