Texas Real Estate Finances

Fannie Mae's multi-state note includes a due-on-sale clause, also known as a(n) ______ clause.

Alienation

Who needs to obtain a mortgage loan originator endorsement and register with the Nationwide Mortgage Licensing System and Registry?

Anyone who acts as a Mortgage Loan originator

What's the acronym for the legislation that requires financial institutions to invest in the communities they serve?

CRA Community reinvestment act

In which section will you find any credits provided by the seller

Calculated cash to close

Which of the following describes amortized debt?

Debt that's paid off by making periodic payments

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

Increase and decrease

Which of the following best describes the state of the market during the expansion phase of the real estate cycle?

Increases in hiring, employment, and public confidence, and lots of buyers in the market

Jody is concerned about the ______ that doesn't allow her to start her gardening greenhouse because it sits next to a nature conservancy.

Physical encumbrance

Which of the following is a piece of general data an appraiser may gather?

Population Size

The ______ clause in a deed of trust allows the lender to foreclose non-judicially.

Power of Sale

Which of the following made mortgages attractive investments?

Rising home prices

What is the 200% rule as it relates to tax-deferred exchanges?

The combined fair market value of the property (or properties) being exchanged into cannot be more than 200% of the relinquished property.

Celeste hopes to qualify for an FHA loan. She calculates her housing ratio as 31%, and her total debt obligation as 42%. Her credit score is 580. Does she qualify under FHA underwriting guidelines?

Yes, housing ratio of no more than 31%, a total debt obligation that doesn't exceed 43%, and a minimum credit score of 500

Is a homeowner with an FHA loan allowed to obtain a second mortgage

Yes, if the total of the first and second mortgages is within the maximum loan to value ratio

By when must a borrower be provided with a closing disclosure?

3 days prior to closing.

In a deed of trust, who is the trustee?

A neutral third party

Fannie Mae purchases the loan, what will Synergy National Bank receive in return?

Collection fee

Cassie is helping her buyer client, Gus. As they discuss preparations for closing, she cautions Gus, "Make sure you review the Closing Disclosure as soon as you receive it and

Contact your lender immediately if you find errors or have any questions

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

Contract for deed

Which appraisal approach is likely the best choice for appraising a movie theater?

Cost Approach

Which of the following is a form of commercial bank revenue related to mortgage financing?

Demand Deposits

Andy is selling his home to Erika and Doug, who are using an FHA loan for the purchase. To facilitate the purchase, Andy can agree to pay

Discount points to buy down Erika and Doug's interest rate

Andy is selling his home to Erika and Doug, who are using an FHA loan for the purchase. To facilitate the purchase, Andy can agree to pay

Discount points to buy down Erika and Doug's interest rate.

When a promissory note is sold, how is ownership transferred?

Endorsement of the note.

The ______ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure.

Exculpatory

Which government entity oversees open market operations?

Federal Open Market Committee

Which institution guarantees mortgage-backed securities with the full faith and credit of the United States?

Ginnie Mae

Sam has a mortgage that has a static interest rate, but monthly payments that increase over time according to a set schedule. What type of mortgage does Sam have?

Growing equity

Fred is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the ______ offered by the USDA Farm Service Agency.

Guaranteed loans

Joseph's got B-rated credit, and his commercial bank suggested he check with the specialty mortgage company down the street because they deal in subprime loans. What's NOT true about Joseph's situation?

Joseph should avoid taking the commercial bank's advice, since a subprime loan is most likely made by a predatory lender.

Federal Housing Finance Agency established percentage targets and ___________ for loans made to low- to moderate-income borrowers.

Limits for conforming loans.

Zara is reviewing the "Calculating Cash to Close" table on page three of the Closing Disclosure to see what has changed from her Loan Estimate. She found this extremely helpful and easy to understand because the table explicitly lists

Loan estimate and final amounts side-by-side

What's the price at which a willing buyer and a willing seller would strike a deal, given normal market conditions?

Market Value

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

Which of the following is NOT a benefit government-sponsored enterprises receive?

Non-profit Status

Life insurance companies sometimes like to insure their investment in commercial projects by insisting on an equity position. This is known as ______ financing.

Participation

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

Partnership between mortgagees

The two most common insolvency methods put in place when a bank fails are the purchase and assumption method and the ______ method.

Payout

Which of these are established by the Federal Housing Finance Agency?

Percentage targets for loans made to low- to moderate-income borrowers

Which act was also known as "the stimulus package" and sought to create new jobs and save existing ones, spur economic activity and invest in long-term growth, and foster new accountability and transparency in government spending.

The American Recovery and Reinvestment Act of 2009 (ARRA)

Which of the following statements is true about the MIP on an FHA loan?

The FHA may adjust the percentage used to calculate MIP on FHA loans.

purchasing a home using their VA loan benefit. The sale price on the home they buy is $320,000, with 100% financing. Assuming typical level of entitlement, how much of their loan does the VA guarantee?

The VA guarantees up to a quarter of the total loan amount. 80,000

A "homes for sale" magazine contains the following ad: "One-bedroom condo. Corner unit with beautiful ocean views. Financing available, 5.25% APR." Which of these statements is true?

The ad is in compliance with TILA because providing the APR doesn't trigger the required disclosure of all credit terms.

What is a potential cause for a decrease in local economy driven by the Fed?

The reserve percentage is increased by the Fed

Larry obtained a mortgage from State Bank. Larry owns the property, controls it, and has all the rights that come along with real property ownership. State Bank has an interest in the property and

The right to foreclose if the borrower defaults

The loan amount plus the down payment should equal

The sales price of the home.

When does the mortgage insurance requirement end for a borrower with a VA loan?

There is no mortgage insurance requirement for a VA loan.

One difference between a judicial foreclosure and a non-judicial foreclosure is that with a non-judicial foreclosure, ______.

There is no statutory right of redemption

Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a Loan Estimate from his lender. What's the purpose of this document?

To detail the estimated closing costs for Lawrence's loan

What program allowed the U.S. Treasury to spend hundreds of billions of dollars to stabilize our financial system, boost credit markets, help families avoid foreclosure, and promote economic growth?

Troubled Asset Relief Program

What's the acronym for the legislation that requires financial institutions to document and publicly disclose lending practices?

HMDA Home Mortgage Disclosure Act

Wendy is buying a house from Tom. Tom helps Wendy out by paying for a 2-1 buydown. The lender has given Wendy an interest rate of 5%. Which of the following describes what the buydown will do to Wendy's interest rate?

Her rate will be 3% for the first year, 4% the second year, and 5% after that. 2 less then 1 less then none

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)

Which of the following specifies a requirement of pre-loan counseling for consumers?

Homeowner and Equity Protection Act

Which of the following specifies a requirement of pre-loan counseling for consumers?

Homeowner and equity protection Act (hoepa)