The ________________________ (MBA) is the national association representing the entire real estate finance industry.
Mortgage Bankers
... [Show More] Association
List five of the HUD rights for borrowers. (Additional correct answers are found on page #3.)
Right to shop for the best loan and compare charges
Right to be informed about the total cost of the loan
Right to an estimate of all loan and settlement charges before agreeing to the loan
Right to know what fees are not refundable if borrower cancels the loan
Right to know how much the mortgage broker is being paid by borrower and by lender
List five of the MBA rights for borrowers that are different or in addition to the rights provided by HUD. (Additional correct answers are found on page #4.)
Right not to be subject to deceptive marketing tactics
Right to receive credit counseling prior to loan closing
Right to decline credit insurance
Right to fair and equitable resolution to disputes related to the loan
Right to have favorable information reported to credit reporting agencies on a timely basis
Does a borrower have any rights to object to and stop an assignment of his loan for servicing? Why or why not?
This depends entirely on the written agreement between the borrower and the lender. If the agreement does not prevent the lender from selling the loan and its servicing rights, the borrower has no rights to stop the assignment. If the agreement states the lender will not assign the loan and its servicing, then the borrower can object and bring legal action to stop the assignment.
List five servicers requirements included in the amendment to Regulation X. (Other correct answers can be found on page #7.)
Correct errors asserted by mortgage loan borrowers
Provide certain information requested by such borrowers
Evaluate borrowers' applications for available loss mitigation options
Provide disclosures to borrowers in connection with transfers of mortgage servicing
Return amounts in an escrow account to a borrower upon payment in full of a mortgage loan
Rights Under the Equal Credit Opportunity Act
you don't have to tell about your race, martial status, kids...
If the contract contains an Acceleration Clause and the borrower defaults on the loan,
the lender has the right to call the entire balance due and payable immediately. Without this clause, the lender would not have the right to foreclose without suing each month for monthly payment.
Alienation Clause
"If all or any part of the property herein is transferred without the lender's prior written consent, the lender may require all sums secured hereby immediately due and payable."
What is required under Regulation Z and to what loans does this regulation NOT apply?
Reg Z requires lenders to disclose to buyers the true cost of obtaining credit so the borrowers can compare the costs of various lenders. It does not apply to commercial loans or agricultural loans over $25,000.
Briefly explain the Right to Rescind.
The borrower has the right to cancel a credit or loan transaction by notifying the lender within 3 days. This right does not apply to residential first mortgage loans.
List five borrower rights under ECOA. (Additional correct answers are found on page #13.)
Right to apply for credit regardless of sex, marital status, age, race, national origin, or receipt of public assistance income
Right not to reveal plans for having or raising children
Right not to reveal if applicant is widowed or divorced
Right not to reveal sex, race, national origin, or religion.
Right not to reveal marital status if applying for a separate, unsecured account
ist three lender rights under a loan agreement. (Any three of the following.)
To receive payment of the debt in accordance with the terms of the note
To require the borrower pay all real estate taxes on the property given as security
To require the borrower maintain adequate insurance
To require the borrower to maintain the property in good repair at all times
To require the borrower to obtain lender authorization prior to making any major alterations to the property
What is the lender's right under an Alienation Clause?
The lender has the right to declare the entire balance of the loan due and payable when any interest in the property is transferred without written consent of the lender.
Only 20 states, primarily in the northeastern U.S., require judicial review before a lender can foreclose on a mortgage. These are known as "judicial states." Is Indiana a judicial state?
yep
Indiana is known as a ______________ where the property acts as security for the underlying loan.
lien theory state
In Indiana, lenders have the right to foreclose on a mortgage in default only by using the _________________.
judicial foreclosure process.
A lender must usually wait ___________________ to execute on a complaint for foreclosure.
three (3) months
In the foreclosure suit, ______________gives public notice that the mortgaged property may soon have a judgment issued against it. This notice enables other lienholders to join in the suit against the defendant.
a lis pendens
If the defendant fails to meet the demands of the suit during a prescribed period, the court orders the termination of interests of any and all parties in the property, and orders the property to be sold. The court's __________________ authorizes an official, such as the county sheriff, to seize and sell the foreclosed property.
writ of execution
In Indiana, what are the rules to if you pay or not involving foreclosure?
if the borrower reinstates before the court enters judgment, the foreclosure must be dismissed.
if the borrower reinstates after judgment but prior to the sale, the foreclosure must be stayed (postponed).
if the borrower subsequently misses another payment, the foreclosure can proceed.
There is no redemption right in non- judicial foreclosure.
In Indiana, there is no ________________. For parties involved in Indiana foreclosure actions, the bottom line is this: a foreclosure sale cuts off a the right of redemption. Parties can redeem right up to the sheriff's sale, but once the sale has taken place and title has transferred to a new owner, the defaulted borrower cannot reinstate the loan or get his/her home back.
Statutory Right of Redemption.
Indiana law permits land contract sellers ________________ provided the right is expressly stated in the sale contract. The seller simply takes back the property after a predetermined period of time once the buyer defaults.
the right of forfeiture
Indiana has reformed its laws to remedy the situation where a buyer defaults after completing many payments. If the buyer's equity in the property at the time of default is "significant," as defined by the law, the seller must institute formal _______________procedures and must compensate the buyer for accumulated equity before repossessing the property.
foreclosure
There are two situations in which a forfeiture is appropriate in Indiana:
where there is an abandoning, absconding buyer
where the buyer has paid a minimal amount on the contract at the time of default and seeks to retain possession while the seller is paying taxes, insurance, and other upkeep in order to preserve the premises
What right does the lender have if a borrower defaults or stops making payments on a mortgage loan and how does this impact the borrower?
The lender has the right to use the legal process of foreclosure which terminates the rights and title of the borrower.
What are the two types of foreclosures?
Judicial and non-judicial
Since Indiana is a lien theory state and does not include a power of sale provision in its Code, how does this impact lenders who wish to foreclose on a property?
Lenders have the right to foreclose only by using the judicial foreclosure process.
What is the difference between equitable right of redemption and statutory right of redemption? Which is not allowed in Indiana?
Equitable right of redemption gives the borrower the right to clear the debt prior to the foreclosure sale.
Statutory right of redemption gives the borrower the right to clear the debt within a certain amount of time after the sale.
Indiana has no statutory right of redemption.
What has Indiana done that impacts a seller's right of forfeiture if the buyer defaults in a land contract?
Indiana reformed its laws for cases where the buyer has significant equity in the property to require a seller to institute formal foreclosure procedures and compensate the buyer for accumulated equity before repossessing the property.
1 of 10 - Aside from forfeiture for default in a land contract, what is another option for the seller?
Deficiency suit
Non-judicial foreclosure
Judicial foreclosure
Eviction
Judicial foreclosure
2 of 10 - The right to have a lender consider a borrower's ability to repay the loan before credit is extended is provided by
ECOA.
MBA Borrower's Bill of Rights.
HUD's rights for borrowers.
Regulation X.
MBA Borrower's Bill of Rights.
3 of 10 - The regulation that applies to residential loans but not commercial loans is
Regulation X.
Regulation Z.
ECOA.
Dodd-Frank Act.
Regulation Z.
4 of 10 - What provides the right to shop for the best loan and compare charges of different mortgage brokers and lenders?
MBA
ECOA
HUD
Regulation X
HUD
5 of 10 - Which of the following is a right under the MBA Borrower's Bill of Rights?
A borrower has the right to sue for deceptive marketing tactics.
A borrower has the right not to have a lender consider the borrower's ability to repay the loan before credit is extended.
A borrower has the right to have unfavorable information reported to credit reporting agencies on a timely basis.
A borrower should receive an identifiable benefit when charged a fee or a higher interest rate to refinance a loan.
A borrower should receive an identifiable benefit when charged a fee or a higher interest rate to refinance a loan.
6 of 10 - Which regulation requires lenders to disclose to buyers the true cost of obtaining credit so borrowers can compare various lenders?
Regulation X
Regulation Z
Dodd-Frank Act
Consumer Protection Act
Regulation Z
7 of 10 - The right to rescind allows borrowers to cancel the transaction by
returning the contract to the lender.
notifying the mortgage broker within 5 days.
notifying the lender within 3 days.
contacting the credit agencies.
notifying the lender within 3 days.
8 of 10 - Indiana does not allow
statutory right of redemption.
forfeiture.
judicial foreclosure.
equitable right of redemption.
statutory right of redemption.
9 of 10 - After an equitable right of redemption has been exercised by the borrower, the loan is reinstated. In Indiana, which of the following is NOT true?
If the borrower reinstates before the court enters judgment, the foreclosure must be postponed.
If the borrower reinstates after judgment but prior to the sale, the foreclosure must be stayed.
If the borrower subsequently misses another payment, the foreclosure can proceed.If the borrower reinstates after the sale of the property, the foreclosure must be dismissed.
If the borrower reinstates after the sale of the property, the foreclosure must be dismissed.
10 of 10 - A borrower may execute his/her right to clear a debt prior to the sale of the property under
lis pendens.
equitable right of redemption.
statutory right of redemption.
right of reinstatement.
equitable right of redemption. [Show Less]