TX- Real Estate Finance
Open-end mortgages are most commonly found for which property type...?
Agricultural properties
As construction prices increase, demand for new housing generally...?
Decreases
According to RESPA, a referral fee in the form of cash is considered a/an...?
Illegal kickback
Underwriting
The criteria with which a lender determines the credit worthiness in order to qualify them for the loan.
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
The Closing Disclosure must be revised if there is a significant change to which of the following...?
The loan's APR
When Does PMI Disappear
(conventional)When the loan is at 80/20 it disappears at the buyers request. Dissapears immediately at 78 percent
HUD was created in what year...?
1965
A short term real estate cycle is...?
3-5 years
Sub-prime Mortgages (lending
A type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages.
Private Mortgage Insurance (PMI)
A type of mortgage insurance required on conventional loans in which the homebuyer makes a down payment of less than 20% of the purchase price.
The relative cost of credit is also known as the...?
Annual Percentage Rate
Real or personal property which a borrower pledges as security for a loan is known as...?
Collateral
PMI only applies to what types of loans...?
Conventional loans
The right to obtain full ownership of property is known as...?
Equitable title
The Federal Agricultural Mortgage Corporation is known as...?
Farmer Mac
The USDA Rural Development Program combines the Farmers Home Administration, the Agricultural Cooperative Service Administration, and the...?
Rural Development Administration
Which of the following is covered under Title 1 of the Consumer Protection Act of 1968...?
TILA
Equitable Title
The right to obtain full ownership of property.
Consumer Financial Protection Bureau
agency of the United States government responsible for consumer protection in the financial sector. CFPB's jurisdiction includes banks, credit unions, securities firms, payday lenders, mortgage-servicing operations, foreclosure relief services, debt collectors and other financial companies operating in the United States.
federal Home Loan bank System(FHLB)
patterned after The Fed and regulated by the federal housing finance Agency(FHFA). Source the funds of its members and to provide national market for members securities.
The percentage of a sum of money charged for the use of money is referred to as a/an...?
Interest rate
Mortgage insurance offers protection for the...?
Lender
The supply of money which is the least liquid is considered...?
M3
Collateral
Marketable real or personal property which a borrower pledges as security for a loan. In mortgage transactions, specific land is the collateral.
Two or more consecutive quarters of negative growth is known as a...?
Recession
The economy generally grows when which of the following occurs...?
There is an increase in the money supply
The Equal Credit Opportunity Act was enacted in what year...?
1974
As the cost of borrowing money increases, the amount of lending activity will...?
Decrease
To pledge a thing as security without the necessity of giving up possession of it means to...?
Hypothecate
MIP(Mortgage Insurance Premium)
Non conventional loans. Does not ever disappear.
The marketplace whereby loans are originated is referred to as the...?
Primary mortgage market
The Housing Choice Voucher Program is an example of...?
Subsidized housing
Legal Title
The actual ownership of property.
Leverage
The use of debt financing of an investment to maximize the return per dollar of equity invested.
What happens when the Federal Reserve decreases the bank's required reserves amount...?
There is a boost in economic activity
Hypothecate
To pledge a thing as security without the necessity of giving up possession of it.
Which of the following combines the Farmers Home Administration, the Agricultural Cooperative Service Administration and the Rural Development Administration...?
USDA Rural Development Program
The Federal Reserve System includes how many geographical districts...?
12
The Interstate Land Sales Full Disclosure Act was enacted in what year...?
1968
The Interstate Land Sales Full Disclosure Act
1968 (ILSFDA or ILSA or "Act") was an act of Congress passed in 1968 to facilitate regulation of interstate land sales, to protect consumers from fraud and abuse in the sale or lease of land.
A completed Closing Disclosure form must be provided to the borrower at least ..............prior to closing?
3 days
The lender must provide the borrower with a Loan Estimate form within how many days of the loan application being filed..?
3 days
The Federal Reserve was established in what year...?1
913
Real Estate Settlement Procedures Act (RESPA
A consumer protection statute, first passed in 1974. The purpose of RESPA are: 1) To help consumers become better shoppers for settlement services and 2) To eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.
Conventional Loan
A mortgage securing a loan made by investors without governmental underwriting, i.e., which is not FHA insured or VA guaranteed. This type of loan is customarily made by a bank or savings and loan association.
Mortgage Insurance Premium (MIP)
A one-time premium paid at the closing pursuant to the purchase.
Fannie Mae
An acronym nickname for Federal National Mortgage Association (FNMA), a privately owned corporation that purchases FHA, VA, and conventional mortgages.
CDBG(Community Development Block Grants)
Community Economic Development an Job opportunities and Housing Development. Grants provided based on community needs. Grants from Govt. To CDBG to help redevelop areas that need to be rehabbed
Which of the following is responsible for the enforcement of the Interstate Land Sales Disclosure Act...?
Consumer Financial Protection Bureau
Consumer Financial Protection Bureau
Created after the sub-prime crisis in 2018
The failure to fulfill a duty or promise is known as...?
Default
The minimum interest rate set by the Federal Reserve for lending to other banks is known as the...?
Discount rate
Some lenders may require funds for property taxes and other property-related expenses to be held in a/an...?
Escrow account
The Farm Credit Administration regulates the ...........institutions?
FCS
HUD oversees which of the following...?
FHA, GNMA, Housing choice vouchers
Default
Failure to fulfill a duty or promise or to discharge an obligation; omission or failure to perform any act.
This is a federal prohibition on discrimination in sale, rental, financing, or appraisal of housing on the basis of race, color, religion, gender, national origin, handicap, or familial status...?
Fair Housing Act of 1968
The Federal National Mortgage Association is also known as...?
Fannie Mae
This is a privately owned corporation that purchases FHA, VA, and conventional mortgages...?
Fannie Mae
Farmers and ranchers can obtain a loan through which of the following...?
Farm Credit System
Which of the following has broad powers in controlling credit and the amount of money in circulation in the United States...?
Federal Reserve
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...?
Foreclosure
The lender's estimate of the borrower's settlement costs is known as a...?
Good Faith Estimate
administration of U.S. government housing and urban development programs...?
HUD
Sara is working with a bank to obtain financing on her new house. According to the ECOA, the bank is prohibited from asking Sara which of the following...?
If Sara is divorced, If Sara receives child support, If Sara intends to have a baby in the near future, All of the above
If demand is high and supply is low, real estate prices will...?
Increase
Which of the following are responsible for bringing industries to a region in an effort to improve community growth...?
Industrial Development Agencies
The use of debt financing of an investment to maximize the return per dollar of equity invested is known as...?
Leverage
RESPA requires lenders to provide borrowers with which of the following...?
Loan Estimate
According to the Good Faith Estimate, a borrower's interest rate can change until the borrower does which of the following...?
Locks-in the interest rate
Money that is easily obtainable is considered...?
M1
The supply of less liquid money is considered...?
M2
If a borrower obtains an FHA insured loan and only makes a down payment of 5%, what must the borrower purchase...?
Mortgage Insurance Premium
Which of the following mortgage types allows for more flexible payments from the borrower...?
Open-end mortgage
According to the Good Faith Estimate form, the borrower's Adjusted Origination Charges equal the amount of points paid plus the...?
Origination charge
A borrower's Charges for All Other Settlement Services, as stated in the Good Faith Estimate, includes which of the following...?
Owners title policy
The Federal Deposit Insurance Corporation (FDIC)
Preserves and promotes public confidence in the U.S. financial system by insuring deposits in banks and thrift institutions for at least $250,000; by identifying, monitoring and addressing risks to the deposit insurance funds; and by limiting the effect on the economy and the financial system when a bank or thrift institution fails.
This refers to a type of mortgage insurance required on conventional loans in which the homebuyer makes a down payment of less than 20% of the purchase price...?
Private Mortgage Insurance
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
The Consumer Financial Protection Bureau oversees the enforcement of which of the following statutes...?
RESPA
Which of the following statutes helps consumers become better shoppers for settlement services...?
RESPA
Which of the following are covered under TILA...?
Real estate loans under 50,000 dollars,Personal loans under 50,000 dollars, Consumer loans under 50,000 dollars, All of the above
The Truth in Lending Act is also known as...?
Regulation Z
The Equal Credit Opportunity Act prohibits discrimination against which of the following protected classes...?
Religion, Marital status, National origin, All of the above
The Farm Credit System provides loans for which of the following...?
Rural homeowners
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is referred to as the...?
Secondary mortgage market
The Housing Choice Voucher Program was formally known as...?
Section 8. Give rental subsidy to people who are below poverty. Food stamps for rent
Which of the following may impact real estate cycles...?
Social attitudes, Taxes, Property values
This refers to a type of loan granted to individuals with poor credit histories (often below 600), who, as a result of their deficient credit ratings, would not be able to qualify for conventional mortgages...?
Sub-prime mortgage
The Closing Disclosure includes which of the following information...?
Summary of actual loan terms, Other settlement costs, Loan costs, All of the above
The Loan Estimate provides the borrower with which of the following information...?
Summary of loan terms, Estimated loan costs, Closing costs, All of the above
HUD is responsible for which of the following activities...?
Supervise the FHA, Direct Ginnie Mae activities, Enforce the Fair Housing Act
Discount Rate
The minimum interest rate set by the Federal Reserve for lending to other banks.