last real estate quizlet
The Farm Service Agency is an agency of the FHA.
False
The USDA Rural Development Guaranteed Housing Loan program, Section 502 loan is for a farm or ranch.
False
Due to the financial crash of 2007, the _______________ placed Freddie Mac and Fannie Mae into conservatorship.
Federal Housing Finance Agency
The potential negative impact of mortgage fraud is on _______________. Financial institutions Low-income households Borrowers Homeowners
Financial institutions
All of the following are primary monetary policy tools the Fed uses to influence the cost and availability of credit except:
Fiscal policy
Relates to federal government spending
Fiscal policy
In a _______________, the lender files a lawsuit of the homeowner that is in default. Power of sale Statutory foreclosure Judicial foreclosure Strict foreclosure
Strict foreclosure
Second and third mortgages
Subordinate instruments
The junior mortgage will continue in its position and will not become a first mortgage Alienation clause Prepayment clause Subordination clause Exculpatory clause
Subordination clause
If Mark and Cindy want equal payments for as long as at least one of them is alive and stays in the house, occupying it as his/her principal residence, which payment plan would be best for them? Line of credit Tenure Modified Term Term
Tenure
What is the TDHCA
The Texas Department of Housing and Community Affairs is the state's lead agency responsible for homeownership, affordable rental housing, community and energy assistance programs,
___________ was created in September 2008 to restore the nation's financial stability and restart economic growth.
The Troubled Asset Relief Program
The Interstate Land Sales Full Disclosure Act requires developers to file a property report with:
CFPB
The _______________ is the person who pledges the property as security for a debt.
Mortgagor
Mr. Brown will close on his new home on June 23, 2010. He will close on a 30-year fixed-rate mortgage with an interest rate of 4.50% and a principal balance of $120,000.00. What is the amount of interim interest he will pay at closing?
$118.36
Garth is representing Mr. and Mrs. Wu who have just decided to buy a home. Garth advised the couple to get prequalified before viewing any more homes. Mr. and Mrs. Wu trust Garth and want to do their own research and get Garth's advice before talking to a loan originator. They are disheartened by the realization that closing costs are typically more than they had thought, so they are considering pursuing an FHA loan, so that they can make a smaller down payment. However, they do not like the fact that the MIP makes the house payments higher. Mr. and Mrs. Wu have a combined gross monthly income of $9,000. For the home they want, the estimated monthly payment would be $2,700 on a 30-year loan. This is a multiple choice question. Once you have selected an option, select the submit button below If Mr. and Mrs. Wu are pre-approved for a mortgage, what form will they receive? Form B Conditional Approval Letter There is no specific form that they will receive if they are pre-approved for a mortgage Form A Conditional Pre-Qualification Letter A blank check from the lender that the Wus will fill out for the downpayment on a home SubmitFeedback This is a multiple choice question. Once you have selected an option, select the submit button below If the Wus buy the home that they want, their house payments would be approximately $2,700 per month. If they go with a conventional loan, the front ratio of their house payment (PITI) cannot exceed $ _______ or 28% of their gross monthly income.
$2,520
What will the quarterly interest payments be for a loan of $10,000 at 8%?
$200
The FDIC insures deposits in banks and thrift institutions for up to:
$250,000
In Texas, the minimum withdrawal on a HELOC is: $4,000 $25,000 $15,000 $10,000
$4,000
What is the interest rate if the loan is $55,000, and the annual interest owed is $6,500?
%11.8
There are ____________ Federal Home Loan Banks.
12
The FHLB was created by Congress in:
1932
The FDIC was created in:
1933
On a 90% LTV, fixed rate mortgage, investors require _______________ MI coverage.
25%
What was the amount borrowed if the annual interest rate is 9 1/2%, and the interest paid was $4,500?
47,368.42
What's on the Closing Disclosure?
A Closing Disclosure is a five-page form that provides final details about the mortgage loan you have selected. It includes the loan terms, your projected monthly payments, and how much you will pay in fees and other costs to get your mortgage (closing costs).
Jill's loan balance on March 1st was reported as $119,670. The regular monthly payment of principal and interest is $896.45, and the rate of interest is 5%. A) When Jill makes her April 1st payment, how much interest will be due? B) After the April 1st payment has been applied, what will be her new loan balance? A B
A) When Jill makes her April 1st payment, how much interest will be due? B) After the April 1st payment has been applied, what will be her new loan balance? A498.625 B119272.18
In the event of default, the entire amount of the principal becomes due and payable Acceleration clause Assumption clause Subordination clause Alienation clause
Acceleration clause
Also known as the due on sale clause Release clause Alienation clause Lock-in clause Nonrecourse clause
Alienation clause
The United States Treasury is responsible for all of the following except:
Applying monetary policy to manage the growth of the economy
A _______________ may be beneficial to a borrower who is planning to move prior to the last payment of the loan. Balloon loan Reverse mortgage Budget mortgage Closed-end mortgage
Balloon loan
Partially-amortized loan with a substantially larger final payment
Balloon loan
A loan which covers more than one piece of property
Blanket mortgage
An instrument of corporate or governmental debt
Bonds
A contract for deed is also known as a(n) ____________. Land contract Installment contract Mortgage Both a land contract and an installment contract
Both a land contract and an installment contract
In a _______________ refinance the borrower pays off an existing loan with the proceeds of the new mortgage on the same property but draws equity out of the property. Reverse Pay-off Cash-out Regular
Cash-out
Excessive selling/lending activities to generate fees and commissions is called _______________. Fraud for Profit Churning Straw Buyer Equity Theft
Churning
Excessive selling/lending activity for the purpose of generating fees and commissions
Churning
In addition to Freddie Mac and Fannie Mae, Wall Street is a source of funds in the secondary market through the sale of: Conforming loans Portfolio loans Collateralized Mortgage Obligations High interest rate loans
Collateralized Mortgage Obligations
Any seller _______________ which exceeds 4% of the established reasonable value of the property is considered excessive and unacceptable for VA-guaranteed loans. Participation Funding fee Endorsement Concession
Concession
Adheres to Fannie Mae and Freddie Mac requirements for purchase of a mortgage
Conforming loan
Conventional loans that conform to FNMA/ FHLMC standards
Conforming loan
Member-owned depository institutions
Credit union
Set by the board of directors of the Federal Reserve Banks, subject to approval by the Board of Governors
Discount rate
_______________ is the veteran's entitlement to a VA home loan benefits under the law, based on military service. Endorsement Eligibility Qualification Concession
Eligibility
What is the number one determinant for demand?
Employment
Limits the borrower's personal liability in the event of a default on a loan, protecting other property from becoming collateral Acceleration clause Exculpatory clause Release clause Alienation clause
Exculpatory clause
In a _______________ plan, the borrower pays part of the delinquency each month along with the borrower's regular monthly installment. Deed in lieu of foreclosure Default Recasting Forbearance
Forbearance
_______________ is a misrepresentation and/or concealment made by a borrower or other party in order to qualify for a mortgage loan. Fraud for profit Churning Chunking Fraud for housing
Fraud for housing
With few exceptions, the law requires that the VA be paid a(n) _______________ on guaranteed loans. Funding fee Gift Residual Concession
Funding fee
The Fed uses open market operations for buying or selling of ___________.
Government Securities
The _______________ program is designed for borrowers who cannot afford their current mortgage and need to transition to more inexpensive housing. HAMP HAFA SMP USDA's special loan servicing
HAFA
The _______________ allows the Treasury to work with loan providers to refinance existing loans to achieve a 31% front-end ratio. HAMP SMP HAFA USDA's special loan servicing
HAMP
The _______________ was enacted in July of 2008 creating the Federal Housing Finance Agency.
Housing and Economic Recovery Act
A Real Estate Mortgage Investment Conduit allows for the _______________ investment in mortgages through the sale of securities.
Indirect
In a REMIC, the repayment of principal and interest is channeled through to the _______________.
Investors
Fannie Mae works to accomplish all of the following housing objectives except:
It funds loans for credit poor area
VA loans are made by a _______________, such as a mortgage company, savings and loan, or a bank. Military bank Borrower Lender Home financer
Lender
The secondary market is designed to provide greater _______________ to the residential real estate mortgage market by providing for a steady supply of funds from investors.
Liquidity
_______________ is a practice in which a lender encourages repeated refinancing by existing customers tacking thousands of dollars in additional fees or other charges to the loan each time. Excessive fee charging Loan flipping Property flipping Predatory charging
Loan flipping
Prohibits prepayment of the loan prior to a certain date Nonrecourse clause Lock-in clause Exculpatory clause Prepayment penalty
Lock-in clause
When there is an excess of money supply in the market
Monetary inflation
Policy that deals with interest rates and the supply of money in the US economy.
Monetary policy
A _______________ is a middleman between a borrower and a lender.
Mortgage Broker
The _______________ is the person or entity that receives the pledge as security for a debt.
Mortgagee
_______________ occurs when the borrower's payment does not cover all of the interest due each month. Balloon Payment Negative Amortization Loan Flipping Predatory lending
Negative Amortization
In commercial lending, it provides that the borrower is not personally liable for repayment of a loan Acceleration clause Assumption clause Escalation clause Nonrecourse clause
Nonrecourse clause
The _______________ charters, regulates, and supervises all national banks, federal savings associations, federal branches, and agencies of foreign banks.
Office of the Comptroller of the Currency
Buying or selling government securities by the Federal Reserve.
Open-market operations
The Department of Treasury is organized into two main components: the departmental office and ____________.
Operating bureaus
A refinance is the _______________ of an existing loan with the proceeds of a new loan to the same borrower. Forbearance Short-sale Forgiveness Payoff
Payoff
The promissory note includes all of the following except: Interest rate Payment amount Amount borrowed Pledge of the property
Pledge of the property
Percentages based on the amount of the loan
Points
Loans that are not sold to investors in the secondary market are called: Portfolio loans Interest rate loans High yield loans Primary market loans
Portfolio loans
The FDIC receives its funding from
Premiums that banks and thrift institutions pay
More than two-thirds of subprime loans have _______________. Predatory clauses Credit scoring Mortgage fraud Prepayment penalties
Prepayment penalties
The primary goal of the Federal Home Loan Bank System is to:
Provide credit and other services to fund housing and other loans in the community
Default-related services include all of the following, except: Purchase costs Foreclosure costs Property inspections Property preservation
Purchase costs
Investment vehicle created by Congress in 1960
Real Estate Investment Trust
Raising the reserve requirements _______________ the availability of funds for lending.
Reduces
In a _______________ refinance the borrower pays off an existing loan with the proceeds of the new mortgage on the same property. Pay-off Regular Closed-end Cash-out
Regular
Allows for a portion of the loan to be paid in exchange for the lender releasing part of the property from the mortgage Alienation clause Nonrecourse clause Acceleration clause Release clause
Release clause
_______________ income is the amount of money left over each month after all of the borrower's major expenses are paid - including housing, taxes, and debt payments. Gross Hard Residual Net
Residual
A loan underwritten based upon the home's appraised value and the loan term of the owner, also is for 62 and older
Reverse mortgage
The _______________ offers delinquent borrowers the opportunity to prevent foreclosure by working with lenders to refinance their existing loan. SMP HAFA USDA's special loan servicing HAMP
SMP
The Single Family Housing Direct Home Loan is also known as:
Section 502 Direct Loan Program
All of the following are HUD's major programs except: Section 8 Housing Federal Housing Administration Consumer Financial Protection Bureau Community Development Block Grants
Section 8 Housing Federal Housing Administration Consumer Financial Protection Bureau Community Development Block Grants
To raise money for the purchase of loans, Freddie Mac sells its own _______________.
Securities
At the national level, the value of residential real estate is affected by what factor?
The monetary policies of the Federal Reserve
Federal tax policy that affects demand for real estate includes all of the following except: Deductibility of mortgage interest payments Deductibility of real property taxes Exemptions from capital gains taxation The supply of money
The supply of money
The _______________ offers rural homeowners to lower their monthly mortgage payment to no more than 31% of their verified monthly gross income. USDA's special loan servicing HAMP SMP HAFA
USDA's special loan servicing
The Request for Verification of Deposit is commonly called _______________. Statement Balance Verification Deposit Verification Balance at Close Document VOD
VOD
Form lenders use to obtain borrower balance information
Verification of Deposit
what is installment sale
With installment sales, the buyer makes payments to the seller over time, rather than handing over a lump sum at closing.
Concession
a thing that is granted, especially in response to demands; a thing conceded.
a primary instrument is
formal legal document such as a contract, deed or will
subprime loans are
loan for people with low scores that are not as trust worthy
What's tenure?
the act, right, manner, or term of holding something (such as a landed property, a position, or an office)
An individual may have a tax-free capital gain on the sale of real property up to $250,000 if the property were his or her principal residence for at least two of the last five years.
true
