Class in "ession"
Seller concessions for conforming loans are limited to _____ and _____ on LTVs of over 90% and 90% or less, respectively.
3%; 6%
The most popular and used index rate
Prime rate
The Bank Prime Loan Rate
In a USDA loan applicants must meet this income requirement on the area median income. (Also include the max)
AMI (Max is 115% of the AMI)
Debt ratios for an FHA loan.
31% / 43%
The TRID Rule’s zero tolerance for variances between estimated and actual charges applies to which of the following fees?
A.Fees paid to non-affiliated third-party settlement service providers chosen by the borrower and not included on the creditor’s recommended list of providers
B.Fees paid for prepaid interest
C.Fees paid to third-party providers of optional insurance products, such as credit life and credit disability insurance
D.Fees paid to a creditor
D.Fees paid to a creditor
For a conventional conforming loan, the borrower is making a down payment of 12%. The seller wishes to contribute to closing costs for the transaction. What is the most that the seller can contribute?
Seller concessions of 6%
COFI
The 11th district Cost Of Fund Index
This type of mortgage is offered by private lenders and not insured or guaranteed by a federal agency.
conventional loan
Debt ratios for a USDA loan
29% / 41%
Which of the following is a limit on the amount that the payment can change on any adjustment date from the current or previous payment amount on an ARM?
A.Initial rate cap
B.Payment cap
C.Periodic rate cap
D.Lifetime rate cap
B.Payment cap
Seller concessions for conforming loans with an LTV under 90%
Limited to 6% between 90% - 75.1%. At 75% or less concessions are up to 9%.
CODI
Certificate of Deposit Index
Anything other than a 30-year fixed rate mortgage.
Non-traditional mortgage
Debt ratio for a conventional loan.
28% / 36%
In lien theory states, the _____ holds the title to the home securing a mortgage throughout the loan term.
A.Borrower
B.Lender
C.Title company
D.Loan servicer
A.Borrower
DAILY DOUBLE!!!
A professional association of independent home inspectors.
American Society of Home Inspectors
CMT
Constant Maturity Treasury
This type of loan, typically a Jumbo loan CAN NOT be sold on the secondary market do not meet the standards of Fannie Mae and Freddy Mac.
Non-conforming loans
Debt ratio for a VA loan
-/41%
Renewal of a loan originator license is the responsibility of:
A.The loan originator
B.The loan originator and the sponsoring entity
C.The sponsoring entity
D.The sponsoring entity and the state regulator
A.The loan originator
An amount paid to a real estate professional as a fee for negotiating the transaction; usually a percentage of the property sales price; amount determined by the real estate professional and the seller and can be as much as 6% of the sales price.
Commission
This index, once commonly used for adjustable-rate mortgages, was phased out due to its manipulation scandals, and has largely been replaced by more transparent alternatives like SOFR.
LOBOR
The London Bank Offering Rate
DAILY DOUBLE!!!
Mortgage in which the loan secured by real estate includes personal property and furniture in the purchase price.
Package Mortgage
The DTI ratios of conforming loans that meet Fannie Mae and Freddie Mac guidelines.
28% / 50%
Under the S.A.F.E. Act, a mortgage loan originator must submit to the NMLS:
A.Reports of condition
B.Financial reports
C.Business organization documentation
D.Trust account information
A.Reports of condition