REF CH 3

• Department of Housing and Urban Development (HUD)


  HUD’s mission is to create strong, sustainable, inclusive communities and quality affordable homes. HUD works to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality, affordable rental homes; utilize housing as a platform for improving quality of life and build inclusive and sustainable communities free from discrimination.
• The Federal Housing Administration 


  provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA insures mortgages on single-family and multifamily homes, including manufactured homes and hospitals. It is the largest insurer of mortgages in the world,
• Community Development Block Grants (CDBG)


  to help communities with economic development, job opportunities, and housing rehabilitation
• HOME Investment Partnerships Program


  block grants to develop and support affordable housing for low-income residents.
• Rental assistance in the form of Section 8 certificates or vouchers for low-income households
• Public or subsidized housing for low-income individuals and families
• Fair housing public education and enforcement


  Ginnie Mae, a wholly owned federal corporation within HUD, pioneered the mortgage-backed security. These government-backed securities lower market interest rates and create homeownership incentives, and enabled Ginnie Mae to add more than $1.5 trillion to the supply of America’s affordable mortgage funds
• Secure and Fair Enforcement for Mortgage Licensing Act

  is designed to enhance consumer protection and reduce fraud.
• Redlining


  is the practice of refusing to provide financing in a particular area because of the location
• Closed-end loan


  is one that is funded in its entirety upfront, with no additional advances anticipated
• open-end loan


  which has payments and advances that vary over time
• Fair Credit Reporting Act (FCRA)


  sometimes called the Fair Credit Reporting Dispute Act, is a federal law designed to protect consumers against unfair credit reporting practices and protect credit privacy.
• Fair and Accurate Credit Transaction Act of 2003 (FACTA)


  amends the federal Fair Credit Reporting Act (FCRA) and is intended primarily to help consumers fight the growing crime of identity theft
• OCCC-regulated real estate transactions include


  Home Equity Loans

  Secondary Mortgages

  Home Improvement Loans

  Property Tax Lien Lenders
• Home Equity Loans


  Home equity loans allow borrowers to use the market value of a home as collateral for a loan. Loans secured by real estate are generally considered safer by lenders, resulting in lower interest rates than for other types of loans
• Secondary Mortgages


  Also known as second lien or junior lien mortgages, secondary mortgages are secured by homes that already have at least one other mortgage or lien.
• Home Improvement Loans


  Home improvement loans can hold either first lien positions (the only or primary loan secured by a house) or second lien positions. The loan principal is devoted to home repairs and renovations
• Property Tax Lien Lenders:


  This loan is used to pay delinquent taxes on real property. The loan pays off only the tax balance(s) owed to the governing tax authorities. The lien authority taken by the tax authorities on the property from the delinquent taxes is transferred to the tax lien lender
• Home equity loans


  are defined as loans that are collateralized by a non-purchase money mortgage or deed of trust on the borrower’s principal residence
• The consumer disclosure must be given at least 12 days in advance of the closing of an equity loan
• If a lender mails the notice to the owner, the lender must allow a reasonable time for delivery, i.e., 3 days
• Home Equity Lines of Credit (HELOC)


  form of an open-end account that may be debited from time to time, under which credit may be extended from time to time.”
• The maximum line of credit is 80% of the market value of the home minus any loans secured by the home.
• Reverse mortgages


  are an important financial tool for many older homeowners who describe themselves as “house-rich and cash-poor.
• The Texas Constitution has protected homesteads from forced sale for over 150 years
• Payments in excess of the reasonable value of goods provided or services rendered are considered kickbacks
• RESPA allows any party to the transaction to choose the title company, and any party can pay for the policy.
• An application includes the following six pieces of information (PENSIL)

  • Property Address
  • Estimated Value
  • Name of borrower
  • Social security number
  • Income
  • Loan Amount
• A mortgage loan originator who receives an application for a federally related mortgage loan is required to disclose to the borrower at the time of application, or within three business days after its submission
• When the servicing of a federally related mortgage loan is assigned, sold, or transferred, the transferor servicer (present servicer) must provide a disclosure not less than 15 days before the effective date of the transfer. The same notice from the transferee servicer (new servicer) must be provided not more than 15 days after the effective date of the transfer. Both notices may be combined into one notice delivered to the borrower not less than 15 days before the effective date of the transfer
• A servicer must respond to a borrower’s qualified written inquiry and take appropriate action within established time frames after receipt of the inquiry. Generally, the servicer must provide written acknowledgment within 20 business days and take specific actions within 60 business days of receipt of such inquiry.
• Which of the following transactions is exempt from RESPA

  Temporary loans
• Under the _____, the use of certain terms in an advertisement triggers the need for full disclosure of lending term

  Truth in Lending Act
• The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____.

  Consumer Financial Protection Bureau
• Which of the following programs is not administered by HUD

  Consumer Financial Protection Bureau
• Which programs are administered by HUD

  FHA, CDBG and GINNIE MAE
• The ____ provides mortgage insurance on loans made by approved lenders in the US and its territories

  FHA