Texas Real Estate Finance Quiz

1 percent (%)

1 point is equal to...?

Promissory note

A borrower is said to be in default of their loan if they do not abide by the terms of the...?

Specific lien

A mortgage lien is an example of a...?

Conventional loan

A mortgage made without governmental underwriting is referred to as a/an...?

Interest only loan

A term loan is an example of a/an...?

6 percent (%)

According to FHA guidelines, the seller can contribute up to ...........of the sales price towards the buyer's closing costs?

Fair market value

An appraisal determines an estimate of...?

Prorated

At closing, property taxes are ............between the buyer and seller?

Board of Directors

Each district within the Federal Reserve is overseen by a...?

Legal title

The actual ownership of property is known as...?

41 percent (%)

The maximum debt-to-income ratio for a VA loan is...?

31 percent (%)

What is the maximum front-end debt-to-income ratio on an FHA loan...?

Equitable title

When a borrower hypothecates their property, the lender will maintain...?

HAMP

Which of the following is a governmental loan modification program...?

Like-kind properties

A 1031 exchange allows capital gains taxes to be deferred on...?

Lease-purchase agreement

A Lease with Option to Purchase is also known as a...?

100 investors

A REIT must be owned by at least...?

The borrower

A Uniform Residential Loan Application gets filled out by which of the following...?

Voluntary conveyance of deed

A deed in lieu of foreclosure is an example of a...?

Moratorium

A forbearance on a note is known as a...?

Mechanic's lien

A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as a...?

Involuntary lien

A lien imposed against property without consent of an owner is known as a/an...?

General lien

A lien on all the property of a debtor is known as a...?

Specific lien

A lien that attaches to one specific property only is known as a...?

10-15 years

A long term real estate cycle is typically...?

Mortgage interest Fees associated with originating mortgages Selling mortgages

A mortgage REIT primarily earns their income from which of the following...?

Services

A mortgage banker originates and ...........loans?

Deed of Trust

A non-judicial foreclosure may be used on a...?

Legal rights

According to lien theory, the lender retains equitable rights to the property, while the borrower retains...?

Urban Development Act of 1968

Ginnie Mae was created under the...?

Supervise the FHA Direct Ginnie Mae activities Enforce the Fair Housing Act

HUD is responsible for which of the following activities...?

FHA GNMA Housing choice vouchers

HUD oversees which of the following...?

The buyer

If a buyer assumes a seller's existing mortgage, who is responsible for the payments on the mortgage...?

2,000 dollars

If a lender charges an origination fee of 2 points on a $100,000 loan, how much is paid in origination fees...?

Deficiency Judgment

If a property is sold at a foreclosure auction for an amount less than the amount of outstanding debt on the property, the lender may file for a...?

Strict foreclosure

In a ..............., the court establishes a specific date for the defaulted amount to be paid?

Monthly payments

In a typical fixed interest rate loan, the longer the term, the lower the...?

1989

Loans that were originated prior to ........are generally assumable?

Maintain reserves Clear checks Comply with the rules and regulations of the Federal Reserve

National member banks of the Federal Reserve must do which of the following...?

Conventional loans

PMI only applies to what types of loans...?

20 Percent (%)

Private mortgage insurance is not needed if the borrower makes a down payment of at least...?

Community Reinvestment Act

The Consumer Financial Protection Bureau enforces which of the following...?

Establishing facilities for the sale of commercial paper Supervise banking activities Influence the availability of money and credit

The Federal Reserve is responsible for which of the following...?

Subsidized housing

The Housing Choice Voucher Program is an example of...?

U.S. Treasury

The Office of the Comptroller of the Currency falls under the control of the...?

Rural Development Administration

The USDA Rural Development Program combines the Farmers Home Administration, the Agricultural Cooperative Service Administration, and the...?

Manufacturing U.S. coins

The United States Mint is responsible for which of the following...?

Principal

The amount borrowed is known as...?

Interest rate

The cost of borrowing money is expressed as a/an...?

Cash from the borrower A gift received by the borrower from a family member A grant received by the borrower

The down payment for an FHA insured loan may be paid using which of the following...?

Beneficiary

The lender on the security of a note and deed of trust is known as the...?

Borrower

The mortgagor is the...?

Liquidity

The secondary mortgage market offers ..............for the primary mortgage market?

Sub-prime loan

This type of loan may be offered to individuals who do not qualify for prime rate loans...?

2 months

Under an FHA loan, default occurs after ...........of non-payment by the borrower?

Home Mortgage Disclosure Act

Under the .............., mortgage originators must report the racial characteristics and gender of their applicants?

Seller concessions

VA loans allow up to 4% in ................towards the buyer?

43 percent (%)

What is the maximum back-end debt-to-income ratio on an FHA loan...?

1 percentage point

What is the maximum interest rate change in any one year of a VA adjustable rate mortgage...?

5 percentage points

What is the maximum interest rate change over the life of a VA adjustable rate mortgage...?

3.5 Percent (%)

What is the minimum down payment for an FHA insured loan...?

20 percent (%)

What is the minimum down payment required on an FHA insured loan for a residential investment property...?

Appraisal

When applying for a VA loan, the Certificate of Reasonable Value essentially serves as the...?

Cash down payment

When using leverage to help purchase a residential property, what is typically used to cover the remainder of the purchase price...?

Equity REIT

Which of the following REITs directly invests in properties and earns income from rents and sales...?

Leasehold Estate

Which of the following estate offers the right of possession and control, but not title...?

FDIC

Which of the following helps to limit the impact on the economy and the financial system when a bank or thrift institution fails...?

Income capitalization approach Cost approach Sales comparison approach

Which of the following is a major valuation method used by appraisers...?

Obtaining financing to purchase a property

Which of the following is an example of using leverage in a real estate transaction...?

MIP

Which of the following is paid on FHA insured loans where the borrower puts down a minimum down payment...?

Tax lien

Which of the following liens takes the highest priority over other liens...?

Reverse annuity mortgage

Which of the following loans are typically utilized by senior homeowners...?

Family and friends Insurance company Commercial bank

Which of the following may be a lender in a real estate transaction...?

Federal Land Bank Association

Which of the following originates long-term mortgages for farmers and ranchers...?

Fannie Mae Freddie Mac Ginnie Mae

Which of the following participates in the secondary mortgage market...?

Good Neighbor Next Door Program

Which of the following programs is offered by HUD...?

Freddie Mac Fannie Mae Ginnie Mae

Which of the following provides liquidity for lenders in the primary mortgage market...?

Truth in Lending Act

Which of the following was designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction...?