EPF
An EPF Settlement Failure can be which of the following:
A. Full EPF failure (all pools within the EPF failed)
B. Partial EPF failure (portion of pools failed)
C. Both
C. Both
What is a DCPL?
Deemed CPL which is a blanket written agreement between the bank and a title insurance company to provide closing protection coverage.
What is a "haircut"?
*We all know that this question isn't about actual haircuts. Your team will lose points if you make some kind of a barbershop joke.
The clients share of the funding wire.
What is the key activity for the Collateral Team?
Daily reconciliation against system outstandings and the custodian’s Trust Receipts to ensure accurate reporting
What is a fixed rate loan?
A home loan with an interest rate that stays the same during the term of the loan.
When must a Partial Settlement of a Partial Failure post?
On the scheduled settlement date
Where is the Client Handbook located?
WL Site - Announcements
What does LSR stand for?
Loan Service Representative
True or False: It is ok to ship collateral that is Wet. Please explain.
False, we need the collateral for liability purposes so that we do not release funds that are not backed in case the loan becomes delinquent.
What is MI?
Mortgage Insurance
A generic term for insurance that protects a portion of the lender’s investment in the event of a foreclosure.
Per policy, what is the timeframe in which EPFs should be funded from the time of upload?
Fund within 45 to 90 minutes of upload
What is the max amount of deposits a client can make to their O/U account in one day?
None. There are no restrictions to the number/frequency.
What is a Wet Funding?
When a loan is funded without having collateral documents at the custodian. Wet loans usually indicate collateral is with a closing agent for a purchase or refinance of a home.
Note: WL must have a lock and/or underwriting requirements as stipulated in the Transactions Terms Letter for wet funding states.
What information does the Reinstatement Report from DB provide?
Collateral that has been shipped then returned, used for investor reject checks and return for corrections
What is an ARM loan? Definition and acronym meaning.
Adjustable Rate Mortgage.
Home loans with interest rates that change periodically on the basis of movement in a specified index.
The payment may go up or down with interest rate changes, therefore, the amount of monthly payments is uncertain.
What does EPF stand for
Early Purchase Facility
A User ID becomes inactive if not used within __ days and is terminated if not used within __ days.
60 & 120
What is a prior approval?
Prior approval is more of an underwriting, it shows how much credit the loan is approved for and when that credit expires.
It is the approval from the investor
A loan will be classified as ____ until all noted asset/collateral exceptions have been cleared.
Wet
What is a co-op?
A cooperative apartment unit is a form of ownership in which property is owned by a corporation whose shareholders own units in the building.
What is the purpose of EPFs?
Allows client to leverage pools scheduled for purchase to create space on repo line for additional funding
Name our eight lines of business.
Which LOB are we in?
Retail Banking
Preferred Banking
ML
Private Bank
Business Banking
Global Commercial Banking
Global Corporate and Investment Banking
Global Markets
What is a Non-Qualified Mortgage?
A loan that appears to meet all of our qualifications on the surface and auto-funds.
The loan is usually identified as Non-QM by the client and they will let us know. If the loan does not fit into any of their Schedule 1 sublimits, we drop the advance to zero.
If a Shipping Request designates a different investor than previously stated on the Asset Data Record and a commitment lock was initially required, the Client must provide Warehouse Lending with __________.
A new commitment letter.
What is CLTV and how is it different than LTV?
Combined Loan-to-Value
The CLTV ratio takes into account not only the new loan/line request, but also any other outstanding loans on the property; for example, a first mortgage.
LTV is the relationship between the loan amount of the 1st mortgage and the property’s appraised value or purchase price, if it is lower.