Real Estate Ch 11 – Flashcards
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1. Mortgage banking companies
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Collect monthly payments and forward them to the mortgage investor
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2. In recent years, the mortgage banking industry has experienced
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Rapid consolidation
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3. Currently, which type of financial institution in the primary mortgage market provides the most funds for the residential (owner-occupied) housing market?
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Commercial banks
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4. For all except very high loan-to-value conventional home loans the standard payment ratios for underwriting are
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28 percent and 36 percent
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5. The numerator of the standard housing expense (front-end) ratio in home loan underwriting includes
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Monthly principal, interest, property taxes, and hazard insurance
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6. The most profitable activity of residential mortgage bankers is typically
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Loan servicing
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Potential justifiable subprime borrowers include persons who
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All of these
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8. The normal securitization channel for jumbo conventional loans is
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Private conduits
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9. The reduced importance of certain institutions in the primary mortgage market has been largely offset by an expanded role for others. Which has diminished and which has expanded?
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Savings and loan associations; mortgage bankers
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10. Warehousing in home mortgage lending refers to
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Short-term loans made by commercial banks to mortgage bankers
