Unit 3 Additional Government Influence Exam Questions

When was the Veterans Housing Assistance Program (VHAP) created? A) 1983 B) 2003 C) 2009 D) 1980

A) 1983

A couple is at the scheduled closing of their new home. The settlement agent is looking at the Loan Estimate and comparing its figures with those given on the Closing Disclosure. The agent finds that there has been a change in the APR (annual percentage rate) of ½% more than the APR originally quoted, and there has also been a change to a different loan product. What must happen in order for the closing to occur? A) A new, corrected Closing Disclosure must be prepared by the lender and a new three-day waiting period must be initiated. B) The settlement agent must prepare a corrected Closing Disclosure and a new three-day waiting period must be initiated. C) The couple can sign a waiver that they accept the changes and the settlement can continue. D) The settlement must be canceled and the contract terminated.

A) A new, corrected Closing Disclosure must be prepared by the lender and a new three-day waiting period must be initiated.

According to the Texas Department of Savings and Mortgage Lending, which of these must have a license for mortgage loan origination? A) An individual who secures a loan for a structure that is suitable for occupancy as a residence but used for a commercial purpose B) Any corporation, company, partnership, or sole proprietorship engaging in the business of commercial mortgage loan origination C) An individual who offers or negotiates terms of a residential mortgage loan with or on behalf of an immediate family member of the individual D) An individual who offers or negotiates terms of a residential mortgage loan secured by a dwelling serving as the individual's primary residence

A) An individual who secures a loan for a structure that is suitable for occupancy as a residence but used for a commercial purpose

Which of these allows a public housing authority to use a portion of its available funds to provide mortgage payment subsidies for qualified applicants? A) The Housing Choice Voucher Program B) The Housing Helper Program C) The Find Me a Home Program D) The Public Housing Authority Program

A) The Housing Choice Voucher Program The Housing Choice Voucher Program assists very low-income families, the elderly, and the disabled to obtain safe and affordable housing. The program was originally for rental subsidies only and was called Section 8. But under legislation passed in 2001, individual Public Housing Authorities (PHA) can now use a portion of their housing choice vouchers to assist first-time homebuyers.

Agricultural loans need to be designed with a great deal of flexibility. For example, any of the following would be a beneficial part of the design of the loan EXCEPT A) a higher rate of interest. B) an ability to extend, expand, or otherwise adjust the loan. C) a longer term, even up to 40 years. D) an opportunity to pay larger portions of principal in a good year.

A) a higher rate of interest.

VLB allows veterans to purchase land A) in Texas only. B) anywhere in the United States. C) containing at least half an acre. D) for commercial purposes.

A) in Texas only. To be eligible for Veteran Land Board (VLB) financing, the land must meet certain requirements, including being located in Texas and containing at least one acre.

Which of the following is NOT a Texas Veterans Land Board (VLB) program? A) Home Improvement Program B) Land Grant Program C) Land Loan Program D) Veterans Housing Assistance Program

B) Land Grant Program There are three major programs: The Home Improvement Program, the Housing Assistance Program, and the Land Loan Program. It is the most comprehensive state program in the country for veterans.

When military members go on active duty, what option is available for deferring VA loan payments? A) The monthly payment can be deferred, unless they are reservists or National Guard members. B) The monthly interest payment can be deferred until they return home. C) The monthly principal can be excused; however, the interest must be paid. D) Only half of the monthly payment must be paid; the other half can be deferred until they return home.

B) The monthly interest payment can be deferred until they return home.

Residential mortgage loans include A) first liens. B) all of these. C) home equity loans. D) second loans.

B) all of these.

An equity loan and all debt can be for no more than A) 20%. B) 40%. C) 80%. D) 10%.

C) 80% The amount of the equity loan and all other debt cannot exceed 80% of the property's market value.

What does it mean that a home equity loan must be nonrecourse? A) If the borrower is in default, the lender can pursue a judgment against the borrower for any losses. B) If the borrower is in default, there is no recourse the lender can take. C) If the borrower is in default, the lender can force the sale of the property. D) If the borrower is late on one payment, the lender must waive any recourse.

C) If the borrower is in default, the lender can force the sale of the property.

A swimming pool company is constructing a pool at a residence. The subcontractors that dug the hole, filled it, and set the tiles in place are filing a lien against the property because the pool company filed for bankruptcy and didn't pay them. What type of lien would be filed? A) Association's lien B) Materialman's lien C) Mechanic's lien D) Special assessment lien

C) Mechanic's lien

The Contract for Deed Conversion Initiative is available to eligible residents who are currently A) renting a residential property within 150 miles of a Texas border town. B) purchasing residential property outside of Texas. C) purchasing residential property within 150 miles of the Texas-Mexico border. D) renting a residential property in an affordable housing complex.

C) purchasing residential property within 150 miles of the Texas-Mexico border. The Contract for Deed Conversion Initiative is available to residents who are currently purchasing residential property within 150 miles of the Texas-Mexico border and reside in a colonia identified by the Texas Water Development Board or meet the department's definition of a colonia.

National Bank has recently opened offices in town and is actively pursuing customers' demand accounts. The bank is required to provide commercial bank accounts and loans to customers in the surrounding neighborhoods according to which federal law? A) Equal Credit Opportunity Act B) Fair Housing Act C) Banking Fair Settlement Act D) Community Reinvestment Act

D) Community Reinvestment Act

VHAP is a refinancing program. True False

Explanation The answer is false. The Veterans Housing Assistance Program (VHAP) is not a refinancing program and can only be used as a first lien on the primary residence.

The income received from separate property remains separate income. True False

Explanation The answer is false. The income received from a separate property is community property unless there is a separate written and notarized agreement stating that one spouse releases all rights and interests to the separate property.

A rural homestead is defined as 100 acres, while an urban homestead is defined as 10 acres. True False

The answer is false. A rural homestead is defined as up to 200 acres for married couples and up to100 acres for a single person, plus improvements. An urban homestead is defined as up to 10 acres, regardless of marital status.

The Neighborhood Stabilization Program provides funds to individuals who have lost their primary residence due to a natural disaster. True False

The answer is false. NSP provides funds to eligible entities for the acquisition and redevelopment of foreclosed, abandoned, or vacant housing to create affordable housing.

The Section 8 program assists low-income families in purchasing a home. True False

The answer is false. The Statewide Housing Assistance Payments Program (Section 8) provides rental assistance subsidy vouchers to families earning less than 50% of the area's median family income.

Only veterans may assume a VA loan. True False

The answer is false. The veteran must have occupied the home as a primary residence for three years from the closing date, unless this requirement is waived by the VLB. An Assumption and Release Agreement must be entered into by the person assuming the loan. All applicable program insurance policies must be maintained and approval from the VLB must be obtained.

The Texas Bootstrap Loan Program is a self-help construction program that provides very low-income families an opportunity to help themselves in building or rehabilitating their home. True False

The answer is true. Participants of the Texas Bootstrap Loan Program are required to provide at least 65% of the labor necessary to build or rehabilitate their home. Nonprofit organizations can combine these funds with other sources; however, all combined loans cannot exceed $90,000 per unit.