ARMs
The lender controls, but does not change this part of the ARM
Margin
Section 3 of 1003
Financial Info - Real Estate
Also called junior lien
higher risk
Second Mortgages
QMs do not apply to
Reverse, Open ended, Bridge
(NOT ROB)
Under a state licensing agency, what is the max penalty that can be given for each violation
25k
Most common index indices
SOFR
COFI (Cost of Funds Index)
Treasury Bill Index
Security instrument that connects promissory note to collateral property
Mortgage
In an 80-10-10 piggy back, what does each number represent
1st lien is 80%
2nd lien is 10%
DP of 10%
Alt A loans
loans that hold BO with good credit to different documentation than traditional loans
What are the grounds for denying a license (name three)
Had LO license revoked in any government jurisdiction
Convicted or plead guilty to a felony
Fails to complete pre license edu or pass SAFE
Fail to satisfy the three protection options
Current outstanding judgments, tax liens, or foreclosures within the 3 years
Lender picks this, but does not control it/how it changes
index
A monetary claim that may provide the creditor with the right to foreclose
Lien
This type of HECM is made for a payment of property taxes or payment for home improvements
Single Purpose
The DD214 and the NGB22/23 are both examples of what
Documents for VA eligibility.
DD214: Discharge paperwork
NGB22/23: General orders
When is the annual escrow account due
within 30 days of completion of escrow year
What are the ARM adjustment notices for first adjustments and ongoing adjustments
First Adjustment: 210-240 days prior to change
Ongoing adjustments: 60-120 days prior to change
This appraisal approach uses the value on net income that the owner will receive and the rate of return sought by the borrower
Income Approach
A non traditional, closed end loan used for home improvements is also known as a
Home equity Loan
Down payment for FHA loan with a credit score between 500-579
10%
Exculpatory Clause
The lender cannot go after the BOs assets
The process used by lenders to adjust mortgage payments
Recasting
This is sometimes used in replace of a full appraisal for certain refinances
Property Inspection Waiver (PIW)
loan to pay for construction, but must be paid off by a permanent loan that pays off construction loan. 2 separate loans and 2 sets of closing costs
Stand alone construction loan
What must the APR exceed to be considered a general QM for a first lien of a loan greater than $114,847
2.25%
Define and name the three parts of UDAPP
Unfair: causes substantial injury, consumer cant reasonably avoid
Deceptive: misleading, consumers interpretation is reasonable, material
Abusive: takes advantage of BO, interferes with the BOs ability to understand