(9) Traditional and Non-Traditional Mortgage Products

9.1- What are Traditional and Non-Traditional Mortgage Products?

9.2- What are Conventional/conforming (e.g., Fannie Mae, Freddie Mac) loans?

9.3- What are the Responsibilities of Fannie Mae?

9.4- What are the Limits on closing cost concessions?

9.5- What Fees are charged on loans with certain risk characteristics?

9.6- What are Fannie Mae/Freddie Mac’s automated underwriting systems?

9.7- What are the Requirements when purchasing a non-owner occupied rental property?

9.8- What are Acceptable down payment amounts? What are Hazard insurance requirements?

9.9- What are the Pre-payment requirements, (e.g., FHA, VA, USDA)?

9.10- What is FHA? What is an “FHA Mortgage”? Explain Facts about FHA loans

9.11- What is VA? What is a VA loan? Explain Facts about VA loans

9.12- Explain Prohibition on mortgage insurance on FHA and VA loans

9.13- How is the interest rate calculated on FHA loan? Explain interest rate calculation scenarios.

9.14- Explain the Types of government guarantors on different loans.

9.15- What is the Definition of “entitlement”?

9.16- What is Certificate eligibility requirement?

9.17- What are Acceptable funds for a down payment/closing costs?

9.18- What Properties are eligible for FHA purchase transactions?

9.19- What are FHA loan limits?

9.20- What are VA funding fees?

9.21- How is the Upfront mortgage insurance premium calculated?

9.22- Explain the Residual income qualification test

9.23- What is the Required documentation?

9.24- Explain the Monthly mortgage insurance payment scenarios

9.25- What is the Minimum down payment for an FHA loan?

9.26- What are Conventional/nonconforming (e.g., Jumbo, Alt-A) loans? Explain Facts on “jumbo loans”

9.27- What is the Definition of “non-conforming” loan? Give some Examples of “non-traditional loans”

9.28- What is an "escrow account"? What are the Requirements for an escrow account associated with a “high priced loan”?

9.29- What are the Requirements for an escrow account associated with a “high cost loan”?

9.30- What is Subprime Lending?

9.31- What is Definition of “payment shock”?

9.32- What is Definition of “subprime” loan?

9.33- What are Characteristics of ARM loans?

9.34- Explain "debt-to-income ratio assessment"

9.35- What is credit risk? Give some Examples of credit risk

9.36- Give Scenarios to determine when a balloon loan may be appropriate for a borrower

9.37- What is a subprime borrower? Explain Characteristics of subprime borrowers

9.38- What is a subprime mortgage? What are Characteristics of a subprime mortgage Stated income loans Non-income verifying loans?

9.39- How are consumers Guided on Nontraditional Mortgage Product Risk? What are Characteristics of a non-traditional mortgage loan?

9.40- What are Risks of non-traditional mortgage products? How is Re-payment capacity of a borrower identified?

9.41- How is the right non-traditional mortgage product dentified for borrowers?

9.42- What are important Communications with consumers regarding non-traditional mortgage product?

9.43- What are Qualified and Non-Qualified Mortgage Programs?

9.44- What are Features of a “qualified mortgage”?

9.45- What are Allowable points and fees for qualified mortgages?

9.46- What Information is used to determine whether a loan is “qualified”?

9.47- What are Annual percentage rates that make a mortgage “qualified”?

9.48- Explain different Categories of qualified mortgages

9.49- Explain categories and types of Non-qualified mortgage (Non-QM)

9.50- Explain Features of a non-qualified mortgage