13.Case Study Question Set A

1. The settlement agent that handled the closing returns the file to FCMC’s post-closing department. FCMC updates their system and issues a payment book(…….) to Javier and Raquel.

Servicer
Tasks such as communicating with the borrowers after closing are servicing functions.

2. Upon accepting the lock-in registration, First Charleston Mortgage Company (FCMC) obtains a commitment from Fannie Mae(…….) to purchase the loan.

Secondary market participant
Fannie Mae is a secondary market loan purchaser.

3. James gathers the required documentation and sends it to the FCMC, where it is assigned to Wendy(…….)to make a credit decision based on Fannie Mae guidelines.

Primary market participant
Approving or denying a loan application (underwriting) is a primary market function.

4. FCMC is one of the lenders who funds loans with his employer WV Capital (……..)

Primary market participant
The broker firm employing the LO is also in a primary market function.

5. FCMC delivers required documents to Fannie Mae(……..), who funds FCMC to complete the purchase of the loan.

Secondary market participant
Secondary market participants purchase loans from the primary market participants and package them into investment products.

6. Wendy approves the loan and the bank’s closing department takes it from there. The loan closes with funds provided by FCMC(…….).

Primary market participant
Closing and funding loans are primary market functions.

7. Javier and Raquel meet with James (……)who takes their application for a mortgage loan.

Primary market participant
Taking applications is a primary market function.

8. James locks the loan with First Charleston Mortgage Company (FCMC) (……..)

Primary market participant
First Charleston Mortgage Company is in a primary market role here as they are acting as lender in that they will fund the loan.