mortgage loan brokering and lending
Ability to Repay (ATR) Rule - correct answer ✔✔a federal standard for determining an applicants ability
to repay a consumer mortgage
acceleration - correct answer ✔✔a demand for immediate payment of all amounts remaining unpaid on
a mortgage or extension of credit by a lender or carry back seller
Adjustable Rate Mortgage (ARM) - correct answer ✔✔A variable interest rate note, often starting out
with an introductory teaser rate, only to reset at a much higher rate in a few months or years based on a
particular index.
adverse action notice - correct answer ✔✔a disclosure notifying the applicant a negative action has been
taken on their consumer mortgage application due to an unfavorable credit history as required by the
fair credit reporting act (FCRA)
affiliated business arrangement (ABA) - correct answer ✔✔a business arrangement in which a broker
may lawfully profit from referring a client to a service provider the broker owns
ALL-INCLUSIVE TRUST DEED (AITD) - correct answer ✔✔A note entered into by the buyer in favor of the
seller to evidence the amount remaining due on the purchase price after deducting the down payment,
an amount inclusive of any specified mortgage debts remaining of record with the seller retaining
responsibility for their payment.
allonge - correct answer ✔✔an attachment to a note occurring between preparation of the note and
closing the transaction providing information necessary to update entries on the note at the time it
becomes effective
anti deficiency - correct answer ✔✔A limitation placed on a mortgage lender's ability to recover losses
on a default when the secured property's value is insufficient to satisfy the mortgage debt.
appraisal - correct answer ✔✔an appraisers opinion or estimate of a property value on a specific date
,appraisal report - correct answer ✔✔documentation of an appraisers findings
appraised value - correct answer ✔✔the fair market value (FMV) arrived at by an appraiser
Back End (Debt to Income Ratio) - correct answer ✔✔the percentage of monthly gross income that goes
towards paying non mortgage debt
balloon payment - correct answer ✔✔Any final payment on a note which is greater than twice the
amount of any regularly scheduled payments
balloon payment qualified mortgage - correct answer ✔✔a type of qualified mortgage which allows
small lenders to include a balloon feature
beneficiary statemetn - correct answer ✔✔a written disclosure made by a mortgage holder regarding
the condition of a debt owed to them, usually evidenced by a trust deed note
blind pool investment program - correct answer ✔✔an investment which involves receipt of investor
contributions in a group investment program before the syndicator identifies and discloses the real
estate interest the investors funds will be used to acquire an activity control by securities law
bona fide purchaser (BFP) - correct answer ✔✔A buyer who purchases a property for valuable
consideration in good faith without notice or knowledge of pre-existing encumbrances or conditions
affecting their right to full ownership.
broker associate - correct answer ✔✔a california bureau of real estate (CalBRE) licensed broker who
works in the employment of another CalBRE broker
business activity report - correct answer ✔✔a report notifying the california bureau of real estate
(CalBRE) of an employing brokers mortgage activities during the fiscal year
buyer mortgage capacity - correct answer ✔✔A buyer's ability to make mortgage payments based on
their debt-to-income ratios (DTI).
, call - correct answer ✔✔a mortgage holders demand for the balance of the loan to be immediately paid
in full
capitalization approach - correct answer ✔✔An appraisal method used by an appraiser to arrive at a
property's value based on the present worth of a property's future net operating income.
carry back mortgage - correct answer ✔✔a note and trust deed executed by a buyer of real estate in
favor of the seller for the unpaid portion of the sales price on closing
certificate of sale - correct answer ✔✔a certificate issued to the successful bidder on the completion of a
judicial sale of a property
changed circumstances - correct answer ✔✔extraordinary events defined by federal mortgage law which
may be the basis for the costs provided in the loan estimate
closed ended mortgage - correct answer ✔✔a mortgage in which the funds are disbursed once and paid
off over time
closing disclosure - correct answer ✔✔a disclosure of the buyers final settlement charges and mortgage
terms handed to the buyer on a standard form within three business days before mortgage closing
collateral assignment - correct answer ✔✔an agreement providing additional cumulative and concurrent
security for a debt in the form of personal property to secure the property owners performance under
the debt
commercial communication - correct answer ✔✔anything written or spoken used to attract
homeowners to a service
commingling - correct answer ✔✔The mixing of personal funds with client or third-party funds held in
trust.
Ability to Repay (ATR) Rule - correct answer ✔✔a federal standard for determining an applicants ability
to repay a consumer mortgage
acceleration - correct answer ✔✔a demand for immediate payment of all amounts remaining unpaid on
a mortgage or extension of credit by a lender or carry back seller
Adjustable Rate Mortgage (ARM) - correct answer ✔✔A variable interest rate note, often starting out
with an introductory teaser rate, only to reset at a much higher rate in a few months or years based on a
particular index.
adverse action notice - correct answer ✔✔a disclosure notifying the applicant a negative action has been
taken on their consumer mortgage application due to an unfavorable credit history as required by the
fair credit reporting act (FCRA)
affiliated business arrangement (ABA) - correct answer ✔✔a business arrangement in which a broker
may lawfully profit from referring a client to a service provider the broker owns
ALL-INCLUSIVE TRUST DEED (AITD) - correct answer ✔✔A note entered into by the buyer in favor of the
seller to evidence the amount remaining due on the purchase price after deducting the down payment,
an amount inclusive of any specified mortgage debts remaining of record with the seller retaining
responsibility for their payment.
allonge - correct answer ✔✔an attachment to a note occurring between preparation of the note and
closing the transaction providing information necessary to update entries on the note at the time it
becomes effective
anti deficiency - correct answer ✔✔A limitation placed on a mortgage lender's ability to recover losses
on a default when the secured property's value is insufficient to satisfy the mortgage debt.
appraisal - correct answer ✔✔an appraisers opinion or estimate of a property value on a specific date
,appraisal report - correct answer ✔✔documentation of an appraisers findings
appraised value - correct answer ✔✔the fair market value (FMV) arrived at by an appraiser
Back End (Debt to Income Ratio) - correct answer ✔✔the percentage of monthly gross income that goes
towards paying non mortgage debt
balloon payment - correct answer ✔✔Any final payment on a note which is greater than twice the
amount of any regularly scheduled payments
balloon payment qualified mortgage - correct answer ✔✔a type of qualified mortgage which allows
small lenders to include a balloon feature
beneficiary statemetn - correct answer ✔✔a written disclosure made by a mortgage holder regarding
the condition of a debt owed to them, usually evidenced by a trust deed note
blind pool investment program - correct answer ✔✔an investment which involves receipt of investor
contributions in a group investment program before the syndicator identifies and discloses the real
estate interest the investors funds will be used to acquire an activity control by securities law
bona fide purchaser (BFP) - correct answer ✔✔A buyer who purchases a property for valuable
consideration in good faith without notice or knowledge of pre-existing encumbrances or conditions
affecting their right to full ownership.
broker associate - correct answer ✔✔a california bureau of real estate (CalBRE) licensed broker who
works in the employment of another CalBRE broker
business activity report - correct answer ✔✔a report notifying the california bureau of real estate
(CalBRE) of an employing brokers mortgage activities during the fiscal year
buyer mortgage capacity - correct answer ✔✔A buyer's ability to make mortgage payments based on
their debt-to-income ratios (DTI).
, call - correct answer ✔✔a mortgage holders demand for the balance of the loan to be immediately paid
in full
capitalization approach - correct answer ✔✔An appraisal method used by an appraiser to arrive at a
property's value based on the present worth of a property's future net operating income.
carry back mortgage - correct answer ✔✔a note and trust deed executed by a buyer of real estate in
favor of the seller for the unpaid portion of the sales price on closing
certificate of sale - correct answer ✔✔a certificate issued to the successful bidder on the completion of a
judicial sale of a property
changed circumstances - correct answer ✔✔extraordinary events defined by federal mortgage law which
may be the basis for the costs provided in the loan estimate
closed ended mortgage - correct answer ✔✔a mortgage in which the funds are disbursed once and paid
off over time
closing disclosure - correct answer ✔✔a disclosure of the buyers final settlement charges and mortgage
terms handed to the buyer on a standard form within three business days before mortgage closing
collateral assignment - correct answer ✔✔an agreement providing additional cumulative and concurrent
security for a debt in the form of personal property to secure the property owners performance under
the debt
commercial communication - correct answer ✔✔anything written or spoken used to attract
homeowners to a service
commingling - correct answer ✔✔The mixing of personal funds with client or third-party funds held in
trust.
