General
Foreclosure
A lender's remedy that enables the lender to obtain title to the defaulted borrower's property and dispose of it. Any profit or loss will belong to the lender while the borrower is free of the debt.
HELOC
Home Equity Line of Credit - LOC secured by real property made available to the borrower but not advanced on closing.
Example of Easements
Group will decide the accuracy of this.
Principal
The amount of money advanced on a mortgage loan, excluding interest or other costs.
Mortgage Default Insurance
Insurance policy between the insurer and the lender that will compensate the lender for losses suffered on an insured loan. This will not compensate the borrower.
Sub-prime mortgage
A mortgage loan for a borrower who has impaired credit or some other impairment that prevents him or her from being able to qualify for traditional lending products.
Interest Only
The borrower takes out a lump sum of money and only pays back the interest due each payment period. This means that through out the life of the mortgage, the borrower will always owe the same amount of principal.
Examples of Condo common elements (3 minimum)
Hallways, recreational facilities (pool, theatre, gym), elevators, lobby, etc.
Compounding Frequency
Number of times per year in which an interest rate is charged. Typical compounding frequencies include semi-annually and monthly.
Title Insurance
Provides protection against errors in title such as survey errors, zoning infractions and property encroachments. Can also protect homeowner against fraud.
Insurance that provides coverage for errors and omissions made by a brokerage, broker, agent or Administrator. Commonly referred to as E&O Insurance.
Open VS. Closed
Open mortgage is one with flexible options to increase your repayments, either by increasing payments or via lump sum.
Closed mortgage, you will be penalized for paying off part or all of your mortgage early.
Tenancy in Common vs. Joint Tenancy
The major difference between the two centers around the right of survivorship, which refers to how ownership is transferred on the death of one of the co-owners.
Extended Amortization
Allows the mortgage to be amortized for a period longer than 25 years. Increasing the amortization period allows lowered mortgage payments or allows the borrower to borrow an increased amount of funds.
The Lender Expectations (min 2)
1. Provide Borrowers who are suitable for the lender.
2. Provide protection against fraud.
3. Facilitate the transaction to successful completion
Expropriate/Expropriation
The act of public authority taking property without consent of an owner through a statutory or common law process. This process involves the payment of compensation to the owner by the authority, determined by the court. Compensation intended to make owner whole, in light of the loss.
Reverse Mortgage
Typical provided to seniors. Homeowners that are 55+ years are provided up to 55% of property value in a lump sum of cash, less any debt secured by the property.
Name 3 types of Estates in Land
1. Fee Simple
2. Life Estate/Life Lease
3.Leasehold Estate
Restrictive Covenant
A restriction of use placed on title of the servient tenement for the benefit of the dominant tenement. Tenement: building shared by multiple dwellings.
Name 2 providers of Mortgage Creditor Insurance
2. Third Party Insurance
FSRA
Financial Services Regulatory Authority of Ontario - Regulatory body that oversees the mortgage brokerage industry and enforces the Mortgage Brokerages, Lenders and Administrators Act, as well as several other industries and Acts.
Partially Amortized, Blended Constant Payment Mortgage - Fixed Rate
What is a judgement and the proceeding steps?
A judge's decision that a debt is owed by the debtor to the creditor. Creditor must file a Writ of Seizure and Sale of land against a debtor in any county or district in which the debtor owns land.
VTB
Vendor take-back: Seller of the property provides all or some of the financing to the purchaser in order to sell the property. Arranging a VTB by a R.E Salesperson is an exempted activity under the MLBEE as long as certain conditions are met.
Borrower Expectations (min 3)
1. Act in borrower's best interest
2. Completely analyze the borrower's needs
3. Make appropriate recommendations based on borrower's needs
4. Facilitate the transaction to its successful completion