GMK Flashcards
1
Q
Mortgagee
A
Lender
2
Q
Mortgagor
A
Borrower
3
Q
COE
A
Certificate of Eligibity for VA loans
4
Q
YSP
A
Yield Spread Premium- Profit broker makes when selling loans above par
5
Q
SRP
A
Service Release Premium- Profit the lender makes when selling the loan on the secondary market
6
Q
GPM
A
Graduated Payment Mortgage aka 2/1 buy down
7
Q
HECM
A
Home Equity Conversion Mortgage AKA Reverse mortgage
8
Q
VOE
A
Verification of employment
9
Q
VOM
A
Verification of Mortgage
10
Q
VOD
A
Verification of Deposit
11
Q
VVOE
A
Verbal Verification of Employment
12
Q
DD214
A
Discharge papers showing snapshot of military tenure
13
Q
CRV
A
Certificate or Reasonable Value (appraisal for VA loan)
14
Q
NOV
A
Notice of Value (appraisal for VA loan)
15
Q
AE
A
Automated Endorser- AUS for VA loan
16
Q
AUS
A
Automatic Underwriting System
17
Q
LTV
A
Loan to Value (Loan amount divided by Value of Property)
18
Q
DTI
A
Debt to Income, (Monthly housing expenses divided by Gross Monthly Income
19
Q
DTI for VA Loan
A
41%/41%
20
Q
VA funding fee for regular military
A
2.15% for first time 3.3% for subsequent use
21
Q
VA funding fee for Reserves or National Guard
A
2.4% for first time 3.3% for subsequent use
22
Q
DTI of USDA loan
A
29%/41%
23
Q
PITIA
A
Principle, Interest, Taxes, Insurance, Association
24
Q
What are the Flood Insurance Types?
A
Zone A and Zone V
25
CRA
Consumer Reporting Agencies
26
What are the three CRA?
Equifax, Transunion, Experian
27
GSE
Government Sponsored Enterprise
28
FNMA
Federal National Mortgage Association (Fannie Mae)
29
FHLMC
Federal Home Loan Mortage Corporation (Freddie Mac
30
GNMA
Government National Mortgage Association (Ginnie Mae)
31
Non-Conventional Loans
FHA, VA, USDA
32
Types of Conventional Loans
Conforming and Non-Conforming
33
Conforming Loans
Fannie and Freddie
34
Non-Conforming Loan
Jumbo, Subprime, Alt-A
35
Standard Loan Limit
$484,350
36
High Balance Loan Limit
$726,525
37
Jumbo Loan Limit
$726,526 - $2,000,000
38
TLTV
Total Loan to Valve
39
HLTV
High Balance Loan to Value (synonymous with TLTV)
40
DTI of Conforming Conventional Loan
28%/36%
41
DTI of FHA Loan
31%/43%
42
HELOC
Home Equity Line of Credit
43
HEL
Home Equity Loan
44
Piggy Back Loan
80/20 or 80/10/10 2nd lien to avoid PMI
45
Rate and Term Refinance
When the borrower wants to change either the interest rate or length of term of existing mortgage
46
Cash Out Refinance
When the borrower is looking to convert some of the equity in the home into cash. Increase LTV
47
Front End DTI
PITIA divided by Gross Monthly Income
48
Back End DTI
PITIA + Non-Cancellable Debt divided by Gross Monthly Income
49
Mortgage Lenders and Banks...
Lend own money
50
Mortgage brokers...
Arrange loans they lend against other banks money
51
Mortgage servicer...
Collect mortgage payments
52
MLO
Mortgage Loan Originator; Takes application, negotiate rates and fees for compensation
53
Processor and Underwriters
Perform Clerical and Support Duties
54
Processors can...
Can discuss loan conditions and ask for documentation
55
Underwriters can...
Make the decision on the loan (Approve of Deny); Assess the risk of the application
56
Rental/Vacation loans must have...
Minimum 85% LTV and 6 months reserve PITIA
57
What is the MAX LTV for cash out on a Conforming Conventional Loan?
80%
58
What is a mortgage?
A mortgage is a written instrument using real property to secure repayment of a debt
59
Mortgage lending is based on what factors
Credit Based Lending and Layered Risk (LLPA)
60
What is a Hard pull and Soft Pull?
Hard pull is a credit check from all 3 credit bureau;
| Soft pull is a credit check from 1 credit bureau
61
What are the 4 C's?
Credit, Collateral, Capacity, Capital
62
What are conforming loans?
Fannie and Freddie
63
What are conventional loans?
Fannie and Freddie
64
What are non-conforming loans?
Jumbo, Subprime, Alt-A
65
What are non-Conventional loans?
FHA, VA, USDA
66
What is a traditional loan?
30 year FIXED
67
What is the standard loan limit?
$484,350
68
What is a High Balance loan limit?
$726,525 (150%)
69
What are the different occupancy type?
Owner Occupied, Second Home, Investment property/Non-Owner Occupied
70
What are loan transaction types?
Purchase, Rate and Term, Cash Out Refinance, and Streamline(FHA)/ IRRRL (VA)
71
What is an escrow?
Impound account for Realestate taxes and insurance premiums
72
NMLS/R
Nationwide Mortgage Licensing System and Registry
73
SRR
State Regulatory Registry
74
CSBS
Conference of State Bank Supervisors
75
AARMR
American Association of Residential Mortgage Regulators
76
"Person"
an individual, corporation, business trust, estate, LLC, ETC.
77
"Individual"
a natural person
78
ABA
Affiliated Business Arrangement
79
ABA
Affiliated Business Arrangement
80
MSDS
Mortgage Servicing Disclosure Statement
81
ISDS
Initial Servicing Disclosure Statement
82
PENCIL
```
P.roperty address
E.stimated value of property
N.ame of Borrower
C.redit or SSN#
I.ncome
L.oan amount
```
83
ABC
Agriculture, Business, and Commercial
84
Finance Charge Rate
APR
85
What is an encumbrance?
A claim against real property that is held by someone who is not the legal owner
86
What is a voluntary financial encumbrance?
Mortgage, HELOC,HEL, Bridge
87
What is an involuntary financial encumbrance?
Tax lien , HOA, Mechanic’s Lien
88
What is a physical encumbrance?
Easements (ex. Telephone Pole, fire hydrant)
Public or private restrictions (ex. driveway, sidewalk, stairway
Encroachment (ex. fence, tree, shed)
89
What are the different appraisal approaches?
C.S.I.
| Cost Approach, Sales Approach, Income Approach
90
What is a sales approach appraisal?
Appraising based on similar local home sales in area, 3 within 1 mile SOLD in last 12 months
91
What adjustments can be made on a sales approach appraisal?
10% per line item
15% net adjustment
25% gross adjustment
92
What is a promissory note?
The promise to repay the loan, mortgage, deed of trust
93
What is Reconveyance?
When the borrower pay off their mortgage and the lien is released. Clear title is be re-conveyed back to the borrower
94
What is Conveyance?
when your transfer ownership from one party to another (ex. when you sell your property)
95
What is Hypothecation?
Giving up ownership without giving up possession
96
What is Loan Modification?
Permanent change in the terms of a loan
97
What is Forbearance?
Temporary agreement where the borrower pays a reduced amount while also not paying past due amount (interest does accrue)
98
What is a Late Payment Clause?
Most lenders allow up to a 15 day “grace” period
99
What is a Due on Sale Clause?
If you sell the home, Then you must payoff the outstanding balance AKA Alienation Clause
100
What is Acceleration Clause?
Gives the lender the ability to accelerate the loan (pay in full) if the borrower defaults on the loan
