Last Minute Deck Flashcards
(33 cards)
What are the different forms and what are they for?
- 1003 - URLA - Loan Application
- 1004 - URAR Appraisal - Form 442
- 1005 - VOE Payroll - Paystubs
- 1006 - VOD Bank Balance - Bank Statements
- 1007 - SFR Rent Schedule
- 1008 - Transmittal Summary - Sent to UW
- 1009 - Reverse Mortgage
What are the different sections of the 1003 URLA?
- Section 2: Purpose of the Loan - Property Info
- Section 3: Borrower Information
- Section 4: Employment
- Section 5: Monthly Income/Housing Expense
- Section 6: Assets and Liabilities
- Section 7: Details of Transaction
- Section 8: Declarations
- Section 9: Acknowledgement and Agreement
- Section 10: HMDA Reporting
What items makes a complete loan application?
ALIENS
- Address
- Loan Amount
- Income
- Estimated Value of Home
- Name
- Social Security
What are the different flood zones, risks, and insurance requirements?
- High-risk – Zones A and V (insurance is mandatory)
- Moderate – Zones B and X (insurance is optional)
- Low-risk – Zones C or X (not required)
What is property flipping vs. property flopping?
Flopping is the latest in mortgage fraud, in which sellers actually want as low a price as possible. Then an accomplice can flip the home for a big gain. Flipping is when a con artist buys a property with the intent to re-sell it an artificially inflated price for a considerable profit, even though they only make minor improvements to it.
What are the conditions/features of a HCML (HOEPA)?
- 6.5% First Lien 50K+
- 8.5% First Lien 50K or less
- 8.5% on a subordinate lien
- Must see HUD Counselor
- Must have ATR
- No Prepay penalty
- No Balloon payment
- Can include Variable Interest Rate
What are the conditions/features of a HPML (TILA)?
-1.50% - first lien loans - non-jumbo
-2.5% - Jumbo first -lien loans
-3.5% - Subordinate Liens
-Require Escrow Tax & Hazard ins.) for the first 5
years
-No Prepayment Penalty (unless in
the first 2 years)
-Must have ATR (Ability to Repay)
What does RESPA NOT deal with?
- Bridge Loans
- Construction Loans
- Temp Financing
- Commercial Property
- Vacant Land (unless it will be built on within 2 yrs
- 25+ Acres of Land
- Rental Units 4+
- All Cash Sales
What does TRID does not apply to?
- HELOC
- Reverse Mortgage
- Mobile Homes not secured by real estate
What are all of the initial disclosures?
- K/H - Know before you owe handbook
- A - AfbA
- M - Mortgage Servicing Disclosure
- L - List of HUD counselors (10)
- L - Loan Estimate
- W - When your home is on the line
- GFH/HUD (Non-Purchases)
- No K/H or LE for Reverse Mortgages*
What are the RESPA Disclosures and when must they be sent?
- K/H - Know before you owe handbook -> Initial
- A - AfbA -> Initial (at time of referral)
- M - Mortgage Servicing Disclosure -> Initial
- I - Initial Escrow -> Give at closing or within 45 days
- L - List of HUD approved counselors (10) -> Initial
- A - Annual Escrow -> Done annually
- S - Servicing Transfer Disclosure - HELLO -> 15 days prior to transfer/60 days grace. No Credit Ding and No Late Fee
- GFH/HUD (Non-Purchases) -> Initial - Reverse
What are the TILA Disclosures?
- B - Ballon Notice
- R - Right to Recession
- A - ARM disclosure” Given 60 days prior
- W - When your home is on the line Initial
- L - Loan Estimate
- C - CHARM
- C - CD (Includes Partial Payment Policy)” Initial
- T - Transfer of Mortgage Notice.(ownership) Other - 30 days Prior
How long must docs be kept with a specific lender or agency?
How long to keep docs
- TILA docs 2 years
- MAP - 2 years/24 months
- Escrow Cancellation - 2 Years
- Partial Payment Policy - 2 Years
- MCR - 2 years
- DNC Documents - 2 Years
- ECOA - 25 Months
- Loan Compensation - 3 years
- LAR – 3 years - Due in March
- LE - 3 years
- CD - 5 years
- SAR – 5 years
What are the 4 main indexes?
- PRIME
- COFI
- LIBOR
- COSI
What documents must you put your NMLS number on?
- 1003 URLA
- Promissory Note Mortgages
- Advertisements
- Trust Deeds
What are the conditions for a Qualified Mortgage?
- 3% Points & Fees Max, & ATR
- 43% Ratio
- PP Penalty limited to first 3 years on fixed rate QM not over 30 years
- No Toxic Features - No Balloon, No Interest Only, No Neg Am
- Protects Lender
What determines whether a seller has the Ability to Repay? What is looked at?
MICE DOES have the ATR
- Monthly Mortgage
- Income/Assets
- Credit
- Employment
- Debt to Income DTI
- Other Debt
- Expenses - Monthly
- Simontaous Mortgage
What agencies enforce FCRA, ECOA, TILA, and RESPA?
- FCRA (1970) is enforced by Federal Trade Commision
- ECOA (1974) is enforced by CFPB
- TILA (1968) is enforced by CFPB
- RESPA (1974) is enforced by CFPB (used to be HUD)
What agencies/regulations implemented/created the DNC, TILA, HMDA, and the Red Flags Rules?
- DNC (Do Not Call) - Created by FCC & FTC
- TILA is implemented by Federal Reserve Board
- HMDA (1975) in Implemented by - Federal Reserve Board
- Red Flag Rules created by FTC & FACTA
When did the Civil Rights Act become the Fair Housing Act?
Civil RIghts Act of 1866 became Fair Housing Act in 1968
What items on the Loan Estimate that have 0% Tolerance?
0% Tolerance = TRAIL T - Transfer Taxes R - Report (Credit) A - Appraisal I - Interest L - Loan Origination
What items on the Loan Estimate that have 10% Tolerance?
10% Tolerance
- Gov’t recording fees
- Title Insurance
What items on the Loan Estimate that have no tolerance?
No Tolerance (3rd party)
- Hazard Insurance
- Termite Inspection
- Title Insurance
- Per Diem Fees (pre-paid mortgage interest)
What fees/costs are included in APR?
Included in APR: • Origination fees • Discount points • Tax service fees • Underwriting fees/Processing fees • Prepaid/per diem interest • Mortgage insurance premium • Mortgage insurance impounds/reserves • Warehouse fees • VA funding fees • FHA UFMIP • Buydown • Flood certification fees • Closing fees • Courier fees (Lender)
