NMLS SAFE EXAM 2023 (All Correct 100%)

What does TILA stand for? correct answers Truth-In-Lending Act, Regulation Z What is a HELOC loan? correct answers a secured loan in that you are borrowing against the equity that has been built in your house What is a REFI loan? correct answers LTV stands for correct answers Loan to Value Define PMI and state what the acronym stands for. correct answers Private mortgage insurance- on conventional loans Define one time variable funding fee and people in what situations is it waived for? correct answers Disabled veterans and surviving spouses. USDA loans are also called what? correct answers 502 loans Define MIP correct answers 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 correct answers annual percentage rate Define APOR correct answers average prime offer rate Define HPML correct answers 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) correct answers - 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) correct answers 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 correct answers Ability to repay 8 Factors of ATR correct answers MICE DOES M- Monthly mortgage I- Income + assets C- Credit history