What does TILA stand for? ✔✔Truth-In-Lending Act, Regulation Z What is a HELOC loan? ✔✔a secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? ✔✔ LTV stands for ✔✔Loan to Value Define PMI and state what the acronym stands for. ✔✔Private mortgage insurance- on conventional loans Define one time variable funding fee and people in what situations is it waived for? ✔✔Disabled veterans and surviving spouses. USDA loans are also called what? ✔✔502 loans Define MIP ✔✔Can be paid up front or in installments. Mortgage insurance premium used by FHA to protect themselves against higher-risk borrowers who are more likely to default on loans Define APR ✔✔annual percentage rate Define APOR ✔✔average prime offer rate Define HPML ✔✔High price mortgage loans or Section 35 loans. A mortgage with an annual percentage rate (APR) that's higher than the average prime offer rate (APOR) When is a loan considered to be a section 35 loan? (High price mortgage loan) ✔✔- When the APR exceeds APOR by 1.5% on a first lien, 2.5% on Jumbo first lien or 3.5% on subordinate lien What requirements are placed on section 35 loans? (High price mortgage loans) ✔✔APE A- ATR / ability to repay P- no PREPAYMENT penalty unless in the first 2 years E- requires ESCROW of the taxes and hazard insurance for the first 5 years Define ATR ✔✔Ability to repay 8 Factors of ATR ✔✔MICE DOES M- Monthly mortgage I- Income + assets C- Credit history E- Employment D- Debt to Income Ratio O- Other debts E- Expenses S- Simultaneous mortgage What are section 32 loans? ✔✔High cost mortgage loans. Considered to be HCML when APR exceeds APOR by 6.5% on first lien on loan $50,000 or higher, or 8.5% on first lien on a loan that's less than $50,000 or 8.5% on subordinate lien. What requirements are placed on Section 32 loans / HCML / High cost mortgage loans? ✔✔BAPS B- no BALLOON payment A- must have ATR P- no PREPAYMENT PENALTY S- must SPEAK to a HUD counselor What makes a complete application? ✔✔ALIENS A- Address L- Loan amount I- Income E- Estimated value N- Name S- Social security number What is a 1003 and a 1004 form? ✔✔URLA - Uniform Residential Loan Application and URAR - Uniform Residential Appraisal Report What is a 1005 and 1006 form? ✔✔VOE - Verification of employment and VOD - Verification of deposits (bank balance) What is a 1008 form? ✔✔Transmittal summary. Top sheet! SUMMARY What are the protected classes under ECOA AND Fair Housing Act? ✔✔- Sex - Color - National origin - Race Religion What are the protected classes that are under ECOA but NOT Fair Housing Act? ✔✔- Maritial status - Age - Public assistance What are the protected classes that are under Fair Housing Act but NOT ECOA? ✔✔- Familial status - Disability What things are NOT included in the APR? ✔✔- Title insurance - Escrow - Notary fee - Appraisal - Credit report fee - Termite inspection fee - Seller credits What makes a mortgage a qualified mortgage? (Rules of 3s) ✔✔- The point and fees of the mortgage cannot exceed 3% - The back end ratio cannot exceed 43% - The prepayment penalty is limited to the first 3 year - No terms over 30 years allowed - No toxic features: no balloon payments, no interest only terms, no negative amortization - Qualified mortgages has ATR What documents must you keep for 5 years? ✔✔Suspicious Activity Report (SAR) and Closing disclosure (CD) What documents must you keep for 3 years? ✔✔- Loan Application Register (LAR) - Loan Estimate (LE) - Line of Credit (LOC) What documents must you keep for 2 years? ✔✔everything thats not 5 or