(6) QUIZ - Texas Real Estate Finance

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HUD oversees which of the following...? FHA All of the above Housing choice vouchers GNMA

All of the above

Instruments of credit can do which of the following...? Be regulated by member banks of the Federal Reserve Collect and clear checks All of the above Administer credit controls

All of the above

The Closing Disclosure includes which of the following information...? Summary of actual loan terms Other settlement costs Loan costs All of the above

All of the above

The Equal Credit Opportunity Act prohibits discrimination against which of the following protected classes...? Religion Marital status National origin All of the above

All of the above

The Federal Reserve is responsible for which of the following...? All of the above Influence the availability of money and credit Establishing facilities for the sale of commercial paper Supervise banking activities

All of the above

Which of the following may impact real estate cycles...? Social attitudes Taxes Property values All of the above

All of the above

Which of the following operates in the secondary mortgage market...? Fannie Mae Freddie Mac Ginnie Mae All of the above

All of the above

Which of the following participates in the secondary mortgage market...? Freddie Mac Ginnie Mae All of the above Fannie Mae

All of the above

The relative cost of credit is also known as the...? Annual Percentage Rate Relative Interest Rate Simple Interest Rate Variable Interest Rate

Annual Percentage Rate

Each district within the Federal Reserve is overseen by a...? Board of Associates President Attorney General Board of Directors

Board of Directors

When using leverage to help purchase a residential property, what is typically used to cover the remainder of the purchase price...? Options money Seller financing Credit cards Cash down payment

Cash down payment

Real or personal property which a borrower pledges as security for a loan is known as...? Accessory Chattel Collateral Substantial property

Collateral

Which of the following is responsible for the enforcement of the Interstate Land Sales Disclosure Act...? HUD OCC FHA Consumer Financial Protection Bureau

Consumer Financial Protection Bureau

PMI only applies to what types of loans...? Conventional loans All of the above VA loans FHA insured loans

Conventional loans

As construction prices increase, demand for new housing generally...? Increases Decreases Remains the same Construction prices and demand for new housing are not related

Decreases

The failure to fulfill a duty or promise is known as...? Execution Hypothecate Default Performance

Default

The minimum interest rate set by the Federal Reserve for lending to other banks is known as the...? Subprime rate Discount rate Starter rate Prime lending rate

Discount rate

The right to obtain full ownership of property is known as...? Equitable title Legal title Secure title Full title

Equitable title

Some lenders may require funds for property taxes and other property-related expenses to be held in a/an...? Escrow account Personal bank account Personal checking account Broker account

Escrow account

The Farm Credit Administration regulates the ...........institutions? HUD CFPB FCS FDIC

FCS

Which of the following helps to limit the impact on the economy and the financial system when a bank or thrift institution fails...? TILA RESPA FDIC FHLB

FDIC

This is a federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status...? Fair Housing Act of 1866 Fair Housing Act of 1968 ADA TILA

Fair Housing Act of 1968

Conforming loans must meet the guidelines of...? FDIC Wall street Fannie Mae RESPA

Fannie Mae

The Federal National Mortgage Association is also known as...? Freddie Mac Fannie Mae Farmer Mac Ginnie Mae

Fannie Mae

This is a privately owned corporation that purchases FHA, VA, and conventional mortgages...? Freddie Mac Fannie Mae Farmer Mac Ginnie Mae

Fannie Mae

Farmers and ranchers can obtain a loan through which of the following...? CRA CDBG Farm Credit System All of the above

Farm Credit System

The Federal Agricultural Mortgage Corporation is known as...? Farmer Mac Freddie Mac Fannie Mae Ginnie Mae

Farmer Mac

Freddie Mac is also known as the...? Government National Mortgage Association Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Housing Finance Association

Federal Home Loan Mortgage Corporation

The lender's estimate of the borrower's settlement costs is known as a...? HUD-1 Settlement Statement Good Faith Estimate Closing Statement Summary of Loan Statement

Good Faith Estimate

Which of the following programs is offered by HUD...? Seller Exchange Program Good Neighbor Next Door Program All of the above First-Time Homebuyer Loan Program

Good Neighbor Next Door Program

Which of the following is responsible for the implementation and administration of U.S. government housing and urban development programs...? OCC FHA HUD FDIC

HUD

If demand is high and supply is low, real estate prices will...? Increase Decrease Remain the same Real estate prices are not related to supply and demand

Increase

Which of the following are responsible for bringing industries to a region in an effort to improve community growth...? Economic Growth Agencies Private Development Agencies Industrial Development Agencies Corporate Development Agencies

Industrial Development Agencies

The percentage of a sum of money charged for the use of money is referred to as a/an...? Discount rate Lending rate Charge rate Interest rate

Interest rate

Mortgage insurance offers protection for the...? Borrower Lender Seller Buyer

Lender

The use of debt financing of an investment to maximize the return per dollar of equity invested is known as...? Collateral Hypothecate Leverage Pledge

Leverage

The secondary mortgage market offers ..............for the primary mortgage market? Support Supply Buyers Liquidity

Liquidity

The secondary mortgage market offers ...........for the primary mortgage market? Loans Insurance Liquidity Warranties

Liquidity

RESPA requires lenders to provide borrowers with which of the following...? Title insurance Closing Statement Loan Estimate Letter of Intent

Loan Estimate

According to the Good Faith Estimate, a borrower's interest rate can change until the borrower does which of the following...? Locks-in the interest rate Moves into the property Signs the purchase contract Performs their due diligence

Locks-in the interest rate

Money that is easily obtainable is considered...? M1 M2 M3 M4

M1

The supply of less liquid money is considered...? M1 M2 M3 M4

M2

The supply of money which is the least liquid is considered...? M1 M2 M3 M4

M3

If a borrower obtains an FHA insured loan and only makes a down payment of 5%, what must the borrower purchase...? Conventional Mortgage Insurance Mortgage Insurance Premium Private Mortgage Insurance Conforming Mortgage Insurance

Mortgage Insurance Premium

Which of the following is an example of using leverage in a real estate transaction...? Inheriting a property from a family member All of the above Obtaining financing to purchase a property Purchasing a property using all cash

Obtaining financing to purchase a property

According to the Good Faith Estimate form, the borrower's Adjusted Origination Charges equal the amount of points paid plus the...? Broker's fee Closing costs Origination charge Lender attorney fees

Origination charge

A borrower's Charges for All Other Settlement Services, as stated in the Good Faith Estimate, includes which of the following...? Closing costs Broker fees Owner's title policy Origination charge

Owner's title policy

Justin obtained a mortgage from his local bank in order to purchase a new house. Justin was operating in the...? Primary mortgage market Secondary mortgage market Front-end mortgage market Back-end mortgage market

Primary mortgage market

The marketplace whereby loans are originated is referred to as the...? Primary mortgage market Secondary mortgage market Stock exchange Front-end mortgage market

Primary mortgage market

The amount borrowed is known as...? Interest Deposit Principal Reserves

Principal

This refers to a type of mortgage insurance required on conventional loans in which the homebuyer makes a down payment of less than 20% of the purchase price...? Private Mortgage Insurance Mortgage Insurance Premium Conventional Mortgage Insurance Conforming Mortgage Insurance

Private Mortgage Insurance

Which of the following serves as evidence of a debt...? Promissory note Collateral Title Credit

Promissory note

The Consumer Financial Protection Bureau oversees the enforcement of which of the following statutes...? CRA CDBG FDIC RESPA

RESPA

Which of the following statutes helps consumers become better shoppers for settlement services...? CRA CDBG FDIC RESPA

RESPA

Two or more consecutive quarters of negative growth is known as a...? Regression Rebound Recovery Recession

Recession

The Truth in Lending Act is also known as...? Regulation X TARP RESPA Regulation Z

Regulation Z

The Farm Credit System provides loans for which of the following...? First-time homebuyers Commercial investors Urban developers Rural homeowners

Rural homeowners

The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is known as the...? Front-end mortgage market Secondary mortgage market Back-end mortgage market Stock market

Secondary mortgage market

The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is referred to as the...? Back-end mortgage market Secondary mortgage market Stock exchange Liquid mortgage market

Secondary mortgage market

This refers to a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages...? Prime mortgage Premium mortgage Discount mortgage Sub-prime mortgage

Sub-prime mortgage

The Housing Choice Voucher Program is an example of...? Subsidized housing Incentive housing Renewal housing Standard housing

Subsidized housing

The more money an individual has, the more purchasing power they have...? T (True) F (False)

T (True)

Which of the following is covered under Title 1 of the Consumer Protection Act of 1968...? HDIC TARP TILA RESPA

TILA

The Closing Disclosure must be revised if there is a significant change to which of the following...? The effective date of contract The loan's APR The closing location All of the above

The loan's APR

What happens when the Federal Reserve decreases the bank's required reserves amount...? Economic activity slows down There is a boost in economic activity Lending on real estate transaction decreases The real estate market stalls

There is a boost in economic activity

The economy generally grows when which of the following occurs...? There is an increase in the money supply There is a decrease in the money supply When the money supply remains even A decrease in the population

There is an increase in the money supply

Which of the following was designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction...? Troubled Asset Relief Program The Federal Deposit Insurance Corporation Truth in Lending Act Office of the Comptroller of the Currency

Truth in Lending Act

Which of the following combines the Farmers Home Administration, the Agricultural Cooperative Service Administration and the Rural Development Administration...? Federal Agricultural Mortgage Corporation FCS Farm Credit System USDA Rural Development Program

USDA Rural Development Program

A long term real estate cycle is typically...? 1-2 years 10-15 years 3-5 years 5-7 years

10-15 years

The Federal Reserve System includes how many geographical districts...? 6 8 12 20

12

The Federal Reserve was established in what year...? 1913 1931 1945 2009

1913

HUD was created in what year...? 1933 1965 1988 2009

1965

The Interstate Land Sales Full Disclosure Act was enacted in what year...? 1964 1968 1974 1988

1968

The Equal Credit Opportunity Act was enacted in what year...? 1933 1964 1974 2001

1974

A completed Closing Disclosure form must be provided to the borrower at least ..............prior to closing? 3 days 7 days 10 days 14 days

3 days

The lender must provide the borrower with a Loan Estimate form within how many days of the loan application being filed..? 3 days 5 days 7 days 14 days

3 days

A short term real estate cycle is...? 1-2 years 3-5 years 5-7 years 10-12 years

3-5 years

A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise, is known as a/an...? Adjustable Rate Mortgage Fixed Interest Rate Loan Term Loan Straight Loan

Adjustable Rate Mortgage

To pledge a thing as security without the necessity of giving up possession of it means to...? Record Acknowledge Notarize Hypothecate

Hypothecate

What is the minimum down payment for an FHA insured loan...? 10 Percent (%) 20 Percent (%) 3.5 Percent (%) 50 Percent (%)

3.5 Percent (%)

Open-end mortgages are most commonly found for which property type...? Agricultural properties Commercial properties Single family homes Industrial properties

Agricultural properties

National member banks of the Federal Reserve must do which of the following...? Maintain reserves Clear checks Comply with the rules and regulations of the Federal Reserve All of the above

All of the above

Sara is working with a bank to obtain financing on her new house. According to the ECOA, the bank is prohibited from asking Sara which of the following...? If Sara is divorced If Sara receives child support If Sara intends to have a baby in the near future All of the above

All of the above

The Loan Estimate provides the borrower with which of the following information...? Summary of loan terms Estimated loan costs Closing costs All of the above

All of the above

Which of the following are covered under TILA...? Real estate loans under 50,000 dollars Personal loans under 50,000 dollars Consumer loans under 50,000 dollars All of the above

All of the above

Which of the following operates in the primary mortgage market...? Commercial banks Fannie Mae Freddie Mac Ginnie Mae

Commercial banks

The Consumer Financial Protection Bureau enforces which of the following...? Home Mortgage Disclosure Act FNMA Community Reinvestment Act FHLB

Community Reinvestment Act

Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are known as...? Conforming loans Conventional loans Non-conforming loans Private loans

Conforming loans

This is a number assigned to a person that indicates to lenders their capacity to repay a loan...? Credit score Underwriting score Loan estimate score Financial score

Credit score

As the cost of borrowing money increases, the amount of lending activity will...? Increase Decrease Remain the same The cost of borrowing money is not related to lending activity

Decrease

Which of the following originates long-term mortgages for farmers and ranchers...? Unimproved Land Association Raw Land Bank Production Credit Association Federal Land Bank Association

Federal Land Bank Association

Which of the following has broad powers in controlling credit and the amount of money in circulation in the United States...? Attorney General Department of Finance Federal Reserve U.S. Comptroller

Federal Reserve

A procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms is known as...? Police power Foreclosure Condemnation Hypothecate

Foreclosure

Under the .............., mortgage originators must report the racial characteristics and gender of their applicants? Home Mortgage Disclosure Act Community Reinvestment Act Equal Credit Opportunity Act Fair Housing Act

Home Mortgage Disclosure Act

According to RESPA, a referral fee in the form of cash is considered a/an...? Commission Gift Illegal kickback All of the above

Illegal kickback

A loan whose amount is above conventional conforming loan limits set by Fannie Mae and Freddie Mac is known as a...? ARM Commercial loan Term loan Jumbo loan

Jumbo loan

The actual ownership of property is known as...? Secure title Equitable title Recorded title Legal title

Legal title

Which of the following mortgage types allows for more flexible payments from the borrower...? Conventional mortgage Open-end mortgage Fixed-rate mortgage FHA insured mortgage

Open-end mortgage

The Housing Choice Voucher Program was formally known as...? Section 8 Section 12-A CRA TARP

Section 8

James needed to obtain financing to purchase a new house. What will most likely be used as collateral for James' loan...? The house James purchased James' car James' bank account James' old house

The house James purchased


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