Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

New York Real Estate > Chapter 12 > Flashcards

Chapter 12 Flashcards

(47 cards)

Start Studying
1
Q

Who originates a loan?

A

Mortgage banker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Is a mortgage banker registered or licensed by NYS banking department ?

A

Licensed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Is a mortgage broker registered or licensed by NYS banking department ?

A

Registered

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Who is registered by NYS BAnking department?

A

Mortgage broker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Who is licensed by New York State banking department?

A

Mortgage banker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Who brings borrowers and lenders together for free?

A

Mortgage brokers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What do mortgage brokers do?

A

Being borrowers and lenders together for a fee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Refers to a pending loan in which a mortgage broker believes that, based on preliminary interview and a credit report, the borrowers will PROBABLY be able to meet loan requirements of lender

A

Pre qualification lender

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is a pre qualification letter?

A

Mortgage broker believes that based on a preliminary interview and credit report, borrowers will probably be able to meet a lenders loan requirements

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is a Pre approval letter ?

A

Documents are on file and there is a strong probability that there are no credit or income versus stopping a loan from closing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

What is the difference between a preapproval letter and a prequalification letter?

A

Pre approval says there is a STRONG PROBABILITY that there’s no issue stopping a loan from closing

Prequalification says there is a PRELIMINARY interview and loan will PROBABLY be able to meet loan requirement

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Which is better: pre qualification letter or pre approval letter

A

Pre approval letter is better

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

What is underwriting?

A

Lender evaluates a prospective borrowers location through verification of employment, financial information, analysis of credit, and appraisal reports

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the four evaluations in underwriting?

A
  • verification of employment
  • financial information
  • analysis of credit
  • appraisal reports
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Who evaluates what in underwriting?

A

The lender evaluates a prospective borrowers application

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Who issues a mortgage commitment ?

A

An underwriter ( underwriting)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Lender issuing a loan commitment letter to the borrower to demonstrate willingness to fund the loan is known as what letter?

A

Mortgage commitment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What is a mortgage commitment letter?

A

Lender issuing a loan commitment letter to the borrower

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What step is after a mortgage commitment?

20
Q

What comes after a pre qualification or pre approval letter?

Study These Flashcards
A

You can start showing buyers around for properties and then the underwriter comes in once you have a meeting of the minds

21
Q

The ability to place, negotiate, solicit, and process residential or commercial mortgage loans describes
A. A mortgage banker
B. A mortgage broker
C. Residential sharing agent
D. Residential vendor information agent 

Study These Flashcards
A

A mortgage broker

22
Q

Unlike a mortgage broker, a mortgage banker
A. Originate loans
B. Negotiates loans
C. Guarantees loans
D. Insures loans 

Study These Flashcards
A

Originates loans

23
Q

Lenders willingness to fund a loan is known as
A. Preapproval
B. Promise to close
C. A loan guarantee
D. A mortgage commitment 

Study These Flashcards
A

A mortgage commitment

24
Q

Which is a qualification for mortgage banker licensing?
A. Five years of residency in New York
B. Five years experience as a real estate sales person
C.  net worth of no less than $250,000

Study These Flashcards
A

C, net worth no less than $250,000

25
How many years of previous tax returns do lenders require of loan applicants when underwriting loans? A. 1 B. 2 C. 3 D. 4
2
26
A mortgage broker determines a prospective borrowers credit worthiness and ability to repay a loan in a process called
Pre approval
27
When a mortgage broker is also a real estate licensee, the potential for what exists?
Dual agency
28
If you find yourself in a dual agency as both a mortgage broker and a real estate licensee then what should you present the buyer with?
Mortgage broker dual agency disclosure form
29
Do you mortgage bankers or mortgage brokers utilize their own funds?
Mortgage BANKERS
30
Who utilizes their own funds, generally comprised of borrowed funds, two originate loans?
Bankers
31
How do you qualify as a mortgage banker (2)? 
A net worth no less than $250,000 An open line of credit of no less than $1 million provided by an insurance company or institutional bank
32
What are these two qualifications for? A net worth no less than $250,000 An open line of credit of no less than $1 million provided by an insurance company or institutional bank
To be a mortgage banker
33
What are the two categories of loan financing?
Debt financing Equity financing
34
Which of the two loan financing categories is most common for borrowed funds?
Debt financing
35
What? + the borrowers down payment (initial investment) = The purchase price required by the sale
The debt placed on the property
36
Debt on property + borrowers down payment = ?
The purchase price required by the sale
37
Borrowed funds in debt financing = ?
Loan amount
38
Borrower funds in debt financing = ?
down payment
39
In equity financing (mezzanine financing), When borrowing occurs on real property, the lender will originate the loan amount as either blank or blank?
Either the purchase price or the appraised value, WHICHEVER IS LESS
40
What is the purpose and role of the mortgage broker and a real estate transaction?
To obtain a mortgage commitment
41
What is a mortgage commitment?
I lender issues a loan commitment letter to the borrower to demonstrate willingness to fund the loan
42
 Who assists the borrower and accumulating the necessary paperwork for the lender to underwrite alone?
A mortgage broker
43
What is underwriting?
The evaluation process of verifying all borrower information necessary for the lender to issue a mortgage commitment
44
How many years of previous tax returns does a lender require for paperwork to underwrite a loan?
2 years
45
If I am a lender doing paperwork to underwrite a loan and I already included two years of previous tax returns or entity borrowing the money, then what else do I need?
A personal financial statement indicating the borrowers net worth, listing assets, and liabilities
46
In order for the borrower to certify the rent/income to a property, the lender may require what certificate from the tenant?
Estoppel certificate
47
Is a mortgage banker a mortgage broker REGULATED by the NYS banking department? 
In reality, it would be both

New York Real Estate (20 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions