GMK1
HUD-1 is also known as:
Settlement Statement or Final Closing Disclosure
What is the form name and number used when taking an application?
Uniform Residential Loan Application (1003, 65)
The Consumer Financial Protection Bureau has enforcement jurisdiction for both TILA and RESPA, which includes the ability to impose fines and civil monetary penalties up to how much?
$25,000
How long are you required to keep Suspicious Activity Reports on file?
5 years
In flood zone AE, what happens if the borrower does not have flood insurance?
Lender can force place it
According to FEMA, what type of survey is used to create the FIRM (Flood Insurance Rate Map)?
Topographical
How does a discount point show up on the closing disclosure?
A. Charge
B. Credit
C. Rate increase
D. It doesn’t
A. Charge
What are 2 things that a lender can do that a broker cannot?
Underwrite and Fund
What does it mean to have A- creditworthiness?
Credit blemishes that can be explained. Life happens.
What can you do to put a 90-day freeze when you are in default on your loan and the lender is getting ready to initiate foreclosure?
Request HUD counseling
What record are you required to keep on file for 25 months?
ECOA complaints
What is it called when a seller hides the fact that they gave the purchaser a second mortgage to cover the down payment?
Seller Silent Second (carryback)
What verifications does a processor need to make independent of the borrower?
Mortgage, Employment, Deposit, Income, Asset (M.E.D.I.A.)
What is another term used for “transfer”?
Convey
When must you give the initial escrow statement?
Within 45 days of closing
What does it mean when you “hypothecate” your house for a mortgage?
Pledge for collateral
What is the maximum amount of sales you can do as seller-financing without needing an MLO license?
3 or less
Name the AUS that go with:
If a borrower gives you a business card with their employers information, can you use that to verify their employment? And why?
No, all verifications must be made independently of the borrower and never pass through their hands
What clause in a legal document states that in the event a stated condition has been fulfilled, the document becomes null and void?
Defeasance Clause
What does a Balloon payment of 360/120 mean?
length of loan is 360 months and 120 is the month that the full/balloon payment is due
With a teaser rate of 6% and a temporary buydown of 2/1, what are the interest rates for the first 3 years?
Year 1= 4%, Year 2 = 5%, Year 3 = 6%
What are the 4 types of notes used in real estate transactions:
A buyer of a house with a sales price of $480,000 is paying a $60,000 down payment and three discount points on the $420,000 loan. What is the total cost of the discount points?
$12,600
When you have income that is not taxed, what do you do with it?
Gross it up by 25%