ch 10
The Real Estate Settlement Procedures Act (RESPA) applies to which of the following? A loan to finance 25 acres of land A loan secured by a first trust deed securing real estate upon which there is one-to-four family residential dwelling A loan to finance buying a property where the primary purpose of the purchase is for resale None of the choices apply
A loan secured by a first trust deed securing real estate upon which there is one-to-four family residential dwelling
Which institutional lender commonly makes short-term construction loans? Savings and loan institutions Credit union Commercial banks Thrifts
Commercial banks
__________ occurred when people moved money from savings and loans into investments paying a higher rate of interest. Discontinuance Discounting Disinterest Disintermediation
Disintermediation
Which Act established the Consumer Financial Protection Bureau and authorized it to regulate consumer financial products and enforce several consumer protection laws? Dodd-Frank Act Gramm-Leach-Bliley Act Garn-St. Germain Act Financial Institutions Reform, Recovery, and Enforcement Act
Dodd-Frank Act
All consumers are given an equal chance to obtain credit through the: Equal Credit Opportunity Act. Equal Chance Credit Act. Mortgage Loan Disclosure Statement. Seller Financing Disclosure Statement.
Equal Credit Opportunity Act.
Which of the following activities is not commonly performed by a mortgage broker? Mortgage brokers qualify borrowers. Mortgage brokers take applications. Mortgage brokers underwrite loans and fund them at closing. Mortgage brokers send completed loan packages to the lender
Mortgage brokers underwrite loans and fund them at closing.
Which economic stimulation tool of the Federal Reserve involves purchasing and selling government securities? Open market operations Reserve requirements Setting discount rates Options trading
Open market operations
_____ is a federal law that requires disclosure to borrowers of closing costs and procedures by means of a pamphlet and forms approved by the United States Department of Housing and Urban Development (HUD). RESPA CCP Regulation Q Regulation Z
RESPA
What regulation implements the Federal Truth in Lending Act? The Dodd-Frank Act The Glass-Steagall Act Regulation Z Regulation V
Regulation Z
Which of the following statements is true regarding the mortgage market? The secondary mortgage market sells loans to the primary market The secondary market is where lenders make mortgages to borrowers The primary mortgage market is where lenders make mortgages to borrowers The primary mortgage market replenishes mortgage funds for the secondary market
The primary mortgage market is where lenders make mortgages to borrowers
_____ is the process of evaluating a borrower's risk factors before the lender will make a loan. Overwriting Underwriting Overestimating Underestimating
Underwriting
The Truth-In-Lending Act (Regulation Z) requires: a cap on interest rates. creditors to disclose credit terms so consumers can make comparisons. anyone negotiating a loan to have a real estate license. the Fed to regulate the flow of money.
creditors to disclose credit terms so consumers can make comparisons.
All of the following are risk factors that the lender assesses during the underwriting process, except the borrower's: debt-to-income level. highest level of education completed. employment history. type of property and current assets.
highest level of education completed.
The use of property's location to deny financing is known as: redlining. steering. panic lending. blockbusting.
redlining.
The __________ market is the market that does not originate loans. lender-to-borrower retail primary mortgage secondary mortgage
secondary mortgage
The broker negotiating the loan must keep a signed copy of the Mortgage Loan Disclosure Statement for how many years? One Two Three Five
three
An economic situation in which the supply of money is limited and the demand for money is high, as evidenced by high interest rates is: tight money. loose money. hard money. soft money.
tight money