TILA
To promote the informed use of consumed credit
What is the Truth in Lending Act?
Completed Application includes these key pieces to be able to review the 4 C's to analyze risk and afforability.
What is A.L.I.E.N.S ? ( Address , Loan amount, Income , Estimated value of property , Name , SSN)
Client is currently paying $750 per month for principal and interest , $210 for taxes and insurance escrow, $330/month for their car payment , $175/month for their credit card & $215 for student loans. Your client makes $3,200 semi monthly. What is the front & back DTI ?
(PITI + HOA ) / GMI = Front End DTI
750+210= 960
960/3,200 = 30%
Total DTI = 42%
(PITI + HOA + Contractual Debt) / GMI = Total DTI
750+210+175+215 = 1,350
1,350 / 3,200 = 42%
Detects patterns of discrimination that helps identify discriminatory lending practices
What is (HMDA) the Home Mortgage Disclosures Act ?
What type of rate is when payment choices available are fully amortized , flat payment and interest only payment
What is Option (ARMS) Adjustable Rate Mortgage ?
Mortgages that meet specific standards that are considered less risky & not mandatory
What is Qualified Mortgages?
Providing a lower monthly payment over a longer term to help borrower meet their customers current financial obligations
What is Tangible Net Benefits ?
Jared and Colleen own a condo that is valued at $340,000. They have a first mortgage balance of $215,000 and a HELOC balance of $75,000. The max credit limit is $85,000. What is the HTLTV?
HTLTV = 88%.
All Loan Balances + Credit Limit on HELOC / Appraised Value/Purchased = HTLTV
215,000 + 85,000 = 300,000
300,000 / 340,000 = 0.882 * 100 = 88%
A template that directs states on what codes & regulations should be put into place to regulate the mortgage industry
What is The State Model ?
These are the most common used indices of Adjustable Rate Mortgages...
To define what a higher priced mortgage is and provide additional protections for borrowers who apply for these loans
What is Section 36 - High Priced Mortgage Loans?
Required for the full application , consisting of 9 sections . The two names are...
(URLA) , Uniform Residential Loan Application & form 1003
Sarah is in the process of getting a new mortgage and would like to drop his rate from 5.25% to 3.25%. This decrease would cost him 2 points. Sarah's new loan amount will be $315,800 with a PITI payment of $3,876. Her closing costs are currently $3,426. How much will it cost for Sarah to drop her rate 5.25 to 3.25 ?
Cost to buy note rate down is $6,316.
315,800*0.001=3,158 (*2 - points) = $6,316.
Regulated and enforced by the Department of Treasury & FinCEN
What is Bank Secrecy Act & Anti-Money Laundering Law ? (BSA & AML)
This type of mortgage is an FHA Product that provides governmental stability to the reverse mortgage marketplace or refinance
What is the Home Equity Conversion Mortgage (HECM) ?
The disclosures that are required under TILA
What is Loan Estimate & Early ARMs Disclosure?
ECOA, Fair Housing Law & HMDA is in compliance with this section of URLA
What is Section 8 : Demographic Information ?
The borrower's want to pay off their mortgage on July 23. The principal balance due on the loan is $74,429 and the interest rate is $4.75 %. What is the daily (per diem) interest on the loan?
$9.82 per diem
step 1 : (74,429 * 0.0475) = 3,535.37
step 2 : (3,535.37 / 12 ) = 294.61
step 3 : (294.61 / 30 ) = 9.82 per diem
Financial Crime Law that shares information with other institutions and agencies to provide appropriate tools to intercept & obstruct terrorism
What is the USA Patriot Act ?
The funding fee of the ______ program, that is non conventional with no down payment is _______ %
What is a VA Program , 2.3% with no down payment
If the loan meets the standards of high cost , which disclosure must be provided to the borrower at least 3 business days prior to consummation?
What is Homeownership and Equity Protection Act (HOEPA) ?
This is done during the application process to send out initial disclosure for a loan estimate.
What is intent to proceed?
Ted and Lisa are in the process of selling their house and moving into a larger home. They currently still owe on their current home and need to pay off their existing mortgage & to pay off their portion of property taxes. Their home was appraised for $314,000 and their current loan balance is $235,000. They have a 4.25 % interest rate. Their annual property tax is $2,474. Their payoff date it March 19, 2018. What is Ted & Lisa's per diem interest & what is their payoff amount? Along with how much will they owe on their property taxes?
Per Diem Interest = $27.74
(235,000*0.0425) = 9,987.50
(9,987.50 / 12) = 832.29
(832.29 / 30 ) = 27.74
Payoff Amount = $235,471.58
(27.74*17) = 471.58
471.58+235,000=235,471.58
Still Owe in Property Taxes = $528.06
(2,474 / 365) = 6.77
Jan 31 days + Feb. 28 days + March 19 days = 78
(78*6.77) = $528.06
These are exempt under the Fair Housing Act.
What is owner occupied no more than 4 units , single family housing sold/rented without the use of a broke if owner doesn't own more than 3 single family homes at one , housing operated by private clubs/organizations
This program has unique characteristics of reserves & ALL Occupancies are allowed, with a max LTV of 95%
What is Conventional Conforming ?