Finance 3

You average one client from every seven leads, and each client represents 80% of a closed transaction. Each transaction you close has an average dollar value of $9,000. How much can you expect to earn from every seven leads?

$7,200

What's the most common ration for borrowers who use split, or piggyback, mortgages?

80/10/10

You and your financial system will communicate through ______.

A record keeping system

Which of the following types of properties may be eligible for purchase by Freddie Mac?

A triplex purchased as a primary residence

what type of clause is this? "If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Mortgagor, the entire principal amount outstanding and accrued interest there on shall at ounce become due and payable at the option of the Note holder."

Acceleration clause

Which of the following actions toward an appraiser would be considered improper?

Asking an appraiser to remove information about adverse property conditions from an appraisal report

A vendor and vendee are the parties involved when the finance instrument is a ______.

Contract for deed

As interest rates rise, what is the number of buyers in the market likely to do?

Decrease

with a VA loan, the certificate of reasonable value is used to _______.

Determine the value of the loan that the VA will guarantee

while reviewing documents, you notice that the buyer has the exact same name and birth date as a buyer you worked with previously. What might this indicate?

False Identity

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

Fannie Mae

After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?

File a suit to quiet title

Chad had some major medical expenses that he didn't plan for, and he wants to slash his budget in order to pay off the debt quickly. He considers selling his home and renting an apartment, which will make a big difference in his __________ expenses.

Fixed, essential

Karen has saved $30,000 of her $40,000 goal for a down payment on a house. Why is it unwise to keep all of that money in a traditional savings account?

It doesn't earn high enough interest

what is the purpose of the Uniform Residential Appraisal Report?

It provides the lender with an accurate opinion of the property's market value

An ARM usually offers an initial interest rate that's ______ a fixed rate mortgage for a period of time.

Lower than

The interest rate on an FHA Section 251 loan is adjusted based on _________.

Market indices approved by the FHA

The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be cancelled?

Maybe, but they'll have to petition their lender

FHA county loan limits are based on ______.

Median price for the area and property type

Which of the following is a requirement for veterans who with to use the Native American Direct Loan?

Meet the same eligibility criteria as for the VA-guaranteed loan program

The ________ is where the borrower finds details about how, when, and by how much the interest rate will change in an adjustable rate mortgage ARM

Mortgage note

Carl is trying to trim his expenses, so he first looks at cutting some of his _______ costs in his budget.

Non-essential

Three types of finance instruments

Note with mortgage, note with deed of trust, and contract for deed

In which types of partnership is there is more than one mortgagor as owner?

Partnership among 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

Zach and April are purchasing a home. They apply to three different lenders and review the Loam Estimates they receive. Each form includes a field identifying the National Mortgage Licensing System ID number for the lender. What is the act that requires this licensing identification to be available to consumers?

SAFE Act

Which was NOT part of the Fed's program quantitative easing?

The funds available to consumers froze

Who holds the promissory note while it's being repaid?

The payee

Whats one reason a borrower would choose a split- or piggyback- loan option

To avoid going over the conforming loan limit

When is a loan modification considered?

When a borrower has missed payments but still has some financial security

A Treasury note is a Treasury security ________.

With a maturity term between two and 10 years

What statement describes a conforming loan?

a loan that meets certain criteria that are accepted by Fannie Mae and Freddie Mac

Fannie Mae's multi-state note includes a due-on-sale clause, also known as a _________ clause.

alienation

A lender, reviewing a prospective applicants loan application, wants to verify that he has a solid history of paying obligations on time. What should the lender request from him?

credit report

HUD's strategic plan outlines the _______ that support its mission.

four goals

Which of the following best describes a blanket lien?

it gives lenders the ability to recover losses due to a foreclosure sale from any current future property the borrower owns

normal wages are considered when a lender is evaluating an applicants income. Which of the following must be true for overtime pay to be considered?

it must have been received regularly over the last two years

Payment history, age of accounts, credit usage rate, and inquiries are factors considered in calculating a credit score. Which of the following is also considered?

length of credit history

what information is listed on the promissory note?

loan amount and schedule of repayment

how can liens, such as those created by non-payment of federal income tax, result in mortgage default?

new liens can threaten the lender's position as primary lien holder. Default can occur for this reason

Which act requires that individuals making more than five "owner financed" loans per year, obtain a residential mortgage loan origination license?

the Texas SAFE Act

what does it mean when a life insurance company uses participation financing?

the life insurance company participates by taking partial ownership of the project in exchange for funding the loan

which of the following statements is true about national lending institutions?

they sell packaged loans to investors

what is the trustees role when a deed of trust is used to secure property for a loan?

to hold legal title to the property on behalf of the beneficiary until the loan is repaid

Disintermediation

occurs when banks or other financial institutions are seeing more withdrawals than deposits over a long period of time

Which clause is standard in a deed of trust and affects the foreclosure process that can be used if the borrower defaults?

power of sale

what's the definition of a qualified mortgage?

one that meets stringent CFPB guidelines