Course 3

Which type of partnership may involve several mortgagors financing a multi-family dwelling?

A partnership among mortgagors is designed for several mortgagors to share responsibility for a multifamily structure, such as an apartment building.

With a straight mortgage, what type of payments are made up until the end of the loan term?

A straight mortgage is one where interest-only payments are made until the end of the loan term, when the full principal becomes due.

In 2001, California legislators enacted the ______ to combat predatory lending practices.

Covered Loan Law

_____ provides disclosures and public information about the financial condition of the Farm Credit System.

Federal Farm Credit Banks Funding Corporation

How many times per year do self-employed individuals file taxes?

Five. Self-employed individuals are required to pay estimated income taxes (self-employment, federal, and state) on a quarterly basis because their taxes aren't deducted from a paycheck. They must also file annual taxes.

Fannie Mae, Freddie Mac, and the Federal Home Loan Bank are regulated by the ______.

GSEs are regulated by the Federal Housing Finance Agency, or the FHFA.

What's the acronym for the legislation that requires financial institutions to document and publicly disclose lending practices?

HMDA stands for Home Mortgage Disclosure Act.

Which of the following is a possible result of a community growing too fast?

Inadequate resources to support the population

Which of the following types of residential dwellings do life insurance companies purchase from the secondary mortgage market?

Life insurance companies purchase single-family homes from the secondary market.

Which of the following is a true statement about FHLBanks?

Member banks can borrow for up to one year without collateral.

What does NCUA stand for?

National Credit Union Administration

Don uses one hour each week to perform certain tasks, including ______, as part of his personal financial system.

Paying any bills that are due

When an investment property is sold, three taxes that apply are transfer tax, capital gains and ______.

Recaptured depreciation

Which of the following acts created regulations for advertising credit services?

TILA regulates the advertising of credit services.

The ______ was a response to the practice of redlining and was enacted in 1977.

The Community Reinvestment Act prohibits lenders from refusing credit because of a home's location in a particular neighborhood.

The Addams family has an FHA-insured loan. The family's mortgage payment has a fixed interest rate, but after the first five years, the rate will adjust annually. Which FHA loan insurance program are they using?

The FHA insures adjustable rate mortgages under Section 251.

Adam is a real estate licensee. He gets a call from Brad, who tells him that he's getting married soon, and that he and his partner, Zeke, will need to buy a home that is between their places of work. The area where Adam has active listings is right where Brad and Zeke need to be. Adam doesn't agree that gay marriage should be legal, so he tells Brad that he doesn't have time to help but that he can refer Brad and Zeke to another agent. What California legislation makes Adam's action illegal?

The Unruh Civil Rights Act requires all businesses to provide full and equal service to customers and clients. Adam can't legally refuse to serve Brad and Zeke simply based on his disagreement with their decision to marry.

Which of the following describes the prime rate?

The rate at which a bank or lender may loan money to its most creditworthy borrowers

Which of the following statements is true about national lending intuitions?

They sell packaged loans to investors.

A quitclaim deed does which one of the following?

Transfers without warranty any interest or title the grantor has when conveying it. A quitclaim deed provides no warranties or covenants; it only guarantees that the grantor is transferring any interest or title he or she may have in the property.

Store of value, medium of exchange, and what other factor define money?

Unit of value

Sissy is a veteran who used her full entitlement to purchase a home. The loan has since been paid off, and Sissy wants to sell that home and buy another using another VA loan. Is Sissy allowed to do this?

Yes, Sissy can apply to have her entitlement restored and can buy another house using a VA loan. A benefit allows a veteran to apply for restoration of entitlement and use the VA loan to buy a second home after the prior loan is paid in full.