FEDERAL REGULATIONS
What is RESPA also known as
REG X
Requires agencies to jointly develop and maintain a system for registering residential mortgage loan officers.
What is the S.A.F.E. ACT
The lender's fee charged a borrower to prepare documents, make credit checks, inspect and sometimes appraise a property. Usually stated as a percentage of the face value of the loan.
What is Origination Fee:
APR
What is Annual Percentage Rate (APR): The total yearly cost of a mortgage stated as a percentage of the loan amount; includes the base interest rate, primary mortgage insurance, and loan origination fee (points).
A mortgage NOT insured or guaranteed by the Federal Housing
What is an Conventional Mortgage.
What is TILA also known as?
REG Z
20 hours of NMLS-approved education which covers specific topics relevant to the mortgage profession (3 hours of federal laws and regulations, 3 hours of ethics, fraud, consumer protection and fair lending, and 2 hours of training in the nontraditional mortgage marketplace). States may require additional state-specific education.
What is the educational/pre-licensing requirement for S.A.F.E. ACT?
Traditionally defined as the best rate available to a lender's best customers. More recently it is the subject of dispute because some borrowers have received rates below prime.
What is Prime Rate
PITI
What is Acronym for the items included in a monthly payment: principal, interest, taxes, and insurance.
Offering flexible payment options. offer flexible payment options. Common payment options might include: minimum payments, interest-only payments, fully amortizing 30-year payments, and fully amortizing 15-year payments. After the introductory interest rate expires, the minimum payment option can result in negative amortization since the payment may not be large enough to cover the amount of interest due. With unpaid interest added to a loan’s principal, the total amount of the loan increases over time. The interest-only payment avoids negative amortization but fails to reduce the principal balance of the loan.
What is an Option ARM, Non-traditional ARM or Hybrid Arm
What is the EQUAL CREDIT OPPORTUNITY ACT?
ECOA
The Act requires federally regulated loan originators to register with the NMLS and state-regulated loan originators to become licensed through the NMLS. Licensing and registration creates a unique identifying number for each loan originator, enabling regulators to track the activities of registrants/licensees.
What is Licensing/Registration
The process of determining how much money a prospective homebuyer will be eligible to borrow before application for a loan.
What is Pre-qualification
DTI
What is Debt-to-Income Ratio: The relationship between the borrower's long-term debt payments and the monthly income.
Higher-interest loans with onerous terms made to borrowers with blemished credit or other qualification issues that do not conform with Fannie Mae and Freddie Mac underwriting requirements. These mortgage products disappeared with the collapse of the secondary market that purchased them.
What is a Subprime Mortgage.
What is FAIR CREDIT REPORTING ACT?
FCRA
If ya smell what the ________ is cooking?
Who is the Rock
Guidelines applied by lenders to determine how large a loan to grant a homebuyer.
What is Qualifying Ratios
FNMA
What is Fannie Mae:Federal National Mortgage Association (FNMA), the nation's largest mortgage investor. A quasi-governmental secondary market organization that offers various mortgage purchase and securitization programs.
In the event of foreclosure, the lender is protected by mortgage insurance issued by the government. The insurance covers the full value of the loan.
What is a FHA Loan.
What is the Home Ownership Equity Protection Act?
HOEPA
What is my middle name?
Who is Joseph.
The act or process of adjusting and finalizing all dealings, money, and arrangements for real estate buyers and sellers.
What is Settlement/Closing
FHLMC
What is Freddie Mac: Another name for the Federal Home Loan Mortgage Corporation (FHLMC), a quasi-governmental secondary market organization that offers various mortgage purchase and securitization programs. Its major program is the Freddie Mac Participation Certificate (PC).
100% LTV Government guaranteed loan for lower-income borrowers in rural areas. Requires an upfront funding fee and annual funding fee collected monthly.
What is a The United States Department of Agriculture (USDA) RHS (502) loan.