Agencies

Question 1

Mortgage Lender

Answer 1

A person or company that makes loans for real estate financing. also referred to as mortgagee or mortgage banker.

Question 2

Nationwide Multistate Licensing System and Registry (NMLS)

Answer 2

A licensing system that is maintained by the Conference of State Bank Supervisors (CSBS) and the American Association of Residential Mortgage Regulators (AARMR) for the licensing and registration of loan originators.

Question 3

Amendment

Answer 3

A correction or alteration proposed or affected by this process.

Question 4

Prohibited

Answer 4

Not allowed.

Question 5

Surety Bond

Answer 5

This is an account set up with a third party that acts much like an insurance policy. Many states require mortgage loan originators to get one of these to protect them and the consumer, in case of a lawsuit.

Question 6

Unique Identifier

Answer 6

A permanent identification number of the NMLS assigns to loan originators.

Question 7

Real Property

Answer 7

Any property attached directly to land as well as the land itself. Also referred to as real estate, realty or immovable property, it includes any subset of land that has been improved through legal human actions, such as buildings, bonds, canals, roads and machinery.

Question 8

Fraud

Answer 8

An intentionally deceptive action designed to provide the perpetrator with an unlawful gain, or to deny a right to a victim. A fraudulent activity can be carried out by one individual, multiple individuals or a business firm as a whole.

Question 9

Residential Mortgage Loan

Answer 9

Any loan used primarily for personal, family or household use that is secured by a mortgage, deed of trust, or other consensual interest in a dwelling.

Question 10

Public Record Information

Answer 10

Court records of events that are a mater of public interest, such as credit, bankruptcy, foreclosure, and tax liens. Creditors typically regard the presence of public record information on a credit report negatively.

Question 11

The U.S. Department of Housing and Urban Development (HUD)

Answer 11

Established in 1965, HUD works to create a decent home and suitable living environment for all Americans. It does this by addressing housing needs, improving and developing American communities, and enforcing fair housing laws.

Question 12

Fair Housing Act

Answer 12

A law that prohibits discrimination in all facets of the sale, rental and financing of a dwelling on the basis of race, color, national origin, religion, sex, familial status, or disability. It is formally known as the Title VII of the Civil Rights Act of 1968.

Question 13

Government Sponsored Enterprises (GSE)

Answer 13

A collection of financial services corporations, either privately held or publicly traded, formed by the United States Congress to benefit the US economy by reducing interest rates for homeowners. Examples include Fannie Mae, Freddie Mac, and Ginnie Mae.

Question 14

Conventional Loan

Answer 14

A loan that does not exceed Fannie Mae’s and Freddie Mac’s loan limits and guidelines. Fannie Mae and Freddie Mc loans are referred to as conforming loans

Question 15

Affiliate

Answer 15

A type of inter-company relationship in which one of the companies own less than a majority of the other company’s stock. Affiliation can also describe a type of inter-company relationship in which at least two different companies are subsidiaries of a large company.

Question 16

Cease and Desist

Answer 16

An order given by a government administrative agency or the courts to stop any suspicious or illegal activities and to not start again. It places an injunction on a company or person, prohibiting the activities that are deemed suspect. For corporations or financial institutions, a cease and desist order may be issued to prevent risky banking practices or the sale of fraudulent securities.