Finance
Vermont's 'private lender' exemption from mortgage banker licensing may apply to:
AAll private investors who make any loans
BIndividuals making limited numbers of mortgage loans per year, subject to specific exemption thresholds✓ Correct
CForeign investors purchasing Vermont property
DREITs investing in Vermont mortgages
Explanation
Vermont's mortgage lending regulations include exemptions for individuals who make limited numbers of mortgage loans in a year on their own account, below the threshold that triggers mortgage banker or broker licensing requirements.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
State-Specific Concepts
Broker Supervision
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