100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
NMLS SAFE EXAM ACRONYMS Questions with Complete Solutions $14.99   Add to cart

Exam (elaborations)

NMLS SAFE EXAM ACRONYMS Questions with Complete Solutions

 4 views  0 purchase

NMLS SAFE EXAM ACRONYMS Questions with Complete Solutions ARM - answerA variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowi...

[Show more]

Preview 3 out of 29  pages

  • August 26, 2024
  • 29
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
All documents for this subject (1263)
avatar-seller
TheeGrades
NMLS SAFE EXAM ACRONYMS Questions with
Complete Solutions
ARM - answerA variable-rate mortgage, adjustable-rate mortgage (ARM), or

tracker mortgage is a


mortgage loan with the interest rate on the note periodically adjusted based on

an index which


reflects the cost to the lender of borrowing on the credit markets.


APR - answerThe term annual percentage rate of charge (APR), corresponding

sometimes to a


nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a

whole year


(annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage

loan, credit card,


etc. It is a finance charge expressed as an annual rate. Those terms have formal,

legal definitions in


some countries or legal jurisdictions, but in the United States:


The nominal APR is the simple-interest rate (for a year).

The effective APR is the fee+compound interest rate (calculated across a year).

, NMLS SAFE EXAM ACRONYMS Questions with
Complete Solutions
APOR - answerThe Average Prime Offer Rate (APOR) is an annual percentage

rate that is based


on average interest rates, fees, and other terms on mortgages offered to highly

qualified


borrowers. ... A subordinate-lien mortgage is generally "higher-priced" if the

APR of this mortgage


is 3.5 percentage points or more higher than the APOR.


ATR - answerThe ATR/QM rule requires you to make a reasonable, good-faith

determination that


a member has the ability to repay a covered mortgage loan before or when you

consummate the


loan. You must consider, at a minimum, eight specific underwriting standards

when making an


ATR determination.


CLTV - answerThe combined loan-to-value (CLTV) ratio is the ratio of all secured

loans on a

, NMLS SAFE EXAM ACRONYMS Questions with
Complete Solutions
property to the value of a property. Lenders use the CLTV ratio to determine a

prospective home


buyer's risk of default when more than one loan is used.


DU - answerDesktop underwriting, or DU, is an automated approval system that

calculates


whether a loan meets Fannie Mae or, in some cases, Federal Housing Authority

(FHA) loan


requirements. A DU evaluates a borrower's risk of delinquency by

comprehensively evaluating


several risk factors.


DTI - answerHere are some guidelines about what is a good debt-to-income

ratio: The "ideal" DTI


ratio is 36% or less. At least, that's the common financial advice of the "28/36

rule." This guideline


suggests keeping total monthly debt costs at or below 36% of your income, and

housing costs at or

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller TheeGrades. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $14.99. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

72042 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$14.99
  • (0)
  Add to cart