Mortgage General
An account set up by the lender to pay your property taxes and insurance premiums
What is an escrow account?
A Mortgage insured by the Federal Housing Administration.
What is an FHA Mortgage?
A person licensed to engage in the business of originating a residential mortgage loan.
What is an Mortgage Loan Originator (MLO)
Act that was designed to protect consumers by requiring lenders to provide certain disclosures, as well as prohibiting referral fees and kickbacks
What is RESPA?
An unbiased professional opinion of the value of a home that is calculated based on comparable sales in the property neighborhood using key features of the home
What is an Appraisal?
A loan that is not insured or guaranteed by the federal government.
What is a Conventional Mortgage?
FHA
What Federal Housing Administration?
A party who helps complete a transaction between a buyer and a seller
What is a Settlement Agent?
Enacted on July 30, 2008, mandating a nationwide licensing and registration system for residential mortgage loan originators
What is the SAFE Act?
A type of insurance that is required to ensure the property is free of liens or judgments which could jeopardize the mortgage
What is Title Insurance?
A mortgage that is guaranteed by the U.S. Department of Veterans Affairs.
What is a VA Mortgage
LTV
What is Loan-to-Value?
The financial institution that disburses funds to the borrower.
What is Mortgage Lender?
Potentially Suspicious Activity that may indicate Money Laundering
What are Red-Flags?
A legal document authorizing one person to act on behalf of another
What is a Power of Attorney (POA)?
PITI
What is Principle, Interest, Taxes and Insurance?
Collects and organizes application paperwork and prepares the loan for underwriting.
What is a Loan Processor?
A federal law that was enacted on July 21, 2010. The law overhauled financial regulation in the aftermath of the Great Recession, and it made changes affecting all federal financial regulatory agencies and almost every part of the nation's financial services industry.
What is the Dodd-Frank Act?
When the LTV is above 80% most lenders will not do a mortgage loan without additional insurance known as
What is PMI (Private Mortgage Insurance)
a mortgage loan that conforms to Fannie Mae and Freddie Mac guidelines.
What is a conforming loan?
PMI
What is Private Mortgage Insurance?
An independent contractor who acts as an intermediary who brokers mortgage loans on behalf of individuals or businesses
What is a Mortgage Broker?
A federal law designed to promote the informed use of consumer credit, by requiring disclosures about terms and cost of a loan in order to standardize the manner in which costs associated with borrowing are calculated and disclosed
What is Truth-in-Lending (TILA)