Course 3 II
The VA loan program offers a basic entitlement amount of ______.
$36,000
What must a qualified mortgage's loan term limit be?
30 years or less
John wants to do a 1031 tax exchange with a property he just sold. How many calendar days does he have to identify a new property for the exchange?
45
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
Conrad has purchased a home in California and, as a veteran, he's been able to take advantage of the CalVet home loan program. How does this loan program work?
CalVet holds the legal title to the property until the loan is paid off.
The Baxters are looking at a $425,000 home. They have $90,000 in savings to use as a down payment. What loan type(s) would likely be the best option for them?
Conventional
If you have a specific health issue, which of the following is most critical for you to thoroughly investigate when selecting health insurance?
Covered events
Which of the following is a form of commercial bank revenue related to mortgage financing?
Demand deposits
What type of lien is placed on a property as a result of a court order?
Equitable
Which of the following can help your very low-income clients either purchase or rent housing in the private market?
Housing choice vouchers
Your client has a VA loan and wants to refinance to a lower rate. Which of the following is likely the simplest option?
Interest rate reduction refinance
In California, how has state law modified the way the deed of trust works?
It creates a lien on the property, and the borrower, not the trustee, holds legal title.
Lewis is reviewing his Loan Estimate and notices under "Other Costs" that there are items listed that don't include an amount. What does this mean?
Lewis should ask his lender about it.
Which is one of the benefits of the USDA loan program?
No down payment is required.
Which of the following is a true statement about retirement accounts?
Only self-employed individuals can use SEP IRAs
Lenders who ______ can underwrite and approve FHA loans without requiring the FHA to review each borrower's qualifications.
Participate in the direct endorsement program
Which of the following best describes foreclosure by writ of entry?
Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed
Jody is concerned about the ______ encumbrance that doesn't allow her to start her gardening greenhouse because it sits next to a nature conservancy.
Physical
Gertrude is buying Sam's house, and Sam has agreed to finance the purchase. Gertrude is aware that a seller-financed transaction creates certain risks for her that a conventional loan wouldn't. Which of the following is an issue that Gertrude is protected from via her loan agreement?
Sam could sell the property to another person at any time, canceling Gertrude's equitable interest in the property and her right to possess it.
In order for earnings from a second or part-time job to be considered as part of a lender's income evaluation, what must be true?
The applicant must have been employed for at least two years, and the employment must be expected to continue.
When does the mortgage insurance requirement end for a borrower with a VA loan?
There is no mortgage insurance requirement for a VA loan.
The ______ requires specific disclosures and was enacted in 1968 as part of the Consumer Credit Protection Act.
Truth in Lending Act
Select the choice that best translates this clause into plain English. "Upon payment of all sums secured by this Mortgage, Mortgagee shall discharge this Mortgage without cost to Mortgagor. Mortgagor shall pay all costs of recordation, if any."
When the borrower has fully paid off the loan, the lender will record that the note is satisfied.
A Treasury note is a Treasury security ______.
With a maturity term between two and 10 years
The American Recovery and Reinvestment Act provided mortgage assistance to ______.
Wounded servicemen and servicewomen