Chapter12 2
Terms
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- What are Savings and Loan Associations (S&L's)?
- Traditionally the most active in the home loan mortgage market, specializing in long-term residential loans. Princial function is to promote thrift and home ownership.
- What is the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA)?
- Restructures the S&L regulatory system and the system that protectd depositors.
- Who are the S&L deposits insured through?
- The Savings Association Insurance Fund (SAIF)
- Starting July 1, 1991, S&L's are required to do what?
- To keep 70% of their loan portfolios in housing-related portfolios.
- Deposits in the Federal Reserve are managed by what?
- The Federal Deposit Isurance Corporation (FDIC)
- Mutual Savings Banks are?
- Located mainly in northeastern US. Primarily savings instituions and are highly active in the mortgage market, investing in loan secured by income property as well as residential real estate.
- What is a Mortgage banking company?
- They originate mortgage loans with money belonging to such other institutions as insurance companies and pension funds.
- What is the secondary mortgage market?
- After loans are originated in the primary market, they are bought and sold in the secondary market.
- What is a warehousing agency?
- Agencies such as Fannie Mae, Ginnie Mae, Freddie Mac, & Maggie Mae, which purchases a number of motgage loans and assembles them into one or more packages of loans for resale to investors.
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Lending Regulations:
What is the Federal Equal Credit Opportunity Act(ECOA)? - An act administered by the Federal Trade Commission (FTC), was enacted to prohibot discrimination against credit applications on basis of race, color, religion, etc.
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Lending Regulations:
Due to the Federal Equal Credit Opportunity Act(ECOA) lenders focus on applicant's: - income, job stability, net worth, and credit history.
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Lending Regulations:
The Truth in Lending law is a federal law that became effective July 1969 as part of the: - Consumer Credit Protection Act and was implemented by the Federal Reserve Board's Regulation Z.
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Lending Regulations:
What is exempt from Regulation Z? - Personal property transactions over $25,000, and the extension of credit to the owner of a dwelling containing more than four family housing units.
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Lending Regulations:
What is "trigger" - Certain credit terms mentioned in an ad that "trigger" a required diclosure of other items when dealing with advertisements. Regulation Z
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Lending Regulations:
What is the penalty for violation of Regualation Z? - Twice the amount of the finance charge or a min. of $100, up to a max. of $1000, plus court costs.
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Lending Regulations:
Regulation Z is enforced by the? - Federal Trade Commission (FTC)
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Lending Regulations:
Enacted in 1974, was created to ensure that the buyer and seller in a residential real estate sale or transfer have knowledge of all settlement costs. - Real Estate Settlement Procedure Act (RESPA)
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Lending Regulations:
RESPA requirements apply when: - the purchase price is financed by a federally related mortgage loan.
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Lending Regulations:
RESPA provides that loan closing information must br prepared on a special HUD form: - the Uniform Settlement Statement, designed to detail all financial particulars of a transaction.
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Lending Regulations:
RESPA is administered by the: - US Department of Housing and Urban Development (HUD).