ATR/QM
This is the maximum loan term for a Qualified Mortgage.
30 Years
This term is used to describe the total cost of financing, shown as a percentage.
Annual Percentage Rate (APR)
This is the number of units allowed in a residential mortgage finance transaction.
1-4
TILA RESPA Integrated Disclosure
This person negotiates rates and takes applications on behalf of a mortgage company.
Mortgage Loan Originator
A residential mortgage loan that complies with the QM/ATR Rules would receive this type of liability protection.
Safe Harbor
This is a process used to guarantee an interest rate for a specified period of time.
Rate Lock
___ is the minimum credit score for Fannie Mae and Freddie Mac.
620
An applicant should receive a Loan Estimate within ___ days of completing the application.
3 Business Days
This person places and negotiates loans with a lender/investor on behalf of a borrower.
Mortgage Broker
The maximum points allowed on a QM is ____% for a $110,000 loan amount.
3%
This is a term used to describe the difference between a property's market value and the outstanding balance of the debt against the property.
Equity
Non-taxable income can be "grossed up" by this amount.
25%
This agency has enforcement and rule-making authority over TRID.
Consumer Financial Protection Bureau (CFPB)
This person evaluates, approves, or denies a mortgage loan on behalf of a lender.
Underwriter
What agency created the Ability to Repay Rule?
Consumer Financial Protection Bureau (CFPB)
This is another name for a base interest rate before buying any points.
Par Rate
Payment history makes up ___ % of a credit score.
35%
The Loan Estimate should be retained for ___ years and the Closing Disclosure should be retained for ___ years.
3, 5
Tip: LE has 3 pages (retain for 3 years)
CD has 5 pages (retain for 5 years)
This public corporation insures consumer's deposits in member banks.
Federal Deposit Insurance Corporation (FDIC)
The QM rule requires lenders to retain records for this many years to show ATR compliance.
3 years
100 of these is equal to 1 discount point or 1% of the loan amount.
Basis Points
If a borrower makes more than ___% of their income in commission or own more than ___% of a business, they are considered self-employed.
25%/25%
If the APR increases by more than 1/8 after the CD is delivered, the lender must do this.
Redisclose and wait an additional 3 days to close.
This is a term used for an attorney, title company, or escrow company that prepares the closing documents and transacts the closing on a mortgage loan transaction.
Closing Agent