Real estate finance
requires agencies to keep the public informed of how they're organized, as well as their procedures, policies, and rules, establishes uniform standards for agency rule making.
APA
A standardized measure for interest rates and other costs of the loan is called _______.
APR
APA
Administrative procedures act
Which of the following is a likely effect when the discount window is closed?
Banks don't have access to additional funds.
CDO
Collateralized Debt Obligation
Consumers and business owners need funds to purchase personal property or to meet short-term needs. Banks make loans to these consumers to meet their needs
Commercial paper
What did the fed do in 2007 financial crisis
Decreased rates and purchased open market securities
rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral is called the ______ rate.
Discount
How does the Community Development Block Grant program assist in supporting HUD's mission?
Distributes grant funding to help meet community needs as determined by state and local governments
ECOA
Equal Credit Opportunity Act of 1974
Licensees who stay current with ______ can better serve low- to moderate-income clients looking to purchase.
FHA
FHA
Federal Housing Administration
Which of these HUD programs allows mortgage lenders to obtain a better price for their mortgage loans in the secondary mortgage market?
Ginnie Mae
HUDs four major goals:
Goal #1: Strengthen the housing market to bolster the economy and protect consumers. Goal #2: Meet the need for quality, affordable rental homes. Goal #3: Use housing as a platform to improve quality of life. Goal #4: Build strong, resilient, and inclusive communities.
Implemented in 2009 to encourage lenders to reduce monthly payments to no more than 31% of gross income
HAMP
Which of the following was created as part of the Homeowner Affordability and Stability Plan?
HAMP
Allowed homeowner refinancing at more favorable rates without the need for PMI
HARP
address discriminatory lending practices like redlining. The CFPB is responsible
HMDA
Neighborhood Stabilization Program -
Help stabilize homes in areas with many foreclosures. Grants provided to states for purchase.
HAMP
Home Affordable Modification Program
Which of the following was created as part of the Homeowner Affordability and Stability Plan?
Home Affordable Modification Program (HAMP)
HARP
Home Affordable Refinance Program
HMDA
Home Mortgage Disclosure Act
HERA
Housing and Economic Recovery Act 2008
program to help very low-income families, the elderly, and disabled individuals to afford decent, safe, and sanitary housing in the private market
Housing choice voucher program
FHA, GNMA, FHEO
Hud programs
the early 2000s, before the 2007 financial crisis, how would you characterize the real estate market?
Low interest rates and high property values
CDFI (Community Development Financial Institution)
Makes credit and financial services available to distressed communities.
This new interest rate is the prime rate, the interest rate the bank charges the most creditworthy consumers.
Many banks use the discount or federal funds rate as a base interest rate, and then add a percentage to it.
Which HUD program is responsible for developing and enforcing federal fair housing policies and laws?
Office of Fair Housing and Equal Opportunity FHEO
HUD's ______ has a goal of increasing the availability of safe and affordable housing to Native American families.
Office of Native American Programs
government securities are bought and sold in the open market in order to increase or decrease the amount of money in the banking system.
Open market operations
The rate at which a bank or lender may loan money to its most creditworthy borrowers
Prime rate
Bureau of the Fiscal Service
Provide centralized payment, collection and reporting services for the government
Bond rating agencies and analysts:
Provides mortgage-based security information.
Which of the following resources are extremely helpful when working with investors?
REIT analysts and bond rating agencies
—ensures that a buyer in a residential real estate transaction financed by a federally related mortgage loan has knowledge of all settlement costs.
RESPA
RESPA
Real Estate Settlement Procedures Act
Bureau of Engraving and Printing (BEP)
The BEP produces Federal Reserve Notes and other security documents for the United States Treasury. It is an agency of the Treasury Department.
Facilitates the selling and discounting of commercial paper, supervise bank activity
The Fed
What is the most likely effect when the Fed sells securities on the open market?
The economy may slow down due to a decreased money supply.
What is a potential cause for a decrease in local economy driven by the Fed?
The reserve percentage is increased by the Fed.
Hypothecation
To pledge property as security for an obligation or loan without giving up possession of it.
Which of the following has a direct responsibility to pay the nation's bills?
Treasury
When HUD pursues actions that are designed to end homelessness and promote the health and housing stability of vulnerable populations, which of its goals is it supporting?
Use housing as a platform for improving quality of life.
With a -, a landlord is assured of receiving at least the portion of the rent that the HUD program pays.
Voucher, housing choice of voucher
Which governmental legislation established the Consumer Financial Protection Bureau?s
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
Disintermediation
When bank deposits are less than bank withdrawals
Up to what amount will the FDIC insure?
$250,000
short-term security issued by the Treasury that has a maturity term of one year or less is called a Treasury ______.
Bill
FDIC
Federal Deposit Insurance Corporation
RESPA covers
First and second mortgage, refinance loans,
Which of the following programs broke the normal 80/20 ratio rule usually required as a loan-to-value and offered favorable interest rates?
Home Affordable Refinance Program (HARP)
What does it mean if the Fed increases reserve requirements?
Member banks must keep more assets on deposit at the reserve bank.
NSP
Neighborhood Stabilization Program - Help stabilize homes in areas with many foreclosures. Grants provided to states for purchase.
which phase of the real estate market would you expect to see unemployment and foreclosures remain high but begin to stabilize?
Recovery
What is the name of the set of regulations used to enforce the Equal Credit Opportunity Act?
Regulation B
The amount of money a member bank must keep on deposit at its reserve district bank describes ______.
Reserve requirements
TARP
Troubled Asset Relief Program
ARRA
American Recovery and Reinvestment Act of 2009
Which of the following items directly influences real estate supply?
Construction
CFPB
Consumer Financial Protection Bureau
In which phase of the real estate market would you expect to see an increase in hiring and employment, increased public confidence, and an increase in buyers in the market?
Expansion
Insures deposits made at banks and thrift institutions, insures bank deposits
FDIC
Which of these HUD programs is primarily responsible for providing mortgage insurance on home loans?
FHA
Which HUD program is responsible for protecting individuals against discrimination in housing based membership in a protected class?
FHEO
which phase of the real estate market would you expect to see properties selling for more than they're worth, many buyers in the market, and lots of new construction?
Oversupply
Wendy has been approved for her first mortgage. The lender advertised a 4.6% interest rate. She's nervous about the terms and fees. What information is the lender required to provide?
Payment schedule, APR, finance charges, pre-payment penalties, late penalties, and total financed amount
The FOMC consists of - members:
Seven Board of Governor members President of the Federal Reserve Bank of New York Four presidents from the other Federal Reserve Banks (which serve on a rotating basis)
What term is used to describe the housing inventory in default or foreclosure?
Shadow inventory
Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______.
The subprime mortgage crisis and economic meltdown of 2007-2008
Which of the following is designed to make consumer financial products and services fair and transparent?
Consumer Financial Protection Bureau
Which source reports on the liquidity and financial strength of banks throughout its districts?
FHLB
FHLB
Federal Home Loan Bank - 11 U.S. sponsored banks offering low-cost funding to banks for home mortgage loan and other purposes.
Which of the following resources will give you reports and statistics including house price index, foreclosures, and refinancing?
Federal Housing Finance Agency
FOMC
Federal Open Market Committee
informs consumers about depositor insurance and provides educational materials about consumer protection, financial literacy, and using money wisely.
Federal deposit home insurance program
What does it mean if the Fed decreases reserve requirements?
Member banks can keep fewer assets on deposit at the reserve bank.
Board of governors
influences monetary policy, analyzes financial and economic conditions, and supervises the financial services industry, among other responsibilities.
The rate at which a bank can obtain a loan from another bank
Federal funds rate
rate at which a bank can obtain an overnight loan from another bank without providing collateral is called the ______ rate.
Federal funds rate
reports activity related to the financial strength and liquidity of the market.
Federal home loan bank system
Collateralized Debt Obligation (CDO)
a security comprised of a bundle of collateralized mortgages or other debt from multiple sources
HERA - Housing and Economic Recovery Act of 2008
address the subprime mortgage crisis, HOPE for homeowners, NSP, FHFA, SAFE mortgage licensing act, mortgage disclosure improvement act
ARRA 2009 American Recovery and Reinvestment Act
also known as "the stimulus package." This $840 billion program was designed to create new jobs and save existing ones, to spur economic activity and invest in long-term growth, and foster new accountability and transparency in government spending.
To resolve a deficit,
the Treasury may sell securities, or debt instruments, called treasuries.
Troubled Asset Relief Program
A 2008 Federal government program that authorized the U.S. Treasury to loan up to $700 billion to critical financial institutions and other U.S. firms that were in extreme financial trouble and therefore at high risk of failure
Community Banks is being sued for intentionally violating the Truth In Lending Act. What fines and imprisonment possibilities can the company face?
Fines up to $5,000 and up to a year of imprisonment
Federal Open Market Committee (FOMC)
enacts monetary policy with a goal of stable prices and economic growth. It does this by managing the countryʼs money supply.
Tax payer relief act of 97
exempted homeowners from paying taxes on capital gains on as much as $500,000 in gains for married couples filing their income taxes jointly ($250,000 for individuals),
If a member bank wants to borrow money without collateral for a short period (usually overnight), other member banks can lend this money. The member bank is charged the —to borrow.
federal funds rate
Which interest rate do banks use to offer consumer loans?
prime rate
Federal housing financing agency
publishes many reports and statistics related to housing, including the house price index (HPI), foreclosures, refinancing, and an annual housing report
High but stabilized unemployment and a high number of foreclosures
recovery phase of the real estate cycle
FDIC (Federal Deposit Insurance Corporation)
safeguard consumer assets and restore consumer confidence in banks
Which of the following would the FDIC most likely insure?
savings account deposits
Board of governors members
seven members, all appointed by the President and confirmed by the Senate. These members serve one 14-year term.
approving loans for people with low incomes and poor credit histories. These are commonly called -, which often included adjustable rate mortgages with low initial interest rates that later increased.
subprime loans