Ch 9: Lending & Underwriting Processes

About This Chapter

Gain a broadened understanding of lending and underwriting processes, such as the Dodd-Frank Act, RESPA, and credit capacity. These lessons can help you gear up to take an exam or engage in a class discussion without any worries.

Lending & Underwriting Processes - Chapter Summary

With this chapter on lending and underwriting processes, you'll get a deeper understanding of what's involved in underwriting decisions. You can also obtain a clearer understanding of Regulation Z, RESPA, and Regulation X. After going through the lessons, you should be able to confidently do the following:

  • Explain the role of mortgage originators and underwriters
  • Discuss the closing process after the sale of real estate
  • Provide an overview of the Truth in Lending Act
  • Describe protections under the Equal Opportunity Act
  • Explain the purpose of the Dodd-Frank Act
  • Outline the purpose of TRID
  • Recount what contributes to your credit score
  • Offer an example of credit capacity

These lessons help you fully grasp concepts related to lending and underwriting processes. There are many useful features, such as the ability to submit questions to experts if there's a concept that you don't understand. A short quiz is available to test your knowledge of each lesson, and the quizzes can be printed.

10 Lessons in Chapter 9: Lending & Underwriting Processes
Test your knowledge with a 30-question chapter practice test
Professionals Involved in Financing Real Estate Purchases

1. Professionals Involved in Financing Real Estate Purchases

In this lesson we will identify the different professionals involved in real estate financing. We will define the role of mortgage originators, underwriters, appraisers, and title agents.

Real Estate Closing & Settlement Procedures & Parties

2. Real Estate Closing & Settlement Procedures & Parties

The closing or settlement procedure concludes a real estate sale. In this lesson, we will identify who is involved in closing and give a general overview of the process.

Truth in Lending Act & Regulation Z: Definition & Overview

3. Truth in Lending Act & Regulation Z: Definition & Overview

How much does that home mortgage actually cost? Let's take a look at the highlights of the Truth in Lending Act and Regulation Z to see how lenders must inform borrowers about the total costs of borrowing money.

RESPA & Regulation X: Definition & Overview

4. RESPA & Regulation X: Definition & Overview

Home buyers and anyone seeking real estate financing for residential property are provided with a number of benefits under RESPA and Regulation X. In this lesson we will look at the required disclosures and consumer protections in these laws.

The Equal Credit Opportunity Act & Regulation B

5. The Equal Credit Opportunity Act & Regulation B

Most people need access to credit in order to purchase real estate. In this lesson, you'll learn about the Equal Opportunity Act and Regulation B and how they help ensure that lenders don't unfairly deny credit.

Dodd-Frank Act: Summary & Regulations

6. Dodd-Frank Act: Summary & Regulations

In this lesson, you will learn what the Dodd-Frank Act is, its purpose in protecting United States citizens from unfair business practices, and how it enforces the new policies created.

What is TRID? - Definition, Purpose & Rules

7. What is TRID? - Definition, Purpose & Rules

The Consumer Finance Protection Bureau implemented TRID to inform and protect consumers when applying for real estate mortgages. This lesson will define TRID, provide a brief history, detail the information provided to consumers, and conclude with the basic compliance regulations.

Underwriting in Real Estate: Definition & Requirements

8. Underwriting in Real Estate: Definition & Requirements

Underwriters examine and evaluate the risk of offering a mortgage applicant a loan before the lender approves funding. They base their decision on a comprehensive review of the borrower's finances and specific details of the mortgaged property.

Personal Credit Report: Explanation of Contributing Factors

9. Personal Credit Report: Explanation of Contributing Factors

In this lesson, we'll discuss your credit report and score. You'll also learn about the contributing factors of history, maximization, time, and composition.

Credit Capacity: Definition, Ratios & Examples

10. Credit Capacity: Definition, Ratios & Examples

After reading this lesson, you'll have a better understanding of credit capacity and the various ratios used to determine whether or not you can quality for certain loans.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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