Q/R Flashcards
QUALIFIED MORTGAGE (QM)
A closed-end mortgage loan secured by a dwelling that meets certain specific underwriting requirements set forth by law under the Qualified Mortgage Rule (QM Rule). There are several different categories of qualified mortgages under the rules, and each category has specific eligibility requirements for creditors and borrowers.
QUITCLAIM DEED
A deed that transfers ownership without any guarantees or warranties. It is used to remove any clouds on a title (for instance, due to unreleased mortgages). Quitclaims are also commonly used in cases of mortgage fraud, such as property flipping.
RATE LOCK
A lender’s guarantee that the interest rate quoted will be good for a specific number of days from the date on which the lock is applied.
REAL ESTATE AGENT
A person licensed to negotiate and transact the sale of real estate on behalf of the property owner.
REAL PROPERTY
Land and any property directly attached to the land.
REBUTTABLE PRESUMPTION OF COMPLIANCE
A presumption of compliance which may be rebutted or challenged by the consumer.
RECASTING
A process used by lenders to adjust mortgage payments. Usually used in the case of option ARMs and other nontraditional mortgage products where negative amortization has occurred.
RECONVEYANCE
A clause in a deed of trust that conveys title to a borrower once the loan is paid in full. This concept also applies to reconveyance contracts where homeowners have the option to repurchase their home pursuant to foreclosure assistance.
RECORDING FEES
Fees charged by a local recorder’s office for recording a mortgage or deed of trust, thereby making it part of the public record.
REDLINING
The practice of refusing to extend credit in certain geographical areas based on discriminatory factors.
RESCISSION
The cancellation of a contract. With respect to mortgage refinancing, the Truth-in-Lending Act gives some homeowners three days after closing to exercise their right to rescind a refinance contract.
REVERSE MORTGAGE
A form of mortgage in which the lender makes scheduled periodic payments to the borrower using the borrower’s equity in the home as security for the loan. Repayment is deferred until the occurrence of certain specified events, such as the death of the last surviving borrower or the sale of the home.
REVERSE REDLINING
The predatory lending practice of targeting certain areas populated by subprime borrowers, or other borrowers with inadequate experience or ability to understand loan terms and conditions, and engaging those borrowers in unlawful loan transactions.
RESPA
-Protect consumers from excessive settlement costs and unearned fees
-Limit the amount of funds that creditors can require consumers to deposit into escrow
accounts
-Establish disclosures, policies, and procedures to facilitate timely communications
between loan servicers and consumers
RESPA REGULATIONS
REG. X
