Mortgage Loan Origination Activities
an individual who for compensation or gain, or in expectation of compensation or gain, takes a residential mortgage loan application, offers or negotiates terms of a residential mortgage loan
Mortgage Loan Originator
The Real Estate Settlement Procedures Act (RESPA) will provide consumer protection for loans on properties residential properties
with (1-4units)
What does TILA stand for?
Truth-in-Lending Act
Everyone's loan origination license expires annually. Most states have a renewal date of
December 31st
This is also known as the note rate
Interest Rate
What is the provision in a mortgage enabling a lender to demand full repayment if the borrower TRANSFERS the loan?
Alienation Clause
RESPA (Regulation blank) is primarily involved with the disclosure of closing costs and the prevention of kickbacks, which may raise the amount of closing costs to the consumer.
Regulation X
This act states that initial disclosures are required within 3 business days of receipt of a completed application. The earliest consummation is on the 7th business day after disclosures delivered/mailed. If redisclosure is required, consumer must receive corrected disclosure at least 3 business days before the loan can be consummated.
The Mortgage Disclosure Improvement Act (MDIA)
A minimum of blank hours of pre-licensing education is required for all loan originators.
20
Can be called EffectiveRate
APR
Under ECOA rules and regulations, how many days does the borrower have to request a copy of an appraisal report if the application was denied?
90 days
Which RESPA Section prohibits the seller from requiring the buyer to use a particular title company, as a condition of the sale, unless the seller pays for the title insurance and all other title-related fees
Section 9
This TILA disclosure which is required to be provided to the borrower three days prior to loan settlement (doc signing), with a final copy of the CD provided at the actual settlement (doc signing). It provided the borrower with the actual closing cost
Closing Disclosure (CD)
A minimum of blank hours of annual continuing education is required for all loan originators
8
total interest being charged on the loan, expressed as a percentage. This is different from the APR, which is the total interest + all fees, expressed as a percentage is called
Total Interest Percentage (TIP)
Conforming Loans follow the guidelines of which regulators?
Fannie Mae and Freddie
Mac
Homeowners who are having issues with their mortgage servicers may take advantage of a provision of RESPA whereby a borrower may request information relating to the servicing of a loan.
Qualified Written Request, or "QWR
TILA was implemented by the Federal Reserve Board as apart of what regulation?
Regulation Z
If you fail the NMLS Exam, you must wait how many days before you can retake the exam.
30
ECOA stands for
Equal Credit Opportunity Act
How old must a borrower be to qualify for a Reverse Mortgage?
62 years old
This RESPA section deals with the mortgage servicer and mortgage servicing abuses
Section 6
This rule provides a 3-business day cooling-off period for a consumer who uses his primary residence as security for a refinance,home improvement loan, HELOC, or second mortgage loan
“Right of Rescission” rule.
lending that forces borrowers to pay exorbitant loan origination/settlement fees, subprime or higher interest rates, and in some cases, unreasonable service fees.
Predatory lending
What is the fraud scheme where a borrower uses someone else’s name to purchase the property, but that person WILL NOT be living at the property?
Straw borrower
What is the payment method used in a reverse mortgage that allows the homeowners to receive a monthly check while living in the property?
TENURE Method
A (blank) is the company that collects monthly mortgage payments,pays taxes, insurance, and other items as they come due, and notifies the borrower of late payments
mortgage servicer
Regulation Z applies to residential mortgages (1-4 units) and does not include
commercial or other non-residential loans.
related to the applicant lying about the home being owner-occupied. An owner-occupied home can often get a lower interest rate than investment properties.
Occupancy Fraud
What is the value remaining in property after all liens and debts have been paid?
Equity