SAFE MORTGAGE LOAN ORIGINATOR TEST|UPDATED&VERIFIED|100% SOLVED|GUARANTEED SUCCESS

Prequalification an estimate of the loan amt. for which the buyer can qualify based on his income/credit under the lenders standards USDA ratio 29/41 FHA ratio 31/43 Asset based loan -loans based on borrowers equity -bad when lenders fail to consider ability to repay 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% RESPA - Section 8 Nothing of value for referrals - No kickbacks Respa - Esign Act can use electronic signature with permission of borrower 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 Safeguard Rules -company and staff need to protect the consumers identity -lock up files -part of GLB act second mortgage -All money upfront -no escrow as long as first mortgage is paying it Subordination Clause A contract clause that puts a mortgage in the first lien position over an earlier recorded mortgage 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non-financial felony in the past 7 years -financial felony ever -financial misdemeanor (state decides) -License has been revoked in another state -default on a federal student loan Income -Need to years history and 3 more years expected income -do not include sporadic overtime and bonuses -likelihood of continued income 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 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 Fully Indexed Rate Index rate plus Margin The 1003 Contains all Borrower Info (form) Months of bank statements needed 2 months Patriot Act Part of Bank Secrecy Act -Establish policies for identification of borrowers -Check against bad guy list and retention of records Civil Rights Act Cant discriminate based on race or color (Act) 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 HMDA Reg C -Collection of borrower data -Any lender that funds loans must report march 1 -Notifies FFIEC of potential discrimination Consumer Financial Protection Bureau Agency that overseas and implements mortgage consumer laws VA 41 Chapter 7 Bankruptcy Liquidation of assets to cancel debts -person starts fresh Bank Secrecy Act -Anti-money laundering, companies provide annual training -annual audit to review anti money laundering program -any files suspected of fraud reported to suspicious act report website (SAR) Reg N illegal to advertise rates, APR and programs that mislead the consumer Form 1040 Tax return -shows taxable adjustable income Uniform residential loan application FNMA 1003 and FHLMC 65 -may be used in loans that conform to fannie mae and freddie mac criteria as well as non conforming FHA and VA loans Contract Kiting Seller agrees to create a second false purchase price in order to influence the appraiser -higher appraisal - higher loan Self Employed Owns 25% of the business Mortgage disclosure improvement act MDIA - Reg Z (3/7/3) -initial disclosures within 3 days of app -from receipt of initial disclosures must wait 7 days before closing -COC - must wait 3 days to close Mortgage assistance relief Services MARS -protect homeowners from mortgage relief scams -program that helps consumers negotiate modification of loans and their payments