TX RE Finance Missed Questions

who was killed in action. When she uses the VA loan to buy her first home, what O Pattie is the widow of Oscar, a member of the Army percentage of her loan amount will be charged as a funding fee?

0%

A key benefit of the VA guaranteed loan for veterans is the feature.

100% financing

The Ropers are purchasing a home using VA financing. The sales price of the home is $210,000. The CRV comes in at $215,000. On what number will the VA's loan guarantee be

210,000 the sale price.

A buyer can obtain a qualified mortgage with a debt-to-income ratio of______________.

38%

Farm Credit System is______________.

A government-sponsored enterprise. GSE

Which of the following best describes a non-recourse mortgage?

A mortgage with a clause that prohibits the lender from suing the borrower for unpaid amounts if foreclosure occurs.

Robin has great credit and was year, fixed-rate loan is for an amount that's above conventional loan limits. What type of loan able to secure a loan for her ocean-side dream home. Her 30- does Robin have?

A non conforming loan.

Which of these statements about a buydown is true?

A permanent buydown will cost more than a temporary buydown.

Which of the following best describes a mortgage broker?

A person who works with multiple lenders to find the product that works best for the client.

Which property is Bertrand appraising if he's using the income approach?

A three unit rental property

An example where a lender might place a property in default due to poor property management includes______________.

Allowing moisture intrusion.

The energy efficient mortgage program insured by the FHA requires an energy consultant to provide the lender with a report listing recommended modifications for energy efficiency, an estimate of the cost for each recommendation, and_______________.

An estimate of the energy savings that would result

What is the three-property rule as it relates to tax-deferred exchanges?

An investor can identify up to three replacement properties and not encounter a restriction regarding fair market value if debt load requirement is met.

In addition to itemizing all borrower-paid and seller-paid closing costs, page two of the Closing Disclosure also tells the borrower when each amount is paid by listing it under__________________.

At closing or before closing.

Alternatives to foreclosure include deed in lieu of foreclosure, short sale, or______________.

Bankruptcy

Which of the following situations would make a borrower ineligible for a loan modification?

Borrower has filed for bankruptcy

• Which of the following statements about liens is true?

Both mechanic's and materialman's liens are junior liens.

The borrowers closing costs and down payment have changed from the loan estimate, and the sellers credit has increased. Which section on page three of the closing disclosure can help the borrowers identify information that has changed from the loan estimate?

Calculating cash to close

Mark is a single father applying for a loan to buy a house of his own. Which of these items is a liability on a residential loan application?

Child Support.

When obtaining a mortgage to purchase a home, the borrower uses the property as___________.

Collateral

Whats another word for Voluntary Conveyance?

Deed in leu of foreclosure.

What's the purpose of the Equal Credit Opportunity Act?

It requires lenders to make credit equally available to all credit worthy applicants, regardless of applicants protected class.

What are the effects on a property if it includes an encumbrance?

It restricts the owners use or decreases the value.

Borrowers must list their assets when completing a residential loan application. What are assets?

Items of value a borrower owns.

institution, and the___________all complete parts of the request for verification The loan applicant, the of deposit depository form.

Lender.

Kaycie is a new employee at a mutual savings bank. During orientation, she learned that mutual savings banks have limitations that are set by their__________________.

Limitations are set by the bank's charter and vary from state to state.

Which of the following, once completed, initiates the loan process?

Loan Application.

Kendra is purchasing a home and is ready to find a lender who will give her terms that she can afford. She has done her homework and knows that she can use the___________to compare loans and find the one that will best meet her needs.

Loan Estimate.

Zara is reviewing the "Calculating Cash to Close" table on page three of the Closing Disclosure to see what has changed from her Loan Estimate. She found this extremely helpful and easy to understand because the table explicitly lists______________.

Loan estimate and final amounts side by side.

What are advances?

Loans that FHLB makes to member banks.

How much of a mutual savings bank's assets come from savings accounts?

More than 70%

borrower to catch up on delinquent mortgage payments?

Repayment Plan

When interest rates increase, what is the impact on mortgage-backed security investors?

Returns on investments increase

Gertrude is buying Sam's house, and Sam has agreed to finance the purchase. Gertrude is aware that a seller-financed transaction creates certain risks for her that a conventional loan wouldn't. Which of the following is an issue that Gertrude is protected from via her loan agreement?

Sam could sell the property to another person at any time, canceling Gertrudes equitable interest in the property and her right to possess it.

Tara has made an offer on a home and is completing the loan application. Which of the following is an asset that she will list?

Savings account deposit

Which factor that influences value focuses on the number of properties available?

Scarcity

What program allowed the U.S. Treasury to spend hundreds of billions of dollars to stabilize our financial system, boost credit markets, help families avoid foreclosure, and promote economic growth?

Troubled Asset Relief Program.

Rich wants to add a room to his house, so he takes out a home equity loan. This creates a(n)___________lien.

Voluntary and specific.

• A mortgage lien is a(n) _______lien.

Voluntary and specific.

Select the choice that best translates this clause into plain English. "Upon payment of all sums secured by this Mortgage, Mortgagee shall discharge this Mortgage without cost to Mortgagor. Mortgagor shall pay all costs of recordation, if any."

When the borrower has fully paid off the loan, the lender will record that the note is satisfied.

seller can help a buyer come up with the funds to complete a real estate What's the most common way that a transaction?

With a contract for deed.

• Which item would an appraiser find in the Improvements section of the Uniform Residential Appraisal Report?

Year built.

industry, because action or inaction here is a leading indicator of the country's overall Edward is an economic analyst. In his work, he keeps a particularly close eye on this economy. Which industry is this?

Construction.

The purpose of the is to promote fairness and transparency for mortgages and other financial products and services through education, enforcement and research.

Consumer Financial Protection Bureau (CFPB)

What's the primary source of funds for commercial banks?

Demand deposits.

Which of the following is a cooperative?

FHLB

Which secondary market institution seeks to provide credit to rural communities?

Farmer Mac

Which of the following entities buys loans primarily through thrifts?

Freddie Mac

Which of the following might involve old wiring or plumbing?

Functional Obsolescence

Stephanie was having trouble making her mortgage payments. Now her payments are lower than they were, and she's able to pay them each month. This is because her lender________________.

Gave her a loan modification.

What type of lien affects real and personal property?

General Lien

Which loan type is a fixed mortgage where the monthly payments increase over time, according to a set schedule?

Growing equity.

The two most common methods used when bank fails are the payout method and the____________method.

Purchase and assumption.

HUD's second goal in support of its mission is to meet the need for_____________homes.

Quality affordable rent.

• Which of these acts has special provisions for borrowers who are victims of over-charging?

RESPA

To whom does Chapter 5 of the Texas property code apply?

Sellers providing owner finance.

sets conforming loan limits for mortgages.

The FHFA

Which of the following entities buys primarily conventional loans from large commercial banks?

Fannie Mae

Which of the following is an example of a government-sponsored enterprise (GSE)?

Fannie Mae.

is an agricultural lender who helps the ranchers and farmers in his community by providing credit for purchasing land, making repairs to their buildings, and improving their agricultural property. He's able to do this in part because of the__________________offered by the USDA Farm Service Agency.

Guaranteed Loans

Which of the following best describes the state of the market during the recovery phase of the real estate cycle?

High but stabilized unemployment and a high number of foreclosures.

The FHA helps prospective homeowners by .

Insuring lenders against borrower default.

Your client has a VA loan and wants to refinance to a lower rate. Which of the following is likely the simplest option?

Interest Rate Reduction Refinance (IRRR)

Lucas would like to be a homeowner, but his low credit score makes lenders unwilling to give him a mortgage. What makes the 203(b) loan a more likely option for Lucas to qualify for a mortgage?

It has less stringent qualifying requirements than a conventional loan.

Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim and wants to help him out, so they agree to do a "subject to" purchase. What does this mean?

Maggie will take over Jims loan payments without telling his lender shes doing so.

Which of the following is a difference between mortgage brokers and mortgage bankers?

Mortgage brokers work with multiple lenders, whereas mortgage bankers work with a single lender.

What does NCUA stand for?

National credit Union Administration

The Veterans Loan Program in Texas ?

Offer qualified veterans help with the purchase of land in Texas.

How are real estate investment trusts sold

On a major exchange like stocks.

A mortgage banker gets paid through fees from___________ and servicing loans.

Originating.

Jody is concerned about the encumbrance that does not allow her to start her gardening greenhouse because it sits next to a nature conservancy.

Physical

Which of the following best describes the state of the market during the over supply phase of the real estate cycle?

Properties selling for more than their appraised value, many buyers in the market, and lots of new construction.

Your client, Shelby, a veteran using a VA loan to finance her purchase, just learned that the CRV came in lower than the sales price. But no problem: Shelby's brother is willing to loan her the difference. If the loan is approved,_______________.

Shelby must still be under the VA's debt to income ratio.

called a note and one called a deed of trust. What is the role of the note?

States who owes money to who, how much, and when it will be paid.

The _________requires specific disclosures and was enacted in 1968 as part of the Consumer • The Credit Protection Act.

TILA

Which organization manages and charters credit unions?

The National Credit Union Administration (NCUA)

What U.S. Department of Veteran Affairs program assists Native Americans in financing the purchase, construction, or improvements of homes on federal trust land?

The Native American direct loan

Which of the following acts establishes licensing requirements for loan originators in the state of TX?

The Texas SAFE Act

• Borrower Max is reviewing his Closing Disclosure to check the amount of prepaid mortgage insurance, taxes, and interest. In addition to itemizing what his borrower-paid closing costs are, the prepaid section includes____________ for each item.

The applicable time period.

The upfront MIP on an FHA loan is calculated on______________.

The base loan amount.

Whats one of the main differences between a traditonal mortgage loan and an interim loan?

The length of the loan differs.

One of the ways the FHA has stabilized and improved the mortgage market is through the introduction of ?

The long term amortized loan

What is a margin, as it relates to an adjustable rate mortgage?

The number of percentage points that are added to the index to determine the rate.

Which of the following is true regarding value?

The principle of substitution means that people wont pay more for a property than they have to.

Which of the following describes the discount rate?

The rate at which a bank can obtain a loan from its federal reserve bank when using commercial paper as collateral.

Margot reviewed page three of her Closing Disclosure to see the amounts she'll pay and receive, and the total cash amount. She located this information under the "Summaries of Transaction" in the "Seller's Transaction" table, which is completed by_______________.

The settlement agent.

What is the 95% rule as it relates to tax-deferred exchanges?

The total value of the property or properties being exchanged is at least 95% of the value of the property being sold.

What is a periodic cap, as it relates to an adjustable rate mortgage?

The value that limits the amount the rate can adjust at subsequent adjust dates

The house payment Tim and Vickie are considering would give them a housing ratio of 34% and a total debt obligation of 40%. Their credit score is 640. What do they need to change to meet the underwriting requirements for an FHA loan?

They should look for a home in a lower price range.

Juaquin is an appraiser. What purpose do Juaquin and other appraisers serve?

To determine the value of the property.