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WV Real Estate Exam 7- End > Unit 13 - Gov't Involvement In RE Financing > Flashcards

Unit 13 - Gov't Involvement In RE Financing Flashcards

1
Q

Conventional Loan

A

No gov involvement

Can be federally chattered loan

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2
Q

Federal reserve system

A

Fed funds rate: Creates favorable economic climate. Maintains sound credit

12 fed banks

Limits money banks can use to make loans

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3
Q

Primary mortgage market

A

Lender that originate mortgage loan

Make money available direct to
Borrowers

Major lenders

Saving, checking ,loan ect

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4
Q

Secondary mortgage market

A

Buys loans already made

They buy debt

Buys funded loans

MBB- Mortgage backed securities

GSE- gov sponsored enterprises

Fannie Mae - only one that is privately owned
Jennie Mae
Freddie Mac

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5
Q

MBB- Mortgage backed securities

A

Most superior credit document to invest in

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6
Q

Loan to value

A

Debt to value

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7
Q

Conforming loans

A

High quality loans for Sal nothing higher than 80% LTV

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8
Q

PMI

A

Private mortgage insurance

Protect the top 20-30% of the loan against borrower default

Will let you purchase up 95% of purchase price

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9
Q

Homeowner protection act

A

22% or more in equity, PMI IS DROPED

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10
Q

FHA LOANS

A

don’t make loans- they insure them

US department of housing and urban development

Regulate ARM caps
Specifies closing costs
Limits fees

Reg rate increases
Prepayment penalties-no

Vary by state and county

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11
Q

MIP mortgage insurance premium

A

Up front cost FHA loans

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12
Q

If seller pays more than %6 usually paid by the buyer

A

The lender will recalculate the loan

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13
Q

Assumption rules

A

New person must qualify

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14
Q

HUD homes

A

Defaulted FHA loan/ foreclosure

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15
Q

Next door program

A

50% off HUD home price

Law enforcement
Firefighters
Teachers
Emergency medical technician

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16
Q

VA LOANS

A

VA insures the loan /guarantee

90 days active service via a war

2 years of service during peace time

181 days active duty

6 years in the reserve continuous

Have a certificate of reasonable value- CRV- credit limit

Must live on property
No money down

Only 1 VA loan at a time
Can only use VA Loan twice

Lender- loan origination fee
VA- funding fee 1.25-2.15%

Cannot pay:
Termite report 
Any commissions 
Brokerage fees
Buyer broker fee

Seller pays up 4% - no discount points

After March 1989- assumption can be approved

Original veteran is liable if you default upon assumption unless release of liability is issued

17
Q

Agriculture loan programs

A

Farm service agency- buy interest payment down to help low income

18
Q

Package loans

A

Personal and real property loan packaged together

19
Q

Blanket loan

A

Covers more than one property

20
Q

Wraparound loan

A

Debt consolidation. Lender absorbs many loan and borrower makes one payment

21
Q

Open end loan

A

Revolving debt

HELOC

22
Q

Construction loan

A

Short term loan

Take out loan commitment - long term - replaces construction loan

Short term
Interim financing

23
Q

Sale and leaseback

A

Money you make on a sale that you can invest

24
Q

Buydowns

A

Lower financing for a period a time

25
Q

Home equity loan

A

Tax deductible

26
Q

Truth in lending act & Reg Z

A

TILA

Residential

27
Q

3 day right of rescission

A

Reg Z/ refinancing /home equity loan

28
Q

Advertising trigger terms- truth and lending

A 
Specific credit terms 
Can’t say
Down paymentment
Monthly payment 
Dollar amount finance charge
Term of loan

O
Twice amount of finance charge
$100-$1000 to person harmed

500k or 1% of creditor worth
5k fine and 1 year in jail

29
Q

ECOA- Equal Credit opportunity Act

A

Covers age marital status and dependence on public assistance

30
Q

Community reinvestment act- CRA

A

Require lenders who took deposits to consult with minority leaders to see how they can help

31
Q

Real estate settlement procedure act - RESPA

A

Consumer gets info on closing costs

32
Q

Computerized loan origination

A

Get approved in seconds

If brokers or sales person use the system on behalf of a client the buyer pays

WV Real Estate Exam 7- End (15 decks)

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