Texas RE Finance
secured
A debenture is also known as a ______ bond.
USDA Farm Service Agency (FSA)
Direct farm ownership loans from the ______ may be used to buy farmland, construct and repair buildings, and make farm improvements.
Sequential pay
What is the most common structure for a CMO?
Mortgage Forgiveness Debt Relief Act of 2007
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?
Required mortgage insurance must remain in place for the life of the loan.
Which of the following is a significant drawback to an FHA loan as compared to conventional financing?
An FHA loan is usually more attractive to borrowers who have lower credit scores and down payments
Which of the following is a true statement about FHA financing?
Member banks can borrow for up to one year without collateral.
Which of the following is a true statement about FHLBanks?
Treasury Bill
A short-term security issued by the Treasury that has a maturity term of one year or less is called a Treasury
Loan interest and mortgage packages sold on the secondary market
How do mortgage lenders acquire income?
When the government's bills exceed income collected
In what situation would the U.S. Treasury be most willing to sell securities?
expansion
In which phase of the real estate market would you expect to see an increase in hiring and employment, increased public confidence, and an increase in buyers in the market?
over supply
In which phase of the real estate market would you expect to see properties selling for more than they're worth, many buyers in the market, and lots of new construction?
Partnership among mortgagors
In which type of partnership is there is more than one mortgagor as owner?
participation
Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?
Conforming
Joe's applying for a mortgage that meets all of the Fannie Mae/Freddie Mac criteria. Based on this, how would we classify this loan?
Paystub
Kara is a lender who is working with prospective buyer, Stan. What does Kara ask Sam to provide to show his work history and earning information?
Note with deed of trust
Lisa, a seller, is providing Darwin, a buyer, with a seller second on the purchase of her property. Darwin's conventional lender uses a note with deed of trust to secure the first loan. What instrument is Lisa most likely to use for her second loan with Darwin?
repossessed homes
Natalie is a licensee who assists buyers in the purchase of HUD ______ when they're listed for sale
The attorney's opinion provides a guarantee of title.
Sarah is selling her home and must provide proof of ownership. She's received an abstract of title. Which of the following statements is NOT correct?
He can take out a piggyback loan.
Scott has plenty of money saved and is ready to make a down payment on his $14 million dream home. One problem: Scott doesn't want to end up with a jumbo loan because he goes over the conforming loan limit. What option does Scott have?
Know Before You Owe
The CFPB uses education to accomplish its mission, such as the ______ publications.
Non-bank lenders
The Dodd-Frank Act created the CFPB in part to regulate ______, which were among the largest originators of subprime mortgages prior to the financial crisis of 2007‒2008.
Victims of a presidentially declared disaster
The FHA Section 203(h) program assists ______ with an insured mortgage.
The introduction of the long-term amortized loan
The FHA has helped to significantly improve the mortgage market through
A private company the U.S. Congress created to make certain borrowing easier and cheaper
What is a government-sponsored enterprise?
Business income is taxed on the owner's personal return.
What is meant by pass-through taxation?
It allows a borrower to refinance a first mortgage without affecting its lien position even when a junior mortgage is in place.
What is the purpose of a lifting clause?
The transaction comes to a standstill until the cloud is cleared
What may happen to a transaction if a cloud on the title is discovered?
Troubled Asset Relief Program
What program allowed the U.S. Treasury to spend hundreds of billions of dollars to stabilize our financial system, boost credit markets, help families avoid foreclosure, and promote economic growth?
Partnership between mortgagees (lenders)
What type of partnership is a real estate mortgage investment conduit?
Use housing as a platform for improving quality of life.
When HUD pursues actions that are designed to end homelessness and promote the health and housing stability of vulnerable populations, which of its goals is it supporting?
The right to foreclose
When a lender has a lien on a property via a mortgage, what rights does the lender hold?
Savings account deposits
When completing a loan application, the applicant must list their assets. Which of these is considered an asset?
USDA Rural Development
Which government program assists rural Americans by offering loans, grants, and loan guarantees for housing?
A standardized measure for interest rates and other loan costs
Which of the following best describes annual percentage rate (APR)?
It's a specific involuntary lien.
Which of the following describes a mechanic's lien?
focus lending offerings on local businesses and residents
Which of the following describes mutual savings bank loans?
Fannie Mae
Which of the following entities generally acts in the secondary market?
Meet the same eligibility criteria as for the VA-guaranteed loan program
Which of the following is a requirement for veterans who wish to use the Native American Direct Loan?
Loans insured or guaranteed by U.S. government agencies
Which of the following loan types can be packaged into a mortgage-backed security eligible for guarantee by Ginnie Mae?
Twelve district banks comprise the Fed.
Which of the following statements is true about the Federal Reserve?
The contract for deed is usually used in a seller-financed transaction.
Which statement correctly describes a contract for deed?
municipal bonds
Which type of bond is used to pay for community improvements?
adjustable rate
Which type of loan's interest rate fluctuates with the economic index to which it's tied?
Mortgage REITs
Which type of real estate investment trust involves both residential and commercial properties?
interest
With a straight mortgage, what type of payments are made up until the end of the loan term?
Roth IRA
With this IRA, withdrawals of contributions are tax-free
Allowing moisture intrusion
An example where a lender might place a property in default due to poor property management includes
borrower
In a deed of trust who is the trustor?
lender
In a deed of trust, who is the beneficiary?
They increased market speculation.
What role did CMOs play in the financial crisis of 2007?
Interest rate reduction refinance
Your client has a VA loan and wants to refinance to a lower rate. Which of the following is likely the simplest option?
$200,000, less 50%, plus $100
Your client, Ray, wants to purchase a home listed for $200,000. The home is in a revitalization area, and Ray can purchase it under the Good Neighbor Program. How much will he have to pay for the home?
Residual Income
is the term that the VA uses to describe the amount of net income remaining after deduction of debts, obligations, such as utility and phone bills, and monthly shelter expenses.
subprime lenders
make homeownership available for many who otherwise could not qualify for a mortgage loan
If Kathy's loan is through an employer-sponsored pension plan and she loses her job, the loan will become payable immediately.
Kathy decided to borrow funds from her retirement account to fund the down payment on her new house. Which of the following is true about this loan?
living trust
With a ______, no probate is required for assets named within it
The applicant must have a certificate of eligibility.
Which of the following is a true statement about borrower qualification standards for a VA-guaranteed loan?
Builders required by the state to recycle aluminum during demolition
Which of the following is an event that has a direct impact on property?
Buyer
Who is responsible for paying the loan origination fee in a financed real estate transaction?
A certificate of reasonable value
With a VA loan, the borrower must receive a certificate of eligibility. What must the property receive?
Andrea can cure the default and reinstate the loan.
Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a deed of trust. What rights does she have to redeem her property?
Roll the funding fee into the loan
Because of the funding fee required for a VA loan, a borrower with no down payment funds saved should
Neighborhood Stabilization
Both the Housing and Economic Recovery Act and the American Recovery and Reinvestment Act funded a program called the ______ program, which provided emergency assistance grants to states to purchase and redevelop foreclosed and abandoned homes and residential properties.
A new contract with the lender using a substitution of entitlement
Captain Kirk is a veteran who sells his home to Leonard. Leonard is also a veteran, and they agree to let Leonard assume Captain Kirk's VA loan for the property. They agree to a novation, which is ______.
Because income is not as reliable as it is for a regular employee
Everyone can benefit from following a personal financial plan. Why is this especially important for the independent contractor?
Creates a secondary market
Farmer Mac is an entity that ______ for agricultural property loans, rural utility loans, and certain loans guaranteed by the U. S. Department of Agriculture
80%
For conventional loans in which the loan-to-value ratio is in excess of a certain percentage, lenders generally require private mortgage insurance. What's this percentage?
Distributes grant funding to help meet community needs as determined by state and local governments
How does the Community Development Block Grant program assist in supporting HUD's mission?
enforcement
How is Regulation B related to the Equal Credit Opportunity Act?
More than 70%
How much of a mutual savings bank's assets come from savings accounts?
SAFE Act
Hugh works as a loan officer at a bank. Because of the ______, he must be registered with the Nationwide Mortgage Licensing System.
Yes, if the total of the first and second mortgages is within the maximum loan to value ratio
Is a homeowner with an FHA loan allowed to obtain a second mortgage?
FHA
Lydia put the minimum 3.5% down on her $210,000 home. She'll have to pay an MIP. What type of loan does Lydia have?
She won't be required to pay it since she made a large down payment.
Marissa is obtaining a VA loan, and she's decided to place 20% down. What's her responsibility for paying the VA loan funding fee?
Not the best use of his money
Maurice always keeps twice what he'll need to pay his quarterly taxes in his tax savings account. This is ____
Pay the difference between the CRV and sales price in cash
Rhoda is a first-time homebuyer. She has applied for a VA loan to buy a house from Phyllis. When the CRV values the home at less than the sale price, Phyllis refuses to come down on the sales price, so Rhoda must either ______ or find a different home to buy.
The veteran has a 10% or higher VA disability
The funding fee on a VA loan is waived when _
Market indices approved by the FHA
The interest rate on an FHA Section 251 loan is adjusted based on
USDA loan through the Farm Service Agency
To be eligible for a ______, an applicant must have participated in farm or ranch management for at least three years.
Leveraging
Tonia is buying a new home. She has a down payment of $30,000 and will obtain a $250,000 mortgage from a local bank to make up the remainder of the purchase price. What is this an example of?
Taxes Principle, Interest, Taxes, and Insurance
What does the "T" in PITI stand for?
Treasury Notes
An intermediate-term security issued by the Treasury that has a maturity term of between two and 10 years is called a Treasury _____
lender
Jared is buying a condo from Luke. Sally is Jared's lender, and Thomas is Jared's agent. Meredith is Luke's agent. Who is responsible for providing the Loan Estimate?
Alienation
The ______ clause is also known as a due-on-sale clause.
Exculpatory
The ______ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure.
Truth in Lending Act
The ______ requires specific disclosures and was enacted in 1968 as part of the Consumer Credit Protection Act.
purchase and assumption method
The two most common methods used when a bank fails are the payout method and the ______ method.
A luxury home to purchase as an investment
There are three types of international buyers: those who have work visas and are looking for a home to purchase while they're in the U.S., those who are looking for a vacation home in the U.S., and those who are looking for
Application for a loan
Which consumer inquiry has Zachary initiated that may appear on a credit report?
Ginnie Mae
Which entity guarantees mortgage-backed securities which have the full support of the U.S. government?
