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NC Real Estate License > Unit 9: Government Loan Programs and Fair Housing > Flashcards

Unit 9: Government Loan Programs and Fair Housing Flashcards

0
Q

Federal Housing Administration

A
  • Provides it’s own mortgage default insurance.
  • mortgage insurance premium (MIP) =insures entire loan balance and paid by borrower. May be paid monthly.
  • finances 1-4 family residences
  • interest rates set by lenders
  • must be owner occupied
  • no prepayment penalty
  • loans are always assumable (w/ lender approval)
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1
Q

Private Mortgage Insurance (PMI)

A

Covers lenders risk when loaning above 80%

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2
Q

Veterans Administration (VA) guaranteed loan program

A
  • guarantees lenders against losses on loans to eligible veterans
  • no pre payment penalty
  • veteran must occupy home
  • can finance 100%- will lend 4x entitlement
  • property must meet minimum construction standards
  • loans are assumable
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3
Q

2 certificates that VA loans require

A

Certificate of eligibility

Certificate of reasonable value (CRV) - appraisal

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4
Q

Federal reserve

A

Regulates supply of money and interest rates in US

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5
Q

Mortgage Markets

A

Primary: where Loans are originated

Secondary: where loans are bought and sold

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6
Q

FNMA (Fannie Mae)

Federal National Mortgage Assoc

A

Gov owned

Buys all types of mortgages

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7
Q

GNMA (Governmental National Mortgage Association)- Ginnie Mae

A

Agency within HUD

FHA and VA mortgages pass thru the secondary marker

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8
Q

FHLMC (federal home loan mortgage corporation) -Freddie Mac

A

Government owned

Mainly buys conventional mortgages from savings and loan associations and commercial banks , but can purchase all types

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9
Q

Conforming loan

A

Meets standards of Fannie Mae and Ginnie Mae and can be readily fold on secondary market

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10
Q

Non Conforming Loan

A

Jumbo loan, larger then Fannie Mae standards. More difficult to sell on secondary market

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11
Q

Subprime Loans

A

Higher rate charged bc borrower is a higher risk

  • flexible rate loans
  • higher fees charged by mortgage brokers
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12
Q

Predatory lending

A

Unfair or illegal lending

Targeted elderly, minorities, less educated.

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13
Q

Truth in Lending Act

A

Primate informed use of consumer credit by requiring advanced disclosure of loan terms and conditions

Requires 3 day right of rescission

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14
Q

Four primary disclosures of lenders

A

1) APR
2) Finance charges
3) Total number and amount of all payments
4) Total amount financed

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15
Q

APR

A

Aldo known as effective rate

Expresses relationship of total finance charge and interest to amount financed

16
Q

Advertising requirements

A

Asking price and APR are the only specific finance terms allowed in an advertisement w/o triggering full disclosure requirement

General statements (low down payment, property taxes, or HOA dues) ok

17
Q

RESPA vs a Truth in Lending

A

RESPA =All costs

Truth in Lending= Lender costs

18
Q

Fair Credit Reporting Act

A

Sets standards on how credit bureaus handle consumer credit inf

19
Q

Civil rights act of 1866

A

Prohibits discrimination in sales or rental of all property

20
Q

Federal Fair Housing Act/Civil Rights Act of 1968

A

Protected classifications in the sale and rental of residential property

F -familial status 
R -race 
E -(equal)
S -sex
H -Handicap

C -color
O -(opportunity)
R -religion
N -national origin

21
Q

Steering

A

Channeling potential buyers to or away from particular areas as a means of discrimination

22
Q

Blockbusting

A

Also called panic peddling. Suggesting owners should sell bc a particular ethnic background has moved in

23
Q

Redlining

A

Refusing to offer or limiting loan ps in certain areas bc of crime rate or ethnic backgrounds of residents

24
Q

Disability (per FHA and ADA)

A

An impairment that substantially limits one or more of a person’s major life activities

Landlords must allow disabled tenants to make changes to units at tenants own cost

25
Q

Stigmatized Property

A

Deemed undesirable bc of activities that I cured there (suicide, murder, gang activity,HIV) etc

26
Q

NC does not require disclosure of

A

1) death or crimes
2) haunted house
3) sexual offender in neighborhood
4) mold
5) AIDS

27
Q

Megan’s Law

A

Requires registration of sex offenders

28
Q

Equal Credit Opportunity Act (ECOA)

A

Makes consumer credit available w/ fairness and impartiality

Protected Classes:
Race, color, religion, national origin, sex, marital status, age

29
Q

Americans with Disabilities Act

A

Intended to ensure equal a fess to public accommodations for disabled persons

30
Q

Requires 3 day right of rescission for buyer

A

Home improvement loan

Home equity loan

NC Real Estate License (12 decks)

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