DW3

Why do you think a Lender would want to evaluate both the Borrowers qualification and the Propertys collateral together when making a final decision to finance a specific home purchase?
Why do you think evaluating a potential borrowers credit rating is an important component to determining their loan approval? What potential drawbacks could there be with the current FICO score system of determining a credit rating?
Why do you think the Mortgage Lender would evaluate the Borrowers income and apply a limit to the Borrowers Housing and Debt ratios when determining how much of a loan amount they would qualify for?
Why is it a good idea for a Mortgage Borrower to carefully review the Loan Estimate form provided by their Lender when applying for a Mortgage? Why is it even more important to carefully review the Closing Disclosure prior to completing a Mortgage loan? Can you think of an example of where an error (intentional or otherwise) on these forms can lead to bad consequences for a Borrower?
Describe 2 examples of how the Real Estate Settlement Procedures Act (RESPA) helps protects borrowers from unethical Lending practices?
Explain the purpose of a Lender Under Regulation Z being required to provide an Annual Percentage Rate (APR) calculation within their Loan Estimate? How does this information help when shopping and comparing multiple Lenders Estimates?
Discriminatory and unethical practices in Lending is a serious issue that we still deal with in modern times. What important takeaways did you learn when reviewing this week the Federal Fair Housing and Lending Laws such as the: Equal Credit Opportunity Act (ECOA), RESPA, The Mortgage Disclosure Improvement Act (MDIA), The Fair Credit Reporting Act, Community Reinvestment Act as it pertains to how Real Estate Professionals (both in mortgage and all other areas) should provide their services?