Chapter 3
Mortgage Broker
A broker who arranges a mortgage loan between a lender and a borrower for a fee.
Which of the following purchases newly originated and seasoned agricultural loans from lenders...?
Farmer Mac
A broker who arranges a mortgage loan between a lender and a borrower for a fee is referred to as a...?
Mortgage broker
Which of the following terms will have the largest monthly mortgage payment...?
10 year loan
If an owner obtained an $80,000 loan on a $100,000 property, what LTV was provided by the lender...?
80% (percent)
Term Mortgage
A mortgage that requires the mortgagor to pay interest only during the mortgage term, with the principal due at the end of the term.
Mortgage Banker
A person whose principal business in the originating, financing, closing, selling and servicing of loans secured by the real property for institutional lenders on a contractual basis.
Which of the followed is asked on a residential loan application...?
Employment history Current monthly housing expenses List of assets and liabilities All of the above
The relationship between the amount of a mortgage loan and the lender's opinion of the value of property pledged to secure payment of the loan is known as the...?
Loan to value ratio
Which of the following is a source of real estate financing...?
Local banks Mortgage banking companies Credit unions All of the above
A person whose principal business is the originating, financing, closing, selling and servicing of loans secured by the real property for institutional lenders on a contractual basis is referred to as a...?
Mortgage banker
What do lenders require from all borrowers prior to issuing a loan...?
Pre-approval
A lender will most likely provide a higher LTV for which of the following property types...?
Primary residence
The primary function of a .......... is to promote thrift and home ownership?
S&L
Once a bank make a loan to a borrower, the bank may sell that loan in which of the following markets...?
Secondary mortgage market
A mortgage payment includes principal, interest, insurance, and...?
Taxes
The Fannie Mae form 1003 is also known as the...?
Uniform Residential Loan Application
Balloon Mortgage
A mortgage in which the scheduled payment will not amortize the loan over the mortgage term; therefore, for the debt to be fully satisfied, a final payment called a balloon payment, larger than the uniform payments, is required.
Lenders base their LTV ratio on which of the following...?
The lesser of the appraised value or the contract price