MLO Cheat Sheet Flashcards

Question

Types of Non Liquid Assets | **LJCAAVES

Answer 1

``` L. Land and real estate investments J. Jewelry C. Collectibles A. Antiques A. Art V. Vehicles E. Equipment ```

Answer 2

``` Due 30 Calendar days if identifiable Due 60 Calendar Days If unidentifiable MLO must report if exceeds $5000 Financial Institutions must report if cash transactions exceed $10,000 SARS are kept for 5 years Reported to FinCEN (within FBI) ```

Answer 3

High cost fee threshold ($22,052) Conforming loan Limit ($548,250) Reverse Mortgage Limit ($822,375) DNC (Do Not Call) Fine ($43,280/$43,792) VA Entitlement ($144,000) HMDA Monitoring Section (Section 8 of the 1003)

Answer 4

PRIME COFI LIBOR COSI

Answer 5

``` Trust Deeds Mortgages Advertisements Promissory Note 1003 URLA ```

Answer 6

Is now Known as 4506-C Request for transcript of tax return IRS 8821 (Tax information Authorization)

Answer 7

Cost- to replace/ build Income- income property Sales Comparison- 3 comps

Answer 8

Line- 10% Net- 15% Gross- 25%

Answer 9

* Know the meaning of each of them (fact 548-552) 1. Capacity 2. Capital 3. Credit 4. Collateral 5. Character

Answer 10

Transunion Equifax Experian

Answer 11

Lender acknowledge request by 5 biz days Seek to resolve the issue/ concern within 30 days 15 day extension if needed in connection to notices of error submitted by the borrower

Answer 12

Judgements Mechanics Lien Attachments Tax Liens

Answer 13

Flood insurance- purchased from NFIP ($100k-$250k) High risk (zone A& V) -insurance is mandatory Moderate (zones B & X) -insurance optional Low Risk (zones C or X)- not required

Answer 14

A quarterly report, conditions of biz., entity submits thru Nmls

Answer 15

Completed quarterly, within 45 days of the end of the calendar quarter

Answer 16

Completed Annually, within 90 days of the company’s fiscal year end.

Answer 17

Real Estate taxes Insurance (HOI) Pmi ( if applicable)

Answer 18

Tenancy in common Joint tenants- cannot be sold or Willed Tenants in entirety

Answer 19

``` Dies Sells the Home Doesn’t live in home for 12 consecutive months Defaults of their taxes Owners let home deteriorate Last surviving borrower dies ```

Answer 20

A bankruptcy in the last 5 yrs A foreclosure in the last 24 months One or more 60-day delinquencies in the last 24mnths

Answer 21

Must continue for 3yrs Is grossed up by 25% Child Support-verify for last 6 months Examples: Retirement, Child Support, Disability, Pension…etc

Answer 22

``` Due on Sale Clause Alienation Clause Acceleration Clause Escalation Clause Partial Release Clause Prepayment Release Clause Defeasance Clause Exculpatory Clause Prepayment privileges clause Open- end clause Subordination clause ```

Answer 23

``` DP are calculated on the LOAN AMOUNT DP cost 1% of the Loan Amount 1 DP=.25% on the interest rate DP are usually paid by borrower. It can be paid for by the seller or builder. Fixed DP- lowers interest rate 4 the life of the loan The cost of the point is a CLOSING COST DP are paid to the LENDER DP are calculated into the APR ```

Answer 24

``` Not the same as DP points They only buy down the rate for 2yrs 1st yr the interest will receive 2% off 2nd yr the interest rate will receive 1% off 3rd+ yrs will be the original rate ```

Answer 25

``` Flipping Straw buyer/ borrower Churning Equity skimming Contract Kiting Builder Bailout ```

Answer 26

Available for 10 business days Only place to find the Rate Lock GFE + Initial TIL = LE Delivered or mailed no later than (3) business days after loan application is submitted Revised LE is received at least 4 biz. Days prior to consummation of the mortgage The creditor is ultimately responsible for the delivery of the LE to the borrower.

Answer 27

Redlining (reverse redlining) Steering Blockbusting/ panic selling Civil Rights act of 1866 (viii) became title 8 Fair Housing Act in 1968

Answer 28

Lender will use 5% of the outstanding balance on credit Lender will use 1% of outstanding balance on student loan on conventional and .5% on FHA If you have a loan with less than 10 payments - it is not counted If you have a lease you always count the payments even if it’s 1 payment

Answer 29

Married Unmarried Separated

Answer 30

Financial Stability End to big to Fail Protect taxpayer-no bailouts Protect against abuse practices

Answer 31

Refi- Closed End Heloc- Open End Cash out Mortgage- closed end Mortgage- closed end

MLO Cheat Sheet Flashcards

(56 cards)