HI MLO flashcards
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20 cards. Read the term and the definition here. The deck at the top of this page is optional.
- Loan principal
- The amount owed or advanced under the relevant loan arrangement, distinguished from interest, fees and the total payments over its life.
- Interest rate
- The rate applied under the contract to the relevant balance and period, distinguished from a broader measure of financing cost.
- Annual percentage rate
- A disclosure measure of annualized credit cost under the applicable calculation, which is not necessarily identical to the note interest rate.
- Loan-to-value ratio
- The ratio of the defined loan amount to the relevant property-value basis, requiring the actual underwriting or exercise definition.
- Debt-to-income ratio
- A comparison of included debt obligations with the specified income basis, whose components must be identified before interpreting the percentage.
- Adjustable-rate mortgage
- A mortgage with an interest rate that can change under specified index, margin, timing and cap conditions, rather than at an arbitrary lender preference.
- Rate cap
- A contractual restriction on a defined interest-rate change or level, whose initial, periodic and lifetime effects can differ.
- Loan estimate
- An estimate disclosure for applicable mortgage transactions, used to understand and compare terms rather than proof that final settlement has occurred.
- Closing disclosure
- A final mortgage disclosure for applicable transactions, whose terms and amounts should be compared with the actual agreement and prior information.
- Promissory note
- An instrument recording the relevant repayment promise and terms, distinguished from the security instrument and from proof of property ownership.
- Security instrument
- An instrument creating or documenting security for an obligation under the applicable framework, whose legal form and enforcement depend on jurisdiction.
- Cash to close
- The amount the relevant party needs at settlement under the actual calculation, distinguished from the total loan amount or purchase price.
- Mortgage escrow account
- An account arrangement for specified continuing property charges under its conditions, distinct from every settlement officer holding account.
- Settlement instructions
- Authorized directions governing relevant closing actions or transfers, whose content and changes require appropriate verification and legal compliance.
- Payoff statement
- Information stating the amount and conditions needed to discharge a specified obligation at a relevant date, rather than the original principal alone.
- Proration
- Allocation of a stated amount across parties or periods under the applicable agreement and calculation convention, requiring a clear date and basis.
- Reconciliation
- Comparison and explanation of differences among related records, followed by supported corrections rather than an unidentified balancing entry.
- Disbursement
- A transfer of funds under the relevant authority and conditions, which is not automatically permitted merely because an account balance is positive.
- Wire-instruction verification
- Independent authentication of relevant payment details and changes through the authorized process, rather than trusting an email display name alone.
- Audit trail
- An attributable record linking actions, instructions, transactions and corrections with their supporting evidence, enabling later review of what occurred.