Gold coast chapter 13 /

with an adjustable rate mortgage, if a payment is not sufficient to cover the interest amount due, the unpaid interest amount may be added to the loan balance. What is the term used to describe this situation? A. Negative amortisation B. Warehousing C. Indexing D. Predatory lending

A. Negative amortisation

interest rates for federal housing administration mortgages are determined by which of the following? A. The market B. FHA C. The government D. The Congress

A. The market

Mortgage loan originators blank loans and mortgage lenders blank loans

Arranged, originated or make

If a mortgage loan payment consists of interest only, what is the final payment (which includes the full amount borrowed) called? A. Monthly payment B. Balloon payment C. Amortized payment D. Term payment

B. Balloon payment

What is the major source of funds for large commercial real estate developments? A. Savings associations B. Commercial Banks C. Life insurance companies D. Mutual savings Banks

B. Commercial Banks

The Federal national mortgage association was originally formed to purchase what type of loans? A. Conventional B. FHA c. VA d. Deeds of trust

B. FHA

which of the following statements best describes the secondary mortgage market? A. It is the market where secondary mortgages are sold B. It is where loans originated in the primary market are sold C. It is where loans may only by private parties are sold D. It is the market where second mortgages are originated

B. It is where loans originated in the primary market are sold

prior to deregulation of the banking industry in the 1980s, which institution were dominant in providing funds for the purchase of single-family residences? A. Commercial Banks B. Savings associations C. The FHA D. Mortgage loan originators

B. Savings association

What will be the effect if the Federal reserve board decides to purchase government securities in the open market? A. The money supply will decrease and interest rates will increase B. The money supply will increase and interest rates will decrease C. The amount of money that member banks may use for loan purposes will be limited, thereby causing interest rates to increase d. A tight money market will be created

B. The money supply will increase in the interest rates will decrease

When does disintermediation occur? a. When deposits exceed the demand for loans B. When deposit or withdraw their savings from depository institutions to invest in higher yield alternative investments C. When the internal revenue service taxes earnings of investments D. When the Federal reserve board reduces the discount rate

B. When deposit or withdraw their savings from depository institutions to invest and higher yield alternative investments

A real estate investment trust, or REIT, is formed as an blank blank and operates similarly to an blank blank

Business trust, mutual fund

How are mortgage loan originators usually compensated for their services? A. Monthly loan service fee B. Salary C. Finder's fee or commission D. Share of the borrower's assets

C. Finder's fee or commission

which of the following statements regarding types of mortgage loans is correct? A. Both the FHA and the VA make loans B. FHA loans are guaranteed C. The FHA insures loans. VA loans are guaranteed. D. Conventional loans are insured by the government

C. The FHA insures loans. VA loans are guaranteed

Which group of financial institutions traditionally preferred to make a short-term loans for construction? A. Mutual savings Banks B. Savings associations C. Life insurance companies using a mortgage broker D. Commercial Banks

D. Commercial Banks

Jerry has a 15 year loan with monthly payments that remain the same amount for the entire loan period. which type of mortgage repayment plan does Jerry have? A. Adjustable-rate b. Indexed c. Partially amortized D. Level payment

D. Level payment

lenders who make conventional loans where the buyer provides less than a 20% down payment will normally require that the borrower pay which of the following? A. Upfront mortgage insurance premium payments (UFMIP) B. Uninsured primary mortgage or insurance (UPMI) C. Mortgage insurance premium payments (MIP) D. Private mortgage insurance (PMI)

D. Private mortgage insurance

Which clause in a blanket mortgage allows for the release of a single parcel upon payment of a specified sum? A. Defeasance B. Acceleration C. Satisfaction D. Release

D. Release

The Federal reserve system is least effective tool to affect the money supply is the ability to change the blank blank

Discount rate

The Federal national mortgage association, Fannie Mae, was originally created to buy ______ loans

FHA

the government-owned organization operating in the secondary mortgage market to make low yield, high risk loans marketable is the blank blank blank blank or nicknamed ______

Government national mortgage association, Ginnie Mae

A _____ is a loan secured by the equity in a home and generally must be repaid over a fixed loan period. a blank is a revolving line of credit obtained against the equity of a home, in which the borrower can draw funds as needed

Home equity loan, HELOC

the Federal reserve should decide to buy government securities, the money supply would ______ in the interest rates would ______

Increase, decrease

The flow of funds into deposits held by primary leaders that increase the mortgage money supply is referred to as blank

Intermediation

The secondary mortgage market provides blank to the primary mortgage market

Litquidity

Life insurance companies are the largest source of funds for ______ loans

Non-residential

the Federal reserve system's most effective tool to affect the money supply is referred to as blank blank blank

Open market operations

The primary mortgage market is where loans are blank

Originated

A lender that prefers to keep a loan rather than sell it in the secondary market is called a blank lender

Portfolio

The process of qualifying a buyer and a property in connection with a loan application is known as mortgage blank

Underwriting

a loan applicants past credit history indicates they are blank to honor debt obligations, and their income is a measure of the blank to repay the loan

Willingness, ability