Quiz Unit 9 - Government Sponsored and Other Financing

Q3. On default of a VA-guaranteed loan, the VA will pay the A. property's market value. B. lender's loss on the amount guaranteed. C. remaining mortgage balance. D. down payment.

B. lender's loss on the amount guaranteed. The Department of Veterans Affairs (VA) guarantees payment of remaining mortgage indebtedness, up to a maximum amount. If the borrower defaults, the VA will pay the lender's net loss up to the amount of the guarantee, which is decreased proportionately as the loan amount is repaid. Page 260 - 261

Q4. RESPA requirements do NOT apply to A. conventional loans. B. VA-guaranteed loans. C. commercial loans. D. FHA-insured loans.

C. commercial loans. Settlement statements detailing transaction costs to buyers

Q2. The Federal Housing Administration insures payment of A. a discount. B. loan points for the lender. C. loan principal. D. a broker's commission.

C. loan principal. The Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD), does not make loans, but it insures loans made by approved lending institutions. Page 255

Q1. The interest rate on CalVet loans A. changes monthly. B. depends on the CPR. C. never changes. D. may change annually.

D. may change annually. The interest rate on all loans may change annually, depending on the cost of bondsa to fund the program. Monthly loan installments will increase to cover additional interest charges. Page 266