SAFE Mortgage Loan Originator Test
Study online at https://quizlet.com/_i3o4cb
1. Prequalification: an estimate of the loan amt. for which the buyer can qualify based on his income/credit
under the lenders standards
2. USDA ratio: 29/41
3. FHA ratio: 31/43
4. Asset based loan: -loans based on borrowers equity
-bad when lenders fail to consider ability to repay
5. High Cost Loan: Reg Z - Sec. 1026.32
-APR will exceed by more than 6.5% for first lien loans or by more than 8.5% for subordinate
-APOR - average prime offer rate
1. 5%
2. 6.5%
3. 8.5%
6. RESPA - Section 8: Nothing of value for referrals - No kickbacks
7. Respa - Esign Act: can use electronic signature with permission of borrower
8. Gramm Leach Bliley: -borrower notification must state who company shares info with
-consumers can opt-out of info sharing (send notice to consumer)
-Protects from phishing
-Safeguard Rules
9. Safeguard Rules: -company and staff need to protect the consumers identity
-lock up files
-part of GLB act
10. second mortgage: -All money upfront
-no escrow as long as first mortgage is paying it
11. Subordination Clause: A contract clause that puts a mortgage in the first lien position over an earlier
recorded mortgage
12. Denial Of License: -any non-financial felony in the past 7 years
-financial felony ever
-financial misdemeanor (state decides)
-License has been revoked in another state
-default on a federal student loan
1/8
, SAFE Mortgage Loan Originator Test
Study online at https://quizlet.com/_i3o4cb
13. Income: -Need to years history and 3 more years expected income
-do not include sporadic overtime and bonuses
-likelihood of continued income
14. TILA - Respa Integrated Disclosure: -TRID
-LE must be disclosed within 3 business days
-cannot require documentation from borrower without "intent to proceed"
-Appraisal is considered 0% tolerance
15. Do Not Call: -$16,000 fine
-Area code report cant be over 30 days old
-allowed to call closed, declined and cancelled loans 18 months after the fact
-can call 90 days after inquiry or pre-qual
-someone says do not call - cant call, email, fax anything
-call between 8-9
16. Fully Indexed Rate: Index rate plus Margin
17. The 1003: Contains all Borrower Info (form)
18. Months of bank statements needed: 2 months
19. Patriot Act: Part of Bank Secrecy Act
-Establish policies for identification of borrowers
-Check against bad guy list and retention of records
20. Civil Rights Act: Cant discriminate based on race or color (Act)
21. High Priced Loans: Reg Z - 1026.35
-1.5% or more on first lien
-3.5% subordinate liens
- 0% trigger fee, 1.5% first mortgage, 3.5% second
22. HMDA: Reg C
-Collection of borrower data
-Any lender that funds loans must report march 1
-Notifies FFIEC of potential discrimination
23. Consumer Financial Protection Bureau: Agency that overseas and implements mortgage con-
sumer laws
24. VA: 41
2/8
Study online at https://quizlet.com/_i3o4cb
1. Prequalification: an estimate of the loan amt. for which the buyer can qualify based on his income/credit
under the lenders standards
2. USDA ratio: 29/41
3. FHA ratio: 31/43
4. Asset based loan: -loans based on borrowers equity
-bad when lenders fail to consider ability to repay
5. High Cost Loan: Reg Z - Sec. 1026.32
-APR will exceed by more than 6.5% for first lien loans or by more than 8.5% for subordinate
-APOR - average prime offer rate
1. 5%
2. 6.5%
3. 8.5%
6. RESPA - Section 8: Nothing of value for referrals - No kickbacks
7. Respa - Esign Act: can use electronic signature with permission of borrower
8. Gramm Leach Bliley: -borrower notification must state who company shares info with
-consumers can opt-out of info sharing (send notice to consumer)
-Protects from phishing
-Safeguard Rules
9. Safeguard Rules: -company and staff need to protect the consumers identity
-lock up files
-part of GLB act
10. second mortgage: -All money upfront
-no escrow as long as first mortgage is paying it
11. Subordination Clause: A contract clause that puts a mortgage in the first lien position over an earlier
recorded mortgage
12. Denial Of License: -any non-financial felony in the past 7 years
-financial felony ever
-financial misdemeanor (state decides)
-License has been revoked in another state
-default on a federal student loan
1/8
, SAFE Mortgage Loan Originator Test
Study online at https://quizlet.com/_i3o4cb
13. Income: -Need to years history and 3 more years expected income
-do not include sporadic overtime and bonuses
-likelihood of continued income
14. TILA - Respa Integrated Disclosure: -TRID
-LE must be disclosed within 3 business days
-cannot require documentation from borrower without "intent to proceed"
-Appraisal is considered 0% tolerance
15. Do Not Call: -$16,000 fine
-Area code report cant be over 30 days old
-allowed to call closed, declined and cancelled loans 18 months after the fact
-can call 90 days after inquiry or pre-qual
-someone says do not call - cant call, email, fax anything
-call between 8-9
16. Fully Indexed Rate: Index rate plus Margin
17. The 1003: Contains all Borrower Info (form)
18. Months of bank statements needed: 2 months
19. Patriot Act: Part of Bank Secrecy Act
-Establish policies for identification of borrowers
-Check against bad guy list and retention of records
20. Civil Rights Act: Cant discriminate based on race or color (Act)
21. High Priced Loans: Reg Z - 1026.35
-1.5% or more on first lien
-3.5% subordinate liens
- 0% trigger fee, 1.5% first mortgage, 3.5% second
22. HMDA: Reg C
-Collection of borrower data
-Any lender that funds loans must report march 1
-Notifies FFIEC of potential discrimination
23. Consumer Financial Protection Bureau: Agency that overseas and implements mortgage con-
sumer laws
24. VA: 41
2/8
