TX Real Estate Finance

Who need to obtain a mortgage loan originator endorsement and register with the Nationwide Mortgage Licensing System and Registry?

Anyone who acts as a mortgage loan originator

How my h should the emergency hind hold, according to the recommendation for creating a responsible financial plan for personal finances?

At least six months

Which one of the benefits of the USDA loan program?

No down payment is required

What is reconciliation?

The final estimate of value based on results of the appraiser's approaches to value

Who's the mortgagee in a mortgage?

The lender

Freddie Mac targets which type of loans to purchase?

conventional

In the secondary market, how are mortgages grouped together and sold?

mortgage-backed securities

If a cloud on a title is discovered, which party is generally responsible for clearing the cloud?

seller

Which banking-related entity shares similarities with the purpose and function of the NCUA?

(FDIC) Federal Deposit Insurance Corporation

Which organization manages and charters credit unions?

(NCUA) National Credit Union Administration

What type is clause is this? "If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Mortgagor, the entire principle amount outstanding and accrued interest thereon shall at once become due and payable at the option of the note holder"

Acceleration clause

How are account numbers displayed in a credit report?

Accounts numbers are truncated for security purposes.

Payment history, credit usage, inquiries, and types of accounts are factors considered in calculating a credit score. Which of the following options is also a factor?

Age of accounts

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

Alienation clause

Which of the following best describes a recourse mortgage?

Allows the lender to sue the borrower for damages if foreclosure occurs

What type of property is Gerald appraising if he's using the cost approach?

An industrial warehouse

A CMA or a BPO is an example of ______.

An informal estimate of market value

Horace recently purchased 1,000 shares of a security that's made up of hundreds of mortgages. The principal and interest that borrowers of these underlying mortgages pay are eventually passed through to Horace and the other investors. What did Horace purchase?

Mortgage-Backed Security

Your buyer, Chet, is a veteran trying to buy a house, but the certificate of reasonable value came in $10,000 lower than the agreed-upon sales price. What can Chet do?

Negotiate with the seller

Maria is a borrower reviewing her Closing Disclosure. She notices a section under "Other Costs" with a number of fees that were not shown on her Loan Estimate, such as the commissions to the real estate brokers and the home inspection fee. Should Maria contact her lender about this issue?

No, these are costs that are part of the total cost to close but aren't part of obtaining the loan, so they weren't required to be on the Loan Estimate.

Which agency is responsible for the production of coins?

U.S. Mint

The Davidsons' lender is trying to approve them for a conventional loan. What is the minimum percentage of total debt ratio they must have to be eligible for a conventional loan?

36% -debt ratio for a conventional loan

John wants to a 1031 tax exchange with a property he just sold. How many calendar days goes he have to identify a new proof or the exchange?

45 - the property must be identified within 45 calendar days from sale of relinquished property

Borrowers should be wary of lenders who offer mortgages at more than _______ over the current market interest rates.

5%

Which range if credit scores represents the average score for Americans overall?

670 - 739

Which of the following would be the best place to keep monies intended for long-term savings?

A certificate of deposit

What is the HECM program?

A form of reverse mortgage insured by the FHA

What is another term for an installment contract?

A land contract

Which statement describes a conforming loan?

A loan that meets the certain criteria that are accepted by Fannie Mae and Freddie Mac

Which of the following describes the Housing Choice Voucher Program?

A program to help very low-income families, the elderly, and disabled individuals to afford decent, safe and sanitary housing in the private market

The title is acceptable, and Kathy's attorney Amy has provided a certificate of title opinion. Which if the following will be issued?

A title insurance policy

Dean was very motivated to sell his house and was excited when he got an offer. When he realized the buyer couldn't qualify for the purchase price, he decided to accept a second mortgage without mentioning it to his lender and reduce the sales price accordingly. Which type of mortgage fraud scheme is this an example of? A. Inflated appraisal B. Property flipping C. Silent second D. Straw buyers

B. Silent second

A short-term security issued by the Treasury that has a maturity term of one year or less is called a treasury________.

Bill

How can a foreclosure be stopped or prevented? A. Auction B. Fleeing the state C. Paying all outstanding liens against the property D. Refinancing

C. Paying all outstanding liens against the property

Which of these asserts would be considered the most liquid, according to financial analysts?

Cash on hand

Georgette and Elise are buying a home together, and have taken out a loan with a private loan company. They'll pay a bit more interest, and larger fees, but they feel it's worth us to have the home they've always dreamed of. What else might the private loan company require?

Collateral

Althea is starting her own candle business. Her plan is to rent a space to sell her products for several years, with the hope of expanding. In this scenario, which item represents supply?

Commercial space for lease

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

Community-managed lenders

Which entity sets the requirements for qualified mortgages?

Consumer Financial Protection Bureau

The _________ was enacted in 2919 to create stricter regulation of the financial services industry to reduce costs for consumers from (for instance), undisclosed kickbacks.

Dodd-Frank Wall Street Reform and Consumer Protection Act

Which of the following best describes a marketable title?

Ensures the title to property is free and clear of liens and only subject to loan payoff and any taxes owed.

Credit flows to rural communities largely through the actions of ___________.

Farmer Mac

Randall needs some new equipment for his ranching operation, and he needs a loan to purchase the equipment. When he approaches his local bank and applies for a Farm Credit System loan, how is the loan funded?

From the sale of Farm Credit System debt securities

What information does the appraiser complete for the section used for the income approach?

Gross rent multiplier

Which type of loan is meant specifically for improvements, such as additions or renovations?

Home improvement loan

The __________ Act was legislation aimed primarily at addressing effects of the subprime mortgage crisis.

Housing and Economic Recovery

Morris still owes his lender for the financing obtained in purchasing his home. Several years later, Morris took out a home equity line of credit. This means that ______.

If Morris is foreclosed on, the home equity line of credit won't be paid until Morris's first loan is paid off. in the event of a foreclosure, a junior lien will be paid only after a senior lien is paid off.

Why should licensees maintain a business account separately from any personal accounts?

It makes it easier ti recognize when the business is profitable

David purchased a house three years ago for $300,000. Considering historical property value fluctuations, what is the likely value of the property today?

It's difficult to tell. Historically, property values fluctuate up and down in the short term

Armitage Banj is placing the Kellermabs in default for failure ti Pat their homeowners insurance. The lender is concerned about property damage and __________.

Judgment liens

As independent contractors, licensees may form a (n)__________ to protect personal assets.

LLC

Gina's mortgage payment arrives late one month. What language in the promissory note allows the lender to charge her a late fee as a result?

Late charge provision

Because of the Secure and Fair Enforcement for Mortgage Licensing Act, borrowers can determine if mortgage loan originator is ______.

Licensed and registered

What information is listed on the promissory note?

Loan amount and schedule of repayment

Which type of real estate investment trust derives a portion of its income from interest dividends?

Mortgage REIT

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 party of the total payment other than the principal and interest?

Mortgage insurance

What percentage of closing costs can be included in a VA loan?

None

In which type of partnership is there more than one mortgagor as owner?

Partnership among mortgagors

Which type of partnership may involve several mortgagors financing a multi-family dwelling?

Partnership amount mortgagors (designed for several mortgagors to share responsibility for a multi family structure, such as an apartment building)

Which of these tasks is performed by the U.S. mint?

Produces commemorative coins and medals

What's the purpose of PMI

Protect the lender in case of borrower default when the borrower has put down less than 20%

Which act prohibits the payment of kickbacks between settlement service providers?

RESPA (Real Estate Settlement Procedures Act)

Ally is reviewing the personal information on her credit report. What information is NOT included in the personal information section?

Race and Ethnicity

Bob just sold his investment property. Which taxes will apply?

Recaptured depreciation and capital gains

Kristoff got a bit behind on his mortgage and missed several payments. He and his lender devised a schedule that gives Kristoff an opportunity to make up those delinquent payments. What is this an example of?

Repayment plan

The Addams family has an FHA-insured loan. The family's mortgage payment has a fixed interest rate, but after the first five years, the rate will adjust annually. Which FHA loan insurance program are they using?

Section 251

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

Shadow inventory

Which of the following would be the most common form of business structure for a new licensee?

Sole proprietorship

What does the "T" in PITI stand for?

Taxes

Why government agency handles ECOA complaints?

The Consumer Financial Protection Bureau

______ sets confirming loan limits for mortgages.

The Federal Hone Financing Agency

Sally is a borrower reviewing her closing disclosure. She noticed that the appraisal fee is listed under "Paid by Others" and has a L listed with the amount. What does this mean?

The L indicated that the creditor pays the item at consummation.

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

Tina is applying for a home loan. In order for child support payments she receives to be considered in the income evaluation by her lender, what must be true?

There must be a consistent track record of payment or the payments must be the result of a court order.

Mutual savings banks prefer to keep their lending activities in their immediate geographic area. Why?

They prefer to personally monitor the loans they issue.

Which statement is true regarding most government loans?

They're insured or guaranteed by the government.

Which if the following is considered an ineligible property type for which a loan to purchase or refinance wouldn't be purchased by Fannie Mae?

Vacant lot

A lender and a borrower sign a mortgage agreement, placing a(n) _______ lien against the borrower's home.

Voluntary and specific

Which of the following is a true statement about business tax deductions?

You must maintain documentation, such as receipts, for expenses taken as deductions.

______ is a legal action that liquidates or restructures debt. It can have a long-lasting negative impact on the borrower's ability to obtain financing.

bankruptcy

Which of the following would the FDIC most likely insure?

certificates of deposit

Which of the following items directly influences real estate SUPPLY?

construction

Boris is an appraiser working for the Smith family. They've hired him to perform an appraisal on their six-bedroom house. What two types of data will Boris gather?

general and specific

To whom would a 1031 tax exchange usually appeal?

investors

When HUD pursues actions that are designed to reduce housing discrimination and help communities recover from disasters, which of its goals is it supporting?

Build strong, resilient, and inclusive communities

Which real estate finance instrument includes the promise to repay and the security instrument within the same document

Contract for deed Both the pledge of collateral and promise to repay

Because of the Morgage Disclosyre Improvement Act, the only advance fee that a creditor can charge to a consumer before providing required loan disclosures is a(n) ____________ fee.

Credit report

Which if the following is true regarding value?

The principle of substitution means that people won't pay more for a property than they have to if there are two similar properties.

A vendor and vendee are the parties involved when the finance instrument is a ______.

Contract for deed

Scott has plenty of money saved and is ready to make a down payment on his $14 million dream home. One problem: Scott doesn't want to end up with a jumbo loan because he goes over the conforming loan limit. What option does Scott have?

He can take out a piggyback loan.

Miked has some financial problems and is considering borrowing from his retirement plan. Which of the following is a true statement?

He should consult with a financial expert before doing so.

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

Homeowner and Equity Protection Act (HOEPA) requires pre loan counseling for individuals

Which of the following, once completed, initiated the loan process?

Loan application

When considering the liquidity of financial assets, which category is the least liquid?

M3

When borrowers fail to pay property taxes, allow their property to go into disrepair, or _________, they could face loan default.

Miss scheduled mortgage payments

Who must provide the buyer and the seller with a copy of the closing disclosure?

The buyer's lender

Janie and Sam are newly married and are looking for their first home. They're fortunate that Janie's mom set aside some money to help with this purchase. Janie's mom says it's a loan, though, and they will have to pay her back. What's wrong with this?

The loan will go against their debt load.

Roger is a veteran with a service-connected disability that requires him to use a wheelchair. He is eligible for the VA's Specially Adapted Housing grant. What can he use this grant for?

To remodel a home he owns to accommodate his disability

Why might a homebuyer use an FHA 203(k) loan instead of the standard 203(b) loan?

To roll the cost of rehabilitating the purchased home into the mortgage

Which of the following statements is true about the Federal Reserve?

Twelve district banks comprise the Fed.