MLO SAFE Test 2024 (Michigan) | Latest Update | 2024/2025 | Already Passed

MLO SAFE Test 2024 (Michigan) | Latest Update | 2024/2025 | Already Passed 10th Amendment - The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people. 203(b) - Fixed Rate Mortgages - 15, 20, 25, or 30 year term 203(k) - Rehab and Repair - Used for repairing the property 204(g) - Good Neighbor Next Door (GNND) - 50% discount for law enforcement, teachers, firefighters, or emergency medical technicians to purchase in revitalizing neighborhoods - Available for purchase for 5 days, must live there minimum 3 years 232 - Residential Care Facilities 234(c) - Condominium loan 242 - Hospital financing 245(a) - Growing Equity Mortgage (GEM) - Borrower pays extra to gain equity more quickly 251 - Adjustable Rate Mortgage (ARM) - 5/1, 7/1 255 - Home Equity Conversion Mortgage (HECM) - FHA Reverse Mortgage - Introduced in 1987 by National Housing Act to provide governmental stability to reverse mortgage market, can be used to purchase or refinance a home 4 Cs - Credit - Capacity - Cash - Collateral 513 - Energy Efficient Mortgage (EEM) - Help homeowners reduce utility usage by adding energy saving features to mortgage without adding them to downpayment - Cost of improvements plus cost of imspections needs to be less than: - 5% of property value - 5% of 115% of the median area price of a single family dwelling - 5% of 150% conforming Freddie Mac limit AARMR - America Association of Residential Mortgage Regulators - Created the NMLS ABA / AfBA Disclosure - Affiliated Business Arrangement Disclosure - RESPA Section 8 - Delivered at time of referral - Informs the borrower of the business arrangement between two parties - Must be kept for 5 yrs after date of settlement Adjustable Rate Mortgages - ARMs - Interest rate can change over the term of the loan - Term is almost always 30 years - There are traditional, hybrid, and option ARMs