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This is what the acronym FHA stands for.
What is Federal Housing Administration?
This is what the PI portion in the acronym PITI means
What is Principal and Interest?
These are the two underwriting scoring engines
What are DU & LP?
Loans can be closed under this type of trust
What is a revocable trust?
This is the maximum cash out that a borrower may receive in a Rate & Term refinance transaction
What is the lower of $2000 or 2% of the loan amount?
This loan program allows eligible veterans to obtain low interest rate mortgage loans.
What is a VA Loan?
This is what the acronym LTV means
What is Loan to Value?
This is real estate purchased for making a profit
What is an investment property?
This is an instance in which a second lien can be paid through a Rate & Term refinance
What is when the second lien was originally used to purchase the property?
A mortgage loan with an amount that is over the conforming limit ($510,400 in 2020) may be considered this
What is a Jumbo Loan?
This is a deposit made by the potential home buyer to show he or she is serious about home purchase.
What is Earnest Money Deposit?
These are the three property purposes
What are Primary, Secondary & Investment?
This is a fee paid to the lender for processing the loan application
What is an Origination Fee?
Making a payment that does not cover the interest of a loan will result in this
What is negative amortization?
This is the purpose of a Rate & Term refinance
What is creating a loan that provides the customer with a net tangible benefit?
The CFPB was created as part of this act
What is Dodd-Frank?
This a mortgage that permits the lender to adjust its rate periodically
What is an Adjustable Rate Mortgage?
This is a three-page document that provides estimated costs to the borrower
What is a Loan Estimate?
These are the basic compliance rules by which all loans must pass according to federal law
What are ATR & QM?
This is a loan where the customer has a credit limit to borrow against
What is an open-end loan (HELOC)?
These are the two types of refinances
What are Rate & Term and Cash Out?
This is the maximum back end ratio for a conventional loan (without compensating factors)
What is 36%?
This is a legal document evidencing a person's right to ownership of a property
What is the Title?
This is a right of way giving persons other than the owner access to or over a property
What is an easement?
This is income is used when calculating DTI ratios.
What is gross monthly income?