finance missed questions
What agency receives paper currency prior to its distribution but after it's printed?
Federal Reserve
How do VA loan programs compute "residual income"?
Income minus shelter expenses and debts
Your client, Judy, with a credit score of 620, has been approved for an FHA loan for a home with a sales price of $200,000. What is the minimum down payment that will apply?
$7,000
Jose is an investor who found and closed on an investment property, then decided to sell a property other than the one originally marked for the exchange. What is this an example of?
A reverse tax-deferred exchange
What feature do most adjustable rate mortgages have?
Allows borrowers to convert to a fixed-rate during a specific period of the mortgage
What type of value is of interest to taxing authorities?
Assessed value
Renee loves her photography hobby. When she is planning her personal budget, she finds that her anticipated income will just meet her necessary expenses, with a little left over if she's lucky. She still plans on budgeting some money for her hobby, though. Why?
Because she values her hobby and it will motivate her to follow her financial plan
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
Which document provides an estimate of the costs a buyer is likely to pay at settlement before the closing?
Loan Estimate
The amount of the ______ a veteran must pay depends on factors such as military status, down payment amount, and whether the veteran's entitlement is being used for the first time or a subsequent time.
Funding Fee
Which of the following loan types can be packaged into a mortgage-backed security eligible for guarantee by Ginnie Mae?
Loans insured or guaranteed by U.S. government agencies
Ron and Dawn hope to qualify for an FHA mortgage so they can buy a home for their family. Their housing ratio is 28%, their total debt obligation is 45%, and their credit score is 650. Do they qualify under FHA underwriting guidelines?
No, they don't meet the total debt obligation requirement.
Lenders who ______ can underwrite and approve FHA loans without requiring the FHA to review each borrower's qualifications.
Participate in the direct endorsement program
In which type of partnership is the lender a partner as well as the financier?
Partnership between mortgagees and mortgagors
Which of the following can a lender do if a borrower fails to keep homeowner's insurance on the collateral property?
Place lender-acquired insurance on the property and bill the borrower
Violet purchased a house from Nick, and assumed the existing loan. Nick wants to make sure he isn't liable if Violet ever defaults. What can he do to remove his name from the loan agreement?
Request a novation
When using a financial system, which activity should you complete on a daily basis?
Save all receipts from spending
Assets from the estate of which individual avoid probate at that individual's passing?
Scott, who died leaving all of his assets in a living trust
Tom's CRV came in low and he's decided to make up the difference in cash. What else will be required?
The VA may require Tom to prove the source of his funds.
Which of the following should be taken into account when considering refinancing a mortgage loan?
The timeline for the loan repayment may be extended.
Which governmental legislation established the Consumer Financial Protection Bureau?
Wall Street Reform and Consumer Protection Act (Dodd-Frank Act)
Page four of the Closing Disclosure lists specific disclosures about the loan, such as the penalty for late payments, whether a demand feature applies, whether the loan can be assumed, and ______.
Whether partial payments are accepted
A Treasury bill is a Treasury security ______.
With a maturity term of one year or less
Marcie bought a duplex, lived in one half, and rented out the other half. This is an example of what type of investing?
buy and hold
What's the term for an extended period of time during which banks experience more withdrawals than deposits?
disintermediation
Under the "Projected Payments" section of the Loan Estimate, the consumer can view what is included in the monthly payment. Which of the following may be part of the total payment other than the principal and interest?
mortgage insurance
Maurice always keeps twice what he'll need to pay his quarterly taxes in his tax savings account. This is
not the best use of his money
The buying and selling of government securities as a way to influence the money supply and balance economic growth describes ______.
open market operations
Which of the following occurs when the property is damaged or just has normal wear and tear?
physical depreciation
What's one reason a borrower would choose a split—or piggyback—loan option?
to avoid going over the comforming loan limit
The American Recovery and Reinvestment Act provided mortgage assistance to ______.
Wounded servicemen and servicewomen
What type of property is Valerie appraising if she's using the sales comparison approach?
a single-family residence built six years ago
Memoryjet, Inc has developed a new technology for high-volume jump drives. In order to manufacture their new devices they will need to gear up a new production line, which will cost about $85 million. What kind of bond instrument could they use to help secure the funds they need for their new line?
Corporate bond
Which of the following would be the best place to keep monies intended for long-term savings?
certificate of deposit
Which clause is standard in a deed of trust and affects the foreclosure process that can be used if the borrower defaults?
power of sale
Which interest rate do banks use to offer consumer loans?
prime rate
