FEDERAL REGULATIONS
S.A.F.E.
MLO ACTIVITIES
ACRONYMS
LOAN PRODUCTS
100

REG X

What is RESPA also known as

100

Requires agencies to jointly develop and maintain a system for registering residential mortgage loan officers.

What is the S.A.F.E. ACT

100

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:

100

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).

100

A mortgage NOT insured or guaranteed by the Federal Housing

What is an Conventional Mortgage.

200

REG Z

What is TILA also known as.

200
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?
200
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
200
PITI
What is Acronym for the items included in a monthly payment: principal, interest, taxes, and insurance.
200

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

300

ECOA

What is the EQUAL CREDIT OPPORTUNITY ACT?

300

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

300
The process of determining how much money a prospective homebuyer will be eligible to borrow before application for a loan.
What is Pre-qualification
300
DTI
What is Debt-to-Income Ratio: The relationship between the borrower's long-term debt payments and the monthly income.
300
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.
400

FCRA

What is FAIR CREDIT REPORTING ACT?

400
•Strengthening regulation of the government sponsored entities •Providing additional Federal Housing Administration programs to assist homeowners •Addressing problems caused by the foreclosure crisis •Establishing a nationwide licensing database and education standards for the mortgage industry
What are the goals of the Housing and Economic Recovery Act of 2008 (HERA).
400

Guidelines applied by lenders to determine how large a loan to grant a homebuyer.

What is Qualifying Ratios

400
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.
400

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.

500
HOEPA
What is the Home Ownership Equity Protection Act?
500

What is a CD?

A CD is the closing disclosure 

500
The act or process of adjusting and finalizing all dealings, money, and arrangements for real estate buyers and sellers.
What is Settlement/Closing
500
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).
500
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.
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