Finance exam Champions Questions And Answers 100% Correct!

origination - ANSWERSprocess of creating a new mortgage loan funding - ANSWERSThe process of transferring funds to a title or escrow company for disbursement underwriting - ANSWERSprocess of evaluating a borrowers loan application to determine the risk involved for the lender servicing - ANSWERSsending monthly payment statements and collecting monthly payments, maintaining payment records and following up on delinquencies processing - ANSWERScollecting info about a borrower in order to build a loan file that will be used to make an underwriting decision Fair housing protected categories - ANSWERS-race -color -national origin -sex -religion -families with children -disabilities RMLOs - ANSWERSResidential Mortgage Loan Originators RMLO registration - ANSWERSmust be educated and register with the NMSLR (nationwide mortgage licensing system and registry) redlining - ANSWERSprohibited practice of refusing to provide financing in a particular area because of location (prohibited under community reinvestment act) Dodd frank - ANSWERSsets both statutory mandate of the consumer financial protection bureau (CFPB) community reinvestment act - ANSWERSRequired banks to serve the needs of the community in which they were chartered to do business TDHCA (Texas Department of Housing and Community Affairs) - ANSWERSresponsible for housing, housing related and community service programs and the regulation of the states manufactured housing industry TVLB (Texas veterans land board) features - ANSWERS-loan is sold to VLB, as opposed to market purchases like Fannie mae or freddie mac -rate on VLB is often up to 1% below prevailing market rates -allows borrowers to borrow up to $150,000 to purchase land at competitive interest rates TVLB program eligibility - ANSWERS-be wholly in the state of Texas -have at least one acre of land -not be zoned strictly for commercial use CD (closing disclosure) delivery - ANSWERS-creditor must ensure consumer receives the CD form at least 3 business days before the consumer closes the loan Fannie mae - ANSWERSFederal National Mortgage Association -finances mortgages and increase homeownership opportunities in the US Freddie mac - ANSWERSFederal Home Loan Mortgage Corporation -purchases mortgages in the secondary market Ginnie mae - ANSWERSGovernment National Mortgage Association -established to promote home ownership Farmer mac - ANSWERSThe Federal Agricultural Mortgage Corp -created a secondary market for agricultural mortgage and rural utilities loans. encumbrance - ANSWERSclaim, lien, charge, or liability attached to and binding real property promissory note - ANSWERSA borrower's personal promise to repay a debt according to the agreed terms. subordinate finance instruments - ANSWERSfill a vital role in a transaction but remain secondary to primary finance instruments lifting clause - ANSWERSin subordinate instruments, gives borrower ability to replace the primary instrument with another without affecting the subordinate instruments (EX: can refinance 1st mortgage without effecting the 2nd) cross-defaulting clause - ANSWERSA provision in a mortgage that triggers a default on a second mortgage if there is a default on the first mortgage. PITI payments consist of: - ANSWERSPrincipal, Interest, Taxes, Insurance