RMLO SAFE - CHAMPION QUESTIONS AND
ANSWERS A+ GRADED. Buy Quality Materials!
1 Year LIBOR Rate
1- Year LIBOR (London Interbank Offered Rate) rate is the state rate of interest at
which banks in the London wholesale money markets may borrow funds from one
another for one year. LIBOR rates tend to follow global interest rate trends and are
therefore frequently used as the benchmark index for adjustable-rate mortgages.
AARMR
American Association of Residential Mortgage Regulators
Ability to Repay Rule
Regulation Z requires that a creditor make a "reasonable and good faith determination
at or before consummation that the consumer will have a reasonable ability to repay the
loan according to its terms."
Abstract of Title
A condensed history, taken from public records or documents, of the ownership of a
piece of land.
Acceleration Clause
The right of a lender to demand payment of the outstanding balance of a loan
Accrued Interest
The amount of mortgage interest that has been earned but not yet paid
Acquisition Costs
Costs of acquiring property other than purchase price, for example, attorney fees, title
insurance, and lender's fees
Adjustment Interval
The time between interest rate adjustments of an adjustable rate mortgage (ARM)
Affidavit
a signed, sworn statement by a party regarding the truth or accuracy of information
provided
Arm's Length Transaction
Legal slang meaning that there existed no special relationship between the parties
involved in a transaction which would contaminate the result
Assessed Value
The Value of a property established by a public tax assessor. The assessed value is
used to determine property taxes.
Assignment
The transfer of rights under an existing document such as a mortgage, contract or
lease, to another party.
Assumption Clause
A clause in a loan that permits a buyer to take legal responsibility for the loan from the
seller
Average Prime Offered Rate (APOR)
Average Prime offer Rate (APOR) us a survey-based estimate of Annual Percentage
Rates (APRs) currently offered on prime mortgage loans.
, Regulation B
A federal rule that implements the Equal Credit Opportunity Act (ECOA)
Regulation C
A federal rule that implements the Home Mortgage Disclosure Act (HMDA)
Regulation G
A federal rule that implements the S.A.F.E. Mortgage Licensing Act - Federal
Registration of Residential Mortgage Loan Originators
Regulation H
A federal rule that implements the S.A.F.E. Mortgage Licensing Act - State Compliance
and Bureau Registration System
Regulation N
A federal rule that implements the Mortgage Acts and Practices-Advertising Act (MAP)
Regulation O
A federal rule that implements the Mortgage Assistance Relief Services Act (MARS)
Regulation V
A federal rule that implements the Fair Credit Reporting Act (FCRA)
Regulation X
A federal rule that implements the Real Estate Settlement Procedures Act (RESPA)
Regulation Z
A federal rule that implements the Truth-in-Lending Act (TILA). It requires standard
disclosures of credit costs.
RESPA
Real Estate Settlement Procedures Act - a federal law, administered by HUD, requiring
disclosure of all settlement costs to buyers and sellers in a real estate transaction
involving a one to four family residential property with federally related financing.
Rate Cap
A limit on how much an interest rate may change on an ARM
Rate Term Refinance
To Refinance an existing loan for the amount remaining on that loan - a change of term
or rate - the borrower does not receive any cash
Real Property
Land, all the improvements attached to the land and the rights to use them
Recording Fees
Charges assessed for entering a document into the public records
Redlining
The illegal practice sometimes used by shady lenders and insurance companies to deny
loans and other services to people because of their neighborhood or ethnicity.
Refinancing
Using a new loan to pay off an existing loan - usually to secure the better terms for the
borrower
Back-end ratio or back ratio
The back-end ratio is the percentage of an individual's (or household's) pre-tax, monthly
income that is used to pay monthly debt obligations include the mortgage payment, real
estate taxes, mortgage insurance and all credit account payments, including credit
cards and car loans. the ratio is calculated by adding up the debt obligations and
dividing the sum by the pre-tax monthly income.
ANSWERS A+ GRADED. Buy Quality Materials!
1 Year LIBOR Rate
1- Year LIBOR (London Interbank Offered Rate) rate is the state rate of interest at
which banks in the London wholesale money markets may borrow funds from one
another for one year. LIBOR rates tend to follow global interest rate trends and are
therefore frequently used as the benchmark index for adjustable-rate mortgages.
AARMR
American Association of Residential Mortgage Regulators
Ability to Repay Rule
Regulation Z requires that a creditor make a "reasonable and good faith determination
at or before consummation that the consumer will have a reasonable ability to repay the
loan according to its terms."
Abstract of Title
A condensed history, taken from public records or documents, of the ownership of a
piece of land.
Acceleration Clause
The right of a lender to demand payment of the outstanding balance of a loan
Accrued Interest
The amount of mortgage interest that has been earned but not yet paid
Acquisition Costs
Costs of acquiring property other than purchase price, for example, attorney fees, title
insurance, and lender's fees
Adjustment Interval
The time between interest rate adjustments of an adjustable rate mortgage (ARM)
Affidavit
a signed, sworn statement by a party regarding the truth or accuracy of information
provided
Arm's Length Transaction
Legal slang meaning that there existed no special relationship between the parties
involved in a transaction which would contaminate the result
Assessed Value
The Value of a property established by a public tax assessor. The assessed value is
used to determine property taxes.
Assignment
The transfer of rights under an existing document such as a mortgage, contract or
lease, to another party.
Assumption Clause
A clause in a loan that permits a buyer to take legal responsibility for the loan from the
seller
Average Prime Offered Rate (APOR)
Average Prime offer Rate (APOR) us a survey-based estimate of Annual Percentage
Rates (APRs) currently offered on prime mortgage loans.
, Regulation B
A federal rule that implements the Equal Credit Opportunity Act (ECOA)
Regulation C
A federal rule that implements the Home Mortgage Disclosure Act (HMDA)
Regulation G
A federal rule that implements the S.A.F.E. Mortgage Licensing Act - Federal
Registration of Residential Mortgage Loan Originators
Regulation H
A federal rule that implements the S.A.F.E. Mortgage Licensing Act - State Compliance
and Bureau Registration System
Regulation N
A federal rule that implements the Mortgage Acts and Practices-Advertising Act (MAP)
Regulation O
A federal rule that implements the Mortgage Assistance Relief Services Act (MARS)
Regulation V
A federal rule that implements the Fair Credit Reporting Act (FCRA)
Regulation X
A federal rule that implements the Real Estate Settlement Procedures Act (RESPA)
Regulation Z
A federal rule that implements the Truth-in-Lending Act (TILA). It requires standard
disclosures of credit costs.
RESPA
Real Estate Settlement Procedures Act - a federal law, administered by HUD, requiring
disclosure of all settlement costs to buyers and sellers in a real estate transaction
involving a one to four family residential property with federally related financing.
Rate Cap
A limit on how much an interest rate may change on an ARM
Rate Term Refinance
To Refinance an existing loan for the amount remaining on that loan - a change of term
or rate - the borrower does not receive any cash
Real Property
Land, all the improvements attached to the land and the rights to use them
Recording Fees
Charges assessed for entering a document into the public records
Redlining
The illegal practice sometimes used by shady lenders and insurance companies to deny
loans and other services to people because of their neighborhood or ethnicity.
Refinancing
Using a new loan to pay off an existing loan - usually to secure the better terms for the
borrower
Back-end ratio or back ratio
The back-end ratio is the percentage of an individual's (or household's) pre-tax, monthly
income that is used to pay monthly debt obligations include the mortgage payment, real
estate taxes, mortgage insurance and all credit account payments, including credit
cards and car loans. the ratio is calculated by adding up the debt obligations and
dividing the sum by the pre-tax monthly income.
