fnan 304 connect questions

multiple listing services

"MLS" stands for:

acceleration

A standard mortgage clause which, in case of default on a payment, allows the lender to declare the entire loan due and payable is the _____________ clause.

construction cost estimating firms and experienced builders

Reliable sources of construction cost estimates include:

to build an exact replica of the subject property

Reproduction cost is defined as the cost:

transactional and property adjustments

Required sale price adjustments are divided by USPAP into two major categories including:

large numbers of student rental households in the neighborhood

A type of land use that has often been viewed as a threat to destabilize a single family, owner oriented neighborhood is

death in the household divorce unemployment health failure abrupt payment increase

"Trigger" events that may precipitate home mortgage default under the right conditions can include:

piggyback

A second mortgage loan created at purchase along with a first mortgage of no more than 80 percent of value, can provide an alternative to mortgage insurance as a way to increase total financing above 80 percent of value. This kind of mortgage is called a ___________ mortgage.

If coupled with written assurance from the owner/developer

A Phase I Environmental Value Assessment indicating a property is clean is legal protection to a buyer/investor:

closing costs only

A VA loan can reduce the cash obligation of the borrower to: Multiple choice question.

in both cases

A buyer acquires a property with existing mortgage debt either "subject to" the debt or by assuming the debt. In which case can default result in foreclosure?

Only in the case of assuming, and only with a release from the lender

A buyer acquires a property with existing mortgage debt either "subject to" the debt or by assuming the debt. In which case is the seller relieved of all possible liability for the loan?

comparable, upward

A comparable property sold 5 months ago. Sales prices in the market have increased over those five months. The sale price of the ___________ must be adjusted ___________.

title is retained

A contract for deed differs from a "normal" sale of property with seller financing in that ______ by the seller until the installment payments are largely completed.

conforming

A conventional home mortgage that meets all of the requirements to be purchased by Fannie Mae or Freddie Mac is called a conventional mortgage.

2 years for a VA loan 3 years for an FHA loan 7 years for a loan going to Fannie Mae or Freddie Mac

A defaulted borrower who is seeking to obtain a new home mortgage may have to wait as long as:

prepayment

A demand clause in a mortgage loan gives the lender the right, at any time they deem necessary, to demand _____________ of the loan.

upfront expenses to annual interest

A fundamental problem in comparing the cost of mortgage loans is that cost is a combination of upfront expenses and annual interest. To solve this problem, APR converts:

greater

A general guide to the amount of debt financing on a home is that you should use debt financing up to the point where the interest cost of more debt financing is ___________ than the return the additional equity funds released can earn in other uses.

a close substitute for the subject

A good comparable property is a property that the typical buyer would consider:

Amount of interest rate "spread" How long you will keep the loan Cost of refinancing

A guide rule for determining whether refinancing a home loan is beneficial should account for which of the following "dimensions"?

15

A late fee commonly is charged on a home mortgage loan at a rate of 4 to 5 percent of the overdue payment if the payment is delayed more than _______ days after it is due.

redlining

A major focus of the Home Mortgage Disclosure Act (HMDA) was to prohibit home mortgage lenders from the practice called:

the local government

A major reason for subdivision regulations is that usually the responsibility for maintaining streets and sewers eventually falls to:

covenants

A mortgage note usually incorporates all of the _________ of the mortgage.

Yield maintenance penalty

A mortgage prepayment penalty calculated to equal the amount of interest income the lender loses due to prepayment is frequently used in commercial property mortgages, and is called a:

Water

A national law that has imposed permitting requirements on millions of acres of land, has been brought to the United States Supreme Court, and that continues to stir great controversy, is the Clean _____________ Act.

recasting

A risk that a lender faces in agreeing to change the schedule of payments for a defaulting borrower is that courts may view the change as a new, replacement mortgage, with priority below any other existing lien. This risk is known as _______________ of the mortgage.

estimating the dollar amount of accrued depreciation

According to the text, the main difficulty is using the cost approach to valuation is:

always positive

Adjustments made to the sale price of comparable properties for expenditures made after purchase are:

faster less costly

Advantages from a lender's perspective with power of sale rather than judicial foreclosure include:

EPA

All of the environmental laws enacted by the United States are administered by one agency, which makes the agency extremely important to land owners. This is the (three letter acronym) __________.

documentation

Alt-A loans were characterized mainly by high loan-to-value ratio, high interest rate and no ______________ of borrower financial circumstances.

comparable, downward

Although otherwise very similar to the subject property, the back yard of a comparable sale provides a view of a small, clean lake. The sale price of the ____________ needs to be adjusted ________.

mold

Among the most recent environmental hazards encountered in real estate is:

market value

An ad valorem tax is levied at rates between 1.0 and 4.0 percent of a property's:

a personal residence

An adjustment for differences in economic characteristics is not usually required when valuing:

concurrency

An aggressive planning concept to control the location of development, limits development until a minimum standard of public services and infrastructure is in place, provided by the land developers. This is referred as a ______ requirement.

private mortgage insurance

An event that enabled the long maturity and high loan-to-value ratio of modern prime conventional mortgages was the creation after World War II of ____________ _____________ ____________.

A small remaining percent of condominium owners demand higher prices from a developer who wants to tear down and rebuild the property

An example of a "holdout" monopolist is:

grid street patterns vs cul-de-sac streets uniform residential densities vs mixed residential densities

An example of conflicting notions of best practice in urban planning is:

Inability to examine roof nails for wind resistance once a roof is complete Inability to examine plumbing under a concrete slab`

An example of incomplete construction information potentially contributing to market failure is

A water bottling plant consumes so much well water that it lowers the water table on neighboring land

An example of market failure due to externalities is:

the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking - a fire hazard.

An example of market failure due to incomplete information is:

Reflective glass or roof material deflects light and heat onto adjacent properties

An example of negative externalities is:

court

An important difference between states requiring judicial foreclosure and states allowing power of sale is that the latter do not require a __________- administered public auction.

the property surface, itself property history water samples air samples

An important process for any investor in property that could possibly contain toxic substances is a Phase 1 Environmental Value Assessment. This procedure examines: - the property surface, itself - subsurface evidence through sample drilling - property history - water samples - air samples

generally are regional rather than strictly local address safety, health and sanitation continue to change with changing technology

Characteristics of building codes include: - generally are regional rather than strictly local - address safety, health and sanitation - continue to change with changing technology - are less important in the coastal south of the US than elsewhere - they specify materials but say nothing about design

acceleration clause due-on-sale clause

Clauses of a mortgage that commonly are also restated in the note include:

reconcile the final adjusted sale prices of the comparable properties

As the final step in arriving at the indicated value of the subject property based on the sales comparison approach, the appraiser must:

coordination of streets with surrounding subdivisions, adequate provision of water and sewers, and adequate quality of streets

Aspects of subdivision regulations include requirements for:

the borrower has fixed payments during the early, most budget-sensitive years. the lender faces much lower interest rate risk than with a fixed rate loan. the borrower can expect a rate lower than a standard fixed rate since the fixed term is shorter.

Attractions of the hybrid mortgage include:

easy to collect or enforce and steady or reliable

Attractions of the property tax for local governments include that it is:

term of just a few years 50-60 percent loan-to-value large "balloon" payment at maturity

Before innovations (brought by FHA), the typical home loan had which of these features:

credit unions savings institutions commercial banks

Common sources of a home equity loan can include:

adjust the comparable sale price upward by the cost of the new roof

Both the buyer and seller of a home that recently sold knew the house needed a new roof. The buyer replaced the roof immediately after purchasing the home. An appraiser using this sale as a comparable should:

- were the earliest form of police power regulation of land use - began to be adopted by US communities around 1900 - originally were prompted primarily by the threat of fire

Building codes: - were recognized as necessary in rural areas first - change only in response to changing technology - were the earliest form of police power regulation of land use - began to be adopted by US communities around 1900 - originally were prompted primarily by the threat of fire

default

By the hazardous substance clause, and by the preservation and maintenance clause, if the mortgage borrower uses any unusually dangerous substances on the property or neglects to maintain the property, thus exposing it to serious damage, the lender can declare:

80, 78

Cancellation of PMI may be allowed after the loan balance is below __________ percent of current market value, and, by law, must be terminated when the loan balance is below _________ percent of original value.

the payment from one period to the next the interest rate from one period to the next the interest rate over the lifetime of the loan

Caps for an adjustable rate loan can limit the change in:

term no longer than 30 years fully amortizing, with level payments ARM loans must be underwritten to highest rate in first five years fees no greater than 3 percent

Characteristics of Qualified Mortgages include:

the full balance must be paid off at maturity the interest rate can be fixed or adjustable payments are strictly interest the regular payment is significantly lower than with the level payment mortgage

Characteristics of an interest-only mortgage include:

mixed use

Conflicting views of best practice in urban planning include the choice between separation of residential from non-residential and:

cost approach income approach sales comparison approach

Conventional approaches to estimating the market value of real estate include the:

regulation of unfair or deceptive practices national consumer protection laws national anti-discrimination laws in consumer finance

Creation of the CFPB (Consumer Financial Protection Bureau) was a significant departure in national consumer protection in that CFPB was empowered to oversee and enforce:

90, foreclosure

Default generally becomes considered substantiative when payments have been missed for _______ days. Then the ultimate response of the lender is likely to be ______________.

information about a spouse who is not part of the loan application child bearing plans of a woman applicant whether income is from public assistance whether income is from part-time or full-time work

ECOA, the Equal Credit Opportunity Act of 1974 prohibits consideration in home mortgage lending of:

race sex marital status and familial status national origin religion disability age

ECOA, the Equal Credit Opportunity Act of 1974, prohibits discrimination in home mortgage lending on the basis of numerous criteria, including:

weight the strengths and weaknesses of each approach, as well as the reliability of the data collected for each approach

Each approach to valuation has its strengths and weaknesses. In arriving at a final opinion of value, the appraiser should:

the adjusted sale price of the comparable after the prior adjustment

Each required transactional and property adjustment is made to:

private, consent, and compensation

Eminent domain is the right of government to acquire _____________ property, without the owner's ______________, for public use, in exchange for just ____________.

increase

Favorable nonmarket financing concessions provided by the seller to the buyer generally ______ the negotiated sale price of the subject property.

from little interest in land use controls to broadly requiring land use controls from a perception of unlimited space and environment to a concept of "spaceship earth"

Features of the "revolution in land use controls" included a shift:

it must be a property that typical buyers would consider a substitute it must have been an arms-length transaction

In order for the sale price of a property to be considered a good comparable for the subject,

statutory

Even after a foreclosed property is sold at public auction, the defaulting borrower may be able to recover the property for a time by paying the balance plus foreclosure expenses or the foreclosure sale price, depending on the state. This right is called the ______________ right of redemption.

publication of Rachel Carson's Silent Spring, the Love Canal disaster, and the environmental movement

Events that triggered the "revolution in land use controls" included: - publication of Rachel Carson's Silent Spring - the Love Canal disaster - the environmental movement - the truce that ended the Korean War

inability to examine plumbing under a concrete slab floor non-visible electrical systems once walls are closed in

Examples of market failure due to incomplete information about construction quality include

structure size the existence of a pool lot size

Examples of physical differences that would require an adjustment to the sale price of the comparable include:

technical

Failure to meet some conditions required by a mortgage while still maintaining timely payments is referred to as "____________" default.

no exceptions for taxable properties

Failure to pay property taxes eventually leads to foreclosure sale for all types of property except:

foreclosure

Failure to pay property taxes ultimately can lead to _______________ and sale of the property at public auction.

maturity

For a mortgage loan the number of months until the final payment is the term to:

ownership, liens

Foreclosure is a legal process of terminating the ____________ of the borrower and all ____________ inferior to the mortgage.

is the most recent alternative to conventional zoning replaces zoning of land use with zoning of development configuration or character

Form-based zoning

it is often impossible to build an exact replica of the subject property they are less time consuming to obtain

From the appraiser's point of view, replacement cost estimates are preferred over reproduction cost estimates because:

upper limit to the

Generally, a current estimate of land value plus the reproduction or replacement cost of the building will set the ______ value of the property.

3

Generally, how many approaches to estimating market value are considered by the appraiser for use in a formal appraisal?

title, lien

Historically, two theories of mortgage lending are the __________ theory where the borrower is considered to transfer title to the lender until the loan is paid off, and the more modern __________ theory where the borrower is considered to retain title and convey a lien to the lender.

60,000

If a borrower's house is worth $200,000, the borrower has a first mortgage balance of $100,000, and a HELOC lender will give a home equity line of credit loan such that the total mortgage balance is 80 percent, then the maximum line of credit will be $:

signs, note

If a buyer purchases a property and "assumes" an existing mortgage, this means that the buyer _______ the ________ and is personally liable for the loan.

downward, current market value

If a comparable property sale included some valuable personal property, the sale price of the comparable is usually adjusted ______ by the ______ of the personal property

100

If a default goes into a residential borrower's recored it is likely to lower their credit score by at least _________ points.

compute the difference between all old payments and all revised payments and proceed as with a single loan replacement. compute the "old" payment as the sum of all the payments to be replaced. for each old loan, compute the reduction in payment with the new interest rate, keeping all other terms as they were.

If a refinance decision involves replacing multiple loans with an increased first mortgage loan the solution involves:

3

If all three approaches to value are used by the appraiser, the appraiser must reconcile ______________ indicated values.

negative amortization

If an adjustable rate mortgage has a payment cap but no interest cap, then it is possible for interest rate increases to result in interest charges exceeding the payment allowed. This results in unpaid interest being added to the loan balance, an effect known as:

inverse condemnation

If government activity or government restrictions reduce the value of a private property sufficiently, it is possible for the property owner to sue the government to force the government to acquire the property through eminent domain. This process is known as:

300,000

If the interest charge for the current month for a standard home loan is $1,000.00, and the stated interest rate is 4.0 percent per year, what is the current balance on the loan?

one share is a prefect substitute for another SPG shares trade in a liquid public market the share price is continuously revealed throughout the trading day

If you know the value of one share of common stock in Simon Property Group (SPG), you know the value of all SPG shares because:

Home owners can sell their home more easily Home owners can gain greater financial liquidity and diversification Households can become home owners sooner in life

Improving the housing finance system has these positive effects on society:

deed, trust

In a mortgage loan, a mortgage is _____________ of _____________.

escrow

In addition to requirements concerning use of the Loan Estimate and the Closing Disclosure, RESPA sets limits on required ____________ deposits.

highest and best

In condemnation proceedings for eminent domain the amount of compensation to the owner must be based on _______________ and _______________ use of the property at the time it is condemned.

just

In condemnation, the amount of compensation that restores the property owner to a financial position equivalent to that existing before the property was taken is called _______________ compensation.

distributing

In contrast to property taxes, which are based on property value, special assessments are based more on equally ________________ the total cost of improvements.

first

In foreclosure, the priority of a lien is very important since all liens tend to default at once, and the _______________ lien gets total satisfaction before the next lien gets anything.

signing

In general, a mortgage borrower takes on personal liability for a loan upon ____________ the note.

revenue

In large measure, rather than using impact fees as a means of correcting externalities, local governments have tended to use the fees purely as a source of

tax revenue

In recent decades the "public purpose" concept of eminent domain is claimed to have allowed misuse: encouraging local governments to use eminent domain to replace older private land uses with new ones simply to generate higher ____________ _______________.

Most first mortgage home loans allow prepayment without penalty

In the United States today, the general pattern for right of prepayment for home mortgage loans is as follows:

external obsolescence functional obsolescence physical deterioration

In the cost approach to valuation, which factors of "depreciation" are considered?

mobility

In the first half of the 20th century the need for efficient systems for home financing grew strongly, compelled by the growing need in urban society for household:

lender, borrower

In the simplest form of a reverse mortgage the ____________ makes regular or occasional payments to the _____________ and the loan is not paid off until sale of the property

cannot be discontinued more than a limited time, cannot change in use or structure, and must have existed before the zoning was enacted

In zoning a nonconforming use:

those meeting the requirement specified in the Dodd-Frank Act all FHA and VA loans all conforming conventional loans

Initially, Qualified Mortgages include mainly:

cost approach

It is often necessary to value the site independent of the improvements to the site. Which of the following approach requires a separate site valuation?

around 4 to 5 percent

Late fees on standard residential first mortgage loans range ____________ of the late amount.

Chapter 7 is much faster, avoiding delays in recovery of funds and neglect of the property

Lenders prefer Chapter 7 bankruptcy over both Chapter 11 and Chapter 13. A major reason is:

preserve cash for use in one's primary business enable the purchase of a home enable greater diversification by purchase of more assets. lever the purchase of investment property for higher returns.

Reasons for using debt financing in real estate include to:

cost of personal time and hassle income tax effects risk that rates could decline further

Reasons why both Net Benefit and Net Present Value analysis of refinancing tend to overstate actual benefits include:

40

The right of a lender to pursue a deficiency judgment when a home mortgage loan is sold at foreclosure auction for less than the mortgage balance exists in some _________ states.

are almost always required

Location adjustments to comparable sale prices:

impact fees performance standards form-based zoning planned unit development

Modern alternatives (generally adopted after 1970) to traditional land use controls include:

the current market value of a property

Most appraisal assignments entail estimating:

Use market-related adjustments Adjust the sale price of the comparable toward the subject property make transactional adjustments in the proper order

The rules for making adjustments to the sale prices of comparable properties include which of the following?

2-28 hybrid interest only option ARM

Most subprime loans were:

income tax effects

Of the several reasons why net benefit analysis and net present value analysis can overstate the value of refinancing, one that applies only to a minority of U.S. households today is:

comparing the sale prices of properties that have sold twice

Repeat-sale analysis is the process of:

mortgage banking companies mortgage brokers commercial banks savings and loan associations and credit unions

Originators of mortgage loans include:

the presence of apartments or commercial activity in the neighborhood

Perceived threats to destabilize a single family, owner oriented neighborhood have included

safety and welfare

Police power is the power of any government to regulate in the interest of the general health, _____________, and ____________ of the citizens.

many agencies of the federal government local property tax assessors cities and counties

Potential sources of data from public records include:

advertise the sale properly proper legal notice to the borrower required minimum time before the sale

Power of sale foreclosure has statutory protections for the borrower, including requirements for:

residential, commercial

Prepayment penalties are limited to a small percentage of _____________ mortgage loans, while they exist for most mortgage loans on _____________ real estate.

conventional, 80

Private mortgage insurance applies to ___________ mortgage loans, and generally is required on mortgages with a loan-to-value ratio exceeding ___________ percent of value.

lender, default

Private mortgage insurance protects only a ______________ and only against losses due to _____________.

APR

Probably the best known provision of the Truth-in-Lending Act of 1968 is the required computation of ______ (enter the acronym).

no assurance that clear title can be delivered absence of standards of practice in such transactions seller may encumber the property with liens after the sale

Problems or risks with a contract for deed include:

thousand

Property tax rates typically are stated not in percent but in mills, which are dollars per __________ dollars of value.

initially be presented to a planning or zoning commission and go before the elected officials for final judgment or ratification

Proposed changes in a zoning ordinance must:

a defaulting borrower usually has few, if any, financial resources some states do not always permit deficiency judgments nonresidential loans usually are nonrecourse loans

Reasons a deficiency judgment seldom is pursued include:

use of property (owner occupied, rental, second home) length of loan term borrower's credit record loan-to-value ratio

Some factors that affect the premium charged for PMI include:

occupied by the owner

The sale of a single-family, detached home that is currently rented to a music studio should not be used as a comparable property if the subject property is a single-family, detached home:

provision for special use districts bulk limits for buildings minimum lot dimensions

Standard features of traditional zoning include - provision for special use districts - bulk limits for buildings - emission standards - minimum lot dimensions - noise standards

projecting demand for public services projecting population growth projecting demand for natural resources

Steps to creating a comprehensive plan typically include: - projecting demand for public services - projecting population growth - determining how long the community will exist - projecting demand for natural resources

(220,000/200,000) x $1,000

Suppose you have a $200,000 home mortgage with a monthly payment of $1,150 and you also have credit card debt of $20,000 with a monthly payment of $300 per month. Interest rates have declined so that your mortgage loan would have a payment of $1,000 if the only change in it were to adopt the market interest rate. Moreover, you can increase your debt to $220,000 and pay off the credit card debt. Your current combined monthly payment is $1,450. To examine the net benefit of refinancing both loans with the $220,000 mortgage, what would be your new payment for the purpose of computing net benefit?

true

T/F Planned unit development (PUD) allows residential density to range from single family detached to multifamily, and often include supporting commercial development.

ability to repay

The Dodd-Frank Act, in creating new standards for home mortgages adopted as a central standard:

private, borrower

The FHA provides insurance against losses due to default on mortgages made by ____________ lenders, with the insurance premium paid by the ____________.

subprime

The Home Ownership and Equity Protection Act (HOEPA) was enacted out of concern for abuse and predatory practices in _________ mortgage lending.

Prohibition of "kickbacks" a standard closing statement: Closing Disclosure a good-faith estimate of closing costs: Loan Estimate a document explaining the Closing Disclosure and fees

The Real Estate Settlement Procedures Act (as modified by the Dodd-Frank Act of 2013) requires for virtually every standard home loan:

older, more

The ________ the subject property the _______ difficult it is to estimate reproduction cost.

narrative

The ____________ appraisal report is the longest and most formal report writing format

budget and other

The amount of revenue that a jurisdiction must raise from property taxes is the difference between its total ______________ and its revenues from ______________ sources.

sales comparison approach

The approach typically given the most weight in the appraisal of single-family, detached homes is the:

productivity or usefulness of the funds obtained

The central guide on how much debt a homeowner should place on their house is whether the borrowing cost of additional debt exceeds the:

most probable selling price, buyer and seller acting prudently, and a competitive market

The concept of market value in formal appraisal practice includes:

a downward

The current market interest rate on fixed rate, long-term mortgage for single-family homes is 4%. To help sell her home, the seller of a comparable sale provided long-term, fixed rate financing to the buyer at an interest rate of 3%. (that is, the seller was also the lender). This would required __________ adjustment to the sale price of the comparable

substitution

The economic principle of ______ implies that the value of the subject property is determined by the sale prices of comparable properties.

replacement cost

The estimated cost to build a structure with equal functionality (utility) as the existing structure using modern methods is generally referred to as the:

amplifies

The existence of a well functioning secondary mortgage market ___________ the primary mortgage market.

weighted

The final estimate of market value is usually a ______ average of the indicated values from the different approaches.

loan balance

The fundamental problem with the option ARM loan, as most commonly used, was that it created a rapid increase in the:

neighborhood features

The goal of the Home Mortgage Disclosure Act (HMDA) is to assure that home mortgage lenders make loans on the merits of an individual borrower application rather than on:

lender, borrower

The hybrid mortgage is interesting as a solution to a long-standing conflict between home mortgage borrowers and depository lenders. The ____________ wants interest rates and payments to adjust as frequently as possible while the _________________ wants as much payment predictability as possible.

valorem

The property tax is a form of ad _________________ tax that is the primary source of revenue for almost all forms of local government in the United States.

amortization

The repayment of a loan through a series of scheduled balance reductions is called:

increases as the reliability of comparable sale information decreases decreases if those comparables already selected are very similar to the subject property

The required number of comparable sales

homestead

The largest partial exemption for property taxes is the ______________ exemption.

Fannie Mae and Freddie Mac

The largest participants in the secondary mortgage market are:

condemnation

The legal procedure through which eminent domain is exercised is called:

stable, low

The long-term fixed-rate level-payment home mortgage works best in an environment of __________ and __________ interest rates.

separation

The main attraction of performance standards is that they can address the problematic effects (externalities) of a land use more flexibly and efficiently than the approach of conventional zoning, which is ______________ of land uses.

exceed, house

The main risk of a reverse mortgage, called mortality risk, is that the accumulating balance on the loan will ______________ the value of the ______________.

fourth

The maximum guarantee on a VA loan is one-____________ of the maximum allowable loan purchased by Freddie Mac and Fannie Mae. In effect, this sets the maximum VA loan amount equal to the maximum current loan amount for the two GSEs.

Uniform Residential Appraisal Report (URAR) Form 1004.

The most common appraisal report is the:

net present value

The most complete approach to the refinancing question is to view it as a question of:

the effect of time value

The most complete guides for mortgage refinancing decisions in use today account not only for interest rate spread, cost of financing and time you will keep the new mortgage, but also:

less affordable

The most important effect on housing when interest rates rise is to make housing:

sales comparison approach

The most reliable approach to estimating land values is usually the:

public, benefit

The narrowest notion of eminent domain limits its scope to "public use," that is, for _____________ facilities only, while the more common and broader view allows eminent domain to be use for "public purpose," meaning any use of clear public _______________.

terms, conditions

The note defines the exact __________ and ___________ of a ___________ loan.

fully amortizing payment minimum payment resulting is significant negative amortization interest only payment

The option ARM typically allowed the borrower to select among several choices of payments, including;

Appraisal Foundation

The organization with independent authority over the generally accepted standards of appraisal is the:

elected governing body

The planning or zoning commission is appointed as an advisory board by the

police powers

The power of state and local governments in the United States to regulate in the interest of the health, safety and welfare of citizens in general is known as:

Allowing state and local governments to issue tax-free housing finance bonds Guarantees against mortgage default Insurance against mortgage default

The predominant approaches to housing assistance by the U.S. government have been through:

less than, an upward

The seller of a comparable property purchased a new home just days after the sale of the comparable was completed. The seller needed cash from the sale of the comparable to purchase the new home. An appraiser using the comparable sale might need to be concerned that seller agreed to sell the comparable for ________ its market value, which would require _________ adjustment to the sale price of the comparable.

the comparable's sale price would have to be adjusted upward

The subject property has a very nice pool. The comparable property does not have a pool. As a result,

poor but recently improved

The success of land owners in the U.S. in using inverse condemnation to obtain relief from severe regulation that devalues their property is:

in a process

The text argues that successful market analysis and research

poor selection of comparables

The text argues that the most significant errors in appraisal reports typically result from:

externalities

The theoretic idea of impact fees is that they can "internalize":

most probable selling price

The value that real estate appraisers generally estimate is market value, which is synonymous to:

codes zoning subdivision

Three forms of traditional land use controls are building _____________, ____________, and _______________ regulations.

building codes, zoning, and subdivision regulations

Three types of traditional land use controls are:

exemptions

To derive taxable value of a property from assessed value, subtract any applicable:

tax rate

To find the property tax amount for a property multiply the taxable value by the total:

must be adjusted upward

To the extent the comparable property is physically lacking in some respect to the subject, the sale price of the comparable:

leaking underground storage tanks mold asbestos radon

Toxic waste that have posed problems to property owners in the last two decades include:

true

True or false: A comparable property having a different legal estate than the subject property should generally not be used as a comparable.

True

True or false: Although most appraisal assignments involve the valuation of properties with improvement (buildings) on the land, appraisers often must separately value the land.

true

True or false: Replacement cost estimates are typically easier to obtain than reproduction cost estimates

true

True or false: The final value number produced by reconciliation of the resulting estimates from two or more approaches to value is termed the final estimate of value.

true

True or false: The goal of market analysis is generally to develop an understanding of the factors that affect demand and and supply in a particular market and use that knowledge to forecast how values in that market are likely to change over time.

false

True or false: The required adjustment for difference in legal estates is typically a relatively simple adjustment.

true

True or false: USPAP addresses the ethical obligations of appraisers and provides the minimum appraisal standards that most be followed by all appraisers

value of housing services falling below the monthly cost negative equity

Two conditions that generally appear to be required before a "trigger event" causes home mortgage default are;

prime, subprime

Two polar classes of conventional mortgage loans are ___________ and ___________.

schools and universities, places of worship, other property of religious organizations, and hospitals

Types of property that commonly are exempt from property taxes include:

a weighted average

Typically, reconciliation of final adjusted sale prices of the comparable properties involves the use of:

USPAP has no requirement regarding the number of comparable sales

USPAP standards require that, when using the sales comparison approach, appraisers use how many comparables?

15

Under 2017 U.S. income tax law, it has been estimated that ________ percent of all homeowner households will receive income tax deductions for the home mortgage interest that they pay.

rescind

Under the Truth-in-Lending Act, a home mortgage borrower has the right to cancel a mortgage loan within three business days after consummation of the loan, so long as it is not for purchase or construction of a principal residence. This is known as the right to:

no

Under traditional common law, a mortgage borrower had ________ right of prepayment unless it was explicitly stated in the note.

It was enacted to curtail predatory practices in home mortgage lending. It had little effect in its first decade or more.

Which of these are correct statements about the Home Ownership and Equity Protection Act of 1994 (HOEPA)?

identical

Unless the characteristics of the comparable property are ______ to the subject property, adjustments must be made to the sale price of the comparable property.

The Veterans Administration guarantees home loans for qualified veterans The USDA Rural Housing Services makes direct home loans to qualified rural households state and local housing agencies make low interest loans to qualified households The Federal Housing Administration insures home loans for qualified borrowers

Valid aspects of housing assistance programs include:

FHA insures loans up to 96.5 percent of value. FHA accepts more tolerant qualifying ratios and credit score than for conventional mortgages. FHA targets first-time home buyers and other moderate income households.

Valid statements about FHA insurance include:

immobility of real estate, lack of observable transactions, and lack of perfect substitutes

Valuation of real estate is complicated by the:

a loan that is I-O for 15 years and then converts to fully amortizing level payment for the remaining term. a standard I-O but with lender's promise to fund pay off in 5-7 years with a fully amortizing loan.

Variations of the I-O mortgage include:

water company and electrical utility

Which of these are natural monopolies? - Wells Fargo - Walmart - Water company - Electrical utility

Free standing, single occupant structures

Which of these possible zoning categories would exemplify the idea of form-based zoning?

short sale

When a defaulting borrower arranges to bring to the lender a buyer of the property who is offering a price below the mortgage balance, and the lender accepts, this is known as a:

higher, higher

When a loan is paid off early it can change the effective interest cost of the loan because any upfront expenses are effectively spread over a shorter time span, causing them to equate to a ____________ interest charge increment. So the earlier the prepayment, the _______________ the resulting effective interest cost.

Equal to the regular payment plus an unpaid balance

When the term for maturity is less than the term for amortization then the final payment is:

The effect on a neighborhood from good lawn maintenance

Which is the clearest example of a positive externality?

A sale to a family member A sale forced by a local property tax jurisdiction A voluntary sale in lieu of foreclosure

Which of the following are not considered representative sales; thus generally unusable as a comparable sale for a market value estimate?

the intended use of the appraisal, the type of value to be estimated, and the effective date of the valuation

Which of the following should be included in the identification of the appraisal problem? - the data that will be used to perform the appraisal - the intended use of the appraisal - the type of value to be estimated - the effective date of the valuation

make sure the comparables used are appropriate

Which of the following steps in the evaluation of an appraisal is the most important?

In recent years has been created in three different qualities Is the oldest form of home mortgage loan Is the most common type of home mortgage loan

Which of these statements is (are) correct about conventional mortgage loans?

The principal reduction increases each month More than half the monthly payment is interest for about half the loan term.

Which of these statements is (are) correct about the amortization of a standard, level payment home mortgage loan?

private school

Which of these types of property generally is exempt from property taxation?

home, commercial

While a demand clause is rare in fixed-term standard ____________ mortgage loans it is common in "home equity" credit line loans from a ________________ bank.

purchase, buyer, seller

While government agencies generally classify any mortgage that finances a home ______________ as a purchase money mortgage, real estate brokers limit the term to any mortgage lien given from a ____________ to the ___________.

have to be adjusted downward

You recently purchased a home that included a new, (very) large TV that incorporated all the latest technology and also included a large number of high quality speakers. If an appraiser uses your sale as a comparable sale in a appraisal assignment, the sale price of your home will likely:

Property

______ adjustments focus primarily on the physical and locational differences between the subject and comparable properties.

transactional

________________ adjustments focus on the terms of the deal and the motivation or bargaining ability of the participants.

widows, historic property, disabled persons, and veterans

common examples of partial exemptions for property taxes include exemptions for:

air quality effects from a land use traffic generation by a land use storm runoff

performance standards have been implemented for a wide variety of externalities in land use, including: - social impact of a land use - air quality effects from a land use - traffic generation by a land use - tax revenue effect of a land use - storm runoff