Unit 9: Government Loan Programs and Fair Housing Flashcards

(31 cards)

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
Disability (per FHA and ADA)
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
Stigmatized Property
Deemed undesirable bc of activities that I cured there (suicide, murder, gang activity,HIV) etc
26
NC does not require disclosure of
1) death or crimes 2) haunted house 3) sexual offender in neighborhood 4) mold 5) AIDS
27
Megan's Law
Requires registration of sex offenders
28
Equal Credit Opportunity Act (ECOA)
Makes consumer credit available w/ fairness and impartiality Protected Classes: Race, color, religion, national origin, sex, marital status, age
29
Americans with Disabilities Act
Intended to ensure equal a fess to public accommodations for disabled persons
30
Requires 3 day right of rescission for buyer
Home improvement loan Home equity loan