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Definitions > Whats in things? > Flashcards

Whats in things? Flashcards

1
Q

Whats in finance charges

A

M O D L

M - Mortgage Insurance
O - Origination Charge
D - Discount Points
L - Lender Charges

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2
Q

Whats in ATR - Ability To Repay

A

I C E D M O C A

I - Income
C - Credit
E - Employement
D - DTI (debt to income)
M - Mortgage
O - Other mortgage stuff
C - Current Debt
A - amount of new loan
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3
Q

No Tolerance

A

Flood Insurance, property taxes, title insurance

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4
Q

5 C’s of Credit

A

(C) - A. A. R. O. H.

Capital
Capacity
Credit
Collateral
Character
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5
Q

Zero Tolerance

A

C. O. A. T.

Credit
Origination Fees
Appraisal
Tax Services

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6
Q

10% Tolerance

A

R. T. T.

Recording Fees
Title Insurance
Third Party Fees

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7
Q

Seller Concessions for Conventional, USDA, VA, FHA

A

Conventional - 3%
VA - 4%
USDA - 6%
FHA - 6%

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8
Q

Whats in the APR?

A

D. I. M. A.

Discount Points
Interest
Mortgage Insurance Premium
Administrative Fees (Origination fees, discount points, processing, underwriting)

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9
Q

Whats in an application

A

A. L. I. E. N.

Address of subject property
Loan amount
Income
Estimate of property value
Name
Social Security
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10
Q

Section 32: High Cost - APR Coverage

A

1st lien - 6.5% on loans > $50k
1st lien - 8.5% on loans < $50k
2nd lien - 8.5%

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11
Q

Section 32: High cost - Points and Fees coverage test

A

5% on loans > $21,549

8% (or $1077) on loans < $21,549

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12
Q

Section 32: High Cost - Prepayment Penalty Test

A

More than 36 months

More than 2% of payoff

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13
Q

Section 35: High Priced Loans - Thresholds, APR exceeds APR by

A
  1. 5% of 1st lien
  2. 5% for a 1st lien JUMBO loan (loan amount over $510,400)
  3. 5% of subordinate lien
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14
Q

Section 35: High Priced Loans - Originator must establish:

A

Ability to repay
escrow taxes and insurance for 5 years
Full Appraisal, with physical visit of interior, with additional appraisal required if less than 180 days prior to contract

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15
Q

Whats inside a Qualified Mortgage

A
  • Create “safe harbor” from liability
  • Full Documentation (No-doc loans ineligible)
  • No excess upfront points & fees - max 3% of loan
    amount
  • Cap on debt to income ration - max 43%
  • Maximum loan term - 30 years
  • No Prepayment penalties (except for certain fixed-rate,
    qualified loans)
  • No risky or toxic features (negative amortization, balloon payments, interest only, teaser rates)
  • ARMs must be underwritten as a fully amortizing loan at
    the maximum interest rate that loan can adjust to
    within the first 5 years.
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16
Q

Who is ultimately responsible for providing the LE & CD to the borrower?

A

CREDITOR

17
Q

How long is the LE good for?

A

10 business days

18
Q

TRID - What are valid changes of circumstances?

A

(3 business day waiting period)

Changes to Loan’s APR
Changes to Loan Product
The addition of Prepayment Penalty

19
Q

ECOA protected classes:

A

M. A. P.

Marital status
Age
Public Assistance

20
Q

FAIR HOUSING ACT protected classes:

A

F. D.

Familial Status
Disability/Handicap

21
Q

FHA - Discriminatory Practices are?

A

BLOCKBUSTING (panic selling)
STEERING
REDLINING (prompted HMDA)

22
Q

FACTA - Discriminatory Practices are?

A

CREDIT FEEZES
TRUNCATION OF CARD #’S
SECURITY AND DISPOSAL

23
Q

GLBA - 3 rules under it are?

A

Safeguard Rules
Pretexting Provisions
Financial Privacy Rule

24
Q

Do Not Call Registry - Timeframe Rules

A
  • List be updated every 31 days, maintained for 24 months
  • 18 months after the consumer’s last purchase/transaction
  • 3 months after a consumer makes an inquiry or submits an application
25
Q

UFMIP (Upfront Mortgage Insurance Premium) is currently ____ of loan amount

A

1.75%

26
Q

VA Loans - Maxed guarantee is ____ of purchase price/value

A

25%

27
Q

USDA Loans - Applicants must meet income requirements based on the area median income
(AMI) - max _____ of the AMI

A

115%

28
Q

ARM Ratios: Example of a 3/1 defined as what?

A

3 is the fixed period, 1 is how often rate will adjust after initial period

29
Q

ARM Ratios: Example of a 2/28 defined as what?

A

2 is the fixed years, 28 is the adjustable years

30
Q

Automated Underwriter System is -

A
  • Fannie Mae’s Desktop Underwriter
  • Freddie Mac’s Loan Product Advisor (formally Loan Prospector)
  • FHA - Total Scorecard

Definitions (4 decks)

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