Real Estate 14A Final Review
A buyer is purchasing a home got $525,000. the down payment is $75,000. What is the approximate LTV?
86%
A loss of savings deposits to higher yielding competitive investments is referred to as:
Disintermediation
The law that prohibits a lender or mortgage broker from discriminating against credit applicants on the basis of race, color, religion, national origin, sex, marital status or age:
Equal Credit Opportunity ACT
In California, real estate licensees who wish to engage in residential real estate loan origination must:
obtain an endorsement from NMLS.
The purpose of licensing to:
protect public health
A person operating under a California Mortgage Lending License CANNOT:
also operate as a mortgage loan broker under a real estate broker's license.
A borrower's credit report score can affect:
approval of loan, type of loan available, interest rate offered to them.
All licensed/registred MLOs:
are issued a unique identifier number.
Indirect lenders include:
both pension funds & life insurance companies.
When prices begin to fall and production tapers off, the period is called a:
buyer's market
The "degree of risk" in a real estate loan:
can be controlled by qualifying and a property before a loan is made, refers to the likelihood of default by the borrower, refers to the ability of the lender to recover loan proceeds through foreclosure.
An investment is said to be "liquid" when it:
can be instantly sold
The Federal Open Market Committee:
carried out open market operations.
The Federal Open Market Committee
carries out open market operations
A borrower's payment history includes:
collection accounts, paid off accounts, late payments; all of these.
A subordination clause is most often used for:
construction loans
A buyer wants to put down 10% on the home he is purchasing for $560,000. He also wants to borrow another 10% as secondary financing. What is the loan amount for the first mortgage?
$448,000
A buyer wants to put down 10% on the home he is purchasing for $560,000. He also wants to borrow another 10% as secondary financing. What is the loan amount for the first mortgage?
$448,000
the maximum amount the Real estate recovery Fund in California is liable for in any single action is:
$50,000
The maximum amount the Real Estate Recovery Fund in California is liable for in any single actions is:
$50k
How many Federal Reserve Districts are there across the nation?
12
The minimum age to obtain a real estate salesperson's license in California is
18
Credit Unions were first set up in
1970
In California, persons wishing to become licensed or endorsed as an MLO by NMLS must satisfactorily complete how many hours of approved pre-license education?
20
The minimum number of hours of mandatory pre-license education for MLO is:
20
A loan can often be "seasoned" in:
6-12 months
Bankruptcies must be reported on the loan application if they have occurred within the past:
7 years
A homeowner is refinancing the home. The value is $650,000. The loan amount will be $500,000. What is the approximate LTV?
77%
A buyer wants to put down 10% on the home is purchasing for $560,000. He also wants to borrow another 10% as secondary financing. What is the CLTV?
80%
A buyer wants to put down 10% on the home he is purchasing for $560,000. He also wants to borrow another 10% as secondary financing. What is the CLTV?
90%
A California Finance Lender (CFL) can only broker loans to
A lender licensed under the CFL Lenders law
If established as a REMIC, collateralized mortgage obligations may be issued by:
a corporation, trust, and partnership
A clause in a finance instrument that limits a borrower's right to transfer the property without the lender's permission is called a(n):
alienation clause
AN order to cease and desist is know as an
injunction
In order to obtain a Real Estate Broker's license in California, proof of legal presence in the United States
is not required
In order to obtain a Real Estate Broker's license in California, proof of legal presence in the US:
is not required.
A declaration of default is prepared by a:
lender
A "due-on-sale" clause in a loan allows the:
lender to declare the entire loan balance due immediately upon transfer of title.
Borrower's contingency periods, escrow period, and loan processing:
occur simultaneously
In a foreclosure, a judge's order is called an:
order of execution
A loan where the lender assumes a percentage of ownership is called:
participation loan
When an investor has an "undivided interest" in the mortgage pool, it is commonly referred to as a:
pass-through security
the four phases of the business cycle are:
peak, recession, bottom, recovery
A loan held by a lender rather than sold into the secondary market referred to as a:
portfolio loan
The Loan Estimate shows
projected shows, cash to close, closing cost details
The purpose of licensing is to:
protect the public
An applicant for a CRMLA license must
provide a surely bond of $50,000, pay an investigation fee, have a tangible net worth of at least $250,00; all of these
Prior to getting licensed by the NMLS, all applicants must:
provide fingerprints for a FBI criminal background check, pass a 125 question Uniform State Test (UST), provide authorization for NMLS to obtain a credit report.
"piggybank" loans refer to:
purchasing a property using multiple mortgages and lenders
The Safe Act defines a Mortgage Loan Originator (MLO) as an individual who:
takes a residential mortgage loan application, loans or negotiates terms of residential mortgage.
The SAFE Act defines a Mortgage Loan Originator (MLO) as an individual who:
takes a residential mortgage loan originator & offers or negotiates terms of residential mortgage loans for compensation of gain.
The effective yield on a loan is referred to as:
the annual percentage (APR)
To avoid violating the Usury law, private individuals in California who lend money, may charge an interest rate:
the higher of 5% above the San Francisco Federal Bank rate or 10%
The different classes of securities are called:
tranches
An out-of-court sale or auction initiated at the direction of a beneficiary is called a:
trustee's sale
According to Reg. Z, "triggers" include:
down payment amount, number and dollar amount of payments, interest rate
Credit reporting agencies include all of the following factors except:
employment history and verification
Regarding the C.A.R. Residential Purchase Agreement and Joint Escrow Instructions? A mortgage rep would have particular interest in:
escrow period, loan amount, earnest money deposit
Lending in the absence of discrimination based on race, sex, color, religion, national ancestry, marital status, or handicap is know as:
fair lending
Negotiable instruments are promissory notes that are:
feely transferable
FNMA and FHLMC are:
government-chartered private lenders.
All state-licensed MLOs must have NEVER:
had a felony involving fraud, dishonesty, breach of trust, or money laundering, had a felony in the past 7 yrs, had a mortgage loan originator license revoked.
Short term cash real estate loans for shorter term and higher interest rate than those offered by institutional lenders are known as:
hard money
In a seller's market
demand exceeds supply
PITI + all long-term debt -------------------------- = gross monthly income what does this formula calculate?
Back End Ratio
In California, the state program that provides financing for veterans is known as:
Calvet
For their protection, who is responsible for checking the loan estimate and the closing disclosure?
Consumer
The Truth in Lending Law is supervised by the:
Consumer Financial Protection Bureau (CFPB)
In California, persons not licensed by Cal BRE/DRE can still engage in residential real estate lending by operating under the NMLS and the:
Department of Business Oversight
The rate of interest charged by the Fed to member banks is called the:
Discount rate
The law that gives consumers rights as to who had access to their credit files is:
Fair Credit Reporting Act
The act that established uniform standards for credit reporting and strengthens consumer protection against identity theft is known as the:
Fair and Accurate Credit Transaction Act (FACTA)
FAMC is also referred to as
Farmer Mac
The FHFA refers to the
Federal Housing Finance Agency
Who has the power of currency issue?
Federal Reserve
the Closing Disclosure Form integrates and replaces the:
HUD-1 form & Final TILA Disclosure Form
The TRIDE rule does not apply to:
Home Equity Lines of Credit (HELOCs).reverse mortgages.loans secured by a mobile home.
RESPA forbids
Kickbacks
The Principal officer of the California Bureau/Department of Real Estate (calBRE/DRE) is the
Real Estate Commissioner
The principal officer of the California Bureau of Real Estate (CalBRE) is the:
Real Estate Commissioner.
The act that requires lenders, mortgage brokers, or servicers of home loans to provide borrowers with the pertinent and timely disclosure of the nature and costs of the real estate settlement process is known as the:
Real Estate Settlement Procedures Act (RESPA)
The California Housing Financial Discrimination Act Prohibits:
Redlining
In California, who can deny, suspend, r revoke any license issued by the Bureau of Real Estate?
The Real Estate Commissioner
Mortgage bankers may use a type of credit line in their business commonly referred to as:
Warehouse
ethics differs from law in that ethics is:
What is right.
Educational requirements for employees of a CRMLS licensee who will be conducting brokerage activities include:
a three-hour course in ethics, professional conduct and legal aspects as well as a three-hour course in agency relationships and duies
In the event of a default, a creditor or seller may declare the entire outstanding balance immediately due and payable with a(n):
acceleration clause
Predatory loan practices include:
deception, usury, fraud
When the government is forced to borrow money, making less money available for construction and home loan, it is called:
deficity spending
The study and description of the population of an area is called:
demographics
In a promissory note, the borrower is called the:
maker
The process of tracking and comparing mortgage interest rates held in a pool to current market interest rates is called:
marking to market
Private, non-insured investment accounts are called
money market funds
Good ethics leads to:
more income for you, happy clients, referrals
The intentional misrepresentation or omission of material facts by applicants to improperly influence a mortgage loan lender is referred to as:
mortgage fraud
How many days prior to consummation can a revised Loan estimate generally be provided to the borrower?
no more than 7 days
In the loan process the initials URLA stand for: Unemployed Refinance Loan ActUnderwriting Residential Loan Allowance None of these Ultimate Rate Loss Acceptable
none of these
Participants who make up secondary mortgage market:
raise the necessary funds to purchase the mortgages.
A creditor is given the right to have the security property sold to satisfy the debt fails to pay the debt according to the terms of agreement. this is done with a:
security instrument
An example of soft money loan is
seller carrying back financing on the sale of their property