last real estate quizlet

The Farm Service Agency is an agency of the FHA.

False

The USDA Rural Development Guaranteed Housing Loan program, Section 502 loan is for a farm or ranch.

False

Due to the financial crash of 2007, the _______________ placed Freddie Mac and Fannie Mae into conservatorship.

Federal Housing Finance Agency

The potential negative impact of mortgage fraud is on _______________. Financial institutions Low-income households Borrowers Homeowners

Financial institutions

All of the following are primary monetary policy tools the Fed uses to influence the cost and availability of credit except:

Fiscal policy

Relates to federal government spending

Fiscal policy

In a _______________, the lender files a lawsuit of the homeowner that is in default. Power of sale Statutory foreclosure Judicial foreclosure Strict foreclosure

Strict foreclosure

Second and third mortgages

Subordinate instruments

The junior mortgage will continue in its position and will not become a first mortgage Alienation clause Prepayment clause Subordination clause Exculpatory clause

Subordination clause

If Mark and Cindy want equal payments for as long as at least one of them is alive and stays in the house, occupying it as his/her principal residence, which payment plan would be best for them? Line of credit Tenure Modified Term Term

Tenure

What is the TDHCA

The Texas Department of Housing and Community Affairs is the state's lead agency responsible for homeownership, affordable rental housing, community and energy assistance programs,

___________ was created in September 2008 to restore the nation's financial stability and restart economic growth.

The Troubled Asset Relief Program

The Interstate Land Sales Full Disclosure Act requires developers to file a property report with:

CFPB

The _______________ is the person who pledges the property as security for a debt.

Mortgagor

Mr. Brown will close on his new home on June 23, 2010. He will close on a 30-year fixed-rate mortgage with an interest rate of 4.50% and a principal balance of $120,000.00. What is the amount of interim interest he will pay at closing?

$118.36

Garth is representing Mr. and Mrs. Wu who have just decided to buy a home. Garth advised the couple to get prequalified before viewing any more homes. Mr. and Mrs. Wu trust Garth and want to do their own research and get Garth's advice before talking to a loan originator. They are disheartened by the realization that closing costs are typically more than they had thought, so they are considering pursuing an FHA loan, so that they can make a smaller down payment. However, they do not like the fact that the MIP makes the house payments higher. Mr. and Mrs. Wu have a combined gross monthly income of $9,000. For the home they want, the estimated monthly payment would be $2,700 on a 30-year loan. This is a multiple choice question. Once you have selected an option, select the submit button below If Mr. and Mrs. Wu are pre-approved for a mortgage, what form will they receive? Form B Conditional Approval Letter There is no specific form that they will receive if they are pre-approved for a mortgage Form A Conditional Pre-Qualification Letter A blank check from the lender that the Wus will fill out for the downpayment on a home SubmitFeedback This is a multiple choice question. Once you have selected an option, select the submit button below If the Wus buy the home that they want, their house payments would be approximately $2,700 per month. If they go with a conventional loan, the front ratio of their house payment (PITI) cannot exceed $ _______ or 28% of their gross monthly income.

$2,520

What will the quarterly interest payments be for a loan of $10,000 at 8%?

$200

The FDIC insures deposits in banks and thrift institutions for up to:

$250,000

In Texas, the minimum withdrawal on a HELOC is: $4,000 $25,000 $15,000 $10,000

$4,000

What is the interest rate if the loan is $55,000, and the annual interest owed is $6,500?

%11.8

There are ____________ Federal Home Loan Banks.

12

The FHLB was created by Congress in:

1932

The FDIC was created in:

1933

On a 90% LTV, fixed rate mortgage, investors require _______________ MI coverage.

25%

What was the amount borrowed if the annual interest rate is 9 1/2%, and the interest paid was $4,500?

47,368.42

What's on the Closing Disclosure?

A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).

Jill's loan balance on March 1st was reported as $119,670. The regular monthly payment of principal and interest is $896.45, and the rate of interest is 5%. A) When Jill makes her April 1st payment, how much interest will be due? B) After the April 1st payment has been applied, what will be her new loan balance? A B

A) When Jill makes her April 1st payment, how much interest will be due? B) After the April 1st payment has been applied, what will be her new loan balance? A498.625 B119272.18

In the event of default, the entire amount of the principal becomes due and payable Acceleration clause Assumption clause Subordination clause Alienation clause

Acceleration clause

Also known as the due on sale clause Release clause Alienation clause Lock-in clause Nonrecourse clause

Alienation clause

The United States Treasury is responsible for all of the following except:

Applying monetary policy to manage the growth of the economy

A _______________ may be beneficial to a borrower who is planning to move prior to the last payment of the loan. Balloon loan Reverse mortgage Budget mortgage Closed-end mortgage

Balloon loan

Partially-amortized loan with a substantially larger final payment

Balloon loan

A loan which covers more than one piece of property

Blanket mortgage

An instrument of corporate or governmental debt

Bonds

A contract for deed is also known as a(n) ____________. Land contract Installment contract Mortgage Both a land contract and an installment contract

Both a land contract and an installment contract

In a _______________ refinance the borrower pays off an existing loan with the proceeds of the new mortgage on the same property but draws equity out of the property. Reverse Pay-off Cash-out Regular

Cash-out

Excessive selling/lending activities to generate fees and commissions is called _______________. Fraud for Profit Churning Straw Buyer Equity Theft

Churning

Excessive selling/lending activity for the purpose of generating fees and commissions

Churning

In addition to Freddie Mac and Fannie Mae, Wall Street is a source of funds in the secondary market through the sale of: Conforming loans Portfolio loans Collateralized Mortgage Obligations High interest rate loans

Collateralized Mortgage Obligations

Any seller _______________ which exceeds 4% of the established reasonable value of the property is considered excessive and unacceptable for VA-guaranteed loans. Participation Funding fee Endorsement Concession

Concession

Adheres to Fannie Mae and Freddie Mac requirements for purchase of a mortgage

Conforming loan

Conventional loans that conform to FNMA/ FHLMC standards

Conforming loan

Member-owned depository institutions

Credit union

Set by the board of directors of the Federal Reserve Banks, subject to approval by the Board of Governors

Discount rate

_______________ is the veteran's entitlement to a VA home loan benefits under the law, based on military service. Endorsement Eligibility Qualification Concession

Eligibility

What is the number one determinant for demand?

Employment

Limits the borrower's personal liability in the event of a default on a loan, protecting other property from becoming collateral Acceleration clause Exculpatory clause Release clause Alienation clause

Exculpatory clause

In a _______________ plan, the borrower pays part of the delinquency each month along with the borrower's regular monthly installment. Deed in lieu of foreclosure Default Recasting Forbearance

Forbearance

_______________ is a misrepresentation and/or concealment made by a borrower or other party in order to qualify for a mortgage loan. Fraud for profit Churning Chunking Fraud for housing

Fraud for housing

With few exceptions, the law requires that the VA be paid a(n) _______________ on guaranteed loans. Funding fee Gift Residual Concession

Funding fee

The Fed uses open market operations for buying or selling of ___________.

Government Securities

The _______________ program is designed for borrowers who cannot afford their current mortgage and need to transition to more inexpensive housing. HAMP HAFA SMP USDA's special loan servicing

HAFA

The _______________ allows the Treasury to work with loan providers to refinance existing loans to achieve a 31% front-end ratio. HAMP SMP HAFA USDA's special loan servicing

HAMP

The _______________ was enacted in July of 2008 creating the Federal Housing Finance Agency.

Housing and Economic Recovery Act

A Real Estate Mortgage Investment Conduit allows for the _______________ investment in mortgages through the sale of securities.

Indirect

In a REMIC, the repayment of principal and interest is channeled through to the _______________.

Investors

Fannie Mae works to accomplish all of the following housing objectives except:

It funds loans for credit poor area

VA loans are made by a _______________, such as a mortgage company, savings and loan, or a bank. Military bank Borrower Lender Home financer

Lender

The secondary market is designed to provide greater _______________ to the residential real estate mortgage market by providing for a steady supply of funds from investors.

Liquidity

_______________ is a practice in which a lender encourages repeated refinancing by existing customers tacking thousands of dollars in additional fees or other charges to the loan each time. Excessive fee charging Loan flipping Property flipping Predatory charging

Loan flipping

Prohibits prepayment of the loan prior to a certain date Nonrecourse clause Lock-in clause Exculpatory clause Prepayment penalty

Lock-in clause

When there is an excess of money supply in the market

Monetary inflation

Policy that deals with interest rates and the supply of money in the US economy.

Monetary policy

A _______________ is a middleman between a borrower and a lender.

Mortgage Broker

The _______________ is the person or entity that receives the pledge as security for a debt.

Mortgagee

_______________ occurs when the borrower's payment does not cover all of the interest due each month. Balloon Payment Negative Amortization Loan Flipping Predatory lending

Negative Amortization

In commercial lending, it provides that the borrower is not personally liable for repayment of a loan Acceleration clause Assumption clause Escalation clause Nonrecourse clause

Nonrecourse clause

The _______________ charters, regulates, and supervises all national banks, federal savings associations, federal branches, and agencies of foreign banks.

Office of the Comptroller of the Currency

Buying or selling government securities by the Federal Reserve.

Open-market operations

The Department of Treasury is organized into two main components: the departmental office and ____________.

Operating bureaus

A refinance is the _______________ of an existing loan with the proceeds of a new loan to the same borrower. Forbearance Short-sale Forgiveness Payoff

Payoff

The promissory note includes all of the following except: Interest rate Payment amount Amount borrowed Pledge of the property

Pledge of the property

Percentages based on the amount of the loan

Points

Loans that are not sold to investors in the secondary market are called: Portfolio loans Interest rate loans High yield loans Primary market loans

Portfolio loans

The FDIC receives its funding from

Premiums that banks and thrift institutions pay

More than two-thirds of subprime loans have _______________. Predatory clauses Credit scoring Mortgage fraud Prepayment penalties

Prepayment penalties

The primary goal of the Federal Home Loan Bank System is to:

Provide credit and other services to fund housing and other loans in the community

Default-related services include all of the following, except: Purchase costs Foreclosure costs Property inspections Property preservation

Purchase costs

Investment vehicle created by Congress in 1960

Real Estate Investment Trust

Raising the reserve requirements _______________ the availability of funds for lending.

Reduces

In a _______________ refinance the borrower pays off an existing loan with the proceeds of the new mortgage on the same property. Pay-off Regular Closed-end Cash-out

Regular

Allows for a portion of the loan to be paid in exchange for the lender releasing part of the property from the mortgage Alienation clause Nonrecourse clause Acceleration clause Release clause

Release clause

_______________ income is the amount of money left over each month after all of the borrower's major expenses are paid - including housing, taxes, and debt payments. Gross Hard Residual Net

Residual

A loan underwritten based upon the home's appraised value and the loan term of the owner, also is for 62 and older

Reverse mortgage

The _______________ offers delinquent borrowers the opportunity to prevent foreclosure by working with lenders to refinance their existing loan. SMP HAFA USDA's special loan servicing HAMP

SMP

The Single Family Housing Direct Home Loan is also known as:

Section 502 Direct Loan Program

All of the following are HUD's major programs except: Section 8 Housing Federal Housing Administration Consumer Financial Protection Bureau Community Development Block Grants

Section 8 Housing Federal Housing Administration Consumer Financial Protection Bureau Community Development Block Grants

To raise money for the purchase of loans, Freddie Mac sells its own _______________.

Securities

At the national level, the value of residential real estate is affected by what factor?

The monetary policies of the Federal Reserve

Federal tax policy that affects demand for real estate includes all of the following except: Deductibility of mortgage interest payments Deductibility of real property taxes Exemptions from capital gains taxation The supply of money

The supply of money

The _______________ offers rural homeowners to lower their monthly mortgage payment to no more than 31% of their verified monthly gross income. USDA's special loan servicing HAMP SMP HAFA

USDA's special loan servicing

The Request for Verification of Deposit is commonly called _______________. Statement Balance Verification Deposit Verification Balance at Close Document VOD

VOD

Form lenders use to obtain borrower balance information

Verification of Deposit

what is installment sale

With installment sales, the buyer makes payments to the seller over time, rather than handing over a lump sum at closing.

Concession

a thing that is granted, especially in response to demands; a thing conceded.

a primary instrument is

formal legal document such as a contract, deed or will

subprime loans are

loan for people with low scores that are not as trust worthy

What's tenure?

the act, right, manner, or term of holding something (such as a landed property, a position, or an office)

An individual may have a tax-free capital gain on the sale of real property up to $250,000 if the property were his or her principal residence for at least two of the last five years.

true