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MLO > All of "C" > Flashcards

All of "C" Flashcards

1
Q

Call Option

A

A contract to buy something at a fixed rate price(a certain price). (The right to require another to sell between a buyer and seller)

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2
Q

Capacity

A

Gross Income X the Debt to Income (DTI) ratio = the Maximum mortgage and debt payments, the borrower can afford.

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3
Q

Cash Flow

A

The movement of cash moving into and out of a business.

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4
Q

Cash Out Refinance

A

When the borrower gets a certain amount when they close their refinance loan. (The amount is used to pay off existing payments and they do whatever with the remaining)

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5
Q

Cashiers Check

A

A check drawn by a bank payable to another person. (Evidence that the payee has authorization from the bank for the amount of money represented by the check)

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6
Q

Certificate of Deposit

A

A bankers certificate explaining the receipt of money and promising to repay the depositor.

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7
Q

Certificate of Eligibility

A

A certificate issued by the Department of Veterans Affair (VA) to certify for the benefits of a VA Loan. (Also known as the Certificate of Entitlement)

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8
Q

Certificate of Occupancy (CO)

A

Describes the legal occupancy limits, and allowable use of a building. (Often required before title can be transferred for new buildings or existing buildings that need a new CO)

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9
Q

Certificate of Reasonable Value (CRV)

A

An appraisal issued by the VA showing the property fair market value.

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10
Q

Certificate of Title

A

Official document that acts as a record of ownership.

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11
Q

Certificate of Veteran Status

A

Given to veterans who have served 90 days of continuous active duty (which allows them to obtain a lower down payments on VA Loans) (Establishes your eligibility for a VA Loan)

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12
Q

Chain of Title

A

The ownership history of a piece of land, from the first owner to the present one.

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13
Q

Change Orders

A

A modification of the original construction plans ordered by the property owner or general contractor.

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14
Q

Clear Title

A

A title free of claims, doubts, or disputes about ownership. (They can arise from liens or encumbrances)

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15
Q

Civil Rights Act (July, 2, 1964)

A

It prohibits discrimination on the basis of race, color, religion, sex, or national origin.

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16
Q

Change Frequency

A

Change of payment or interest rate of an ARM.

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17
Q

Closing/Settlement (A closing is called a settlement)

A

The final transaction between the buyer and seller to settle up the transaction.

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18
Q

Closing Agent

A

An agent who represents the buyer and seller in the negotiation and closing for property transactions. (Handles financial and transfer documents)

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19
Q

Closing Costs

A

Processing fees you pay to your lender when you close on your loan.

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20
Q

Closing Date

A

The date ownership of the property is officially transferred from the seller to the buyer. (A date scheduled for signing)

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21
Q

Closing Statement

A

A document that records the costs of a financial transaction. (By the lender or escrow agent)

22
Q

Cloud On Title

A

A claim that affects the ownership of property. (Can arise from encumbrance, easement, or court order)

23
Q

Co-Borrower

A

A person who shares liability for repaying a loan with another person.

24
Q

Collateral

A

Property that is pledged as security against a debt, such as mortgage. (Security for repayment of a loan)

25
Q

Combined Loan to Value (CLTV)

A

The ratio of all secured loans on a property to the value of a property. ( Current loan balance DIVIDED BY Current appraised value = LTV )

EX. Current loan balance = $140,000
Current appraised value= $200,000

= $140,000 / $200,000 = .07

-convert .70 to a percentage and that gives you a loan-to-value of 70%

26
Q

Commission

A

The fee paid to an agent for a transaction (% of the money received from the transaction)

27
Q

Commitment

A

An offer by a lender to the borrower under conditions. (Includes amount of mortgage, interest rate, repayment terms)

28
Q

Common Areas

A

Arears that tenants may use in their new home/apt. (Hallways, lobby, gyms, etc)

29
Q

Community Property State

A

Spouses are considered joint owners of nearly all assets and debts in marriage.

30
Q

Community Reinvestment Act (1977)

A

Helps meet the credit needs of the communities in which they do business. (Includes low to moderate income neighborhoods, consistent with safe banking. operations)

31
Q

Comparables (Comparable properties)

A

Properties that are similar to the property under construction. (Same size, location, amenities) (Comparables help the appraiser determine the right estimate market value of the new property)

32
Q

Concession

A

A thing that is agreed to or given up in sale negotiations, like in response to a demand.

33
Q

Condition

A

A stipulation in a sales contract. (Something needed to be done for something else to be allowed. )

34
Q

Condominium

A

A building or complex containing a number of individually owned acts or houses.

35
Q

Conforming Loan

A

Mortgages that meet Fannie Mae and Freddie Mac guidelines to be allowed to buy.

36
Q

Construction Mortgage

A

A mortgage used to finance a construction project. (A loan that finances the building of a home specifically)

37
Q

Consumer Credit

A

Credit advanced to consumers for the purchase of goods or services. (Having credit allows consumers to buy goods or assets without having to pay in cash at the time of purchase and repay it)

38
Q

Consumer Financial Protection Bureau (CFPB)

A

An agency that enforces federal consumer financial law and ensures that products in the market are fair. (This was by Dodd-Frank Act in 2010-2011)

39
Q

Consumer Reporting Agency (Credit Bureau)

A

They collect info and provide reports to other companies about you based on your credit. (With a fee)

40
Q

Contingency Clause

A

A clause within the sales contact stating that a certain condition must be met before a contract is legally binding and the sale can close. (When the home is asked to be inspected for damages, or problems)

41
Q

Conventional Mortgage

A

When the borrower gives voluntary lien to the mortgage lender. (Typically used for home financing)

42
Q

Conversion Clause(Known as an Option)

A

A clause within an ARM loan that allows a borrower to switch from an ARM loan to a fixed-rate mortgage. (Usually allowed after the first adjustment period) (Also known as a Convertible ARM)

43
Q

Conveyance

A

The voluntary transfer of property (Transferring property from one owner to another)

44
Q

Cooperative Project

A

A housing project when a corporation holds title to a residential property.

45
Q

Counteroffer

A

A new offer made in response to the old offer. (A late or defective acceptance is considered a counteroffer)

46
Q

Covenants

A

A formal agreement to perform or not perform a specific act.

47
Q

Credit

A

One’s ability to borrow money. (Ability to obtain goods and paying later)

48
Q

Credit History

A

A record of your credit activity.

49
Q

Credit Life Insurance

A

Life insurance on a borrower that covers any remaining debt that a borrower has on a large loan. (If they die it’s paid off)

50
Q

Credit Report

A

A report on your financial status or current credit situation. (Such as your bank accounts, charge accounts, loans, bankruptcies, foreclosures, marital status, income, etc)

51
Q

Credit Score

A

Predicts how likely you are to pay back a loan on time.

52
Q

Creditworthy

A

How a lender determines that you will default on your debt, or how worthy you are to receive new credit.

MLO (15 decks)

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