(6) QUIZ - Texas Real Estate Finance
HUD oversees which of the following...? FHA All of the above Housing choice vouchers GNMA
All of the above
Instruments of credit can do which of the following...? Be regulated by member banks of the Federal Reserve Collect and clear checks All of the above Administer credit controls
All of the above
The Closing Disclosure includes which of the following information...? Summary of actual loan terms Other settlement costs Loan costs All of the above
All of the above
The Equal Credit Opportunity Act prohibits discrimination against which of the following protected classes...? Religion Marital status National origin All of the above
All of the above
The Federal Reserve is responsible for which of the following...? All of the above Influence the availability of money and credit Establishing facilities for the sale of commercial paper Supervise banking activities
All of the above
Which of the following may impact real estate cycles...? Social attitudes Taxes Property values All of the above
All of the above
Which of the following operates in the secondary mortgage market...? Fannie Mae Freddie Mac Ginnie Mae All of the above
All of the above
Which of the following participates in the secondary mortgage market...? Freddie Mac Ginnie Mae All of the above Fannie Mae
All of the above
The relative cost of credit is also known as the...? Annual Percentage Rate Relative Interest Rate Simple Interest Rate Variable Interest Rate
Annual Percentage Rate
Each district within the Federal Reserve is overseen by a...? Board of Associates President Attorney General Board of Directors
Board of Directors
When using leverage to help purchase a residential property, what is typically used to cover the remainder of the purchase price...? Options money Seller financing Credit cards Cash down payment
Cash down payment
Real or personal property which a borrower pledges as security for a loan is known as...? Accessory Chattel Collateral Substantial property
Collateral
Which of the following is responsible for the enforcement of the Interstate Land Sales Disclosure Act...? HUD OCC FHA Consumer Financial Protection Bureau
Consumer Financial Protection Bureau
PMI only applies to what types of loans...? Conventional loans All of the above VA loans FHA insured loans
Conventional loans
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 minimum interest rate set by the Federal Reserve for lending to other banks is known as the...? Subprime rate Discount rate Starter rate Prime lending rate
Discount rate
The right to obtain full ownership of property is known as...? Equitable title Legal title Secure title Full title
Equitable title
Some lenders may require funds for property taxes and other property-related expenses to be held in a/an...? Escrow account Personal bank account Personal checking account Broker account
Escrow account
The Farm Credit Administration regulates the ...........institutions? HUD CFPB FCS FDIC
FCS
Which of the following helps to limit the impact on the economy and the financial system when a bank or thrift institution fails...? TILA RESPA FDIC FHLB
FDIC
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 1866 Fair Housing Act of 1968 ADA TILA
Fair Housing Act of 1968
Conforming loans must meet the guidelines of...? FDIC Wall street Fannie Mae RESPA
Fannie Mae
The Federal National Mortgage Association is also known as...? Freddie Mac Fannie Mae Farmer Mac Ginnie Mae
Fannie Mae
This is a privately owned corporation that purchases FHA, VA, and conventional mortgages...? Freddie Mac Fannie Mae Farmer Mac Ginnie Mae
Fannie Mae
Farmers and ranchers can obtain a loan through which of the following...? CRA CDBG Farm Credit System All of the above
Farm Credit System
The Federal Agricultural Mortgage Corporation is known as...? Farmer Mac Freddie Mac Fannie Mae Ginnie Mae
Farmer Mac
Freddie Mac is also known as the...? Government National Mortgage Association Federal National Mortgage Association Federal Home Loan Mortgage Corporation Federal Housing Finance Association
Federal Home Loan Mortgage Corporation
The lender's estimate of the borrower's settlement costs is known as a...? HUD-1 Settlement Statement Good Faith Estimate Closing Statement Summary of Loan Statement
Good Faith Estimate
Which of the following programs is offered by HUD...? Seller Exchange Program Good Neighbor Next Door Program All of the above First-Time Homebuyer Loan Program
Good Neighbor Next Door Program
Which of the following is responsible for the implementation and administration of U.S. government housing and urban development programs...? OCC FHA HUD FDIC
HUD
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
Which of the following are responsible for bringing industries to a region in an effort to improve community growth...? Economic Growth Agencies Private Development Agencies Industrial Development Agencies Corporate Development Agencies
Industrial Development Agencies
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
Mortgage insurance offers protection for the...? Borrower Lender Seller Buyer
Lender
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
The secondary mortgage market offers ..............for the primary mortgage market? Support Supply Buyers Liquidity
Liquidity
The secondary mortgage market offers ...........for the primary mortgage market? Loans Insurance Liquidity Warranties
Liquidity
RESPA requires lenders to provide borrowers with which of the following...? Title insurance Closing Statement Loan Estimate Letter of Intent
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 Moves into the property Signs the purchase contract Performs their due diligence
Locks-in the interest rate
Money that is easily obtainable is considered...? M1 M2 M3 M4
M1
The supply of less liquid money is considered...? M1 M2 M3 M4
M2
The supply of money which is the least liquid is considered...? M1 M2 M3 M4
M3
If a borrower obtains an FHA insured loan and only makes a down payment of 5%, what must the borrower purchase...? Conventional Mortgage Insurance Mortgage Insurance Premium Private Mortgage Insurance Conforming Mortgage Insurance
Mortgage Insurance Premium
Which of the following is an example of using leverage in a real estate transaction...? Inheriting a property from a family member All of the above Obtaining financing to purchase a property Purchasing a property using all cash
Obtaining financing to purchase a property
According to the Good Faith Estimate form, the borrower's Adjusted Origination Charges equal the amount of points paid plus the...? Broker's fee Closing costs Origination charge Lender attorney fees
Origination charge
A borrower's Charges for All Other Settlement Services, as stated in the Good Faith Estimate, includes which of the following...? Closing costs Broker fees Owner's title policy Origination charge
Owner's title policy
Justin obtained a mortgage from his local bank in order to purchase a new house. Justin was operating in the...? Primary mortgage market Secondary mortgage market Front-end mortgage market Back-end mortgage market
Primary mortgage market
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
The amount borrowed is known as...? Interest Deposit Principal Reserves
Principal
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 Mortgage Insurance Premium Conventional Mortgage Insurance Conforming Mortgage Insurance
Private Mortgage Insurance
Which of the following serves as evidence of a debt...? Promissory note Collateral Title Credit
Promissory note
The Consumer Financial Protection Bureau oversees the enforcement of which of the following statutes...? CRA CDBG FDIC RESPA
RESPA
Which of the following statutes helps consumers become better shoppers for settlement services...? CRA CDBG FDIC RESPA
RESPA
Two or more consecutive quarters of negative growth is known as a...? Regression Rebound Recovery Recession
Recession
The Truth in Lending Act is also known as...? Regulation X TARP RESPA Regulation Z
Regulation Z
The Farm Credit System provides loans for which of the following...? First-time homebuyers Commercial investors Urban developers Rural homeowners
Rural homeowners
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is known as the...? Front-end mortgage market Secondary mortgage market Back-end mortgage market Stock market
Secondary mortgage market
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
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...? Prime mortgage Premium mortgage Discount mortgage Sub-prime mortgage
Sub-prime mortgage
The Housing Choice Voucher Program is an example of...? Subsidized housing Incentive housing Renewal housing Standard housing
Subsidized housing
The more money an individual has, the more purchasing power they have...? T (True) F (False)
T (True)
Which of the following is covered under Title 1 of the Consumer Protection Act of 1968...? HDIC TARP TILA RESPA
TILA
The Closing Disclosure must be revised if there is a significant change to which of the following...? The effective date of contract The loan's APR The closing location All of the above
The loan's APR
What happens when the Federal Reserve decreases the bank's required reserves amount...? Economic activity slows down There is a boost in economic activity Lending on real estate transaction decreases The real estate market stalls
There is a boost in economic activity
The economy generally grows when which of the following occurs...? There is an increase in the money supply There is a decrease in the money supply When the money supply remains even A decrease in the population
There is an increase in the money supply
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...? Troubled Asset Relief Program The Federal Deposit Insurance Corporation Truth in Lending Act Office of the Comptroller of the Currency
Truth in Lending Act
Which of the following combines the Farmers Home Administration, the Agricultural Cooperative Service Administration and the Rural Development Administration...? Federal Agricultural Mortgage Corporation FCS Farm Credit System USDA Rural Development Program
USDA Rural Development Program
A long term real estate cycle is typically...? 1-2 years 10-15 years 3-5 years 5-7 years
10-15 years
The Federal Reserve System includes how many geographical districts...? 6 8 12 20
12
The Federal Reserve was established in what year...? 1913 1931 1945 2009
1913
HUD was created in what year...? 1933 1965 1988 2009
1965
The Interstate Land Sales Full Disclosure Act was enacted in what year...? 1964 1968 1974 1988
1968
The Equal Credit Opportunity Act was enacted in what year...? 1933 1964 1974 2001
1974
A completed Closing Disclosure form must be provided to the borrower at least ..............prior to closing? 3 days 7 days 10 days 14 days
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 5 days 7 days 14 days
3 days
A short term real estate cycle is...? 1-2 years 3-5 years 5-7 years 10-12 years
3-5 years
A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise, is known as a/an...? Adjustable Rate Mortgage Fixed Interest Rate Loan Term Loan Straight Loan
Adjustable Rate Mortgage
To pledge a thing as security without the necessity of giving up possession of it means to...? Record Acknowledge Notarize Hypothecate
Hypothecate
What is the minimum down payment for an FHA insured loan...? 10 Percent (%) 20 Percent (%) 3.5 Percent (%) 50 Percent (%)
3.5 Percent (%)
Open-end mortgages are most commonly found for which property type...? Agricultural properties Commercial properties Single family homes Industrial properties
Agricultural properties
National member banks of the Federal Reserve must do which of the following...? Maintain reserves Clear checks Comply with the rules and regulations of the Federal Reserve All of the above
All of the above
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
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
All of the above
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
All of the above
Which of the following operates in the primary mortgage market...? Commercial banks Fannie Mae Freddie Mac Ginnie Mae
Commercial banks
The Consumer Financial Protection Bureau enforces which of the following...? Home Mortgage Disclosure Act FNMA Community Reinvestment Act FHLB
Community Reinvestment Act
Loans processed on uniform loan forms according to FNMA/FHLMC guidelines are known as...? Conforming loans Conventional loans Non-conforming loans Private loans
Conforming loans
This is a number assigned to a person that indicates to lenders their capacity to repay a loan...? Credit score Underwriting score Loan estimate score Financial score
Credit score
As the cost of borrowing money increases, the amount of lending activity will...? Increase Decrease Remain the same The cost of borrowing money is not related to lending activity
Decrease
Which of the following originates long-term mortgages for farmers and ranchers...? Unimproved Land Association Raw Land Bank Production Credit Association Federal Land Bank Association
Federal Land Bank Association
Which of the following has broad powers in controlling credit and the amount of money in circulation in the United States...? Attorney General Department of Finance Federal Reserve U.S. Comptroller
Federal Reserve
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
Under the .............., mortgage originators must report the racial characteristics and gender of their applicants? Home Mortgage Disclosure Act Community Reinvestment Act Equal Credit Opportunity Act Fair Housing Act
Home Mortgage Disclosure Act
According to RESPA, a referral fee in the form of cash is considered a/an...? Commission Gift Illegal kickback All of the above
Illegal kickback
A loan whose amount is above conventional conforming loan limits set by Fannie Mae and Freddie Mac is known as a...? ARM Commercial loan Term loan Jumbo loan
Jumbo loan
The actual ownership of property is known as...? Secure title Equitable title Recorded title Legal title
Legal title
Which of the following mortgage types allows for more flexible payments from the borrower...? Conventional mortgage Open-end mortgage Fixed-rate mortgage FHA insured mortgage
Open-end mortgage
The Housing Choice Voucher Program was formally known as...? Section 8 Section 12-A CRA TARP
Section 8
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