Texas Real Estate Finance - Chp. 1 - The Nature and Cycle of Real Estate Finance
Primary Mortgage Market
- The marketplace whereby loans are originated.
Secondary Mortgage Market
- The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold.
A short term real estate cycle is...? 1-2 years 3-5 years 5-7 years 10-12 years
3-5 years
Real or personal property which a borrower pledges as security for a loan is known as...? Accessory Chattel Collateral Substantial property
Collateral
As construction prices increase, demand for new housing generally...? Increases Decreases Remains the same Construction prices and demand for new housing are not related
Decreases
The failure to fulfill a duty or promise is known as...? Execution Hypothecate Default Performance
Default
The right to obtain full ownership of property is known as...? Equitable title Legal title Secure title Full title
Equitable title
Default -
Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act.
Promissory Note -
Following a loan commitment from the lender, the borrower signs a note, promising to repay the loan under stipulated terms. The promissory note establishes personal liability for its payment. The evidence of the debt
A procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms is known as...? Police power Foreclosure Condemnation Hypothecate
Foreclosure
To pledge a thing as security without the necessity of giving up possession of it means to...? Record Acknowledge Notarize Hypothecate
Hypothecate
If demand is high and supply is low, real estate prices will...? Increase Decrease Remain the same Real estate prices are not related to supply and demand
Increase
The percentage of a sum of money charged for the use of money is referred to as a/an...? Discount rate Lending rate Charge rate Interest rate
Interest rate
The use of debt financing of an investment to maximize the return per dollar of equity invested is known as...? Collateral Hypothecate Leverage Pledge
Leverage
Collateral -
Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral.
The marketplace whereby loans are originated is referred to as the...? Primary mortgage market Secondary mortgage market Stock exchange Front-end mortgage market
Primary mortgage market
Foreclosure -
Procedure whereby property pledged for a debt is sold to pay the debt in event of default in payments or terms.
Which of the following serves as evidence of a debt...? Promissory note Collateral Title Credit
Promissory note
Two or more consecutive quarters of negative growth is known as a...? Regression Rebound Recovery Recession
Recession
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is referred to as the...? Back-end mortgage market Secondary mortgage market Stock exchange Liquid mortgage market
Secondary mortgage market
Which of the following may impact real estate cycles...? Social attitudes Taxes Property values All of the above
Social attitudes Taxes Property values All of the above
Legal Title -
The actual ownership of property.
James needed to obtain financing to purchase a new house. What will most likely be used as collateral for James' loan...? The house James purchased James' car James' bank account James' old house
The house James purchased
Interest Rate -
The percentage of a sum of money charged for its use. Rent or charge paid for use of money, expressed as a percentage per month or year of the sum borrowed.
Equitable Title -
The right to obtain full ownership of property.
Leverage -
The use of debt financing of an investment to maximize the return per dollar of equity invested.
Hypothecate -
To pledge a thing as security without the necessity of giving up possession of it.
