Finance Course CE
Sole Proprietorship
A business owned by one person
Subordination Clause
A clause which permits the placing of a mortgage at a later date which takes priority over an existing mortgage.
Which of the following results from the Treasury selling securities?
A decrease in money in the economy
Housing Choice Voucher Program
A federal government program to assist very-low-income families, the elderly, and the disabled with affordable, decent, safe, and sanitary housing.
recourse mortgage
A mortgage debt in which a lender may pursue collection from a property owner for a loss due to a deficiency in the value of the secured property to fully satisfy the debt if the lender forecloses judicially.
How does the consumer provide economic support to a community in the living phase of the real estate cycle?
By purchasing and consuming local goods and services
insured loan
FHA
Community Development Block Grants
Grants from the Department of Housing and Urban Development to allow communities to carry out a wide range of community development projects.
mortgage REIT
Invests in real estate debt, including mortgage-backed securities
Which of the following describes a "buy and hold" investment strategy?
It's a more conservative investment method than a fix and flip.
mechanics lien
Liens that arise from construction and other improvements to real estate. (specific involuntary)
Lock-in Clause
Mortgage provision which prevents the loan from being paid off early.
Why is it a good idea for real estate licensees to carry auto insurance?
Most states require it and it's recommended for all real estate licensees
When a buyer uses an FHA loan, the down payment amount is calculated ______.
On the lesser of the sales price or the appraised value of the property
Government Sponsored Enterprises (GSEs)
Organizations created by the federal government (Fannie Mae, Freddie Mac, Farmer Mac, Ginnie Mae) to help increase loan opportunities for homebuyers.
Which of these items did the Federal Housing Administration (FHA) implement to stabilize and improve the mortgage market?
Set construction standards for homes purchased with FHA loans
acceleration clause
States that upon default, all of the principal installments come due immediately.
FHA
The Federal Housing Administration gave both the construction industry and homeowners a boost by insuring bank loans for building new houses and repairing old ones
Which statement is true regarding most government loans?
They're insured or guaranteed by the government.
The Federal Housing Administration is part of the ______.
U.S. Department of Housing and Urban Development (HUD)
installment contract
Under the Uniform Commercial Code, a contract that requires or authorizes delivery in two or more separate lots to be accepted and paid for separately.
What type of loan can be obtained with no down payment?
VA
guaranteed loan
VA
Recaptured Depreciation
When real property is sold at a gain and accelerated depreciation has been claimed, the owner may be required to pay a tax at ordinary (non-accelerated) rates to the extent of the excess accelerate depreciation.
Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project?
a life insurance company (they prefer to be involved with large commercial projects)
Assuming a CMO uses the sequential pay structure, how is interest passed through from borrowers paid to investors?
all tranches receive interest payments
mortgagor
borrower
alienation clause
clause stating that if property is sold, debt is immediately payable
Which real estate finance instrument includes the promise to repay and the security instrument within the same document?
contract for deed
mutual savings bank
financial institution whose depositors are owners sharing in its profits
statutory
fixed by law
How might a borrower avoid paying the mortgage insurance premium required by an FHA loan?
get conventional financing
mortgagee
lender
short sale
lender agrees to accept sale proceeds, even if less than the debt
Long-term, amortizing loans
made to finance residential real estate, made to borrowers with relatively low credit ratings; innovations in information technology make it easier to measure more precisely consumer credit risks as well as to securitize subprime mortgage loans with structured investment vehicles.
demand deposits
money deposited in a commercial bank in a checking account
What's the name of the clause included in a finance instrument that requires the lender to release a portion of the property from the lien when a part of the debt has been paid?
partial release
limited partnership
partnership in which only one partner is required to be a general partner
general data of property
related to where the property is located, not. the property itself
More than 70% of the assets of mutual savings banks are derived from ______.
savings accounts
Neighborhood Stabilization Program
the Housing and Economic Recovery Act and the American Recovery and Reinvestment Act funded the program. which provided emergency assistance grants to states to purchase and redevelop foreclosed and abandoned homes and residential properties
assessed value
the amount that your local government determines your property to be worth for tax purposes
Margot reviewed page three of her Closing Disclosure to see the amounts she'll pay and receive, and the total cash amount. She located this information under the "Summaries of Transaction" in the "Seller's Transaction" table, which is completed by ______.
the settlement agent
USDA Rural Development Single Family Housing Program
will make direct loans (as well as loan guarantees) to help low- and moderate-income rural Americans buy safe, affordable housing in rural areas.