Real Estate Finance Final Exam

Roll the funding fee into the loan

Because of the funding fee required for a VA loan, a borrower with no down payment funds saved should ______.

The applicable time period

Borrower Max is reviewing his Closing Disclosure to check the amount of prepaid mortgage insurance, taxes, and interest. In addition to itemizing what his borrower-paid closing costs are, the prepaid section includes ______ for each item.

Note with deed of trust

Lisa, a seller, is providing Darwin, a buyer, with a seller second on the purchase of her property. Darwin's conventional lender uses a note with deed of trust to secure the first loan. What instrument is Lisa most likely to use for her second loan with Darwin?

The largest percentage possible after paying all essential expenses

The percentage recommended for a licensee to allocate when building an emergency fund is ______.

The borrower

The signature lines on the multi-state Fannie Mae promissory note are set up for ______ to sign.

Purchase and assumption Most commonly, the purchase and assumption and payout methods are used when a bank becomes insolvent.

The two most common methods used when a bank fails are the payout method and the ______ method.

With a maturity term of 30 years

A Treasury bond is a Treasury security ______.

Bill

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

Andrea can cure the default and reinstate the loan.

Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a deed of trust. What rights does she have to redeem her property?

One year

Chanel is buying a brand new home with a VA loan. She's obtained a certificate of reasonable value. For how long is that CRV valid?

Paying any bills that are due

Don uses one hour each week to perform certain tasks, including ______, as part of his personal financial system.

Farm Credit Services Administration

Farmer Mac is supervised by which entity?

An unlimited loan-to-value ratio

For borrowers who already have an FHA loan, the Streamline Refinance program offers the benefit of ______.

Liquidity

Freddie Mac's mission is to provide ______, stability, and affordability in the U.S. housing market.

Housing Choice Voucher Program

HUD's ______ assists very low-income families, the elderly, and disabled individuals in affording decent, safe, and sanitary housing in the private market.

Office of Native American Programs

HUD's ______ has a goal of increasing the availability of safe and affordable housing to Native American families.

At least six months

How much should the emergency fund hold, according to the recommendation for creating a responsible financial plan for personal finances?

Borrower The trustor establishes the trust on behalf of another. In this case, the borrower establishes the trust for the benefit of the lender, who is the beneficiary.

In a deed of trust, who is the trustor?

A transfer between parent and child

In which of the following situations is a lender prohibited from enforcing an alienation clause?

Recession During a recession people are less likely to purchase homes. Properties on the market are vacant for longer and prices drop.

In which phase of the real estate market cycle would you expect to see properties sit vacant and prices drop?

Expansion

In which phase of the real estate market would you expect to see an increase in hiring and employment, increased public confidence, and an increase in buyers in the market?

Partnership among mortgagees

In which type of partnership does each mortgagee receive a share of the mortgage payment?

Partnership between mortgagees and mortgagors

In which type of partnership is the lender a partner as well as the financier?

Interest

Mark and Nancy purchased a municipal bond to help with the funding of a new school gymnasium. In exchange for their investment, what will they receive?

$80,000 The VA guarantees up to a quarter of the total loan amount, up to $104,250, so Millie and Jerry's loan is guaranteed for one-fourth of $320,000, which is $80,000.

Millie and Jerry are purchasing a home using their VA loan benefit. The sales price is $320,000, with 100% financing. Assuming that Jerry has a typical level of entitlement, how much of their loan does the VA guarantee?

Match what the lender discussed with both of them

Natalie and Sam are reviewing the Loan Estimate form to ensure the date, their names, the property address, and sales price is listed accurately. Additionally, the information provided about their loan term, purpose, product, type, and rate lock should ______.

0%

Pattie is the widow of Oscar, a member of the Army who was killed in action. When she uses the VA loan to buy her first home, what percentage of her loan amount will be charged as a funding fee?

He can take out a piggyback loan. Scott has the option of taking out a piggyback loan to avoid going over the conforming loan limit and ending up with a jumbo loan

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?

Reverse A reverse mortgage allows seniors to age in place while receiving income from their home's equity.

Section 255 of the Title II FHA-insured loan program covers ______ mortgages for borrowers age 62 or older.

Six months

Shania is having work done on the house she just purchased using an FHA 203(k) loan. How much time does the contractor have to complete the work?

Buy and hold

Shelly's real estate investment strategy is to look for smaller multi-family properties, fix them up, and rent them out. Her investment strategy most closely matches which of the following?

Private mortgage insurance Because Sophie's LTV ratio will be greater than 80%, most lenders will require private mortgage insurance to cover the lender's interests, though there are exceptions. PMI covers the gap between required down payment (e.g., 20%) and actual down payment.

Sophie only has 15% to put down on her new home. What might the lender require in order for Sophie to obtain conventional financing?

Uniform Standards of Professional Appraisal Practice (USPAP)

Soren is an appraiser. As such, what guidelines must he follow?

Native Americans living on tribal land

Special mortgage loan programs for ______ include the FHA248 and HUD 184 programs.

Her existing mortgage

Stacy is preparing to sell her home, but learns she can't transfer the property until she removes an encumbrance. Which of these is encumbering her property?

Section 251 The FHA insures adjustable rate mortgages under Section 251.

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?

Wounded servicemen and servicewomen

The American Recovery and Reinvestment Act provided mortgage assistance to ______.

Consumer Financial Protection Bureau

The Equal Credit Opportunity Act is regulated by the ______.

Victims of a presidentially declared disaster The 203(h) program assists homeowners who must repair or replace a home damaged in a major disaster.

The FHA Section 203(h) program assists ______ with an insured mortgage.

Promissory note

The document that describes the loan amount and the terms for repaying and is attached to a security instrument is called the ______.

670-739

The median credit score for most consumers is _______.

Federal funds

The rate at which a bank can obtain an overnight loan from another bank without providing collateral is called the ______ rate.

Be at least 18 years old

To qualify as a Texas veteran, a person must ______.

Liens are paid based on date of filing.

What does the concept "first in time" refer to when discussing lien priority?

Allows borrowers to convert to a fixed-rate during a specific period of the mortgage

What feature do most adjustable rate mortgages have?

A deficiency judgment against the property owner for the outstanding balance to the lien holders is issued.

What happens after a lien foreclosure sale if not enough money were made from the auctioning of the property to pay off the lien holders?

Property dimensions

What information would an appraiser record in the Site section of the Uniform Residential Appraisal Report?

The economy may grow due to an increased money supply.

What is the most likely effect when the Fed buys securities on the open market?

It allows a junior mortgage to move into first lien position.

What's the purpose of a typical subordination agreement?

The Texas SAFE Act

Which act requires that individuals making more than five "owner-financed" loans per year, obtain a residential mortgage loan origination license?

Providing school loans in low-income areas The CRA directs lenders to offer home, small business, and farm loans in low- and moderate-income areas.

Which is not one of the lender requirements under the Community Reinvestment Act?

Increases in hiring, employment, and public confidence, and lots of buyers in the market

Which of the following best describes the state of the market during the expansion phase of the real estate cycle?

Properties selling for more than their appraised value, many buyers in the market, and lots of new construction

Which of the following best describes the state of the market during the over supply phase of the real estate cycle?

Sufficient income

Which of the following is a requirement to qualify for a VA loan?

The buyer's lender The lender must provide the closing disclosure to the borrower at least three days prior to closing. The settlement agent will provide a closing statement to both buyer and seller.

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

Loan estimate and final amounts side-by-side

Zara is reviewing the "Calculating Cash to Close" table on page three of the Closing Disclosure to see what has changed from her Loan Estimate. She found this extremely helpful and easy to understand because the table explicitly lists _______.

Participation certificate

A ______ is a mortgage-backed security issued by Freddie Mac.

Don't exceed the CRV

A second mortgage on property secured by a VA loan is acceptable under certain conditions, one of which is that the first and second mortgage liens ______.

Contract for deed

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

Refinancing to a conventional loan

Annual MIP can be removed from an FHA loan by ______.

Judgment liens

Armitage Bank is placing the Kellermans in default for failure to pay their homeowners insurance. The lender is concerned about property damage and ______.

Cliff is a financial adviser.

Brenda's go-to financial expert, Cliff, has no fiduciary responsibility to her. Why is this true?

A global market for mortgage-backed securities

By stabilizing and improving the mortgage market, the FHA helped to build ______.

A new contract with the lender using a substitution of entitlement A novation creates a new contract with the lender and the new borrower, which happens when the buyer assumes the VA loan with a substitution of entitlement.

Captain Kirk is a veteran who sells his home to Leonard. Leonard is also a veteran, and they agree to let Leonard assume Captain Kirk's VA loan for the property. They agree to a novation, which is ______.

Executory contracts Chapter 5 applies to sellers who provide owner financing, and sellers who violate its provisions may have to pay back all money received from the buyer.

Chapter 5 of the Texas Property Code set requirements and penalties for ______.

Fines up to $5,000 and up to a year of imprisonment

Community Banks is being sued for intentionally violating the Truth In Lending Act. What fines and imprisonment possibilities can the company face?

Median price for the area and property type

FHA county loan limits are based on ______.

Annually

FHA may adjust loan limits for each county ______.

Title II Title II, Section 251 is a program for loan insurance on adjustable-rate mortgages.

FHA offers a program for loan insurance on adjustable-rate mortgages under ______ of the National Housing Act.

Alienation A due-on-sale clause, also known as an alienation clause. Paragraph 10 of the note describes the right of the lender to accelerate the loan if the borrower transfers ownership of the property.

Fannie Mae's multi-state note includes a due-on-sale clause, also known as a(n) ______ clause.

Interest Rate Reduction Refinance

For which of the following programs are veterans not required to submit a COE, get a new appraisal, or verify income?

62

Homeowners over the age of ______ are eligible for the HECM program.

Accounts numbers are truncated for security purposes.

How are account numbers displayed in a credit report?

The property is sold at auction and lien holders are paid from the proceeds of the sale.

How are creditors or lien holders paid during a foreclosure process?

Fees from originating and servicing loans

How is a mortgage banker paid?

Through a referee's deed

How is title usually conveyed to the buyer during a foreclosure process?

Three: borrower, lender, and trustee

How many parties does a deed of trust involve?

Errors and omissions

If your client's attorney contacts you, saying you were negligent in providing your client with service, which insurance coverage do you desperately hope you have?

Commercial space

In a loan to purchase which of the following property types is NOT eligible for purchase by Fannie Mae?

Equitable

In an installment sales contract arrangement, the seller retains legal title until the contract is paid in full. What type of title does the buyer retain during the contract fulfillment period?

Recovery

In which phase of the real estate market cycle would you expect to see property under valued and a large supply of homes on the market?

Partnership between mortgagors

In which type of partnership do participants have shared responsibility for a single mortgage?

5%

Interest rates that are more than ______ over the current market rate are considered predatory lending.

10

It's possible for the adjustment period on an adjustable rate mortgage (ARM) to have ranges, such as three or ______ years apart.

They'll need to provide additional proof of income.

Jim is self-employed. He and his wife want to obtain a home loan. Which of the following statements is true?

Participation

Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?

180

John wants to do a 1031 tax exchange. He just sold his property. How many days does he have to close on a new property?

Equity skimming

Jonathan has come up with a plan. He's going to offer to buy property belonging to his neighbor, who's struggling financially, collect rent from his neighbor, and not make the mortgage payments. He'll rake in the rent until the bank forecloses. Which type of mortgage fraud scheme is this an example of?

GRM

Kobi, an appraiser, is appraising a single-family home used for a rental. If he wants to use the income approach, which of the following will come into play?

Housing Choice Voucher program

Lee manages a rental property for her client, and is accepting applications for tenants. Applicants Damian and Maria are young, newly married, and have a baby on the way. They can't afford a typical rent on a clean, well-maintained two-bedroom home such as the one that Lee has available; but they are recipients of the ______, which Lee knows the property would also qualify for. Lee is glad to accept them as tenants.

Participate in the direct endorsement program

Lenders who ______ can underwrite and approve FHA loans without requiring the FHA to review each borrower's qualifications.

Buy and hold

Marcie bought a duplex, lived in one half, and rented out the other half. This is an example of what type of investing?

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

Maria is a borrower reviewing her Closing Disclosure. She notices that the appraisal fee is listed under "Paid by Others" and has an L listed with the amount. What does this mean?

Whether partial payments are accepted

Page four of the Closing Disclosure lists specific disclosures about the loan, such as the penalty for late payments, whether a demand feature applies, whether the loan can be assumed, and ______.

From the sale of Farm Credit System debt securities

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?

Housing ratio of 31%, total debt obligations 40%

Read through each of the following pieces of information about buyers' debt obligations and determine which one will qualify for an FHA loan based on the qualifying ratios.

Statutory right of redemption

Regina has defaulted on the terms of her mortgage, and now her lender has foreclosed. The property was sold at a sheriff's sale three months ago. Regina suddenly learns that she has inherited a great deal of money. She wants her property back. Under a judicial foreclosure, what right might allow her to buy her property from the winner of the foreclosure auction?

Voluntary and specific

Rich wants to add a room to his house, so he takes out a home equity loan. This creates a(n) ______ lien.

Schedule B-1

Sally, Larry's appraiser, has provided her with a title commitment and indicated there's a problem with the title. Where can Larry find the requirements that must be met before a title insurance policy will be issued?

Reduce lender risk by establishing borrower qualification standards

Since the FHA was established, it has taken strategic action to stabilize the mortgage market. Which of these items is one of the FHA's strategies?

The subprime mortgage crisis and economic meltdown of 2007-2008

The Housing and Economic Recovery Act and the American Recovery and Reinvestment Act were enacted in response to ______.

Exculpatory

The ______ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure.

Farm Credit System

The ______ is a government-sponsored enterprise that works through a cooperative system to provide agricultural and rural loans.

"Due from Seller at Closing"

The _______ section contains the seller's existing mortgage loan payoff amount that must be paid to complete the transaction.

The end-of-year loan balance, plus the balance after the next 11 payments

The annual MIP is recalculated each year using ______.

The state

The appraiser of Garran's property used the Torrens system to perform a title search. Now a claim has been filed. Who or which entity will be the title guarantor?

Market indices approved by the FHA

The interest rate on an FHA Section 251 loan is adjusted based on ______.

3.5%

The minimum down payment for an FHA 203(b) loan is ______.

Have work visas and are looking for a home to purchase while they're in the U.S.

The three general groups of international buyers that real estate professionals may encounter are those who ______, those who are looking for a vacation home for when they travel to the U.S., and those who are looking for a luxury property as an investment.

USDA loan through the Farm Service Agency

To be eligible for a ______, an applicant must have participated in farm or ranch management for at least three years.

Not be delinquent on mortgage payments

To qualify for the FHA Streamline Refinance program, a homeowner must ______.

A life insurance company

Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project?

Her rate will be 3% for the first year, 4% the second year, and 5% after that.

Wendy is buying a house from Tom. Tom helps Wendy out by paying for a 2-1 buydown. The lender has given Wendy an interest rate of 5%. Which of the following describes what the buydown will do to Wendy's interest rate?

The Community Reinvestment Act

What act was introduced to combat discriminatory lending practices against individuals and businesses in low- and moderate-income neighborhoods?

Loans the Federal Home Loan Bank makes to member banks

What are advances?

It restricts the owner's use or decreases the value.

What are the effects on a property if it includes an encumbrance?

A defect on a title that can be monetary or physical

What is an encumbrance?

Borrowing without consulting a financial expert can result in unintended consequences, such as income tax liability and loss of retirement income.

Which of the following represents a potential concern when borrowing funds from a pension or retirement plan?

Municipal bond

Which type of bond is used to pay for community improvements?

After depositing it in her business checking account, she puts 90% of it in her personal checking account to be distributed to the other savings accounts as appropriate.

Licensee Lynn has several accounts set up as part of her personal financial plan to help her manage cash flow. She's allocated 10% of each commission check to business expenses, 15% to taxes, 8% to her retirement fund, 12% to various savings goals, and the rest goes to her living expenses. When she receives a check, how does she direct the funds?

Personal checking account

Lucy uses a personal financial plan recommended for licensees. When she receives a commission check, she deposits it in her business checking account. She should now transfer anything not required for business expenses to her ______.

Reverse annuity mortgage (RAM)

Monty retired 10 years ago and would like to see the world, but his retirement account won't support his desire to travel. Monty heard of a loan that would allow him to take advantage of the equity in his home by getting monthly payments from the bank by using his house as collateral. What is this type of loan called?

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 foreclosure, a junior lien will be paid only after a senior lien is paid off.

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 ______.

USDA Rural Development Single Family Housing Program

Sylvia is a single mother living in a small town surrounded by ranch and farm land. She would like to buy a house there, but her income level and her status as an independent contractor makes it hard for her to qualify for a conventional loan. What government program might provide her with a direct loan to purchase a home?

The cost of public services as a percentage of the property value

What do property taxes in a mortgage payment pay for?

Wills are made public; trusts are not.

What is one disadvantage of a will over a trust?

Supervises national banks and financial institutions.

What is one of the ways the U.S. Treasury promotes economic growth and stability?

By requiring appraisers to be state licensed or certified to evaluate property for FHA-insured loans

What is one way that the FHA has helped to stabilize and improve the mortgage market?

The total value of the property (or properties) being exchanged is at least 95% of the value of the property being sold.

What is the 95% rule as it relates to tax-deferred exchanges?

A form of reverse mortgage insured by the FHA

What is the HECM program?

To protect appraisers' ability to assess an accurate value for a property by avoiding outside pressure or influence

What is the purpose behind Appraiser Independence Requirements?

Yes, you can deduct 50% of the cost of your meals

You attend a business-related conference that includes an overnight stay away from home. Can you deduct the cost of your meals during the conference?

Pass-through

______ taxation means that the business income passes through to the business owner's individual tax return rather than being taxed as a separate entity.

No, she needs to be 30 days late to be in default.

Jackie is 10 days late on her loan payment. Will her lender likely place her loan in default?

Charter

Mutual savings banks have limitations on their lending activities, as specified in their ______.

Yes, she should have partial entitlement left.

Nadia uses a VA loan to buy a house for $125,000. She wants to buy the neighboring property, an empty lot, so she can improve the house using the extra land. The lot is for sale for $135,000. Can she use a VA loan for this purchase?

Maybe, but they'll have to petition their lender

The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be cancelled?

The veteran has a 10% or higher VA disability

The funding fee on a VA loan is waived when ______.

Partnership between mortgagors A cooperative is a partnership between mortgagors, and operates as a corporation. Cooperatives usually purchase multi-unit buildings, such as apartments.

What type of partnership is a cooperative?

Insures lenders against loss from borrower default

What's a key feature of the Federal Housing Administration's loan program?

State the problem.

What's the first step an appraiser will perform when conducting an appraisal?

On the lesser of the sales price or the appraised value of the property

When a buyer uses an FHA loan, the down payment amount is calculated ______.

Endorsement of the note

When a promissory note is sold, how is ownership transferred?

Margin plus index

When an adjustable rate mortgage (ARM) makes its initial adjustment, it does so to its fully indexed rate. What makes up the fully indexed rate?

RESPA

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

Ginnie Mae Think 'G' for Ginnie Mae and its guarantee of MBSs with government issued or guaranteed loans.

Which entity guarantees mortgage-backed securities which have the full support of the U.S. government?

Federal Farm Credit Banks Funding Corporation

Which entity provides disclosures and public information about the financial condition of FCS?

Employment history

Which factor is NOT used to determine a FICO® credit score?

USDA Rural Development

Which government program assists rural Americans by offering loans, grants, and loan guarantees for housing?

Decreased rates

Which of the following actions did the Federal Reserve take in response to the 2007 financial crisis?

Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed

Which of the following best describes foreclosure by writ of entry?

It may be used if the deed of trust includes a power-of-sale clause.

Which of the following best describes the non-judicial foreclosure process?

The rate at which a bank can obtain a loan from its Federal Reserve bank when using commercial paper as collateral

Which of the following describes the discount rate?

Fannie Mae

Which of the following entities buys primarily conventional loans from large commercial banks?

Court order by judge

Which of the following entities has the authority to place an equitable lien on a property?

Type of accounts

Which of the following factors carries the least weight when calculating a credit score?

Limited partnership

Which of the following is a passive type of real estate investment?

A separate bank account in the corporation's name

Which of the following is a requirement if you set up a corporation in order to perform real estate services?

Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately.

Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025?

Vacant lot

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

Census tract information

Which of the following is included in HMDA data?

Functional obsolescence

Which of the following might involve old wiring or plumbing?

The service member's length of service, duty status, and character of service determine eligibility.

Which of the following statements about the VA guaranteed home loan program is true?

Stock certificates The FDIC insures deposits such as checking/savings accounts, money market accounts, and certificates of deposit. The FDIC does not insure mutual funds, securities, stocks, bonds, insurance, or annuity products.

Which of the following would the FDIC most likely not insure?

Real Estate Settlement Procedures Act

Which of these acts has special provisions for borrowers who are victims of over-charging?

Home Ownership and Equity Protection Act The Home Ownership and Equity Protection Act (HOEPA) was updated in early 2014 and is an amendment to TILA.

Which of these is actually an amendment to the Truth in Lending Act (TILA)?

Four-unit residence being purchased with a conventional loan

Which of these transactions must comply with Appraiser Independence Requirements?

Fannie Mae

Which secondary market player would be interested in purchasing a loan from a commercial bank?

Schedule B-2

Which section of a commitment identifies exceptions to title insurance coverage?

Mortgage REIT

Which type of real estate investment trust involves both residential and commercial properties?

It offers direct loans, grants, and loan guarantees for housing and other rural needs, as well as advisor services to agricultural producers.

Which type of support does the USDA Rural Development Program offer to its target audience of rural residents?

Veterans Land Program

Which veteran loan program offers qualified veterans help with the purchase of land in Texas?

The funds available to consumers froze.

Which was NOT part of the Fed's program quantitative easing?

Home equity

With this common loan type, the home is used as collateral and the loan creates a second mortgage if the first mortgage hasn't been paid off.

Over supply

In which phase of the real estate market would you expect to see properties selling for more than they're worth, many buyers in the market, and lots of new construction?

Neighborhood characteristics Neighborhood characteristics would be found in the Neighborhood section of the URAR.

What piece of information would an appraiser NOT find in the Subject and Contract sections of the report?

Troubled Asset Relief Program In an effort to stabilize our financial system, boost credit markets, help families avoid foreclosure, and promote economic growth, TARP gave the Treasury permission to spend as much as $700 billion (later reduced to $475 billion).

What program allowed the U.S. Treasury to spend hundreds of billions of dollars to stabilize our financial system, boost credit markets, help families avoid foreclosure, and promote economic growth?

Use housing as a platform for improving quality of life.

When HUD pursues actions that are designed to end homelessness and promote the health and housing stability of vulnerable populations, which of its goals is it supporting?

The trustee executes and records a deed of reconveyance and the lender returns the note to the borrower.

When a borrower has paid off the loan, how is the release handled if the security instrument is a deed of trust?

M3 Items in the M3 category are less liquid than M1 and M2 items. This includes assets in institutional money market funds.

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

There is no mortgage insurance requirement for a VA loan.

When does the need for mortgage insurance end for a borrower who has a VA loan?

Sell securities

When the Treasury collects fewer funds than what is needed to pay the government's bills, what action might it take?

Place lender-acquired insurance on the property and bill the borrower

Which of the following can a lender do if a borrower fails to keep homeowner's insurance on the collateral property?

Comparisons

Which of the following is NOT part of the Other Considerations section of the Loan Estimate?

They don't service the loan beyond placement.

Which of the following is true about mortgage brokers?

Home Affordable Refinance Program (HARP) HARP assisted property owners who took out loans after 2009 at a higher interest rate by offering an option to refinance provided they kept up with their payments.

Which of the following programs broke the normal 80/20 ratio rule usually required as a loan-to-value and offered favorable interest rates?

REIT analysts and bond rating agencies

Which of the following resources are extremely helpful when working with investors?

Payment of closing costs may be negotiated.

Which of the following statements is true regarding closing costs on a VA loan?

Foreign investors may participate. Foreign investors may also participate in the 1031 tax exchange and are subject to the same rules as other investors.

Which of the following statements related to 1031 tax-deferred exchanges is true?

A triplex purchased as a primary residence

Which of the following types of properties may be eligible for purchase by Freddie Mac?

The Federal Housing Finance Agency

Which of the following was created as a result of the Housing and Economic Recovery Act?

A certificate of deposit

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

Set construction standards for homes purchased with FHA loans

Which of these items did the Federal Housing Administration (FHA) implement to stabilize and improve the mortgage market?

A permanent buydown will cost more than a temporary buydown.

Which of these statements about a buydown is true?

The contract for deed is usually used in a seller-financed transaction.

Which statement correctly describes a contract for deed?

Mortgages and home equity credit lines

Which type of federally related lending transaction is covered under RESPA?

Veterans Housing Assistance Program

Which veteran loan program in Texas offers qualified veterans help with the purchase of their primary home?