One
In forward servicing, some lenders (and some loan programs) require customers to maintain an _______________ account that pays the property taxes and insurance.
Escrow
The contract that outlines the duties and obligations of the servicer, stipulates what the servicing fee will be and when the remittance is due is known as the _________.
Servicing Agreement
The pay down of the loan over time—principal payments applied reduce the principal balance of the loan.
Loan Amortization
The __________ validates all information provided in the loan file and approves or rejects the application.
Underwriter
Which of the following are ways a servicer can make revenue.
Servicing Fee
Escrow
Ancillary
Name three roles in the loan production process.
Originator/Loan Officer
Loan Processor
Underwriter
The ______________ gathers documents that verify income, employment, monthly bills, savings account, etc. to prepare the loan file for review.
Loan Processor
Name three features of a loan product.
Interest Rate
Payment Type
Loan Amortization
The amount the lender charges for the use of money; usually expressed as a percentage.
Interest Rate
The four components of a mortgage payment.
PITI
Principal, Interest, Taxes, Insurance
This is the legal execution or closing of the loan. This is where the title is transferred from the seller to the buyer/borrower and the mortgage lender establishes its various legal repayment, collateral and default rights.
Closing
Name three documents signed at closing.
Mortgage
Note
Closing Disclosure / HUD
On which market, are mortgages traded and where mortgage lenders and other financial intermediaries transact with investors. (Primary or Secondary?)
Secondary Market
To minimize risk, investors publish requirements describing what loans they are willing to purchase. What are these requirements known as?
(choose from Policy & Procedures, Guidelines, Rules, Rubrics)
Guidelines
Loans not insured or guaranteed by the federal government. These loans can take on any form that the customer and mortgage lender agree to (subject to state and local laws).
Conventional Loans
What are the components of a mortgage loan file?
Hint: 4 C's
Credit
Capacity/Income
Cash/Assets
Collateral/Property
What does Ocwen/PHH do?
Originates Forward Loans
Originates Reverse Loans
Services Forward Loans
Services Reverse Loans
Name three property types?
Single Family (Attached/Detached)
Condo/PUD/Co-op
Manufactured Home
Designed for low and moderate housing markets; great for first time homebuyers and customers with cash liquidity restrictions.
FHA Loans and Affordable Housing
The period between the commencement date and termination of a Note, Mortgage, etc.
Loan Term