The mortgage loan origination process from application through closing tested on the SAFE Act exam.
35 cards · basic cards · AI-written, checked twice. Edit anything.
- What does the SAFE Act stand for?
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Secure and Fair Enforcement for Mortgage Licensing Act of 2008- What is the primary purpose of the SAFE Act?
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To establish uniform standards for licensing and regulating mortgage loan originators across states- What does NMLS stand for?
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Nationwide Multistate Licensing System- Every licensed loan originator must maintain a(n) ____ number
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NMLS- In what year did the SAFE Act take effect?
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2010- What is the first step in the mortgage loan origination process?
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Application, where the borrower provides personal and financial information- What is a pre-qualification in the loan process?
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An estimate of how much a borrower can borrow based on preliminary financial information- How does pre-approval differ from pre-qualification?
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Pre-approval involves a formal determination of loan amount after verifying actual financial documents- What happens during the processing stage of loan origination?
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Documentation is collected and verified, including income statements, bank statements, and employment records- What is underwriting in the loan origination process?
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The process of evaluating the risk of the loan by reviewing the borrower and property details- What is the purpose of an appraisal in underwriting?
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To establish the fair market value of the property and verify it supports the loan amount- What is a title search in the loan origination process?
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An examination of public records to verify the property ownership and identify any liens or judgments- What does title insurance protect against?
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Ownership disputes and claims that could affect the property title- What is a rate lock?
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A lender's commitment to a specific interest rate for a set period of time- What is the Loan Estimate?
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A detailed written estimate of all closing costs and loan terms, required under TRID regulations
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