Chapter 1 Vocab Flashcards
(18 cards)
Consumer financial protection bureau
CFPB
Regulates all consumer loans and enforces the Truth in Lending Act
Discount rate
Rate charged by Feds to a bank for a direct loan. Usually higher then the fed fund rate
Disruptive technology
Displaced established methods of doing business. Renders traditional businesses obsolete forcing them to reform
Federal fund rates
- Usually overnight loans
- Rate set by the feds for member banks to borrow from other member banks reserves
Federal open market committee
FOMC
carries out open market operations
Federal reserve bank board
7 members appointed by the president and confirmed by the senate. 14 year term
Federal reserve system
7 board of governors
12 regional reserve banks
Many member institutions
330 million America public
Fin tech
Financial technology. Like Apple Pay and google pay
Fiscal policy
Government controlling the amount of taxes and expenses which make up the budget
MLO unique identifier numbers
Mortgage Loan Originator
- takes a residential mortgage application
- offers or negotiates terms for a residential mortgage loan for compensation
Number is
Used to trace all real estate loans
Monetary policy
How the government controls and directs the money supply
National Mortgage Licensing System and Registry
NMLS
licenses and supervises MLOs
Open Market Operations
OMO
Buying and selling government bonds
Puts money into or takes money out of circulation
Prime rate
Interest banks charge its most creditworthy borrowers for short term loans
Reserve requirements
Percentage of total cash a bank must keep aside as a financial safe guard
SAFE mortgage licensing Act
The secure and fair enforcement for mortgage licensing act
Requires all persons in all states be licensed or registered as a MLO
Troubled assets relief program
TARP
government bailout
Truth in lending Act
TILA
requires lenders to inform borrowers of the total cost of obtaining a loan. Also know as reg Z
