Real Estate Finance Texas
What percentage of home buyer in the US are international buyers
10%
THE VA LOAN PROGRAM OFFERS A BASIC ENTITLEMENT AMOUNT OF _______?
36,000
Whats the most common ratio for borrower who use split or piggyback loans
80/10/10 80%, 10%,10%
MORMATORIUM
A LENDER TEMPORARILY SUSPENDS A BORROWER'S PAYMENTS
WHICH OF THE FOLLOWING BEST DESCRIBES ANNUAL PERCENTAGE RATE
A STANDARIZED MEASURE FOR INTEREST RATES AND OTHER LOAN COSTS
A homeowner has been paying her mortgage for several years and has built up equity. She decides to take out a home equity line of credit because she needs some cash. This credit will create
A junior lien on the property
Which of the following types of properties may be eligible for purchase by Freddie Mac?
A tiplex purchased as a primary residence
Barb is considering a refinance, She wants to stick with a conventional loan. Why might she be wary of an introductary rate?
After an initial low rate, her payment may increase beyond the level of affordability.
Assuming a CMO uses the sequential pay structure, how is interest passed through from borrower paid to investors?
All Tranches receive interest payments
Municipal
An industrial devlopment bond is a variety of _____ bond?
Andrea's lender has notified her of its intent to foreclosure. Her loan is secured with a deed of trust. What right does she have to redeem her property?
Andrea can cure the default an reinstate the loan
Which of the following actions toward an appraiser would be considered proper
Asking an appraiser to correct errors in the appraisal report
What type of value of interest to taxing authorities?
Assessed Value
How does the consumer provide economic support to a community in the living phase of real estate cycle?
By purchasing local goods and services
DISCOUNT RATE
COMMERCIAL PAPER AS COLLATERAL
Bill is completing a residential loan application. which of the following would he include in the liabilities section?
Car loan
Which of these individuals may benefit from a USDA Rural Development program offerings
Communities managed by Lenders
Victor is a buyer reviewing the closing disclosure he received from his lender. On the last page of the form, he sees a signature line. by signing the form, Victor has
Confirmed receipt of the Closing Disclosure
2007 FORECLOSURE INCREASED, WHAT WAS THE RESPONSE FROM LENDERS
DECREASED LENDING
WHAT IS THE PRIMARY SOURCE OF FUNDS FOR COMMERCIAL BANKS
DEMAND AND DEPOSITS
Which of the following best describes a sellers market
Demand is greater than Supply
Which of the following could an investor who sells an apartment house by using a 1031 exchange?
Duplex, office buildings, Ware houses
The ___________ clause protects the borrower's assets that aren't part of the voluntary lien from a deficiency judgment in case of foreclosure
Exculpatory Clause
WHICH OF THE FOLLOWING CONTRIBUTED TO THE 2007 FINANCIAL CRISIS
FALLING HOME PRICES
THE FARM CREDIT SYSTEM IS OVERSEEN BY THE ___________, AN AGENCY OF THE FEDERAL GOVERNMENT.
FARM CREDIT ADMINISTRATION
WHICH ENTITY PROVIDES DISCLOSURES AND PUBLIC INFORMATION ABOUT THE FINANCIAL CONDITIONS OF FCS
FEDERAL FARM CREDIT BANKS FUNDING CORPORATIONS
Lydia put the minimum 3.5% down on her $210,000 home. She will have to pay an MIP what type of loan does Lydia need
FHA
COMMANDER HOLLBACK RETIRES AFTER TWENTY FIVE YEARS IN THE COAST GUARD. HE IS LOOKING TO BUY A HOME. WHAT TYPE OF LOAN S SHOULD HE USE?
FHA, VA, OR CONVENTIONAL
With what type of loan do the principal and interest payments remain the same?
Fixed Rate Loan
WHEN APPRAISER LOOK AT OPTIMAL FUNCTION? WHAT ARE THEY DETERMING?
HIGHEST AND BEST USE
Mike has had some finincial problems and is considering borrowing form his retirement plan. Which of the following is a true statement?
He should consult with a financial expert before doing so
CAPITALIZATION RATE
INCOME APPROACH
WHICH OF THE FOLLOWING IS THE COST OF REPLACING A BUILDING IN THE CASE OF TOTAL LOSS
INSURED VALUE
iF MARK AND LINDA PURCHASED A MUNICIPAL BOND TO REBUILD A GYM. IN EXCHANGE FOR THEIR INVESTMENT WHAT WILL THEY RECEIVE?
INTEREST
RESIDUAL INCOME
IS THE TERM THAT THE VA USES TO DESCRIBE THE AMOUNT OF NET INCOME REMAINING AFTER DEDUCTIONS OF DEBTS OBLIGATIONS, SUCH AS UTILITY AND PHONE BILLS, AND MONTHLY SHELTER EXSPENSES.
Payment history, age of accounts, credit usage, types of accounts, and __________are factors considered in calculating a credit score?
Inquiries
mortgage, homeowners, and flood are types of ______, that may be included in the mortgage payment?
Insurance
What is the purpose of a lifting clause?
It allows a borrower to refinance a first mortgage without affecting lien position even when a junior mortgage is in place
Which of the following statements is true about the annual MIP on an FHA mortgage?
It will decrease each year as the loan is paid down
WHAT ARE ADVANCES
LOANS THE FEDERAL HOME LOAN BANK MAKES TO MEMBER BANKS
Freddie Mac and Fannie Mae set guidelines for conforming loans. Which of these are qualifying guidelines?
Loan amount, down Payment requirement, Loan to value ratio and housing debt to income ratio
A GROUP OF LOANS PACKAGED TOGETHER AND SOLD TO INVESTORS
MORTGAGE BACKED SECURITIES
WHICH OF THE FOLLOWING reit'S FOCUSES ON LENDING MONEY FOR MORTGAGES AND INVESTING IN MORTGAGE-BACKED SECURITIES?
MORTGAGE REIT
CONDUIT
MORTGAGEES
WHICH TYPE OF BOND IS USED TO PAY FOR COMMUNITY IMPROVEMENTS?
MUNICIPAL BOND
If a house is appraised at twice their loan balance! Will their PMI be cancelled
Maybe, but they will have to petition their lender
Who originates their own loans
Mortgage Bankers
What are the main benefits to Veterans of the VA guaranteed loan program
No down payment, not mortgage insurance, and no prepayment penalty
jOE WORKS FOR A LIFE INSURANCE COMPANY THAT FUNDS COMMERCIAL INVESTMENT PROJECTS AND OFTEN INSURES THESE PROJECTS BY INSISTING ON AN EQUITY POSITION. WHAT TYPE OF FINANCING DOES THIS DESCRIBE?
PARTICIAPATION
WHAT TYPE OF PARTNERSHIP IS A REAL ESTATE INVESTMENT CONDUIT?
PARTNERSHIP BETWEEN MORTGAGEES
Betty is purchasing a home and has received loan estimated from three lenders. As she compares the term of the loan being offered, where can she find the section that allows her to make comparisons between loans with different interest rates?
Page Three
In which partnership do participants have shared responsibility for a single mortgage?
Partnerships between Mortgagors
In order for the spousal support to be considered in the lender's income evaluation when Kayla applies for a home loan, what must be true?
Payments must have been received for at least one year, and must be expected to continue for at least three more years.
What type of lending was a contributing factor to the housing collapse in the mid 2000's
Predatory lending by Subprime lenders
Credit Worthy Consumer can get what time of loan
Prime Rate
WHICH INTEREST RATE DO BANKS USE TO OFFER CONSUMER LOANS?
Prime Rate
Non Recourse
Prohibits the lender from suing the borrower for unpaid amounts
WHICH ACT HAS SPECIAL PROVISIONS FOR BORROWERS WHO ARE VICTIMS OF OVERCHARGING
REAL ESTATE SETTLEMENT PROCEDURES ACT
NATALIE IS A LICENSEE, WHO IS ASSISTING HER BUYERS IN THE PURCHASE OF HUD ___________, WHEN THEY ARE LISTED FOR SALE
REPOSSESSED HOMES
WHAT QUALIFYING RATIOS ARE USED IN A VA HOME LOAN
RESIDUAL INCOME AND DEB TO INCOME RATIO
The intent of the consumer credit protection Act, which includes the Truth in Lending Act, is to safguarde consumer by
Requiring full disclosure of the terms and conditions in any offers of credit
IF THE TREASURY ENCOUNTERS A DEFICIT, WHAT ACTION MIGHT IT TAKE
SELL SECURITIES
Where can a party reviewing a title commitment find basic details about the transaction
Schedule A
The mortgage and the deed of trust are __________?
Security Instruments
HOW IS A LOAN ASSUMPTION DOCUMENTED
THE BUYER AND SELLER BOTH SIGN AN ASSUMPTION
WHAT IS A POTENTIAL CAUSE FOR A DECREASE IN LOCAL ECONOMY DRIVEN BY THE FED?
THE RESERVE PERCENTAGE IS INCREASED BY THE FED
WHEN DOES THE NEED FOR MORTGAGE INSURANCE END FOR A BORROWER WHO HAS A VA LOAN
THERE IS NO MORTGAGE INSURANCE REQUIREMENT FOR A VA LOAN
HOW DOES THE VA FUND THE MORTGAGE GURANTEE PROGRAM SO THAT LENDERS CAN BE REIMBURSED FOR ANY LOSSES FROM BORROWER DEFAULT?
THROUGH A FUNDING FEE CHARGED TO MOST BORROWERS
THE __________, WAS ENACTED IN 1968
TRUTH IN LENDING ACT, REQUIRES LENDERS TO DISCLOSE FINANCING TERMS TO CONSUMERS IN A MANNER THAT NOT MISLEADING OR DECEITFUL.
Which statement correctly describes a contract for deed?
The contract for deed is usually used in a seller-finance transaction
Which of the following statements is true about government loans
They are insured or guranteed by a government agency
Patty and Barb are the buyer and sellers in a real estate transaction. By when must the closing disclosure be provided to them?
Three days prior to closing
Which of the following acts is created regulation for advertising credit services?
Truth in Lending Act
Which of the following factors carries the least weight when calculating a credit score?
Type of accounts
How long does a homeowner have to pay off outstanding liens against his property?
Until the foreclosure sell is held
INCOME APPOACH
WHICH OF THE FOLLOWING APPROACHES TO VALUE USES A CAPITALIZATION RATE
Blanket Lien
What type of lien may the lender slap someone with until the loses are repaid
Cash out Refinance
Which of the following VA programs requires a credit check, new appraisal, and income verification?
DOES THE VA MAKE DIRECT LOANS
YES, FOR NATIVE AMERICANS ON TRUST LANDS
FHA 203 (B) LOAN
lENDERS CAN CONSIDER COMPENSATING FACTORS , EVEN IF THEIR CREDIT HISTORY IS NOT GREAT.
WHICH OF THE FOLLOWING DESCRIBES PRIME RATE
CREDITWORTHY BORROWERS
GINA'S MORTGAGE PAYMENT ARRIVES LATE ONE MONTH. WHAT LANGUAGE IN THE PROMISORY NOTE ALLOWS THE LENDER TO CHARGE HER A FEE AS A RESULT
LATE CHARGE PROVISIONS
When consumers make a small down payment and borrower the remaining amount of the purchase price for a lender, they are demonstrating what concept?
Leverage
Lewis is reviewing his Loan Estimate and notices under "Other Cost" items listed that do not include cost? Lewis should do what
Lewis should ask his Lender about it
Because of the secure and fair enforcement for mortgage licensing act borrowers can determine if mortgage loan originator is
Licensed and Registered
Which of the following, onece completed initiates the loan process?
Loan Application
NET WORTH
THE DIFFERENCE BETWEEN A BORROWER'S ITEMS OF VALUE AND OBLIGATIONS
IF SOMEONE WITH A VA LOAN DEFAULTS WHAT HAPPENS
THE LENDER IS IS GUARANTEED UP TO ONE QUARTER OF THE LOAN AMOUNT WILL BE REIMBURSED. SO IF THE LOAN IS 200,000 THE LENDER WILL RECEIVE 50,000
WHICH OF THE FOLLOWING DESCRIBES THE DISCOUNT RATE
THE RATE AT WHICH A BANK CAN OBTAIN A LOAN FROM ITS FEDERAL RESERVE BANK WHEN USING COMMERCIAL PAPER AS COLLATERAL
The federal Safe Act required states to enact licensing and registration requirements related to loan originators, and created the nationwide mortgage licensing system and Registry. Which act was Texas response to the federal act?
The Texas Safe Act
TO QUALIFY FOR THE FHA STREAMLINE REFINANCE PROGRAM, A HOMEOWNER MUST
NOT BE DELIQUENT ON MORTGAGE PAYMENTS
Private loan companies may be found in many places. There are __________, regional , and local lenders, and even individual enterprenueurs who loan money.
National
When a borrower is completing a loan application, items of value the borrower owns are listed in the __________section?
Assets Section
What is the purpose of the Home Mortgage Disclosure act
Requires financial institutions to maintain, report, and publicly disclose information about their mortgage