Midterm Practice

Which of the following sources can provide real estate professionals with important market data?

Banking, bond, and investment analysts

Which of the following describes mutual savings bank loans?

Banks focus lending offerings on local businesses and residents

During which phase of the real estate cycle does a real estate professional have the most direct impact?

Buying/selling

The three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and ______.

Contract for deed

As foreclosures increased in 2007, what was the response from lenders?

Decrease lending activity

What type of lien is placed on a property as a result of a court order?

Equitable

Which of the following is one a way a loan may be modified when a borrower is having difficulty making payments?

Extend the amortization schedule

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

Home improvement loan

Historically, what do property values tend to do over long periods of time?

Increase

Which of the following are potential private loan resources that may be willing to finance a home?

Individual entrepreneurs

What's the purpose of the Community Reinvestment Act?

It requires that lenders invest in development and rehabilitation efforts that enable low- and moderate-income individuals and families to afford a home.

Gina's mortgage payment arrives late one month. What language in the promissory note allows the lender to charge her a fee as a result?

Late charge provision

Denzel's loan payments have been reduced because his lender agreed to extend the amortization schedule stated on his note. This is the result of a ______.

Loan modification agreement

Robert and Jill purchased a single-family home in the suburbs for $50,000 nearly 40 years ago. Considering historical property value fluctuations, what is the likely value of the property today?

More than $50,000

Who originates their own loans?

Mortgage bankers

Life insurance companies participate in real estate in the ______ arena.

Mortgage blocks from secondary mortgage market

Beth needs help with the down payment to buy Mark's property. Mark is going to supplement Beth's bank loan with a second loan, allowing her to meet her lender's down payment requirements. What finance instruments may be used for this agreement?

Mortgage or deed of trust

Victor is selling his property to Sheila. He's acting as the lender, and the property is unencumbered. Which of the following options describes the type or types of financial instruments Victor may use for the loan agreement?

Note with a contract for deed, mortgage, or a note with a deed of trust

Which HUD program is responsible for developing and enforcing federal fair housing policies and laws?

Office of Fair Housing and Equal Opportunity

What does REIT stand for?

Real estate Investment trust

More than 70% of the assets of mutual savings banks are derived from ______.

Savings accounts

After bonds are ______, their value goes up and down with the market.

Sold

Which of the following is a potential concern of a buyer who's entering into a contract for deed with a seller?

The buyer could lose the property after missing only one mortgage payment.

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.

Under RESPA, a rebate of a licensee's commission may be offered to a transaction party, provided which of the following is true?

The rebate is not required for referral of business.

Gregory and Dianne are American citizens of Cuban origin, and when their home loan is denied, they suspect discrimination. Which of the following acts prohibits lender discrimination on the basis of the protected class of national origin?

Equal Credit Opportunity Act

Which type of real estate investment trust is designed to deal exclusively in equities?

Equity REIT

Which of the following best describes the state of the market during the over-supply phase of the real estate cycle?

Properties are selling for more than their appraised value, many buyers are in the market, and there is lots of new construction.

An increase in foreclosures and a drop in home prices is most likely to occur in what phase of the real estate cycle?

Recession

What did a 2021 National Association of REALTORS® study say about foreign investment in U.S. real estate?

The pandemic may be affecting some of these purchase numbers