Real Estate Finance Texas

What percentage of home buyer in the US are international buyers

10%

THE VA LOAN PROGRAM OFFERS A BASIC ENTITLEMENT AMOUNT OF _______?

36,000

Whats the most common ratio for borrower who use split or piggyback loans

80/10/10 80%, 10%,10%

MORMATORIUM

A LENDER TEMPORARILY SUSPENDS A BORROWER'S PAYMENTS

WHICH OF THE FOLLOWING BEST DESCRIBES ANNUAL PERCENTAGE RATE

A STANDARIZED MEASURE FOR INTEREST RATES AND OTHER LOAN COSTS

A homeowner has been paying her mortgage for several years and has built up equity. She decides to take out a home equity line of credit because she needs some cash. This credit will create

A junior lien on the property

Which of the following types of properties may be eligible for purchase by Freddie Mac?

A tiplex purchased as a primary residence

Barb is considering a refinance, She wants to stick with a conventional loan. Why might she be wary of an introductary rate?

After an initial low rate, her payment may increase beyond the level of affordability.

Assuming a CMO uses the sequential pay structure, how is interest passed through from borrower paid to investors?

All Tranches receive interest payments

Municipal

An industrial devlopment bond is a variety of _____ bond?

Andrea's lender has notified her of its intent to foreclosure. Her loan is secured with a deed of trust. What right does she have to redeem her property?

Andrea can cure the default an reinstate the loan

Which of the following actions toward an appraiser would be considered proper

Asking an appraiser to correct errors in the appraisal report

What type of value of interest to taxing authorities?

Assessed Value

How does the consumer provide economic support to a community in the living phase of real estate cycle?

By purchasing local goods and services

DISCOUNT RATE

COMMERCIAL PAPER AS COLLATERAL

Bill is completing a residential loan application. which of the following would he include in the liabilities section?

Car loan

Which of these individuals may benefit from a USDA Rural Development program offerings

Communities managed by Lenders

Victor is a buyer reviewing the closing disclosure he received from his lender. On the last page of the form, he sees a signature line. by signing the form, Victor has

Confirmed receipt of the Closing Disclosure

2007 FORECLOSURE INCREASED, WHAT WAS THE RESPONSE FROM LENDERS

DECREASED LENDING

WHAT IS THE PRIMARY SOURCE OF FUNDS FOR COMMERCIAL BANKS

DEMAND AND DEPOSITS

Which of the following best describes a sellers market

Demand is greater than Supply

Which of the following could an investor who sells an apartment house by using a 1031 exchange?

Duplex, office buildings, Ware houses

The ___________ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure

Exculpatory Clause

WHICH OF THE FOLLOWING CONTRIBUTED TO THE 2007 FINANCIAL CRISIS

FALLING HOME PRICES

THE FARM CREDIT SYSTEM IS OVERSEEN BY THE ___________, AN AGENCY OF THE FEDERAL GOVERNMENT.

FARM CREDIT ADMINISTRATION

WHICH ENTITY PROVIDES DISCLOSURES AND PUBLIC INFORMATION ABOUT THE FINANCIAL CONDITIONS OF FCS

FEDERAL FARM CREDIT BANKS FUNDING CORPORATIONS

Lydia put the minimum 3.5% down on her $210,000 home. She will have to pay an MIP what type of loan does Lydia need

FHA

COMMANDER HOLLBACK RETIRES AFTER TWENTY FIVE YEARS IN THE COAST GUARD. HE IS LOOKING TO BUY A HOME. WHAT TYPE OF LOAN S SHOULD HE USE?

FHA, VA, OR CONVENTIONAL

With what type of loan do the principal and interest payments remain the same?

Fixed Rate Loan

WHEN APPRAISER LOOK AT OPTIMAL FUNCTION? WHAT ARE THEY DETERMING?

HIGHEST AND BEST USE

Mike has had some finincial problems and is considering borrowing form his retirement plan. Which of the following is a true statement?

He should consult with a financial expert before doing so

CAPITALIZATION RATE

INCOME APPROACH

WHICH OF THE FOLLOWING IS THE COST OF REPLACING A BUILDING IN THE CASE OF TOTAL LOSS

INSURED VALUE

iF MARK AND LINDA PURCHASED A MUNICIPAL BOND TO REBUILD A GYM. IN EXCHANGE FOR THEIR INVESTMENT WHAT WILL THEY RECEIVE?

INTEREST

RESIDUAL INCOME

IS THE TERM THAT THE VA USES TO DESCRIBE THE AMOUNT OF NET INCOME REMAINING AFTER DEDUCTIONS OF DEBTS OBLIGATIONS, SUCH AS UTILITY AND PHONE BILLS, AND MONTHLY SHELTER EXSPENSES.

Payment history, age of accounts, credit usage, types of accounts, and __________are factors considered in calculating a credit score?

Inquiries

mortgage, homeowners, and flood are types of ______, that may be included in the mortgage payment?

Insurance

What is the purpose of a lifting clause?

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

Which of the following statements is true about the annual MIP on an FHA mortgage?

It will decrease each year as the loan is paid down

WHAT ARE ADVANCES

LOANS THE FEDERAL HOME LOAN BANK MAKES TO MEMBER BANKS

Freddie Mac and Fannie Mae set guidelines for conforming loans. Which of these are qualifying guidelines?

Loan amount, down Payment requirement, Loan to value ratio and housing debt to income ratio

A GROUP OF LOANS PACKAGED TOGETHER AND SOLD TO INVESTORS

MORTGAGE BACKED SECURITIES

WHICH OF THE FOLLOWING reit'S FOCUSES ON LENDING MONEY FOR MORTGAGES AND INVESTING IN MORTGAGE-BACKED SECURITIES?

MORTGAGE REIT

CONDUIT

MORTGAGEES

WHICH TYPE OF BOND IS USED TO PAY FOR COMMUNITY IMPROVEMENTS?

MUNICIPAL BOND

If a house is appraised at twice their loan balance! Will their PMI be cancelled

Maybe, but they will have to petition their lender

Who originates their own loans

Mortgage Bankers

What are the main benefits to Veterans of the VA guaranteed loan program

No down payment, not mortgage insurance, and no prepayment penalty

jOE WORKS FOR A LIFE INSURANCE COMPANY THAT FUNDS COMMERCIAL INVESTMENT PROJECTS AND OFTEN INSURES THESE PROJECTS BY INSISTING ON AN EQUITY POSITION. WHAT TYPE OF FINANCING DOES THIS DESCRIBE?

PARTICIAPATION

WHAT TYPE OF PARTNERSHIP IS A REAL ESTATE INVESTMENT CONDUIT?

PARTNERSHIP BETWEEN MORTGAGEES

Betty is purchasing a home and has received loan estimated from three lenders. As she compares the term of the loan being offered, where can she find the section that allows her to make comparisons between loans with different interest rates?

Page Three

In which partnership do participants have shared responsibility for a single mortgage?

Partnerships between Mortgagors

In order for the spousal support to be considered in the lender's income evaluation when Kayla applies for a home loan, what must be true?

Payments must have been received for at least one year, and must be expected to continue for at least three more years.

What type of lending was a contributing factor to the housing collapse in the mid 2000's

Predatory lending by Subprime lenders

Credit Worthy Consumer can get what time of loan

Prime Rate

WHICH INTEREST RATE DO BANKS USE TO OFFER CONSUMER LOANS?

Prime Rate

Non Recourse

Prohibits the lender from suing the borrower for unpaid amounts

WHICH ACT HAS SPECIAL PROVISIONS FOR BORROWERS WHO ARE VICTIMS OF OVERCHARGING

REAL ESTATE SETTLEMENT PROCEDURES ACT

NATALIE IS A LICENSEE, WHO IS ASSISTING HER BUYERS IN THE PURCHASE OF HUD ___________, WHEN THEY ARE LISTED FOR SALE

REPOSSESSED HOMES

WHAT QUALIFYING RATIOS ARE USED IN A VA HOME LOAN

RESIDUAL INCOME AND DEB TO INCOME RATIO

The intent of the consumer credit protection Act, which includes the Truth in Lending Act, is to safguarde consumer by

Requiring full disclosure of the terms and conditions in any offers of credit

IF THE TREASURY ENCOUNTERS A DEFICIT, WHAT ACTION MIGHT IT TAKE

SELL SECURITIES

Where can a party reviewing a title commitment find basic details about the transaction

Schedule A

The mortgage and the deed of trust are __________?

Security Instruments

HOW IS A LOAN ASSUMPTION DOCUMENTED

THE BUYER AND SELLER BOTH SIGN AN ASSUMPTION

WHAT IS A POTENTIAL CAUSE FOR A DECREASE IN LOCAL ECONOMY DRIVEN BY THE FED?

THE RESERVE PERCENTAGE IS INCREASED BY THE FED

WHEN DOES THE NEED FOR MORTGAGE INSURANCE END FOR A BORROWER WHO HAS A VA LOAN

THERE IS NO MORTGAGE INSURANCE REQUIREMENT FOR A VA LOAN

HOW DOES THE VA FUND THE MORTGAGE GURANTEE PROGRAM SO THAT LENDERS CAN BE REIMBURSED FOR ANY LOSSES FROM BORROWER DEFAULT?

THROUGH A FUNDING FEE CHARGED TO MOST BORROWERS

THE __________, WAS ENACTED IN 1968

TRUTH IN LENDING ACT, REQUIRES LENDERS TO DISCLOSE FINANCING TERMS TO CONSUMERS IN A MANNER THAT NOT MISLEADING OR DECEITFUL.

Which statement correctly describes a contract for deed?

The contract for deed is usually used in a seller-finance transaction

Which of the following statements is true about government loans

They are insured or guranteed by a government agency

Patty and Barb are the buyer and sellers in a real estate transaction. By when must the closing disclosure be provided to them?

Three days prior to closing

Which of the following acts is created regulation for advertising credit services?

Truth in Lending Act

Which of the following factors carries the least weight when calculating a credit score?

Type of accounts

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

Until the foreclosure sell is held

INCOME APPOACH

WHICH OF THE FOLLOWING APPROACHES TO VALUE USES A CAPITALIZATION RATE

Blanket Lien

What type of lien may the lender slap someone with until the loses are repaid

Cash out Refinance

Which of the following VA programs requires a credit check, new appraisal, and income verification?

DOES THE VA MAKE DIRECT LOANS

YES, FOR NATIVE AMERICANS ON TRUST LANDS

FHA 203 (B) LOAN

lENDERS CAN CONSIDER COMPENSATING FACTORS , EVEN IF THEIR CREDIT HISTORY IS NOT GREAT.

WHICH OF THE FOLLOWING DESCRIBES PRIME RATE

CREDITWORTHY BORROWERS

GINA'S MORTGAGE PAYMENT ARRIVES LATE ONE MONTH. WHAT LANGUAGE IN THE PROMISORY NOTE ALLOWS THE LENDER TO CHARGE HER A FEE AS A RESULT

LATE CHARGE PROVISIONS

When consumers make a small down payment and borrower the remaining amount of the purchase price for a lender, they are demonstrating what concept?

Leverage

Lewis is reviewing his Loan Estimate and notices under "Other Cost" items listed that do not include cost? Lewis should do what

Lewis should ask his Lender about it

Because of the secure and fair enforcement for mortgage licensing act borrowers can determine if mortgage loan originator is

Licensed and Registered

Which of the following, onece completed initiates the loan process?

Loan Application

NET WORTH

THE DIFFERENCE BETWEEN A BORROWER'S ITEMS OF VALUE AND OBLIGATIONS

IF SOMEONE WITH A VA LOAN DEFAULTS WHAT HAPPENS

THE LENDER IS IS GUARANTEED UP TO ONE QUARTER OF THE LOAN AMOUNT WILL BE REIMBURSED. SO IF THE LOAN IS 200,000 THE LENDER WILL RECEIVE 50,000

WHICH OF THE FOLLOWING DESCRIBES THE DISCOUNT RATE

THE RATE AT WHICH A BANK CAN OBTAIN A LOAN FROM ITS FEDERAL RESERVE BANK WHEN USING COMMERCIAL PAPER AS COLLATERAL

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?

The Texas Safe Act

TO QUALIFY FOR THE FHA STREAMLINE REFINANCE PROGRAM, A HOMEOWNER MUST

NOT BE DELIQUENT ON MORTGAGE PAYMENTS

Private loan companies may be found in many places. There are __________, regional , and local lenders, and even individual enterprenueurs who loan money.

National

When a borrower is completing a loan application, items of value the borrower owns are listed in the __________section?

Assets Section

What is the purpose of the Home Mortgage Disclosure act

Requires financial institutions to maintain, report, and publicly disclose information about their mortgage