About This Chapter
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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Other chapters within the Michigan Real Estate Broker Exam: Study Guide & Practice course
- Property & Land Characteristics
- Air, Mineral & Water Rights in Real Estate
- Liens & Encumbrances in Real Estate
- Types of Property Ownership
- Real Estate Land Use Controls & Regulations
- Property Valuation & Appraisal
- Basic Real Estate Financing Terms & Concepts
- Types of Real Estate Loans
- Agency Relationships & Agreements
- Disclosures of Property Conditions
- Real Estate Sales Contracts
- Leasing & Property Management
- Real Estate Title Transfers
- Real Estate Practices
- Common Real Estate Calculations
- Michigan Licensing & Statutory Requirements
- Michigan Real Estate Laws
- Michigan Real Estate Broker Exam Flashcards