3 Questions
What type of property must a federally related mortgage loan be secured by?
Residential real property
Who can make a federally related mortgage loan?
Only regulated or insured lenders
What type of loan is considered a federally related mortgage loan?
Only loans intended to be sold to certain government-sponsored entities
Study Notes
- A federally related mortgage loan is any loan secured by residential real property.
- The property must be designed for occupancy by one to four families or a manufactured home.
- The loan must be made by a regulated or insured lender, or insured by a federal agency.
- It can also be intended to be sold to certain government-sponsored entities.
- Loans made by a creditor investing in over $1 million in residential real estate loans per year also qualify.
- Loans originated by a dealer or mortgage broker also qualify.
- Home equity conversion mortgages are also considered federally related mortgage loans.
- Installment sales contracts, land contracts, or contracts for deed are also considered federally related mortgage loans if funded by a qualifying mortgage loan.
- The loan must be located in a state to qualify.
- The definition of "creditor" does not include any agency or instrumentality of any state.
Do you know what makes a mortgage loan a "federally related mortgage loan"? Test your knowledge with this quiz! Learn about the criteria that must be met for a loan to qualify, including the type of property it's secured by, the lender or agency involved, and more. Challenge yourself to see how much you know about this important type of loan.
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