Finance
In South Dakota, 'loan origination' refers to the process by which:
AThe lender securitizes the mortgage for sale on the secondary market
BA mortgage loan is created, from application through funding✓ Correct
CThe borrower's original purchase offer is accepted
DThe property's original title is established
Explanation
Loan origination encompasses the entire process of creating a mortgage loan, from the borrower's application through underwriting, approval, and ultimately funding (disbursement of loan proceeds).
People Also Study
Related South Dakota Questions
- A South Dakota borrower obtains a 30-year fixed-rate mortgage at 7% interest. The monthly payment per $1,000 borrowed is approximately $6.65. On a $200,000 loan, what is the approximate monthly payment (principal and interest)?Finance
- In South Dakota, which type of mortgage clause allows the lender to accelerate (call due) the entire loan balance upon sale of the property?Finance
- In South Dakota, a mortgage lender who denies a loan application based on the racial composition of the neighborhood where the property is located is engaging in:Fair Housing
- A South Dakota buyer's loan application shows monthly income of $7,500 and monthly debts (excluding the proposed mortgage) of $600. If the lender's maximum back-end DTI is 43%, what is the maximum monthly mortgage payment allowed?Real Estate Math
- Discount points on a South Dakota mortgage loan represent:Finance
- In South Dakota, a 'balloon mortgage' requires the borrower to:Finance
- A South Dakota seller agrees to pay off their mortgage at closing from sale proceeds. At closing, the escrow agent will:Escrow & Title
- A South Dakota buyer's financing contingency specifies that the buyer must apply for a loan within 5 days and obtain approval within 30 days. If the buyer fails to apply within 5 days:Contracts
Key Terms to Know
Short Sale
A sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More South Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free South Dakota Quiz →