Mortgage Banking Basics
Terms in this set (24)
What are the 2 ways we make money?
Sell more than pool price and make money from servicing rights.
Why do we sell?
It generates a profit faster, if the portfolio gets to heavy, if we have to much volume.
Fannie Mae - Federal Nation Mortgage Association
Ginnie Mae - Government National Mortgage Association
Freddie Mac - Federal Home Loan Mortgage Corporation.
Federal home loan bank board
Who has more authorurity Freddie Mac or Ginnie Mae?
Housing Ratio/Front End Ratio = ?
Monthly Housing expense/gross monthly income
Debt Ratio/Back End Ratio = ?
total monthly debt/gross monthly income
What is the general standard for front end and back end ratios?
VA - veteran's total debt should not exceed 41% of their gross monthly income.
Works like a penny to a dollar. 1/100th of a point.
What is a gift letter?
A gift letter is for a large sum of money from giver stating that no payback will be required. Must be notarized.
What does a VOM do?
Shows you are current in mortgage payment.
Hard Value is talking about what?
How the house is made
Home Mortgage Disclosure Act
What happens if you can't meet max cap?
We won't deal with you.
Final disclosure at closing of loan. (like a detailed receipt) designed by HUD
What confirms information that's been provided verbably?
VOE, VOM, VOD, credit report
1% of loan amount may be paid to reduce intrest rate on loan
If we sell servicing rights this document must be recorded.
Assignment of Mortgage
Any persons or group who invests in mortgages is?
Does anyone have any intrest in title to real estate or lien, this examination is called?
A title search
Area of mortgage company that determines level of risk is called?