6- TRE Finance
The federal reserve system includes how many geographical districts
12
The federal reserve was established in what year
1913
REITs were legally allowed as of what year...?
1960
A completed Closing Disclosure form must be provided to the borrower at least ..............prior to closing?
3 days
The lender must provide the borrower with a Loan Estimate form within how many days of the loan application being filed..?
3 days
A short term real estate cycle is...?
3-5 years
A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise, is known as a/an...?
Adjustable Rate Mortgage
Open-end mortgages are most commonly found for which property type...?
Agricultural properties
The relative cost of credit is also known as the...?
Annual Percentage Rate
A REIT is managed by a...?
Board of Directors
Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are known as...?
Conforming loans
Which of the following are primarily considered interim loans...?
Construction loans Home improvement loans Manufactured housing loans
A REIT must be structured as which of the following...?
Corporation Association Trust
As the cost of borrowing money increases the amount of lending activity will..
Decrease
As construction prices increase, demand for new housing generally...?
Decreases
The minimum Interest rate set by the federal reserve for lending to other banks is known as the
Discount rate
A right, privilege or interest limited to a specific purpose which one party has in the land of another is known as a/an...?
Easement
A right or interest in a property that is used by someone other than the owner is known as a/an...?
Encumbrance
The value of an asset minus the debt equals the...?
Equity
A REIT may consist of which of the following...?
Equity REIT Mortgage REIT Hybrid REIT
Some lenders may require funds for property taxes and other property-related expenses to be held in a/an...?
Escrow account
The Farm Credit Administration regulates the ...........institutions?
FCS
Which of the following has broad powers in controlling credit and the amount of money in circulation in the United States
Federal reserve
A procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms is known as
Foreclosure
This is a U.S. government agency that purchases FHA and VA mortgages...?
Ginnie Mae
Mortgage insurance offers protection for the...?
Lender
This is a form of encumbrance which usually makes specific property security for the payment of a debt or discharge of an obligation...?
Lien
The secondary mortgage market offers ...........for the primary mortgage market?
Liquidity
Which of the following earns a placement fee...?
Mortgage broker
Which of the following mortgage types allows for more flexible payments from the borrower...?
Open-end mortgage
According to the Good Faith Estimate form, the borrower's Adjusted Origination Charges equal the amount of points paid plus the...?
Origination charge
A borrower's Charges for All Other Settlement Services, as stated in the Good Faith Estimate, includes which of the following...?
Owner's title policy
Justin obtained a mortgage from his local bank in order to purchase a new house. Justin was operating in the...?
Primary mortgage market
The marketplace whereby loans are originated is referred to as the
Primary mortgage market
This refers to a type of mortgage insurance required on conventional loans in which the homebuyer makes a down payment of less than 20% of the purchase price...?
Private Mortgage Insurance
A business trust which deals principally with interest in land, generally organized to conform to the IRS is known as a...?
REIT
The Consumer Financial Protection Bureau oversees the enforcement of which of the following statutes...?
RESPA
Which of the following statutes helps consumers become better shoppers for settlement services...?
RESPA
Which of the following are covered under TILA
Real estate loans under 50,000 dollars Personal loans under 50,000 dollars Consumer loans under 50,000 dollars
Two or more consecutive quarters of negative growth is known as a ?
Recession
The Equal Credit Opportunity Act prohibits discrimination against which of the following protected classes...?
Religion Marital status National origin
This refers to a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages...?
Sub prime mortgage
The Closing Disclosure includes which of the following information...?
Summary of actual loan terms Other settlement costs Loan costs
A mortgage broker does NOT service loans...?
T (True)
Which of the following may impact real estate cycles
Taxes property value social attitudes
The Closing Disclosure must be revised if there is a significant change to which of the following...?
The loan's APR
The more money an I individual has the more purchasing power they have?
True
Which of the following combines the Farmers Home Administration, the Agricultural Cooperative Service Administration and the Rural Development Administration...?
USDA Rural Development Program
Which of the following serves as evidence of debt
promissory note
Real or personal property which a borrower pledges as security for a loan is known as?
Collateral
Which of the following operates in the primary mortgage market...?
Commercial banks
Which of the following is responsible for the enforcement of the Interstate Land Sales Disclosure Act...?
Consumer Financial Protection Bureau
This is a number assigned to a person that indicates to lenders their capacity to repay a loan...?
Credit score
A legal document by which a borrower pledges certain real property or collateral as guarantee for the repayment of a loan is known as a/an...?
Deed of trust
The failure to fulfill a duty or promise is known as
Default
1. This is a federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status...?
Fair Housing Act of 1968
Conforming loans must meet the guidelines of...?
Fannie Mae
The Federal National Mortgage Association is also known as...?
Fannie Mae
This is a privately owned corporation that purchases FHA, VA, and conventional mortgages...?
Fannie Mae
Which of the following operates in the secondary mortgage market...?
Fannie Mae Freddie Mac Ginnie Mae
Farmers and ranchers can obtain a loan through which of the following...?
Farm Credit System
The Federal Agricultural Mortgage Corporation is known as...?
Farmer Mac
Freddie Mac is also known as the...?
Federal Home Loan Mortgage Corporation
The lender's estimate of the borrower's settlement costs is known as a...?
Good Faith Estimate
Which of the following is the responsible for the implementation and administration of us gov housing and urban developement
HUD
A loan in which the borrower uses the equity in their home as collateral is known as a...?
Home equity loan
According to RESPA, a referral fee in the form of cash is considered a/an...?
Illegal kickback
If demand is high and supply is low, real estate prices will
Increase
The right to obtain full ownership of property is known as...?
Leverage
The use of debt financing of an investment to maximize the return per dollar of equity invested is known as
Leverage
RESPA requires lenders to provide borrowers with which of the following...?
Loan Estimate
According to the Good Faith Estimate, a borrower's interest rate can change until the borrower does which of the following...?
Locks-in the interest rate
Money that is easily obtainable is considered
M1
The supply of less liquid money is considered...?
M2
The supply of money which is the least liquid is considered...?
M3
A Hybrid RETI combines the investment strategies of both equity REITs and...?
Mortgage REITs
Which of the following works for a bank and originates loans...?
Mortgage banker
Credit unions were created under the...?
NCUA
The truth in lending act is also known as
Regulation Z
A trust which can be altered or canceled dependent on the grantor is known as a/an...?
Revocable trust
The Farm Credit System provides loans for which of the following...?
Rural homeowners
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is known as the...?
Secondary mortgage market
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is referred to as the
Secondary mortgage market
The Loan Estimate provides the borrower with which of the following information...?
Summary of loan terms Estimated loan costs Closing costs
Which of the following is covered under title 1 of the consumer protection act of 1968
TILA
James needed to obtain financing to purchase a new house. What will most likely be used as collateral for James' loan...?
The house James purchased
What happens when the federal reserve decreases the banks required reserves amount
There is a boost in economic activity
The economy generally grows when which of the following occurs
There is an increase in the money supply
1. HUD was created in what year...?
1965
The Interstate Land Sales Full Disclosure Act was enacted in what year...?
1968
Credit unions were created in what year...?
1970
The Equal Credit Opportunity Act was enacted in what year...?
1974
To pledge a thing as security without the necessity of giving up possession of it means to
Hypothecate
Sara is working with a bank to obtain financing on her new house. According to the ECOA, the bank is prohibited from asking Sara which of the following...?
If Sara is divorced If Sara receives child support If Sara intends to have a baby in the near future
Which of the following are responsible for bringing industries to a region in an effort to improve community growth...?
Industrial Development Agencies
The percentage of a sum of money charged for the use of money is referred to as an
Interest rate
A trust that cannot be modified or terminated without the permission of the beneficiary is known as a/an...?
Irrevocable trust
A loan whose amount is above conventional conforming loan limits set by Fannie Mae and Freddie Mac is known as a...?
Jumbo loan
If a borrower obtains an FHA insured loan and only makes a down payment of 5%, what must the borrower purchase...?
Mortgage Insurance Premium
The Housing Choice Voucher Program was formally known as...?
Section 8
