Definitions

Question 1

close loans in their own name using their own funds

Answer 1

Mortgage Banker

Question 2

facilitate loan origination for financial institutions for a fee
Commercial Banks

Answer 2

Mortgage Broker

Question 3

Government-Sponsored Enterprise (GSE)

Largest mortgage investor

Answer 3

Fannie Mae (FNMA)

Question 4

Part of Department of Housing and Urban Development (HUD)

Does not purchase or sell loans

Answer 4

Ginnie Mae (GNMA)

Question 5

2nd largest GSE created to provide a secondary market for mortgages from S&L
associations.

Answer 5

Freddie Mac (FHLMC)

Question 6

LAWS REGULATED BY THE CFPB

Answer 6

CFPB NO HVXY (HMDA, FAIR DEBT, PRIVACY, ECOA, MAP, MARS, SAFE, FCRA, RESPA, TILA)

Question 7

Rate that is used to amortize the mortgage loan and determine the monthly loan payments

Answer 7

Note Rate

Question 8

The receiver of the deed

Answer 8

Grantee

Question 9

A measurement of the total cost of the credit, expressed as an annual rate.

Answer 9

APR

Question 10

Assess the adequacy of collateral for a mortgage transaction

Answer 10

Property Appraisal

Question 11

the process of releasing a lien on a property

Answer 11

Reconveyance

Question 12

A document that conveys ownership of real property from the grantor to the grantee

Answer 12

A deed

Question 13

Covers boundary disputes, previous owners judgement liens/and or mortgage

Answer 13

Owner title policy

Question 14

A fixture, such as a fence, that crosses the boundary line of ones property onto another

Answer 14

Encroachment

Question 15

A document that evidences the borrower’s obligation to repay the debt to the lender.

Answer 15

Promissory Note

Question 16

Pledging of property as collateral for a loan

Answer 16

Hypothecation

Question 17

The accounting method used to determine the adequacy of the funds held in an escrow account

Answer 17

Escrow Analysis

Question 18

Individual responsible for reviewing an application (often in conjunction with findings from an automated underwriting system) and issuing a credit decision

Answer 18

Underwriter

Question 19

A loan in which the borrower represents too high of risk for it to be sold to Fannie and Freddie

Answer 19

Subprime loan

Question 20

Any mortgage or other lien that has priority lower than that of the first mortgage. Such a lien is also referred to as a junior lien

Answer 20

Subordinate Lien

Question 21

The pooling of multiple loans into single investment vehicles

Answer 21

Securization

Question 22

Firm or individual that, for a commission, matches borrowers and lenders. Does not retain servicing, or use own funds

Answer 22

Mortgage Broker

Question 23

Formal right to use real property without ownership or possession.

Answer 23

Easement

Question 24

Method of identifying illegal discrimination., 2 groups treated differently based on protected class

Answer 24

Disparate treatment

Question 25

Method of identifying discrimination through statistical analysis

Answer 25

Disparate Impact

Question 26

Compensates a borrower for closing a loan at interest rate above the par rate

Answer 26

Yield Spread Premium

Question 27

A claim or liability on the title to a property, such as a lien or a mortgage.

Answer 27

Encumbrances

Question 28

The transfer of ownership of real estate from one owner to another

Answer 28

Conveyance

Question 29

An arrangement by which the borrower actually conveys title to the secured property to a 3rd party trustee for the life of the loan.

Answer 29

Deed of Trust

Question 30

A portion of a lending agreement that requires the lender to execute a release of a lien or satisfaction of mortgage document upon full repayment of the debt.

Answer 30

Defeasance Clause

Question 31

Funds used by the lender to pay the property tax bill and hazard insurance premiums

Answer 31

Escrow Payments

Question 32

A type of insurance coverage that protects against defects in title that were not listed in a title report

Answer 32

Title Insurance

Question 33

A document typically prepared by an attorney setting forth the condition of title

Answer 33

Title Report