2.2 Flashcards
(25 cards)
The _______ is primarily responsible for finding borrowers.
loan originator
A _____ prepares the closing documents and transfer the funds from the lender to the seller or borrower.
closer
________ broker loans through the wholesale departments of lenders.
Mortgage brokers
The lender funds the loan at _________.
closing
_______ banks obtain deposits in savings and checking accounts, then loan a portion of the money to borrowers.
Commercial
Mortgage loans are resold on the ________.
secondary mortgage market
Loan originators are primarily responsible for finding _________.
borrowers
The _______ begins the loan process.
originator
The ______ (YSP) is a fee that is paid by the wholesale lender/investor to a mortgage broker for originating the loan, and the amount depends on the interest rate the borrower is paying.
yield spread premium
Some loan originators refer to the par rate as the ______ rate.
wholesale
The higher the interest rate above par(the interest rate at which there is no yield spread premium earned), the ______ the YSP.
greater
Either the _____ or the pre-approval interview is usually a borrower’s first contact with a loan originator.
pre-qualification
______ usually means that the borrower has formally or informally stated his/her income and debts, and the loan originator has calculated their loan limit by using Debt-to-Income (DTI) ratios.
Pre-Qualified
______ usually means all the requirements for pre-qualifying are met, and that the borrower has furnished income and asset documentation.
Pre-Approval
A pre-approval would require at least a _______ report, and possibly verifications of income and assets.
credit
_____ bankruptcy involves a liquidation process.
Chapter 7
In ______ bankruptcy the debtors usually keeps all of their property, but makes regular payments on their debts out of the money they earn after filing for bankruptcy.
Chapter 13
When additional information or documents are required by the underwriter, these requests are commonly known as “conditions” or _______.
stips (stipulations)
The ______ closer is a person who prepares the promissory note and other loan documents and arranges for the funds to arrive at the closing of the loan.
lender’s
True or False:
Ginnie Mae buys and sells loans and issues mortgage-backed securities (MBS).
False
The ____ prepares a balance sheet known as the HUD-1 or Settlement Statement form, showing funds credited and debited to the buyers and sellers.
closer
The _____ closer prepares the deed and bill of sale for personal property.
seller’s
The Federal National Mortgage Association (FNMA) is most commonly known as _______.
Fannie Mae
The Federal Home Loan Mortgage Corporation (FHLMC) is most commonly known as _______.
Freddie Mac
