Real Estate course

The Mortgage Disclosure Improvement Act gives applicants a ____day ______ to review and approve the Loan Estimate and Closing Disclosure form.

3 day waiting period - The loan can't be closed or signed off before the waiting period is complete.

Lenders who offer mortgages at more than ______% over current market interest rates can be predatory lender

5%

Advance fee agreement

A fee the agent charges a client for services the agent expects to provide but haven't yet been provided.

Which of the following is a requirement if you set up a corporation in order to perform real estate services?

A separate bank account in the corporation's name - Business structures such as limited liability companies and corporations must create separate banking accounts from a licensee's personal accounts.

Limited buyer income, property location and price, and a home buying education course are all eligibility requirements for ______.

CalHFA mortgage assistance program

Hybrid REITs

Combine equity and mortgage REITs.

Which institution was created as Federal National Mortgage Association in 1938?

Fannie Mae was established as the FNMA in 1938

Which government entity oversees open-market operations?

Federal Open Market Committee

Consideration

Giving of something of value in exchange for something of value. This isn't always monetary value, as this exchange of promises demonstrates such as no music past 10 pm in exchange for no dog outside past 10pm for noise issues.

Which type of loan is insured by the Federal Housing Administration?

Government - A loan insured by the FHA is one type of government loan.

Another name for California's Foreclosure Reduction Act

Homeowner Bill of Rights

Market Price

How much a buyer has paid and a seller has accepted for the property.

Equity REIT

Invest in real estate - get income from property when it is SOLD or RENTED

Another name for an installment sale contrac

Land Contract

Mortgage REIT

Lend money for mortgages - also invest in mortgages & mortgage backed securities. Get income from interest and dividends. Mortgage REITs don't buy properties, but instead invest in real estate debt. Some of them used to make loans, but now most of them buy COMMERCIAL and RESIDENTIAL mortgage-backed securities.

California is a ______ state, but ______ is used as referred security instruments because ______ is standard with a deed of trust.

Lien Theory, deed of trust, non-judicial foreclosure

advances

Loans the Federal Home Loan Bank makes go member banks

Conforming loan limits vary based on which two factors?

Location and number of units being purchased with the property

Which type of real estate investment trust derives a portion of its income from interest dividends?

Mortgage REIT

What does NCUA stand for?

National Credit Union Administration, and its purpose is to manage and charter federal credit unions.

Market Value

Opinion on property's worth on fair market

What type of partnership is a real estate mortgage investment conduit?

Partnership between mortgagees - In this kind of partnership, each participant chips in an equal amount toward the funding of a large real estate project.

What does FHLBanks offer to member banks?

Short-term loan - Member banks can borrow for up to one year without collateral.

What is one way that the FHA has helped to stabilize and improve the mortgage market?

The FHA established a requirement for appraisers to be state licensed or certified in order to appraise property for an FHA loan, creating a higher standard for appraisals that reduces the risk for borrowers and lenders.

Liquidity

The ease with which an asset is converted to cash

The final page of the Closing Disclosure provides loan calculations that tell the consumer how much ______.

The loan costs, including total payments, finance charge, and TIP

When a lender has a lien on a property via a mortgage, what rights does the lender hold?

The right to foreclose (in case of default) - but lender does not carry rights of possession or control.

Net selling

The seller specifies a desired price for the property and agrees to pay the broker any amount received that's more than that price.

What does NOT apply when non-judicial foreclosure is used?

The statutory right of redemption

Two items you need to know to find the factor on an amortization chart

length of the loan and the interest rate