Real Estate

Recourse

A mortgage that allows the lender to sue the borrower for damages if foreclosure occurs is called a _______ mortgage.

Modification review process

An established process for loan modification and communication to borrowers

Prohibition of dual tracking

Foreclosure can't be pursued if an application for a loan modification has been completed

Review of foreclosure docs

Foreclosure can't proceed without proof that documents are in order and default is substantiated

Renewal fee

Jackson holds a real estate broker license with an MLO endorsement. When he renews his MLO endorsement, what does he need to submit to the NMLS?

83%

Jane's offer of $310,000 was accepted, but the appraisal just came in at $300,000. Jane plans to finance $250,000. What's the loan-to-value ratio?

By writ of entry

Petition for legal ownership, opportunity to redeem property, notice of eviction if property is not redeemed

Foreclosure

Which action can be taken if you don't pay a lien against your property?

$3,200

A buyer is purchasing a property for $400,000. His loan-to-value ratio is 80%. The lender also charges a one-point loan origination fee. How much is the loan origination fee?

$349,698.87

A buyer with a $350,000 loan has a monthly principal and interest payment of $2, 102.36. If $1,801.23 is interest, what's the new principal balance after the first payment is applied?

$117,687.80

A buyer with a 15-year, $250,000 loan at a fixed 5.5% interest rate has a monthly principal and interest payment totaling $2,042.71. What is the total amount of interest the borrower will pay over the course of the loan?

$783.05

A buyer with a 30-year, $750,000 loan at a 5.75% interest rate has a monthly principal and interest payment totaling $4,376.80. If $3,593.75 is interest, how much is applied to principal?

Non-recourse

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

Gross rent multiplier

An investor is analyzing a three-unit property by looking at its ability to produce future income. Which of the following would most likely be used to determine this value?

Blanket lien

As part of a deficiency judgment sought by a lender, a ________ may be placed on any current and future property the borrower owns until the lender recovers all losses.

$8,000

Backyard Bank charges a 2% loan origination fee. Mavis is buying a home for $500,000 and financing $400,000 of it. How much will Mavis pay as a loan origination fee?

Eight hours

How many hours of continuing education must real estate licensees complete each year to renew their MLO endorsement?

Repayment Plan

If this can be arranged with the lender, it can help the borrower get caught up and avoid foreclosure.

Every year

Jackson holds a real estate broker license with an MLO endorsement. How often must he renew his MLO endorsement?

Undisclosed dual agency

Jansen is a real estate licensee with a mortgage loan originator endorsement. He's representing the seller as their real estate agent, and the buyer as a mortgage loan originator in the same transaction, without the permission of either party. What is this an example of?

Modification denial and appeal

Notification of denial and instructions on how to file an appeal

By advertisement

Notification of pending auction, public auction, notice of eviction

Single point of contact

One single party who is the sole contact to assist the borrower with information on avoiding foreclosure

By entry and possession

Petition to enter, repossession, notice of eviction

Presenting a loan offer to a consumer for acceptance

Scott is an MLO. Arthur, his assistant, does not have an MLO endorsement. Which of these activities must be performed by Scott?

Monthly gross

The housing ratio is the borrower's monthly housing obligation as a percentage of what sort of income?

1. Moratorium (forbearance)

The lender agrees to temporarily suspend payments in an effort to help the borrower avoid default and foreclosure.

Recasting

The lender reconfigures the loan, including the term, to reduce the payment amount.

Voluntary conveyance of deed

This helps the borrower avoid the stigma of foreclosure, but can still have a serious impact on credit. It is initiated by the borrower.

Bankruptcy

This is an option for a borrower who is in serious financial distress and is not to be taken lightly.

Non-judicial

This method may be used if a power of sale clause is included in the mortgage or deed of trust.

Short sale

This results in proceeds that aren't enough to cover what is owed and has to be negotiated with the lender.

Loan term

To find a factor on an amortization chart, you need to know the interest rate and the

Fingerprint

To qualify for a mortgage loan originator endorsement, applicants must meet education, examination, credit report, and ______ requirements.

It allows a property owner to pay back any debts or liens against their property until a foreclosure sale is held.

What does the right of redemption allow?

A deficiency judgment against the property owner for the outstanding balance to the lien holders is issued.

What happens after a lien foreclosure sale if not enough money were made from the auctioning of the property to pay off the lien holders?

To regulate lenders so that borrowers have a better chance to avoid foreclosure

What is the purpose of the California Foreclosure Reduction Act?

Allow the property to go into disrepair

When borrowers miss scheduled mortgage payments, fail to pay property taxes, or _______ they could face loan default.

The lesser of the sales price or appraisal value

When calculating loan-to-value ratios, which of the following will be used by the lender?

Repayment plan

Which alternative to foreclosure is being utilized when a lender creates a schedule for the borrower to catch up on delinquent mortgage payments?

Total debt ratio

Which calculation looks at all recurring (or installment) debt -such as monthly mortgage, car, credit, and loan payments -as a percentage of the borrower's monthly gross income?

A roof that's missing shingles

Which of the following could be a concern for a lender regarding property condition?

A calculation that looks at all recurring (or installment) debt, such as monthly mortgage, car, credit, and loan payments, as a percentage of the borrower's monthly gross income

Which of the following describes total debt ratio?

Performing MLO activities before notifying the Bureau of Real Estate

Which of the following is an MLO violation?

2%

Which of the following percentages is an allowable loan origination fee?

The lender must seek the court's permission to foreclose on the property used as collateral for the loan.

Which of the following statements best describes the judicial foreclosure and sale process?

Performing MLO activities before obtaining an endorsement

Which of these actions is an MLO violation?

Moratorium (or forbearance)

Which term describes a lender temporarily agreeing to suspend payments to help the borrower get caught up?

Judicial

With this method of foreclosure, the property is sold by the court after the lender has provided sufficient public notice.