RE Finance Exam 2
An informal estimate of market value
A CMA or a BPO is an example of___________
Asks the lender if there are other options available that would not involve a prepayment penalty
Ed is a homebuyer reviewing the Loan Estimate he received from a lender. He notices the loan terms include a prepayment penalty. Because he's a savvy consumer, he
Have permanent and total service-connected disability
Veterans who use the VA's Specially Adapted Housing grant must_________________.
Both the primary and secondary mortgage markets
In which U.S. market(s) do foreign lenders participate?
The homebuyer credit was part of the stimulus package enacted in 2009 and was only effective between January and December of 2009.
Joyce and Danny purchased a home in 2009 for $280,000. They received a homebuyer credit of $8,000. Their friends Margie and Scott purchased a home in 2010 for $320,000. Margie and Scott didn't receive a homebuyer credit. Why not?
In order for earnings from a second or part-time job to be considered as part of a lender's income evaluation, what must be true?
The applicant must have been employed for at least two years, and the employment must be expected to continue.
Mortgage note
The______________is where the borrower finds details about how, when, and by how much the interest rate will change in an adjustable rate mortgage (ARM).
TILA
What's the acronym for the legislation that requires lenders to make full disclosure of the terms and conditions of credit?
Amortized
Esmerelda makes regular monthly payments on her loan. In addition to paying interest, she's slowly paying down the principal of the loan. With each payment she makes, more will go towards the principal and less to interest. What type of loan does she have?
Closing costs aren't considered a seller concession.
Fatima is using a VA loan to purchase a home from Sue. Sue agrees to pay Fatima's closing costs. Which of the following statements is true?
80
Private mortgage insurance may be required on conventional loans where the loan-to-value ratio is in excess of %.
No, she doesn't meet the credit score requirement.
Sandra is a single woman fresh out of college. She hopes to qualify for an FHA loan. Her lender calculates her housing ratio as 31% and her total debt obligation as 43%. Her credit score is 480. Does she qualify under FHA underwriting guidelines?
Nationwide Mortgage Licensing System IDs
What information is included on the Loan Estimate form so that the consumer can confirm the reputation of lending institution and individual?
Acceleration clause
What type of 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 principal amount outstanding and accrued interest thereon shall at once become due and payable at the option of the Note holder."
The draw period varies.
What's true about the draw period on a home equity line of credit (HELOC)?
Subject to existing financing
When a buyer takes over payments on a loan without telling the lender, this is called a purchase_________?
Assignment of the security instrument the note is attached to
When a promissory note is sold, what is recorded in county land records?
Mortgage Forgiveness Debt Relief Act of 2007
Which act temporarily removed the requirement that taxpayers whose homes were sold as a result of a foreclosure had to include the loan write-off amount as taxable income?
Demand
Which factor influences property value and addresses questions such as, "What's the market like?" and "Are there more buyers than sellers, or vice versa?"
Property lot size
Which of the following is a piece of specific data an appraiser may gather?
Get a low interest rate of 4.75% (4.925% APR) with as little as 10% down payment and a 30-year fixed rate with no points.
Which of the following is an acceptable ad based on Regulation Z?
Voluntary conveyance of deed
With this alternative to foreclosure, a borrower hands over the property to the lender rather than face foreclosure proceedings.