Finance 2

American Recovery and Reinvestment Act of 2009 (ARRA)

"The stimulus package" it included tax cuts, benefits, and funding.

Larry is a lender processing a loan application. Which of the following might he request to verify the applicants back deposit information?

Account statement

Which of these items is a demand deposit?

Checking account

On an FHA 203(k) loan, the combined cost of home value and rehab must _______.

Fall within the FHA mortgage limit for the area where the property is located

Underwriting requirements for an FHA loan

Housing ratio of no more than 31%, a total debt obligation that doesn't exceed 43%, and a minimum credit score of 500, with 620 or higher being preferable

Which type of participation agreement involves more than one mortgagee of the finance instrument in which each receives an equal share of the mortgage payment?

Partnership among mortgagees

Lucy uses a personal financial plan recommended for licensees. When she receives a commission check, she deposits it in her business checking account. She should now transfer anything not required for business expenses to her _________.

Personal checking account

Sophia and Antonio are expecting twins. They want to sell their old house and buy a larger home using a conventional loan. In order to be sure they'll get the PMI waived, what will they need to have?

They should have a loan-to-value ratio of 80% or less

which of the following statements is true about government loans?

They're insured our guaranteed by a government agency

When appraiser Archie uses the sales comparison approach, at least how many comparables may be included in the URAR?

Three

How long does a homeowner have to pay off outstanding liens against his property?

Until the foreclosure sale is held

Which of the following actions might be considered a red flag signaling mortgage fraud?

Your buyer requests a specific appraiser

A foreclosure occurs January 1, 2016. Of the following, which lien takes priority?

a property tax lien filed January 1, 2014 property tax liens take priority over all other liens

Which of the following could be a concern for a lender regarding property condition?

a roof that's missing shingles

Which of the following is a true statement about when a promissory note is sold?

the promissory note is endorsed to the new owner of the loan

A buyer with which of the following debt-to-income ratios can obtain a qualified mortgage?

38%

Which secondary market player would be interested in purchasing a loan from a commercial bank?

Fannie Mae

The Farm Credit System is overseen by the ________, an agency if the federal government.

Farm Credit Administration

Credit flows to rural communities largely through the actions of ______.

Farmer Mac

When establishing guidelines for conforming loans, Fannie Mae and Freddie Mac use loan limits set by which entity?

Federal Home Financing Agency

The Morris family home went into foreclosure December 15, 2016, and sold January 1, 2017. Their contractor had begun work on May 15, 2015, and was not paid, and finally filed a mechanic's lien on October 1, 2016. What date will be used for lien priority for the mechanic's lien?

May 15, 2015

which act temporarily removed the requirement that taxpayers whose homes were sold as a result of a foreclosure had to include the loan write-off amount as taxable income?

Mortgage Forgiveness Debt Relief Act of 2007

Which of the following actions is completed by the secondary mortgage market?

Purchases loans from lending institutions

How can a foreclosure process be temporarily stalled?

by filing for chapter 7 bankruptcy

When a buyer obtains an FHA loan, the seller may _________.

contribute up to 6% of the sales price (or appraisal, if that's lower) to the buyers closing costs

What type of loan is meant specifically for improvements, such as additions or renovations?

home improvement loan

What's a key feature of the Federal Housing Administration's loan program?

insures lenders against loss from borrower default

what qualifying ratios are used in a VA home loan?

residual income and debt-to-income

When interest rates increase, what is the impact on mortgage-backed security investors?

returns on investments increase

Who is responsible for taking action to clear any clouds on the title?

the seller

John wants to do a 1031 tac exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange?

45

Your business is booming, and you'd really like someone else to maintain your financial records. Which of the following is the best person for this role?

A bookkeeper

Which of the following best describes the state of the market during the expansion phase of the real estate cycle?

Increases in hiring, employment, and public confidence, and lots of buyers in the market

Which factors directly affect an adjustable rate mortgage?

rate, index, and margin

Which item would an appraiser find in the improvements section of the Uniform Residential Appraisal Report?

year built

In which type of partnership is the lender a parter as well as the financier?

partnership between mortgagees and mortgagors

Violet purchased a house from Nick, and assumed the existing loan. Nick wants to make sure he isn't liable if violet ever defaults. What can he do to remove his name from the loan agreement?

request a novation the novation process that substitutes one person for another on a contract

In order for earnings from a second or part-time job to be considered as part of a lender's income evaluation, what must be true?

the applicant must have been employed for at least two years, and the employment must be expected to continue.

Which of these are established by the Federal Housing Finance Agency?

percentage targets for loans made to low-to moderate - income borrowers

Which of the following best describes foreclosure by writ of entry?

petition for legal ownership, opportunity to redeem property, notice of eviction if the property is not redeemed