A veteran in Texas wants to assume an existing FHA loan on a property. Under FHA assumption rules and Texas law, which of the following is required?
Correct Answer
D) FHA loans originated after December 1, 1986 require the assuming buyer to qualify with the lender, and both spouses must sign the deed of trust if it is a Texas homestead
FHA loans originated after December 1, 1986 are assumable but require lender qualification of the new buyer. In Texas, if the property is a homestead and the assuming buyer is married, both spouses must sign the new deed of trust to comply with Texas homestead requirements.
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Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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