Conventional mortgages - Study guides, Class notes & Summaries

Mortgage bankers are highly leveraged - Very sensitive to disruptions in the loan making and selling pipeline and can fail in days Alt-A loans - Conventional loans with less stringent underwriting requirements higher LVT lower credit scores reduced documentation of income or assets Somewhere in between conventional and subprime in terms of quality. Commercial banks - Depository lenders that typically made business-related real estate loans and only home loans for business clients. They ...

A client, who is a divorced local school teacher, is interested in purchasing his first home. He wishes to stay in the same neighborhood where he now lives and to purchase a home in the low-$100,000 range. He currently leases a car for $435 a month and would like to buy a new car. The client has a lease on an apartment with his college friend. Their monthly rent on the apartment, which they split evenly, is $1,100. He has been working as a teacher for five years and earns $50,000 a year. His div...

FNMA and FHLMC are what type of loan? - conforming the main purpose of the Consumer financial protection bureau (CFPB) is to help consumers understand the terms of their agreements with financial companies - true conventional loans are not insured by the federal government - true Agency loans include FHA and VA loans - true the proceeds of a loan for cash out refinance may be used by the borrower to insure a new pool - true a non-agency loan does not have to conform to FNMA guidelines - t...

When obtaining a conventional loan, the borrower must give the lender a ~ mortgage and promissory note A mortgage that is subordinate to another mortgage is called a ~ second mortgage A clause in a loan which calls for immediate payment of the entire balance if the borrower gets behind on his loan payments is a ~ acceleration clause A partially amortized loan with a balloon payment would have a ____________________ monthly payment than a fully amortized loan ~ ower A type of contr...

Loan processing - ANSWER-The process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decision Underwriting - ANSWER-The process of evaluating a borrowers loan application to determine the risk involved for the lender Funding - ANSWER-The process of transferring funds to a title or escrow company for disbursement Servicing - ANSWER-Sending monthly payment statements and collecting monthly payments maintaining payment reco...

Ginnie Mae was wholly created to purchase government mortgages on the secondary market - false which of the following was not a reason The Federal Housing Administration (FHA) was created - to simplify mortgage forms match in order of creation - 1st-FNMA 2nd-GNMA 3rd-FHLMC match the following - FNMA-fannie mae FHLMC-Freddie Mac what allowed more conventional mortgages to be originated in the early 1970s with less risk to the investor - private mortgage insurance fannie mae purchas...

GEB 3006 FINAL EXAM QUESTIONS WITH CORRECT ANSWERS 100% GUARANTEED PASS The housing expense ratio of PITI divided by gross monthly income should not exceed a maximum of ____. - Answer- 18% for conventional loans and 19% for FHA loans The total debt ratio of (PITI + long term debt obligations) divided by gross monthly income should not exceed _____. - Answer- 36% for conventional loans and 43% for FHA loans. At what point should the homeowner contact the mortgage company and request that...

Virginia Final Exam Questions with Correct Answers 2024 A void contract is one that is A. not in writing. B. voidable by only one of the parties. C. rescindable by agreement. D. not legally enforceable. - answerD. not legally enforceable. In order to be enforceable, real estate contracts must meet the legal requirements for contracts in general. For example, a contract signed by a minor or a "seller" who doesn't own the property in question was never legal to begin with and is thus ...

Hud 2024 Updated Exam Q&A A client, who is a divorced local school teacher, is interested in purchasing his first home. He wishes to stay in the same neighborhood where he now lives and to purchase a home in the low-$100,000 range. He currently leases a car for $435 a month and would like to buy a new car. The client has a lease on an apartment with his college friend. Their monthly rent on the apartment, which they split evenly, is $1,100. He has been working as a teacher for five ye...

RMLO - Champions School of Real Estate Questions and Correct Answers 2024 A market for the purchase and sale of existing mortgages designed to provide greater liquidity for selling mortgages is called the ________. - Answer -secondary market The Federal agency established to restore Fannie Mae and Freddie Mac to a sound and solvent financial condition is _____. - Answer -Federal Housing Finance Agency (FHFA) The ____ guarantee allows mortgage lenders to obtain a better price for their loan...