RESPA, ECOA, and FCRA Regulations for Mortgage Lending, Exams of Business Economics

Download RESPA, ECOA, and FCRA Regulations for Mortgage Lending and more Exams Business Economics in PDF only on Docsity! Loan Originator Exam study review new solution update 2024 Section 32 of TILA - Deals with consumer protection triggered by high cost loan scenarios. Deals with added provisions and protections that are required if a loan trips one of two thresholds, or both. 1) Points of fee thresholds 2) APR thresholds Section 10 of RESPA - 1) Includes provisions so that the borrower is informed about the amounts taken for an escrow account and also protects the borrower from being overcharged by requiring an escrow amount analysis 2) Refunds of over $50 must be made withing 30 days 3) Violations Section 8 of RESPA - Includes prohibitions in giving or receiving anything of value i.e. referral fees Section 6 of RESPA - Includes provisions to ensure that borrowers have adequate notice when their loan servicing is transferred to another institution and establishes protocol for managing consumer complaints about the servicing of their loans. The disclosure required by this section is the Servicing Transfer Statement.The existing servicer must notify the borrower at least 15 days prior to servicing change. Real Estate Fees - Are only listed in the HUD-1 APR - Actual Percentage Rate, found in TIL Disclosure, must be given at least 7 bus days prior to closing. Mortgage Fraud - Two types: 1) Fraud for Profit 2) Fraud for Housing 203(b) and 251 - Are the two primary FHA programs that are fixed rate loans, which can come in 15 years and 30 years terms, and the arm which also varies The SAFE Act Does Not Allow - Individual states to determine what experience MLOs can have education hours waived or grandfathered PMI Can Be Cancelled When - 1) Equity position is at 20% or greater (80% LTV or less) 2) PMI is automatically terminated when LTV is at 78% The Purpose Of The FCRA Is To - Ensure accuracy, fairness, and the privacy of consumers personal information, assembled and used by consumer reporting agency Burden of Proof - Whether or not an action is more likely than not 11th District Cost of Funds Index is a product - Published by the Federal Home Loan Bank of San Francisco Conversion Option ARM - Allows the borrower the opportunity to convert the loan into a fixed rate A Lender May Not Call A Reverse Mortgage Due And Payable If - The loan balance increases A Subprime Borrower - Typically has poor credit, recent delinquencies, high debt to income ratios, and foreclosure. They are considered risky borrowers Loan Suitability Test - Is a term that refers to the diligent matching of loan programs with current financial circumstances of each customer HMDA - ( Regulation C) Requires the collection of data to be submitted to the federal government to help investigate the presence of any discriminatory lending practices. Penalties: Calculated by using a penalty matrix and consider factors such as good faith, previous violations, and financial resources Gramm-Leach Bliley Act Restricts - The use of consumers non-public personal information HUD Settlement Cost Booklet - Is required for all transactions within 3 bus days of application Section X of 1003 - 1) Is known as the HMDA section 2) Must be filled out, if information is not given the originator should make a best guess based on visual observation 3) Information for government monitoring purpose is documented here 6 Factors That Constitute The Definition Of An Application Is - 1) Name 2) Address 3) Social Security Number 4) Income 5) Estimated Property Value 6) Loan Amount Calculating Finance Charge Must Include - Third Party Title Charges ECOA Applies To The Extension Of Credit For - Loans: 1) Business 2) Residential 3) Commercial 4) Agricultural LAR (Loan Application Register) - Reporting form used to communicate the HMDA data 45 Days - Is when an unearned premium must be returned on PMI FACTA - Is an amendment to the FCRA, was made for the purpose of addressing identity theft and facilitate costumer access to the information retained by the CRAs Disclosures given to a customer applying for an ARM - 1) CHARM 2) Early ARM Disclosure Initial Escrow Statement - A statement of the estimated taxes, insurance premiums, and other charges the borrower will pay from the escrow fund during the first 12 months of the loan Redlining - The practice of refusing to originate an area because of the perceived creditworthiness Arguements To Make Against Further Regulation On YSP - 1) Subsidizes closing costs 2) Lenders do not have to pay YSP Investigative Consumer Report - A consumer report using information obtained through personal interviews Underwriting Guidelines - Are set by Fannie Mae and Freddie Mac Table Funding - In theory, allows a mortgage broker to lend a loan and close in their own name. A type of wholesale lending arrangement in which a broker can close, originate, and fund a loan using a warehouse line of credit. The Promissory Note Is - A document that contains the borrower's promise to repay. The borrower will also see the last date to pay the mortgage HELOC - A subordinate lien that allows a borrower to pay down principal and continue to make withdrawals The Primary Program Of FHA - 203(b) fixed rate loans Balloon Mortgage - Requires the borrower to make one large payment at the end of the loan term. Has a 30 year amortization but is typically due much earlier than that i.e. 5,7,10,15 years Temporary Buy-Down - Occurs when the borrower deposits funds into escrow that are used to offset a portion of the payment for a period of time at the start of the of a loan. HUD-1 Statement - A document due at the day of closing that provides an itemized listing of all costs associated with a real estate transaction including the fees of the lender, mortgage broker, and the other settlement service providers Subordinate Agreement - Changes the order in which creditors are paid in the event of foreclosure Examples Of Liens - 1) Judgement 2) Mortgages 3) Attachments 4) Mechanic Liens Seller's Concession - Money that the seller gives the buyer to pay the closing costs Disclosures required by RESPA - 1) HUD-1 2) Affiliated Business Arrangement Disclosure 3) Mortgage Servicing Disclosure Statement 4) GFE HUD-1A - For refinances Non-Conforming - Does not follow the guidelines established by Fannie Mae or Freddie Mac Mortgage Servicing Disclosure Statement - Is due within 3 days of application 1) States whether the loan servicing can be sold, assigned, or transferred during the life of the Loan Servicing Transfer Statement, only applies to 1st lien mortgages HPA - Homeowners Protection Act, enacted to facilitate the cancellation of PMI HOEPA Loans Apply To - 1) Refinances 2) Home equity installment loans A Copy Of a Free Credit Report - Cannot be given out to the consumer if they were denied to due insufficient income Points And Fees Threshold - The greater of 8% of the threshold $592 which ever is greater must be secured by the lien on the borrowers dwelling, 2011 592, 611 Prepayment Penalties - Certain percentage of outstanding balance of a loan is charged buy the lender if the borrower repays the total amount of the debt in Fraud for Profit - Results in a much greater loss to the mortgage industry TIL Disclosure - Includes: 1) APR 2) Finance Charge 3) Amount Financed 4) Total of Payments Notice of Adverse Action Is Required By - ECOA within 30 days A lender May Take - 2 months extra to calculate the amount to build an escrow account oh behalf of the borrower HOEPA Is Known As - A section 32 loan HOEPA Applies - To close end home and home equity lines and is regulated by the FTC Interest Rate Threshold - For first lien mortgages the rate trigger that is 8% above the rate of securities Subordinate Liens - 10% above the threshold advance of the maturity date Disclosures For HOEPA - Due within 3 bus days 1) CHARM Booklet 2) ARM 3) Notice of the right rescind due at the time of closing Notice Of Inclusion Of Insurance Premium - If the lender gives insurance for not paying the mortgage or stop making the payments, they have to inform you Special HOEPA Disclosure - It is a statement, you are not required to complete this transactions Amount Borrowed - Is stated on the promissory note Variable Rate Disclosure - Under HOEPA. disclosure must include a statement, they know when the rate is going to increase and what the new rate is going to be Lending Terms Prohibited By HOEPA - 1) Balloon payments: that are due within 5 years, 2) Prepayment penalties: only in the first 5 years if the funds used for refinancing with the lender or an affiliated the lender at the time of consummating the loan debt to income ratio can not exceed 50% Due on Demand Clauses - A provision of a mortgage or deed of trust that allows the lender to demand immediate payment of the balance of the mortgage if the mortgage holder sells the home Negative Amortization - A gradual increase in the mortgage debt that occurs when the monthly payment is not large enough to cover the entire amount of principal and interest due. The amount of the shortfall is added to the unpaid principal balance, which results in "negative" amortization. Advanced Payements - Restricted the consolidation of 2 payments in advanced Practices Prohibited By HOEPA - 1) Refinancing within 1 year (loan flipping) 2) Direct payment to home improvement contractors, do not pay a contractor directly 3) Failure to notify assignee Property Flipping - Buying a house and then selling it soon after Nonconforming Mortgages - exceed the limits anything above 625k i.e.: 1) Jumbo loans 2) sub prime loans 3) Alt-A 4) Niche loans, given to borrowers with unique circumstances or needs 5) super conforming 6) option ARMS 7) Irate ARMS fixed for a certain period, 1,5,7 years 8) Hybrid ARMS fixed for a certain time and then change Caps On ARMS - 1) Initial rate cap, limit on the amount that the interest rate can increase during the first adjustment period 2) Period rate cap, limit on how the amount that the interest can change during any adjustment period 3) lifetime rate cap, limit that an interest rate can change over the life of an ARM 4) Payment cap, limit on the amount that the payment can change during one adjustment period on an ARM. payment caps can result in negative amortization Index - A published interest rate used, when combined with a margin, as the basis upon which the note rate of ARM will adjust Margin - Fixed part of the interest rate,never changes, the amount a lender adds to the index on and ARM to establish the adjustable interest rate Rate Is Made Up Of The Index And Margin - If given an index then the margin is the difference between the 2 LIBOR - London inter-bank offer rate 2nd Mortgage - Is a subordinate lien HELOC - Like a credit, can be in either first or second position, open-end loan, Home Equity Loan - Closed end loans that are in second poisition, a loan based on the difference between the current market value of your home and the amount you still owe on the mortgage Mortgage Insurance Premium - One-time charge at closing of 2% of your max claim amount and annual charge of 1/2% per year on your mortgage loan balance Closed-End Loans - Lump sum i.e. car loan Open-End - Is like credit Reburst Mortgage - 62 years and older, can take a loan, keep living in the house, last survivor home owner has to pay. 1) Homeowner dies 2) Moves out of the house 3) BFankruptcy stays 10 years No Ratio - When they don't see your ratio but they still see all your assests Deed - A legal document signed and sealed and delivered to effect a transfer of property and to show the legal right to posses it Deed Of Trust - When the lender has the borrower sign and it gives the lender the right to secure the loans 1003 Is - The application Per Diem Interest Rate= - Interest rate/365 days= daily daily x loan balance= per diem Down Payment= - Purchase x Max LTV= Loan Amount Purchase x Down = Down Payment LTV= - Loan Amount/ Less Of Property Front Ratio= - House Expense/ Income= Front End Maximum Rate= - Start Rate + Life Time Cap Periodic Adjustment = - Number of adjustments x periodic cap Freddie Mac - A government sponsored enterprise created by congress that purchases conforming mortgage loans and resells them in the secondary market ECOA Violations - Civil penalties of $5,000 per day for violation, patterns of misconducts can be $25,000, periodic damages are limited to $10,000 New Rate = - Start rate + periodic adjustment Fannie Mae - A government sponsored enterprise created by conress that purchases conforming mortgage loans as well as those insured by the FHA, and resells them in the secondary market Notice Of Incomplete Application - Required by ECOA within 30 days of receipt of an application, the creditors must provide a notice of action HECM - A reverse mortgage insured by the FHA Fannie Mae and Freddie Mac - Provide a source of funds for the lenders USDA Loans - For farmers, rural areas, and do not require a down payment FHA Loans - MIP required on a 20% down payment CLTV= - 1st mortgage + 2nd mortgage/ appraisal value of home Balloon Payment - The final lump sum paid at the maturity date of a balloon mortgage Par Rate - The interest rate charged on a loan when there are no discount points involved Seller Financing for 90% LTV - Is limited to 3% COFI stands for - Cost of Funds Index MIP - Mandatory on FHA loans who require PMI, must keep for 5 years 3) A lending transaction with a state agency GLB's Purpose - To ensure the financial institutions, including mortgage brokers and lenders, protect nonpublic personal information of borrower Information Exempt From GLB - 1) Information in government real estate records 2) Information from a telephone book or information included on public and unrestricted web site 3) Listed telephone numbers provided by consumers Disclosures Required by GLB - 1) Initial Privacy notice 2) Opt-out notices 3) Annual Privacy Notices Initial Privacy Notice - 1) Required by GLB 2) Financial institutions are not required to provide consumers with a privacy notice unless they intend to share the consumer's information with non affiliated third parties Opt-Out Notices - 1) Required by GLB 2) Must include a description of the type of information that the financial institutions may disclose, and reasonable means to opt-out , such as opt-out forms which are easy to complete or toll-free telephone numbers to representatives who will accept the opt-out information Annual Privacy Notices - 1) Required by GLB 2) Financial institutions are required to send annual privacy notices to costumers, these notices must contain the same information that is included in the initial privacy notice, including notice of the right to opt-out information on exercising the right to opt-out FACTA Is Part Of - FCRA FACTA's Purpose - To address the problems of identity theft, to facilitate consumers' access to the information retained by the CRAs, and to improve the accuracy of consumer reports FTC Red Flag Rules Purpose - Another measure on the part of the government, includes safe guard rules that protect personal information Initial Rate Cap - Limit on the amount that the interest rate can increase during the first adjustment period for an ARM Use Of Trigger Terms In Advertisements Requires.. - 1) Amount & percentage of down payment. 2) Terms of repayment such as inclusion of balloon payment. 3) Annual percentage rate. Disclosures Due Within 3 days.. - *Good faith estimate - RESPA *Settlement Cost Booklet - RESPA *Mortgage servicing disclosure statement - RESPA *Truth in lending statement - TILA *Variable rate progam disclosures - TILA *CHARM booklet - TILA A Borrower's Credit Is Disclosed On - 1) Good faith estimate - RESPA 2) HUD - 1 - RESPA Who Issues Regulations For TILA - 1) Federal Reserve Board - federal banking agencies. 2) Federal Trade Commission - mortgage professionals who are not employed by a federally regulated institution. Loans NOT covered By RESPA.. - 1) 25+ acres 2) Business, commercial or agricultural purposes 3) Temporary financing (bridge loans) 4) Vacant land 5) Loan conversions Prepaid Items (On The GFE) Include.. - 1) Costs due at closing which are payable at some point in the future. (funds placed in ESCROW) 2) Pro-rated real-estate taxes. 3) Homeowners insurance premiums. 4) Flood insurance premiums. 5) PMI premiums. 6) Interim interest (per diem interest) After Loan Servicing is Transferred.. - New servicer can NOT assess late fees for 60 days. Civil Actions Under ECOA Must Be Reported - At least 2 years of violation Government charges (on the GFE) include.. - 1 ) Charges to record the mortgage. 2) Transfer tax 3) Other charges established by the state or municipality. Initial TIL Disclosure - Must be due at least 7 days prior to closing Notice Of The Right To Cancel Applies To.. - 1) HELOCS 2) Refinances - At least 3 days before closing GLB Penalitesi - Can be up to 10k An Established Relationship With A Consumer - Is a transactions made within the last 18 months Fees Not Included In Finance Charges - Include: Title insurance & title examination fees. 1) Doc prep fees & notary fees. 2) Sellers points. 3) Appraisal and credit report fees. (if they are all charged to all applicants as part of the application.) Fees Included In Finance Charge - 1) Interest 2) Loan origination fees & points 3) Broker fees. 4) Credit life insurance fees. (when it is required) Sections 1 of the 1003.. - Is called TYPES OF MORTGAGE LOANS & TERMS OF LOAN its used to select the type of loan the applicant is applying for A borrower has applied for a refinance on her property valued at $235,000. She currently has a HELOC with a $40,000 limit and currently owes $25,000. The borrower has applied for a first mortgage of $166,000. Which of the following LTV, CLTV and TLTV is accurate based on this information? - 71% / 81% / 88% Appraisals Which Use the Sales Comparison Approach Include - Comparison of value for three similar, recently sold properties According To Conforming Guidelines, An Appraiser May Made Net Adjustments To Comparable Up To In A Residential Appraisal? - 15% A Copy Of An Appraisal Report - Can be given at 90 days after the notice of adverse action is received Closing Costs Are Not Included In - The loan application During Application, An Applicant Is Voluntarily Asked To Provide - Race and sex A Reverse Mortgage Does Not Requre - Credit or income documentation The Cost of Funds Index is traditionally used to determine interest rates on what type of loans - ARMS A 5/1 ARM Is An Example Of - A hybrid ARM Piggyback Loans - Is a way to try and avoid paying PMI Mortgaged Back Securities - Are used in the secondary market. They are an investment vehicle used to generate revenue based on an underlying pool of loans. This revenue provides reusable assists to lenders Float Agreement - Can go up or go down Gross Adjustments on Appraisal Reports - 25% Seller Fees are in the right side - Of the HUD-1 AUS - Automated underwriting system Hasser Insurance - Is homeowners insurance Assumable - Mortgage can be taken over by next buyer VA, FHA, USDA Are - All assumable MIP On A FHA loan Is Determined By - The value of the loan, MIP is mandatory for 5 years Opt Out Notice - Even if the borrower choices not to opt out information it can only be shared with affiliates or people affiliated with the third parties Referral Is Due At The Time Of The Referral Or - 3 days if not in person FHFA - Set the limits for the loans 417, 675 Service Release Premium - Fees which lenders may receive for selling or transferring their right to service a mortgage loan Full Index - The interest rate Securitization - The process of transforming loans or other financial assets into securities PITI - An abbreviation which means "Principal, Interest, Taxes and Insurance." In residential financing, it is common for the monthly mortgage to include these four payments. Cost Of Funds Index Is - Used to determine rate adjustments on an adjustable rate program Amortization Schedule - A table providing the periodic payments needed to pay the loan Gift Letters - A letter signed by a person other than the borrower providing cash for a down payment stating that the funds are a gift and do not have to be repaid Revolving Debt - A line of credit Installment - A closed end loan Encumbrance - A claim against real property, such as lien, Judgement - When you take a person to court and the court decides to put a lien on someone Federal Housing Administration - Insures loans VOE - Verification of Employment VOD - Verification Of Deposits Borrowers Earning More Than 25% Commission - Must provide up to 2 years of tax returns for income qualification Income Of Applications - Balance sheet, self-employed income analysis Nontaxable Income - Income items specifically exempted from taxation Of the Total Income For Investment Properties - You can use 75% 4506T - The form that we use to request the taxes to the IRS Debt Auditory Trailing - I.e. late payments Permissible Purpose - That you have enough information and permission from a client to pull up credit report Evaluating Credit Report - Check for red flags, verify information and assets/liabilities Adjusted Bases - The cost of the property plus the value of any capital expenduntures for improvement for the property Agency - A legal relationship created by law Amortization Term - Length of a time required to amortize a loan , The length of time over which an amortized loan is repaid. Mortgages are commonly amortized over 15 or 30 years. Annuity - Income from capital investment paid in a series of regular payments Appreciation - When the value of the property increases ARMS Length Transaction - Transaction of the party who add their best interest, when the buyer or seller are not related by blood or relation Assesment - A local tax levied against a property for a specific purpose Assignment - Transfer of rights from one to another Basses points - 100% of 1%, 0.001 of the loan = 1 bases point Blanket Mortgage - A combined mortgage that acts as one for more than one homes Bridge Loan - A short term loan collateralize on a short term loan and used to coll, swine loan , A short-term loan that allows a buyer to make a down payment on a new home before selling her or his current home (the current home is used as collateral). Cash Flow - The amount of cash that derives from an income producing companies over a period of time Ceiling - Limit of the interest rate CRB - A statement insured by the VA based on the VA appraisal 203k On FHA Loans - Construction and repairs 70% of the future value Forbearance - A delay in enforcing rights or claims or privileges FSBO - For Sale By Owner Ginnie Mae - Securitizes the loans like FHA, VA Impounds - Escrow, Reserves Joint Tenancy - 2 or more people holding equal value of the home Leasehold - The interest that the tenant has created by a lease. OTS - Office of the supervision formually federal supervise the federal savings bond PUD - Planned Unit Development, common ground within the areas Quitclaim Deed - A deed that transfers the ownership without any guarantee, commonly used in mortgage fraud Right Of First Refusal - The first option to buy a house when the landlord puts it on sale Sweat Equity - Interest in a building that a tenant earns by contributing to its renovation or maintenance Tenancy By Entirety - A state that exists between husband and right who have equal rights to the property Tenancy In Common - No right of survivorship in concurrent ownership 3rd Party Originator - Does not interact with the client directly Warehouse Line Of Credit - A revolving line of credit used by mortgage brokers in order to fund loans In The Evaluation Of An Applicant You Can Consider - Their visa or immigration status Right To Rescission Does Not Apply To - Construction Loans Civil Monetary Penalties Resulting From Failures To Report Data From HMDA Are - Are calculated based on penalty matrix, which considers good faith, previous violations, and financial resources of the entity involved Creditors Are Required To Keep Records Of Transaction Under TILA For - 2 years As Per The Protection Provided In Section 10 Of RESPA, A Borrower May Not - Be asked to pay more than 2 months cushion over the escrow needs ECOA Requires Lenders To Inform Applicants Of The Status Of Their Loan Within - 30 days First Payment After Closing Is Due - On the 1st of the next month HMDA Does Not Cover - Personal Property The Department Of Justice - Investigate cases of mortgage fraud YSP Is An Example Of - Indirect Compensation Child Support Can Be Considered Under ECOA If - It is made regularly A Homeowner Must Establish Residency Within - 60 days of closing The HUD-1 Settlement Statement - Discloses the borrowers' fees and estimated seller cost together in one disclosure FHFA - Is the federal housing finance agency, which is responsible for setting the annual conforming loan limits nationwide An Underwriter Examines - The applicant and collateral to ensure they meet the guidelines of the investor Law Of Agency - Is a rule regarding the responsabilities of a broker during a loan Georgia - Was the first state in the United States to enact a mortgage fraud law in 2005 TILA and GLB - Cover the types of information able to be shared between third party and affiliated companies Under ECOA A lender May Not Consider A Borrower's - Age for the purposes of credit qualifications Interest Rate - Is not required to be disclosed on the TIL disclosure A Reverse Mortgage Is - A form of mortgage in which the lender makes scheduled periodic payments to the borrower using the borrower's equity in the home as security when the repayment is deferred until the occurrence of certain events such as death or the selling of a home Surety Bonds Are Obtained From - Insurance companies that provides surety services The Maximum Origination Fee For A Reverse Mortgage Is - 2% A Furnisher Has Days From The CRA's Receipt Of Dispute To Investigate Rectify Any Inaccuracies - 30 days Regulation X Is - RESPA If An Individual Believes He Has Been A Victim Of Illegal Discrimination In Housing They Should File A Complaint With - HUD Fannie Mae Requires Months of Reserves When Purchasing an Investment Property - 6 months In A 5/1 ARM - The 5 represents the lock term and the 1 represents the adjustment frequency The Term Non-Traditional - Has more to do with payment structure or qualification documentation. Traditionally you would have to prove documentation Balloon Loan - Amortizes over a set period of time, and matures at an earlier date. Often balloon loans are paid on a 30 year amortization schedule but is due 5,7,10, or 15 years after the loan is closed. Subprime Loans - Were made to borrowers with blemished credit or other qualification assets Equity Is - The difference between the fair market value of the loan and the current balance of any liens 2 Types Of Loans Used To Finance Construction Are - 1) Construction-to- permanent 2) Construction Adjustment Interval Is - The time period between adjustment dats on an ARM The Appraiser And Underwriter Are In Charge Of This For A Property In A Flood Zone - The appraiser is in charge of determining whether a property is in a flood zone and the underwriter verifies that the insurance is in place The 3 Cs Of Credit Are - Character, Capacity, and Collateral Housing Ration - Monthly payment/ gross monthly income Per Diem Intends To - Put the loan on schedule Commission Borrowers Need To Show - 2 years tax returns and schedules, if their commission income makes up more than 25% Stock Bonds, 401ks, And Retirement Accounts Only Count for % Of Their Face Value - 60% Self Employed Verified Assets Include - 2 years tax returns and profit and loss statement In Order For The Most Elaborate Mortgage schemes To Succeed - Real estate and title attorney are most likely to be present A Consumer Report Is Defined Under - FCRA Violations Of The Telemarketing Sales Rules Are Subject To A Fine Of - $16,000 Under Section 10 Of RESPA A Borrower May Not - Be asked to pay more than 2 months over the escrow needs because the maximum amount of deposits collected in escrow cannot exceed 1/6 of the estimated total annual disbursements Brokers Do Not Technically - Extend credit Regulation C Is - HMDA Reasons An Acceleration Clause Can Occur Include - 1) Taking out a new debt against the home 2) Adding a new owner to the title 3) Renting out all or part of the home Will not occur if: The borrower adds MIP to the loan Securitization Helps The Lender To - Transfer active loans to another entity in exchange for funds to make more loans A Hybrid ARM Is - A non-traditional loan UFMIP - Is Upfront mortgage insurance premium APR Is Also Known As - Effective rate of interest Power Of Sale Clause - Is when the lender is authorized to sell the property through foreclosure steps without having to first obtain a court order, aka a non- judicial foreclosure Non-recourse Loan - A loan without a buyback provision Loan Limits On FHA Loans - Are set by HUD based on county-by-county limits The Fees Listed On The GFE Must Be Available For - 10 days The Loss Payee Clause - Protects the lender in the evet of a fire or other risks Submission Of Fraudulent Information On The Loan Application - Is subject to $1,000,000 fine and 1 year in prision Transactions Report Under HMDA - 1) Purchases 2) Refinances 3) Home improvement loans 4) Pre-qualifications The Statute Of Limitation On Bank Fraud Is - 10 years Low Monthly Payment Is An Example Of - Trigger Term Business Days Are - Any day other than Sunday and federal holidays TILA Covers Loans When - 1) The borrowers' dwellings secures the mortgage debt 2) The homeowner uses the proceeds of the loan for personal, family, or household purposes Finance Charge Must Be Understated By - $100 APR And Finance Charge Must Appear On - The TIL disclosure What Must Occur Within 20 Days Of Recission - The lender must return any money or property The Settlement Cost Booklet Warns - Against the use of false information on the loan application RESPA Applies To - Federally regulated mortgage loans Loan Origination Fees And Points Are Included In - Finance Charge, found in the TIL disclosure