Real Estate Fianance 1-50 questions TEST

Which of the following minimum standard does an individual who is considering becoming a licensed mortgage broker under the SAFE Act not have to meet?

C- provide evidence of working as a mortgage loan officer for three years

Compensation for Borrowed Money is called

b- Borrower

The Rural Housing Development Service offers all of the following mortgage loan products Except

B -loans to migrant workers to purchase mobile homes that can be permanent attached to a property

There are many reasons banks are regulated. The Federal Reserve Banks's main reason for regulating banks is best summarized by which of the following?

B -to control the supply of money and credit

Bonds are sold in the financial market by corporations for the purpose of ..

C- providing additional brokerage fees

Which of the following is not one of the most common options available to mortgage lenders for the replacement of mortgage loans they have originated?

C- selling parts of loans to consumers in a local area

Real Estate Mortgage Investment Conduits have a unique structure that allows them to ass on untaxed income to investors, and typically use which of the following securitization types?

C-collateralized mortgage obligation

Which of the following are debt instruments that are issued using a pool of Mortgage for Security?

C-collateralized mortgage obligations

A_____is a nonprofit cooperative financial institution owned and run by its members

C-credit union

Residential real estate tends to peak _________(complete the Phrase).

C-just before business cycles do

In the United States, monetary policy is carried out by..

C-the Federal Reserve system

Who or what is referred to when a mortgage banker established a line of credit with a commercial bank?

C-warehouse loan

Which of the following is Not true regarding the purpose and operations of Ginnie Mae

A -It will commit to purchasing pools of FHA, VA, RHS,

This is Normally executed contemporaneously with a mortgage and creates the obligation of repayment

A -Promissory Note

Deposit-taking banks are required to hold a certain percentage of their deposit assets in a reserve account at the Federal Reserve Bank because

A -it makes those funds unavailable for lending purposes

A lender that is making mortgage loans for its own investment is often referred to as a(n) ______ Lender.

C- Portfolio

The arm Credit system consists primarily of

A- a cooperative network of farm lending banks

The "primary market" is made up of these two groups which generally conduct mortgage- lending transactions

A-mortgage lenders and bankers

The Originate-to-distribute model of residential mortgage loan production has allowed originators to make loans with-out much consideration of risk of loss, creating a moral hazard revealed in the recent mortgage crisis. It was primarily driven by the development of which of the following secondary market tools?

B- Private mortgage conduits

The method that the FDIC uses to pay off the insured depositors when dealing with the insolvency of a bank is to..

B- pay of the depositors up to the current 250,000 limit, so it is possible that some depositors will suffer loses

The Following three GSEs facilitate the working of the secondary mortgage market by providing a network for the purchase,sale, and guarantee of existing mortgage and mortgage pools:

B-FNMA, GNMA, and FHLMC

Long before coin or currency came into use,__________(finish with best Phrase below).

B-bartering was the only method of exchange

The wall street reform and consumer protection act in 2010 was passed to address several objectives that include all of the following except

B-defining lender communities

When the federal reserve sells a government bond on the open market.

B-reserves in the banking system decline and the economy will slow down

What is the primary reason that mortgage loans are ideal investments for life insurance companies

B-their primary product-life insurance--produces excess cash that must be invested to cover reserves that do not have to be paid for longer periods of time

In The language of mortgage lending, the term Point or Points can be best described as which of the following?

C- The Tax-deductible financing costs of a residential mortgage loan

Mortgage banking includes all of the following Except

C- The title insurance on mortgages

The Federal Reserve system measures monetary aggregates each week to keep tract of the growth or decline in the ..

C- money supply

Real estate Investment Trusts have all the following characteristics Except

C -They are partnerships

Usury can Best be described as

C -interest paid or received that exceeds state laws

The allodial system of land ownership that forms the basis of ownership in the United States is best described as the..

C -ownership of land is free and absolute subject only

One of the following, which can be the best indication of mortgage interest rates?

C -the results of weekly treasury bill of ferings

the process of creating mortgage -backed securities is called

C- mortgage securitization

Security Interest Gives the ______ The Right to bring about sale of a Loan if there is default

C- Collateral

Which of the following is not a typical function of a loan servicing department of a mortgage bank?

C- Issuing participation of certificates to MBS pools for loan being serviced

Which of the following is not one of the four procedures that financial institutions covered by the CRA Must implement?

C- List loan policies with lower credit criteria to help lower- income areas

The mortgage crisis that started in late 2007 has caused a shift in emphasis in the primary loan origination from subprime to which of the following loan types?

D -FEDERAL HOUSING ADMINISTRATION MORTGAGE LOANS.

Which of the following statements is true about M3?

D -it includes Large-denomination time deposits.

The Major source of money funding residential mortgage loans today is ..

D -the sale of mortgage-backed securities

the FHA is regulated by which os the following?

D- Department of Housing and Urban Development

Freddie Mac and Fannie Mae are regulated by

D- FHFA

Which of the following is not one of the reasons that tax-exempt, bond -supported financing of residential mortgages developed?

D- Such financing has typically been easier to issues than Conventional MBS

Which of the following is a bank regulatory agency?

D- all of the above

categories of demand for money are all of the following except.

D- deposits in saving associations

Most of the money available for mortgage lending comes from

D- federal agencies that underwrite loans

which of the following is a charge that itemized separately from loan fees as a primary purpose to raise the yield?

D-Discount points

Which recent law meant to protect consumer rights on consumer credit failed to address the issue of usury?

D-Dodd-frank wall street reform and consumer protection act.

Which of the following is not a principal type of real estate trust?

D-Leverage

Which of the following lenders is not exempt from most mortgage -lending regulation by the federal reserve, comptroller of the currency, and state banking and savings and loan regulators?

D-insurance companies

Which of the following might not be a good local source for alternative funding of a residential mortgage loan?

D.-a hard money lender