Finance 3
You average one client from every seven leads, and each client represents 80% of a closed transaction. Each transaction you close has an average dollar value of $9,000. How much can you expect to earn from every seven leads?
$7,200
What's the most common ration for borrowers who use split, or piggyback, mortgages?
80/10/10
You and your financial system will communicate through ______.
A record keeping system
Which of the following types of properties may be eligible for purchase by Freddie Mac?
A triplex purchased as a primary residence
what type of clause is this? "If any monthly installment under this Note is not paid when due and remains unpaid after a date specified by a notice to Mortgagor, the entire principal amount outstanding and accrued interest there on shall at ounce become due and payable at the option of the Note holder."
Acceleration clause
Which of the following actions toward an appraiser would be considered improper?
Asking an appraiser to remove information about adverse property conditions from an appraisal report
A vendor and vendee are the parties involved when the finance instrument is a ______.
Contract for deed
As interest rates rise, what is the number of buyers in the market likely to do?
Decrease
with a VA loan, the certificate of reasonable value is used to _______.
Determine the value of the loan that the VA will guarantee
while reviewing documents, you notice that the buyer has the exact same name and birth date as a buyer you worked with previously. What might this indicate?
False Identity
Which secondary market player would be interested in purchasing a loan from a commercial bank?
Fannie Mae
After purchasing a property, what can Jeremiah do to clear a possible future claim on the property's title?
File a suit to quiet title
Chad had some major medical expenses that he didn't plan for, and he wants to slash his budget in order to pay off the debt quickly. He considers selling his home and renting an apartment, which will make a big difference in his __________ expenses.
Fixed, essential
Karen has saved $30,000 of her $40,000 goal for a down payment on a house. Why is it unwise to keep all of that money in a traditional savings account?
It doesn't earn high enough interest
what is the purpose of the Uniform Residential Appraisal Report?
It provides the lender with an accurate opinion of the property's market value
An ARM usually offers an initial interest rate that's ______ a fixed rate mortgage for a period of time.
Lower than
The interest rate on an FHA Section 251 loan is adjusted based on _________.
Market indices approved by the FHA
The Bransons have a conventional loan for which they were required to obtain private mortgage insurance. Their local real estate market has been going like gangbusters, and their house is now appraised at twice their loan balance! Will their PMI be cancelled?
Maybe, but they'll have to petition their lender
FHA county loan limits are based on ______.
Median price for the area and property type
Which of the following is a requirement for veterans who with to use the Native American Direct Loan?
Meet the same eligibility criteria as for the VA-guaranteed loan program
The ________ is where the borrower finds details about how, when, and by how much the interest rate will change in an adjustable rate mortgage ARM
Mortgage note
Carl is trying to trim his expenses, so he first looks at cutting some of his _______ costs in his budget.
Non-essential
Three types of finance instruments
Note with mortgage, note with deed of trust, and contract for deed
In which types of partnership is there is more than one mortgagor as owner?
Partnership among mortgagors
Violet purchased a house from nick, and assumed the existing loan. Nick wants to make sure he isn't liable if Violet ever defaults. What can he do to remove his name from the loan agreement?
Request a novation
Zach and April are purchasing a home. They apply to three different lenders and review the Loam Estimates they receive. Each form includes a field identifying the National Mortgage Licensing System ID number for the lender. What is the act that requires this licensing identification to be available to consumers?
SAFE Act
Which was NOT part of the Fed's program quantitative easing?
The funds available to consumers froze
Who holds the promissory note while it's being repaid?
The payee
Whats one reason a borrower would choose a split- or piggyback- loan option
To avoid going over the conforming loan limit
When is a loan modification considered?
When a borrower has missed payments but still has some financial security
A Treasury note is a Treasury security ________.
With a maturity term between two and 10 years
What statement describes a conforming loan?
a loan that meets certain criteria that are accepted by Fannie Mae and Freddie Mac
Fannie Mae's multi-state note includes a due-on-sale clause, also known as a _________ clause.
alienation
A lender, reviewing a prospective applicants loan application, wants to verify that he has a solid history of paying obligations on time. What should the lender request from him?
credit report
HUD's strategic plan outlines the _______ that support its mission.
four goals
Which of the following best describes a blanket lien?
it gives lenders the ability to recover losses due to a foreclosure sale from any current future property the borrower owns
normal wages are considered when a lender is evaluating an applicants income. Which of the following must be true for overtime pay to be considered?
it must have been received regularly over the last two years
Payment history, age of accounts, credit usage rate, and inquiries are factors considered in calculating a credit score. Which of the following is also considered?
length of credit history
what information is listed on the promissory note?
loan amount and schedule of repayment
how can liens, such as those created by non-payment of federal income tax, result in mortgage default?
new liens can threaten the lender's position as primary lien holder. Default can occur for this reason
Which act requires that individuals making more than five "owner financed" loans per year, obtain a residential mortgage loan origination license?
the Texas SAFE Act
what does it mean when a life insurance company uses participation financing?
the life insurance company participates by taking partial ownership of the project in exchange for funding the loan
which of the following statements is true about national lending institutions?
they sell packaged loans to investors
what is the trustees role when a deed of trust is used to secure property for a loan?
to hold legal title to the property on behalf of the beneficiary until the loan is repaid
Disintermediation
occurs when banks or other financial institutions are seeing more withdrawals than deposits over a long period of time
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's the definition of a qualified mortgage?
one that meets stringent CFPB guidelines