Mortgage Loans Origination Activities

Question 1

Disclosures to the borrower

Answer 1

ALIENS:
A-address for subject property
L-loan amount
I-income of borrower
E-estimate of value for subject property
N-name of borrower
S-SSN of borrower

Question 2

FNMA Form 1003

Answer 2

Uniform Residential Loan Application (URLA) also referred to the 1003. Standardized government/industry form

Question 3

Fee Simple Estate

Answer 3

Property and house are owned. Owner has unconditional power of disposition (ability to sell the property) during his life and transfers to heirs if they die. Most common

Question 4

Leasehold

Answer 4

“Ground Rent”: land upon which the house is built is not owned, subject to a long term lease. May or may not pass to heirs if they die, lease must be longer than the mortgage

Question 5

Life Estate

Answer 5

Borrower only owns the property while he is alive. When death occurs reverts back to the original Grantor (person who transferred title to borrower)

Question 6

Estate

Answer 6

How is the property owned