Nmls

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REG X- RESPA

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real estate settlement procedures- regulate and standardize real estate settlement practices. Requires disclosure of closing costs to be given to loan applicants.

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(ECOA) Reg b

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equal credit opportunity act- prohibits creditors form denying credit based on FFHA standards.

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FFHA

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federal fair housing act- prohibits discrimination based on race, color, religion, sex, national origin, handicap, or familial status in sale or lease of residential property.

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TIL Reg z

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truth in lending act- protects consumers by requiring creditors to disclose the complete cost of credit to consumer loan applicants. Have to Disclose APR- annual percentage rate

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EPA

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equity protection act- protects borrowers form unfair lending practices on subprime loans

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f (HMDA)

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Home mortgage disclosure act- provides way of lending whether or not lenders are fulfilling their obligations to serve the housing needs of the communities where they are located.

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(FCRA)-Reg V

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fair credit reporting act- designed to protect the public form the reporting of inaccurate information by credit agencies.

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DTPA

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deceptive trace practices act- protects consumers against false or misleading business practices

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(FACTA)

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fair and accurate credit transaction act- requires lenders to make certain disclosures regarding a borrowers credit history

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SAFE ACT

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secure and fair enforcement of mortgage licensing act.- created to coincide with NMLS

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NMLS

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National mortgage licensing system-education and testing nation wide

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Patriot ACt

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collect certain information from borrowers including borrowers ethnicity. applicants are required to give name, SS, ITIN, or Alien ID card

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Home owners protection act

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designed to control PMI- Private mortgage insurance required with LTV ratio greater than 80%

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MARS

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mortgage protection assistance relief services- designed to protect distressed homeowners form mortgage relief scams

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Gramm- leach- bliley act

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establishes consistent practices regarding the use of customer info.

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CFPB

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consumer financial protection bureau

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Package mortgages

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real property and personal property are pledged on one mortgage. Borrow can use something like furniture

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Blanket Mortgage

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mortgage covering more than one parcel of real estate- an agreement saying that when a certain amount of the loan is paid off then the part of the land will be released form the lien

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HUD

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department of urban development and housing-created to increase home ownership, support community development.

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FHA

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federal housing administration- generate new jobs through increased construction activity, repair, improvement and sale of real estate. Giant insurance company

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FHA loan

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loan is insured by FHA which makes it easier for lenders to give to borrowers who may not qualify for conventional. LOW DOWN payment

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FHA 203b

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most popular for first time home buyers- need 3.5% down

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FHA 203k

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rehabilitation and repair of single-family properties

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FHA 234c

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condominium type structure that provides authority to insure common ares and facilities of project

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FHA 251

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includes standard one year ARM

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ARM

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Adjustable rate mortgage

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FHA steamline

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reduced amount of documentation

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VA guaranteed loan

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no down payment/lower interest rate/needs VA certificate of eligability and certificate of reasonable value

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RHS

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rural housing service-helps give credit to farmers usually those with 80% below credit income

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Home repair grant program

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loan to repair homes for handi accessible reasons

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Sub prime loan

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extending loans to people who do not meet credit qualification for prime rate

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Reverse mortgage

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Lender pays the borrower- usually for people over 62 because their home is paid off so they can take out the equity. Called HECM-home equity conversion mortgage

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construciton mortgage

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mortgage for construction finance. Once constructed loan goes to permanent financing.

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Open end mortgage

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allows borrower to obtain further advance at a later date. HELOC is example

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LTV

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Loan to value ratio- loan amount/lesser of sale price or appraisal value ex: loan 82,000 sale price 120,000 appraisal 100,000 what do? answer is 82%

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Discount points

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added loan fee charged by lender to me the yield on a lower-market-interest VA or FHA loan to be competitive with higher interest conventional loans. 1 point equals 1 percentage or mortage

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Equity

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market value of home-total debt=equity

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Amortization

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(Principal balance)(interest rate)=one years interst

(ones years interest)/(12 moths)=one months interest

(payment amount)-(one months interest)=principal balance payoff

(principal)-(principal paid off)= new principal balance

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Escrow

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trust set up to cover property taxes and insurance

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income to debt ratio

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housing expenses ratio/monthly income of borrower

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FER or HER ratio

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PITI/total monthly income=front end ratio

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PITI

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principle, interest, taxes, insurance

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Back end ratio

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housing expense+other debt/monthly income=Back end ratio

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Rate lock

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locks the rate in at a specific time. This can benefit borrower if rates go up but will hurt if they go down

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Float rate

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borrower lets rate float until closer to closing. Benefits if rates go down doesn't benefit if rates go up

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Title insurance

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insurance designed to cover any potential lying about the property.

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Hazerd insurance

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borrower selects hazard insurance but lender makes sure policy and coverage meet fannie mae

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Rent loss insurance

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insurance landlord if anything happens so they will still get income they would miss out on from renters staying

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flood insurance

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needed if in flood zone

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encumbrance

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claim or right to interest in property held by a tenant

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easement

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a right held by one person to use another persons land

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encroachment

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unauthorized use of someones property

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deed restricitons

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privately created limitations on land use

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lien

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security investment on a property. allow the proceeds of a foreclosed home to pay the debt

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Title report

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reveals any problems revealed by the physical inspection

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owner policy title insurance

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borrower is policy holder and is covered for life

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mortgagee policy

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lender usually requires so mortgage can be sold on secondary market

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subordination

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used with two mortgages on a home. borrower wants to refinance one and the subordination lets one take priority

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secondary market

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market for purchase and sale of existing mortgages. provides a stable resale of homes to borrowers