Loan Origination
This document must generally be delivered within three business days of application.
What is a Loan Estimate (LE)?
This federal law prohibits discrimination in lending.
What is the Equal Credit Opportunity Act (ECOA)?
This calculation compares total monthly obligations to monthly qualifying income.
What is debt-to-income ratio (DTI)?
This disclosure notifies consumers that affiliated companies have a business relationship.
What is the Affiliated Business Arrangement Disclosure?
This skill is consistently identified as the foundation of exceptional borrower experiences.
What is communication?
This form replaced the HUD-1 Settlement Statement for most mortgage transactions.
What is the Closing Disclosure (CD)?
Under TRID, an application is triggered when six key pieces of information are collected. This final piece is the desired ________.
What is the loan amount?
A borrower must generally receive a corrected CD this many business days before consummation if the APR exceeds tolerance limits.
What is three business days?
Fannie Mae's automated underwriting system.
What is Desktop Underwriter (DU)?
Consumers may not be required to use an affiliated provider unless the service is this.
What is required or mandatory?
Providing realistic timelines and process explanations is commonly called setting ________.
What are expectations?
This section summarizes credits, required funds, and cash needed to close.
What is Calculating Cash to Close?
The percentage of a home's value represented by the mortgage amount.
What is loan-to-value (LTV)?
This category of fees is not permitted to increase from the Loan Estimate to closing.
What are zero-tolerance fees?
Funds remaining after closing that demonstrate a borrower's financial strength.
What are reserves?
The ABA disclosure must describe the ownership interest and any expected financial ________.
What is a financial benefit or thing of value?
Helping borrowers understand the mortgage process reduces anxiety through customer ________.
What is education?
A corrected CD is often needed if this key loan term changes after disclosure.
What is the interest rate, loan product, or loan terms?
The process of collecting income, asset, and credit documentation prior to underwriting
What is a complete loan package?
This rule established the Loan Estimate and Closing Disclosure forms.
What is TRID?
For FHA loans, this monthly premium protects the lender against default risk.
What is Mortgage Insurance Premium (MIP)?
This federal law governs Affiliated Business Arrangements.
What is RESPA?
This stage creates the highest borrower anxiety and therefore requires the most proactive communication.
What is the underwriting or processing stage?
Recording fees and certain third-party services commonly fall into this tolerance bucket.
What is the 10% cumulative tolerance bucket?
A consultative sales technique used to uncover a borrower's goals through questions.
What is a needs analysis or discovery interview?
The allowable increase for zero-tolerance fees is exactly this amount.
What is $0?
The fourth “C” of underwriting, after Credit, Capacity, and Capital.
What is collateral?
Violations related to improper referral fees typically fall under this section of RESPA.
What is Section 8 of RESPA?
A borrower calls every day worried about deadlines. The best solution is proactive ________.
What is communication?
If the APR becomes inaccurate beyond regulatory limits, a new CD may trigger a new ________ business-day waiting period.
What is three business days?