CE Shop Finance

The __________ clause is also known as a due-on-sale clause.

Alienation

Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a deed of trust. What rights does she have to redeem her property?

Andrea can cure the default and reinstate the loan.

Which of the following describes mutual savings bank loans?

Banks focus lending on local businesses and residents.

Under which section of the Loan Estimate will you find any credits provided by the seller?

Calculated Cash to Close

Which of the following VA programs requires a credit check, new appraisal, and income verification?

Cash Out Refinance

Because of the Mortgage Disclosure Improvement Act, the only advance fee that a creditor can charge to a consumer before to a consumer before providing required loan disclosure is a ___________ fee.

Credit report

Which of the following could an investor who sells an apartment house buy using a 1031 exchange?

Duplex, office building, or warehouse

Which of the following led to the 2007 financial crisis and negatively impacted investors that purchased properties in the early 2000s?

Falling home prices

Fannie Mae, Freddie Mac, and the Federal Home Loan Bank are regulated by _________.

Federal Housing Finance Agency

Which agency regulates FHLBanks?

Federal Housing Finance Authority

The rate at which a bank can obtain an overnight loan from another bank without providing collateral is called the __________ rate.

Federal funds

The Homeownership voucher assistance program is available to __________ to help pay monthly homeownership expenses.

First-time homeowners

About 50% of the borrowers in Neighborhood one are Hispanic, while only 4% in Neighborhood Two are Hispanic. The median home price

Home Mortgage Disclosure Act

Which of these is actually an amendment to the Truth in Lending Act (TILA)?

Home Ownership and Equity Protection Act

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

Increasing in hiring, employment, and public confidence, and lots of buyers in the market

Max has a dog that bit his neighbor. That neighbor sued Max, which resulted in a judgement against him. Max refused to pay the neighbor according to the judgement. The neighbor placed a lien against Max. How is this lien classified?

Involuntary, general

Which of the following is an example of an involuntary, specific, statutory lien?

Materialman's lien

Which generation financed their homes due to also having other debt obligation?

Millennials

An industrial development bond is a variety of ___________ bond.

Municipal

The Dodd-Frank Act created the CFPB in part to regulate ___________, which were among the largest originators of subprime mortgages prior to the financial crisis of 2007-2008.

Non-bank lenders

An intermediate-term security issued by the Treasury that has a maturity term of between two and 10 years is called a treasury _____________.

Note

When a buyer uses an FHA loan, the down payment amount is calculated ____________.

On the lesser of the sales price or the appraised value of the property

In which phase of the real estate market would you expect to see properties selling for more than they're worth, many buyers in the market, and lots of new construction?

Over supply

Life insurance companies sometimes like to insure their investment in commercial projects by insisting on an equity position. This is known as ____________ financing.

Participation

In which type of participation agreement would a financier lower the interest on the mortgage in exchange for partial ownership of the project?

Partnership between mortgagees and mortgagors

Which clause is standard in a deed of trust and affects the foreclosure process that can be used if the borrower defaults?

Power of sale

What factors directly affect an adjustable rate mortgage?

Rate, index, and margin

_________ is when the outstanding loan balance is reconfigured. It is a form of loan modification.

Recasting

Which of the following is a significant drawback to an FHA loan as compared to conventional financing?

Required mortgage insurance must remain in place for the life of the loan.

A loan that's offered based on a homeowner's equity in which funds are drawn over time and the bank gains corresponding property ownership is called a ____________.

Reverse annuity mortgage

The three-business-day period following the latter of either the date that transaction is consummated or the date the disclosure is made, during which a borrower can cancel their loan, is called the _________.

Right of rescission

If the Treasury encounters a deficit, what actions might it take?

Sells securities

Under AIR, there are limits to the actions licensees may take to avoid influencing the appraiser's value. What are licensees NOT allowed to do?

Suggest additional business be contingent upon the appraiser's value determination for a current property.

The signature lines on the multi-state Fannie Mae promissory note are set up for _________ to sign.

The borrower

How is a loan assumption documented?

The buyer and seller both sign an assumption agreement.

What did a 2021 National Association of Realtors study say about foreign investment in U.S. real estate?

The pandemic may be affecting some of these purchase numbers.

Which of the following is a true statement about when a promissory note is sold?

The promissory note is endorsed to the new owner of the loan.

The funding fee on a VA loan is waived when __________.

The veteran has a 10% or higher VA disability

Why are life insurance companies less concerned with liquidity than long term security of an investment?

They prefer financing larger projects, which inherently have more long-term security.

What's the purpose of the fixed/ adjustable rate note?

To convert the interest rate from fixed to adjustable

Government-Sponsored Enterprises (GSEs) were created by the U.S. Congress for what purpose?

To make a percentage of loans available to low and moderate income borrowers

To be eligible for a ________, an applicant must have participated in farm or ranch management for at least three years.

USDA loan through the Farm Service Agency

A mortgage lien is a ____________ lien.

Voluntary and specific

Rich wants to add a room to his house, so he takes out a home equity loan. This creates a _____________ lien.

Voluntary and specific