Real Estate Finance

Up to what amount will the FDIC insure

$250,000

FHA Requirements

13% of total debt ratio that doesn't exceed 43% and a minimum credit score of 500 to 620

FHA insures the adjustable rate mortgages under section

251

Credit Scores range between

300 to 850

PMI loan to value ratio is in excess of

80% must meet Freddie Mae and Fredi Mac guidelines

Albert wants to sell his house to his cousin, who is willing to assume his FHA loan. What clause in Albert's mortgage requires him to obtain lenders approval to do this?

Alienation Clause

Affects Real Estate Supply

Construction

Freddie Mac targets

Conventional Loans from thrifts and mortgage related securities

Corporate Bonds

Corporate Assets

Stimulus Package

Created the American Recovery and Reinvestment Act 2009 (ARRA)

U.S Department of Housing and Urban Development

Creates strong, sustainable, jnclusive communities and qualify affordable homes for all.

Factors that influence property value

DUST

HMDA, Home Mortgage Disclosure Act

Documents and publicly disclose lending practices

CFPB was created

Dodd Frank act protects consumers of financial services

Alienation Clause

Due on sale Clause

Prohibits Lender discrimination

ECOA

Prohibits lenders from denying credit to applicants on the basis of their protected class?

ECOA, Equal Credit Opportunity

Protected Class

Equal Credit Opportunity

Created as a result of the Housing Economic Recovery Act

FHFA, The Federal Housing Finance Agency

Illegal property flipping

Falsely inflated appraisal

Secondary Market

Fannie Mae, Ginnie Mae, Freddie Mac, national instutions of the Federal Home Loan Bank. (FHLB)

Freddie Mac is regulated by the

Federal Housing Finance Agency

Recourse

Gives the lender the right to file a judgement lien on the borrower for conveyance of the property. 9==\]][=-

Celia was obtaining a conventional loan, and she put down $50,000 as a down payment. Why might her lender also requiire her to obtain PMI

Her down payment of $50,000 is not at least 20% of the purchase price. When loan to value ratios exceed 80% lenders will require PMI

Creates a second mortgage

Home equity

Second step in appraisal

Identify the data needed

Appraiser may way more heavily on a factor of __________________ when appraising a three unit rental property

Income

CFPB, Consumer Financial Protection Beureau

Investigates Consumer Complaints regarding Financing Services

If someone is being sued for a dog bite

Involuntary General

Farm Credit System

Is a Government Sponsored Enterprise

Interest Rate Reduction Refinance

Is not required to submit a COE, get a new appraisial, or verify income for veterans using them.

The purpose of the COMMUNITY REINVISEMENT ACT is to

It requires that lenders invest in development and rehabilitiaton efforts that enable low and moderate income individual and families to afford a home

Armitage Bank is placing the Kellermans in default for failure to pay their home owners insurance. The lender is concerned about property damage and _____________?

Judgement Liens

What is another name for an Installment Sale Contract

Land Contract

Which of the following is part of the other disclosures section

Liability after foreclosure

Federal Housing Finance Agency established percentage targets and _______________________ for loans made to low to moderate income borrowers?

Limits for conforming loans

Page four of the closing disclosure

List penalty for late payments, whether a demand feature applies, wheather the loan can be assumed, the use of an escrow account

Reflects on real estate demand

Loan availibility

Chinese

Majority of forigin investors in U.S. real estate

Loan adjustments or modifications are recasting and

Moratorium or forbearance are all options of being behind on their mortgage.

Unsolicited call from a company offering to reduce a loan

Mortgage Compassion scam

Texas Veterans

Must serve at least 90 days active duty days

Foreclosure by Advertisement

Notification of pending auction, public auction, notice of eviction

Partnership where lender is financer and partner

Partnership between morgagees and mortgagors

Torrens System,

Perform Title Search

individual entrepreneurs

Private loan resources

Non-Recourse

Prohibits the lender from going after the borrower for a foreclosure sell.

Residnetial property owners don't often default on property taxes due to

Property taxes are usually paid with monthly mortgage payments.

Two most common methods used when a bank fails are the payout method and the _________________ Method " A bank may become insolovent"

Purchase and assumption

Regulates Closing Cost, and Settlement Procedures

RESPA, Real Estate Settlement Procedures Act

Federal Reserve

Receives Paper Currency, Once the Bureau of engraving and printing prints the Federal Reserve Notes, they are shipped to the Federal Reserve.

Property under valued and large supply of homes on the market

Recovery Phase

To remove PMI from a FHA loan you can

Refinance to a conventional loan

Judicial Foreclosure

Requires court involvement

Adjustable Rate Mortgage

Section 251

Fewer Properties

Sellers Market

Fewer properties available in the market than there are interested buyers

Sellers Market

First step in appraisal

State the problem

The FDIC will not insure

Stocks

When a veteran assumes a VA loan, the ________________ agreement can restoroe the original buyers level of entitlement as if the loan were repaid in full.

Substitution of entitlement

When the Torrens system is used to perform a title search, who acts as title guarantor in case a claim is filed?

The State

Disclosure

The Truth in Lending Act requires lenders to make certain _________________ to consumers?

voluntary conveyance of a deed

The borrower hands over the property to the lender rather than forclosure proceedings.

New Homes

The construction of which items has the largest influence on the country's economy?

Many lenders slowed their lending activities. Why

The economy headed into recession

To get a loan modification

The lender will perform a title search to make sure there are no other liens

The right of a borrower to redeem the property by paying amounts owed plus costs, even after the foreclosure sell

The statutory right of redemption

When does mortgage insurance requirement end for a VA loan

There is not mortgage insurance requirement for a VA loan

VA Loans and Buydowns

They are allowed only on fixed rate loans

Federal Housing Administation FHA is part of the

U.S Department of Housing and Urban Development

Ginnie Mae, mortgage backed securities

U.S. government agencies

Guidelines Appraisers must folloow

USPAP

Substitution of Entitlement

When the new borrower agrees to use their own entitlement when asssuming the loan, the original borrower's entitlement is completely restored. The agreement that is signed is called substitution of entitlement.

Liability after foreclosure

Which of the following is part of the other disclosures section

International buyers 3 types

Work Visas, looking for a second home, looking for a home as investment

Disintermediation

a period of time during which banks experience more withdrawals than deposits

Dodd Frank 2010

created stricter regultion of the financial services

Farm Credit System

government sponsored enterprise

Ginnie Mae

gurantees HUD programs allows mortgage lenders to obtain a better price for their mortgage loans

Foreclosure may occur

if you do not pay a lien against your property

Page 2 Closing disclosue

list amounts,borrower, seller, other

FHLB Banks

members can borrow up to one year without collateral

Alienation Clause

requires the property owner to obtain lender permission for a buyer to assume the loan, or risk having the loan accelerated.

FHLBanks, in addition to lending money, what else must they do

set rules and regulation that member banks must follow, which includes reserve requirements.

One of HUD's goals

to strengthen the housing market and bolster the econoomy

Consumer Financial Protection Bureau

uses education, enforcement, and research to promote fairness and transparency for consumer financial services.

Community Reinvisement Act

was a response to the practice of redlining and was enacted in 1977

When do borrowers face default on their loan

when they miss payments, let property go into disrepair

Buydown

will cost more than a temporary buy down