QM / NON QM
Those who are Nonprime borrowers due to lower credit scores, irregular employment histories or other factors.
What is Non-Qualified mortgages
If a borrower does not have cash for a significant down payment, this may enable them to succeed in securing a conventional/conforming loan.
What is PMI
A Interest Rate set at the time of closing and does not change dunning the life of the loan
What is a Fixed Rate
A fee paid in exchange for a reduction in the interest rate.
What is a Discount Piont.
6.5% percentage points above prime offer rate, is the average threshold for this loan.
What is High Cost Mortgage Loan
A conventional Mortgage is not insured by
What is FHA/VA/RHS/USDA.
The starting point for the adjustment
What is the Index
An action in which one party agrees to take over payments of another party's debt, with terms of the note staying unchanged.
What is Assumption
What kind of loan must have creditors consider a borrowers ability to make amortizing payments at the interest rate that is effective after the loan recasts.
What Interest Only Loan.
This ACT required cancellation or termination of PMI when LTV reaches 80% based on the value of the home at the time of the loan origination and the borrower requests cancellation OR the LTV reaches 78% and termination is automatic.
What is the homeowners Protection Act of 1998
No later than 3 business days after consumer submits and application for a loan that will be secured by principal dwelling.
CHARM Booklet
A higher interest rate in return for reducing closing costs.
What is Yield Spread Premium
Defined as closed-end consumer credit transactions secured by a dwelling. Includes transactions secured by principal dwelling, second homes, or investment properties.
What are covered transactions
Individuals earning more than 25% of their income in commission must provide up to two years' tax returns.
What is Income qualification guideline
What is a good product for borrowers that will only live in the home for a few years?
What is a Hybrid Arm
Act of pooling mortgages and then selling them as mortgage-backed securities.
What is Securitization
What is a Rebuttable presumption of compliance.
If a consumer has a credit score, debt-to-income ratio, or loan to value ratio that does not fall within Fannie mae /Freddie mac guidelines, this may result in?
What is LLPA (Loan level price adjustment)
A limit on the amount that the interest rate can change up or down on any adjustment date.
What is Periodic rate cap
the transfer of ownership interest in real property from 1 person to another
What is conveyance