real estate finance - full book (500 pgs)

The broker a b c d has placed her license in jeopardy

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Unformatted text preview: ynasty School (www.dynastySchool.com) 10-25 REAL ESTATE FINANCE BORROWER'S LIABILITY If the loan is not consummated due to faulty title or borrower's failure to disclose liens, the borrower is liable for costs and expenses incurred, and one–half of the commission. BALLOON PAYMENTS As mentioned earlier any payment greater than “twice the amount of the smallest payment” in the loan schedule is a balloon payment. Usually a balloon payment describes the final payment owing when an amortized loan becomes due if this amount is more than twice the amount of the smallest installment. Balloon payments are not allowed on: Any loan for less than 3 years A loan on an owner–occupied dwelling of less than 3 units for a term of 6 years or less. This balloon payment limitation is not applicable to a purchase money note from seller to buyer on any real property transaction. LATE PAYMENTS No late charge is permitted if payment is made within 10 days of due date. When a late charge is permitted, the following limits apply. The penalty is limited to 10% of the principal and interest portion of payment. A minimum charge of $5 can be assessed when the amount due is less than $50. PYRAMIDING PROHIBITED Only one charge can be made for a late payment. (If an earlier payment was not paid in full the lender cannot consider all future payments late because of the balance due off the partial or missed payment.) 10-26 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 10: REGULATION OF LOAN BROKERAGE REQUIRED DISCLOSURES STATE REQUIREMENTS 1. 2. 3. 4. 5. Mortgage Loan Disclosure Statement. (MLDS) Fair Housing. Lender Purchaser Disclosure Statement. (LPDS) Home Mortgage Disclosure Act Reporting. Seller Carryback Requirements. REQUIRED DISCLOSURES FEDERAL REQUIREMENTS 1. 2. 3. 4. 5. Truth In Lending. Real Estate Settlement Procedures Act. Equal Credit Opportunity Act. Transfer Disclosure. Written Authorization to Run Credit Report. Disclosure is not required if the licensee is negotiating t...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.

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