Loan Types & Features
This type of open-ended credit allows borrowers to access equity in their homes as needed.
What is a Home Equity Line of Credit (HELOC)?
This ratio compares a borrower’s principal loan balance to the appraised value of the property.
What is the Loan-to-Value (LTV) ratio?
What is the maximum fine for paying or accepting an illegal referral fee under RESPA?
What is $10,000 and up to one year in prison?
This type of loan allows a borrower to withdraw and repay funds as needed.
What is a Home Equity Line of Credit (HELOC)?
This ratio compares a borrower’s principal loan balance to the appraised value of the home.
What is the Loan-to-Value (LTV) ratio?
The primary mortgage insurance required on FHA loans is known as this.
What is Mortgage Insurance Premium (MIP)?
This practice occurs when a loan officer encourages a borrower to apply for a higher-cost loan for personal gain.
What is steering?
This law requires lenders to inform applicants of their loan status within 30 days.
What is the Equal Credit Opportunity Act (ECOA)?
Which type of mortgage insurance is required on FHA loans?
What is Mortgage Insurance Premium (MIP)?
A loan originator must report suspicious financial activity under this act.
What is the USA PATRIOT Act?
This document details a loan's principal and interest payments over time.
What is an amortization schedule?
When completing a loan application, a borrower refuses to provide demographic information. The loan officer must do this.
What is visually observing and noting the applicant’s demographic details?
The Home Ownership and Equity Protection Act (HOEPA) was enacted as part of this regulation.
What is the Truth in Lending Act (TILA)?
This type of loan exceeds Fannie Mae and Freddie Mac's conforming loan limits.
What is a Jumbo Loan?
A borrower’s income, debt, and credit score determine their ability to do this.
What is repay a loan?
This type of mortgage allows five siblings who co-own a property to have rescission rights when refinancing.
What is a refinance transaction subject to rescission rights?
If a real estate agent receives a $50 "thank you" bonus from a mortgage loan officer for each referral, this law is violated.
What is the Real Estate Settlement Procedures Act (RESPA)?
What law requires lenders to provide an annual escrow analysis to prevent overages?
What is RESPA?
What type of mortgage has an initial fixed rate for a set period before adjusting?
What is an adjustable-rate mortgage (ARM)?
A borrower is entitled to this document detailing their loan terms before closing.
What is the Closing Disclosure?
A "seasoned QM" must meet these additional standards under the Qualified Mortgage Rule.
What are long-term portfolio retention and borrower repayment history?
Yield spread premiums must only be used for this ethical purpose.
What is helping a borrower pay for settlement costs?
The "Ability to Repay" rule falls under this legislation.
What is the Dodd-Frank Act?
This type of loan is typically used to finance new home construction.
What is a construction-to-permanent loan?
This type of report helps underwriters assess a borrower’s ability to repay a loan.
What is a credit report?