Alt-A is a type of mortgage where the borrower does not have to provide full documentation of their income and assets. This type of mortgage is often used by borrowers who are self-employed or have income that is not easily verifiable. Alt-A loans typically have higher interest rates and fees than traditional loans. Which of the following best describes a loan that is alternative to prime? A loan that is alternative to prime is a loan that is offered to borrowers who do not qualify for a traditional mortgage. These loans typically have higher interest rates and may be more difficult to obtain. What are bundled mortgages called? A bundled mortgage is a type of mortgage where the borrower takes out two or more loans at the same time. The loans are then bundled together and the borrower makes one monthly payment to the lender.
What does Title XIV of Dodd Frank prohibit? Title XIV of the Dodd Frank Wall Street Reform and Consumer Protection Act is also known as the Mortgage Reform and Anti-Predatory Lending Act. It is designed to protect consumers from unfair or deceptive lending practices, and to promote responsible lending practices.
Specifically, Title XIV prohibits lenders from making certain types of loans that are considered to be high-risk, such as loans with high interest rates, loans with excessive fees, or loans that are based on the borrower's ability to pay rather than on the value of the property. In addition, lenders are required to verify the borrower's income and assets, and to provide the borrower with a good faith estimate of the loan's terms and conditions.
Title XIV also establishes new consumer protections, such as the right to cancel a loan within three days of closing, and the right to sue a lender for damages if the lender violates the act.
What are the 2 main types of mortgages?
The two main types of mortgages are fixed-rate mortgages and adjustable-rate mortgages. Fixed-rate mortgages have an interest rate that remains the same for the life of the loan. Adjustable-rate mortgages have an interest rate that changes over time, typically in response to changes in the market. Who qualifies for an Alt-A mortgage loan? Alt-A mortgage loans are available to borrowers who do not qualify for a traditional mortgage loan. These loans typically have higher interest rates and may require the borrower to provide collateral, such as a down payment or home equity.