Fraud
A person who acts as a borrower on a loan because the actual buyer is unable to qualify
A Straw Buyer
This document contains a list of all closing costs, a disclosure of the borrower credits received on the transaction, an estimate of the cash the borrower needs to close, and the sales price.
Loan Estimate.
Financial charges that are paid separately before, at the time of consummation, or withheld from the loan proceeds.
Prepaid finance charges.
A borrower owes $200,000 on a first mortgage and $50,000 on a line of credit with a maximum amount of $100,000. The property appraised for $500,000 so the LTV is this percentage.
40%
The Uniform Residential Loan Application is also known as this.
1003
The maximum penalty for a Mortgage Loan Originator if fraudulent documentation is knowingly contained in a file.
Fine up to $1,000,000, imprisonment up to 30 years, or both.
This document MUST be provided to a prospective borrower at or before the time a third-party service provider referral is made.
Affiliated Business Arrangement Disclosure Statement.
This incorporates closing costs associated with the loan into the interest rate for comparison and disclosure purposes.
Annual Percentage Rate (APR)
The two terms that when added together give you the interest rate.
Index and Margin
The most important factor in determining the hazard insurance premium on a home.
Replacement cost of the home.
Type of mortgage fraud where the borrower overstates their assets needed for a down payment or collateral for the loan, or includes sporadic bonuses in with the base salary.
Fraud for property.
The rule dealing with the accurate disclosure of the cost and terms of credit
Regulation Z
In an Adjustable Rate Mortgage, this is the time in the loan term where periodic payments must be of sufficient amount to fully amortize the loan.
Recast
One discount point is this percentage of the loan amount.
1%
Fees related to third-party service providers and recording fees are grouped together and subject to this amount of tolerance.
10% tolerance
The simultaneous origination of multiple loans on the same collateral
Piggyback lending
A lender may not charge for the preparation of any documents required in a federally-regulated mortgage loan transaction based on provisions of this Act.
Real Estate Settlement Procedures Act (RESPA)
The Four additional fees included in APR calculations
Origination fee, per-diem interest, tax service fee, and discount points.
The calculation for HLTV
The loan amount plus the total line limit of any credit line on the property, divided by the appraised value of the property.
An underwriter may require additional documentation for commissioned borrowers if the income is over this percent of total qualifiable income.
25%
Relevant information is being kept from the lender, in regards to an undisclosed lien against a property. This is known as…
Double Contract
If an advertisement contains a trigger term, what additional disclosures must be made?
The amount or percentage of the down payment, the payment schedule (including the number, timing, and amount of the payments), and APR.
A popular index used for adjustable rate mortgages
COFI
These debts are considered when calculating back-end DTI
ALL minimum required monthly debts including housing related expenses and any minimum monthly payments listed on the borrowers credit report.
This party is responsible for ascertaining whether the Loan Estimate has been provided to the borrower when a mortgage broker is involved in the transaction.
The Lender.