section 15 Unit 1
Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project?
A life insurance company
How did deregulation of the banking industry negatively affect savings and loans?
It allowed other commercial lenders to compete on a more even playing field, thus giving borrowers more options for real estate funding.
Which of the following is a true statement regarding savings and loans?
They were originally formed to encourage residential lending.
What's the role of the primary mortgage market?
To work with borrowers in originating and funding mortgage loans
What's the role of S&Ls in today's mortgage market?
Today's S&Ls function in a nearly identical way to other commercial banks, so their role is similar to other commercial lenders'.
Which four of these are players in the primary mortgage market?
commercial banks, savings and loans, mortgage brokers, credit unions
A new apartment building is going up downtown. The owner secured interim financing for the job. Which of these loan types is interim financing?
construction loan
The primary source of funds for commercial banks is __________ deposits, or checking accounts.
demand
Match each revenue source with the correct word to indicate whether it's a demand deposit or another type of commercial bank revenue. Savings account
demand deposit
Match each revenue source with the correct word to indicate whether it's a demand deposit or another type of commercial bank revenue. checking account
demand deposits
What's the primary source of funds for commercial banks?
demand deposits
home __________ loans may be used for almost any purpose.
equity
A number of factors contributed to the meltdown of savings and loan associations in the 1980s. Which of these were contributing factors? deregulation of the banking industry
factor
A number of factors contributed to the meltdown of savings and loan associations in the 1980s. Which of these were contributing factors? disintermediation
factor
A number of factors contributed to the meltdown of savings and loan associations in the 1980s. Which of these were contributing factors? funding high-risk loans and making poor investments
factor
Which are true of the primary mortgage market? It purchases loans from other lenders.
false
Which of the following statements are true regarding the SAFE Act? The SAFE Act requires all mortgage bankers and brokers to have a certifies safe on site
false
Which of the following statements are true regarding the SAFE Act? all mortgage bankers and brokers are required to be listed in the national registry under the SAFE ACT
false
true or false commercial banks don't provide manufactured home loans
false
true or false commercial banks only provide traditional mortgages
false
true or false life insurance companies don't participate in the secondary mortgage Market
false
true or false regarding life insurance it's not a good idea to seek financing from life insurance company, because the market is unstable
false
true or false regarding life insurance life insurance companies provide loans for traditional, single-family dwellings
false
which are true of the primary mortgage market? its prohibited from requiring loan underwriting
false
Which four of these are areas in which life insurance companies would likely participate in real estate funding?
hospitals, shopping centers, high-rise buildings, and apartment complexes
Home _________ loans must be specifically for additions or improvements
improvement
Commercial banks are part of a classification of lenders known as _______lender's.
institutional
Commercial banks offer real estate-related loans for several different purposes. Construction loans are a type of ______ financing.
interim
Which of the following is a characteristic of the primary mortgage market?
it works directly with borrowers to fund loans
Select the method of producing income for each description. Collects origination fees, discount points, and monthly interest payments from borrowers
loan origination
Select the method of producing income for each description. Collects mortgage payments, processes tax and insurance payments, and prepares records for other lenders
loan servicing
Some commercial banks offer mobile home loans, and most offer traditional ________loans.
mortgage
Drag the loan-related activities into the box to indicate which mortgage professionals handle which task. Originate their own loans
mortgage bankers
Drag the loan-related activities into the box to indicate which mortgage professionals handle which task. paid through fees from originating and servicing loans
mortgage bankers
Drag the loan-related activities into the box to indicate which mortgage professionals handle which task. stay with the loan for its entire lifecycle
mortgage bankers
Drag the loan-related activities into the box to indicate which mortgage professionals handle which task. don't service the loan beyond placement
mortgage broker
Drag the loan-related activities into the box to indicate which mortgage professionals handle which task. paid a placement fee for matching borrower with lender
mortgage broker
Drag the loan-related activities into the box to indicate which mortgage professionals handle which task. work with many lenders
mortgage brokers
A number of factors contributed to the meltdown of savings and loan associations in the 1980s. Which of these were contributing factors? Stagnant interest rates
not a factor
In what three ways does the original bank that issued the loan make money from a MBS?
originating the loan, servicing the loan, and charging other associated fees.
Match each revenue source with the correct word to indicate whether it's a demand deposit or another type of commercial bank revenue. IRA
other revenue
Match each revenue source with the correct word to indicate whether it's a demand deposit or another type of commercial bank revenue. bond
other revenue
Match each revenue source with the correct word to indicate whether it's a demand deposit or another type of commercial bank revenue. trust account
other revenue
Select the method of producing income for each description. Sells the flow of principal and interest to investors
packaging and selling loans
Mortgage bankers are mostly what type of enterprise?
private
what is a primary mortgage market?
the market in which loans are originated/created/funded by the lender
Which three of the following statements are true about mortgage bankers?
they're mostly private enterprises, they stay involved with a loan through its entire lifecycle, and they get paid through fees from originating and service loans
Which of the following statements are true regarding the SAFE Act? The SAFE Act provides more consumer protection
true
Which of the following statements are true regarding the SAFE Act? The SAFE Act was signed into law in 2008.
true
true or false commercial banks provide home equity loans
true
true or false commercial banks rely mostly on demand deposits for their supply of funds
true
true or false construction loans are a type of interim financing provided by commercial banks
true
true or false regarding life insurance life insurance companies prefer to finance large commercial projects such as shopping malls
true
true or false regarding life insurance participation financing is a way for life insurance combines to have partial ownership in large projects
true
which are true of the primary mortgage market? it may keep and service its own loan or sell them on the secondary market.
true
which are true of the primary mortgage market? it works directly with borrowers
true
