Real Estate Finance

Which act made some mortgage insurance premium deductions available to certain taxpayers?

American Taxpayer Relief Act of 2012

Under which section of the Loan Estimate will you find any credits provided by the seller?

Cash-to-close: amount of money the borrower needs to bring to the closing

How does the Community Development Block Grant program assist in supporting HUD's mission?

Distributes grant funding to help meet community needs as determined by state and local gov

Which of the following resources will give you reports and statistics including house price index, foreclosures, and refinancing?

FHFA

The Farm Credit System is overseen by the ______, an agency of the federal government.

Farm Credit Administration

Which of these acts has special provisions for borrowers who are victims of over-charging?

Real Estate Settlement Procedures Act

The ______ can offer direct loans to farmers and ranchers. The loans are funded by congressional appropriation.

USDA Farm Service Agency (FSA)

How long does a homeowner have to pay off outstanding liens against his property?

Until his foreclosure sale is held

The American Recovery and Reinvestment Act provided mortgage assistance to ______.

Woundmen servicemen and servicewomen

In the event of a client lawsuit against an independent contractor who's operating under an LLC, only ______ are usually at risk.

business assets

What is the formula for calculating the total debt ratio?

(Monthly debt payments/gross monthly income)*100

A Treasury bond is a Treasury security with a maturity term of

30 years

A Treasury bill is a Treasury security with a maturity term of

<1 year

The Farm Credit System is ______.

A government-sponsored enterprise

Philomena and Barbara are the buyer and seller in a real estate transaction. By when must the closing disclosure be provided to them?

At least 3 days prior to closing

In a loan to purchase which of the following property types is NOT eligible for purchase by Fannie Mae? (regulated by Federal Housing Finance Agency- FHFA)

Commercial space- Fannie Mae is for residential

The Government National Mortgage Corporation was created in 1968 under the Department of Housing and Urban Development (HUD) and is more commonly known as ______.

Ginnie Mae

The interest rate on an FHA Section 251 adjustable rate mortgage will ______.

Go up or down, but can't change more than a maximum number of points allowed by the FHA over the life of the loan

Which of the following specifies a requirement of pre-loan counseling for consumers?

Homeowner and Equity Protection Act

Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025?

Interest on the first $750K of mortgage debt is deductible for married couples filing jointly, or $375K for married couples filing separately

The Federal Housing Finance Agency established percentage targets and ______ for loans made to low- to moderate-income borrowers.

Limits for conforming loans

Arnold has gotten behind on his mortgage payments. His lender agrees to temporarily suspend payments to help Arnold catch up. What is this an example of?

Moratorium (forbearance)

Which is not one of the lender requirements under the Community Reinvestment Act

Providing school loans (CRA directs lenders to offer home, small business, and farm loans in low- and moderate-income area)

Monty retired 10 years ago and would like to see the world, but his retirement account won't support his desire to travel. Monty heard of a loan that would allow him to take advantage of the equity in his home by getting monthly payments from the bank by using his house as collateral. What is this type of loan called?

Reverse annuity mortgage (RAM): type of loan that allows homeowners, typically elderly individuals aged 62 or older, to convert a portion of their home equity into a stream of income or a lump sum of cash while still living in their homes

What term is used to describe the housing inventory in default or foreclosure?

Shadow inventory

Krista is obtaining a loan to buy a home. Her loan agreement consists of one document called a note and one called a deed of trust. What's the role of the note?

States to who, how much, and how loan will be repaid

A developer, Howard, has purchased land with the expectation of constructing an apartment building. He explains to his lender that he'll need a construction loan as well, so the mortgage they sign includes what kind of clause to allow the construction loan's lien position to take priority?

Subordination

The ______ requires specific disclosures and was enacted in 1968 as part of the Consumer Credit Protection Act.

TILA

The federal SAFE Act required states to enact licensing and registration requirements related to loan originators, and created the Nationwide Mortgage Licensing System and Registry. Which act was Texas' response to the federal act?

Texas SAFE Act

What is the 200% rule as it relates to tax-deferred exchanges?

The combined fair market value of the property (or properties) being exchanged into cannot be more than 200% of the relinquished property.

The FHA EEM program allows modifications such as solar panels as long as ______.

The cost of the modifications is within limits based on the value of the home

Maria is applying for a loan. Maria's employer has been asked to provide employment verification. Who else must complete parts of the request for proof of employment form?

The lender (When applicants sign the form, they'll give the employer permission to provide information to the lender to complete the request)

What is the trustee's role when a deed of trust is used to secure property for a loan?

To hold legal title to the property on behalf of the beneficiary until the loan is repaid

What's the primary source of funds for commercial banks?

demand deposits

Which one of the following statements about the Torrens system (method of land registration) is true?

Used in a handful of states bc not common: Uses a title search method that only looks back as far as when the last title search was performed. The method assumes the last search was done accurately and legally, and that any issues were resolved.

Clause that allows a borrower to refinance a first mortgage without affecting its lien position even when a junior mortgage is in place

lifting clause

An intermediate-term security issued by the Treasury that has a maturity term of between 2 and 10 years is called a Treasury ____

note