RealEstateU Unit 6
1%
1 point is equal to...?
Line-kind properties
A 1031 exchange allows capital gains taxes to be deferred on...?
Lease-purchase agreement
A Lease with Option to Purchase is also known as a...?
100 investors
A REIT must be owned by at least...?
The borrower
A Uniform Residential Loan Application gets filled out by which of the following...?
promissary note
A borrower is said to be in default of their loan if they do not abide by the terms of the...?
Marketable Title
A buyer should receive a/an .............prior to closing on a property?
Voluntary Conveyance of deed
A deed in lieu of foreclosure is an example of a...?
Moratorium
A forbearance on a note is known as a...?
Mechanics lien
A lien created by statute which exists against real property in favor of persons who have performed work or furnished materials for the improvement of the real property is known as a...?
Involuntary lien
A lien imposed against property without consent of an owner is known as a/an...?
General lien
A lien on all the property of a debtor is known as a...?
Specific lien
A lien that attaches to one specific property only is known as a...?
Sller financing
A loan provided by the seller of a property or business to the purchaser is known as...?
Fixed interest rate loan
A loan where the interest rate does not fluctuate during the term of the loan is known as a...?
10-15 years
A long term real estate cycle is typically...?
All of the above
A mortgage REIT primarily earns their income from which of the following...?
Services
A mortgage banker originates and ...........loans?
Specific lien
A mortgage lien is an example of a...?
Conventional Loan
A mortgage made without governmental underwriting is referred to as a/an...?
Deed of trust
A non-judicial foreclosure may be used on a...?
All of the above
A promissory note includes which of the following...?
Interest only loan
A term loan is an example of a/an...?
6%
According to FHA guidelines, the seller can contribute up to ...........of the sales price towards the buyer's closing costs?
Legal rights
According to lien theory, the lender retains equitable rights to the property, while the borrower retains...?
Fair Market Value
An appraisal determines an estimate of...?
Opinion of title
An attorney may issue which of the following...?
appraisal
An opinion of value is known as a/an...?
Prorated
At closing, property taxes are ............between the buyer and seller?
Board of Directors
Each district within the Federal Reserve is overseen by a...?
Urban Development Act 1968
Ginnie Mae was created under the...?
All of the above
HUD is responsible for which of the following activities...?
All of the above
HUD oversees which of the following...?
The buyer
If a buyer assumes a seller's existing mortgage, who is responsible for the payments on the mortgage...?
$2,000
If a lender charges an origination fee of 2 points on a $100,000 loan, how much is paid in origination fees...?
Deficiency Judgement
If a property is sold at a foreclosure auction for an amount less than the amount of outstanding debt on the property, the lender may file for a...?
Strict foreclosure
In a ..............., the court establishes a specific date for the defaulted amount to be paid?
Trustor
In a deed of trust, the buyer serves as the...?
Monthly payment
In a typical fixed interest rate loan, the longer the term, the lower the...?
Assumption clause
In order for a buyer to take over a seller's existing loan on the property, the loan must contain a/an...?
Negative Amortization Loan
In this loan type, the principal balance of the loan increases over time...?
All of the above
Instruments of credit can do which of the following...?
1989
Loans that were originated prior to ........are generally assumable?
FHA Insured loans
Mortgage insurance premium is obtained on which of the following loans...?
All of the above
National member banks of the Federal Reserve must do which of the following...?
Conventional loans
PMI only applies to what types of loans...?
all of the above
Pension funds typically purchase which of the following...?
Sales Comparison Approach
Residential properties are typically valued using which appraisal method...?
Community Reinvestment Act
The Consumer Financial Protection Bureau enforces which of the following...?
All of the above
The Federal Reserve is responsible for which of the following...?
Subsidized Housing
The Housing Choice Voucher Program is an example of...?
US Treasury
The Office of the Comptroller of the Currency falls under the control of the...?
Rural Development Administration
The USDA Rural Development Program combines the Farmers Home Administration, the Agricultural Cooperative Service Administration, and the...?
Manufactoring U.S. coins
The United States Mint is responsible for which of the following...?
Principal
The amount borrowed is known as...?
interest rate
The cost of borrowing money is expressed as a/an...?
Underwriting
The criteria with which a lender determines the credit worthiness in order to qualify them for the loan is referred to as...?
All of the above
The down payment for an FHA insured loan may be paid using which of the following...?
Beneficiary
The lender on the security of a note and deed of trust is known as the...?
41%
The maximum debt-to-income ratio for a VA loan is...?
Borrower
The mortgagor is the...?
Fixed interest rate loan
The most common type of loan in a residential transaction is a...?
Liquidity
The secondary mortgage market offers ..............for the primary mortgage market?
Trustee
The third party under a deed of trust is known as a...?
Negative Amortization
This occurs when monthly installment payments are insufficient to pay the interest accruing on the principal balance, so that the unpaid interest must be added to the principal due...?
Mortgage REIT
This type of REIT purchases loans...?
Sub-prime loans
This type of loan may be offered to individuals who do not qualify for prime rate loans...?
2 Months
Under an FHA loan, default occurs after ...........of non-payment by the borrower?
Home Mortgage Disclosure Act (HMDA)
Under the .............., mortgage originators must report the racial characteristics and gender of their applicants?
Cost approach
Unique properties are typically valued using which appraisal method...?
Seller Concessions
VA loans allow up to 4% in ................towards the buyer?
43%
What is the maximum back-end debt-to-income ratio on an FHA loan...?
31%
What is the maximum front-end debt-to-income ratio on an FHA loan...?
1%
What is the maximum interest rate change in any one year of a VA adjustable rate mortgage...?
5%
What is the maximum interest rate change over the life of a VA adjustable rate mortgage...?
3.5%
What is the minimum down payment for an FHA insured loan...?
20%
What is the minimum down payment required on an FHA insured loan for a residential investment property...?
Equitable title
When a borrower hypothecates their property, the lender will maintain...?
Appraisal
When applying for a VA loan, the Certificate of Reasonable Value essentially serves as the...?
Cash down payment
When using leverage to help purchase a residential property, what is typically used to cover the remainder of the purchase price...?
Equity REIT
Which of the following REITs directly invests in properties and earns income from rents and sales...?
Leasehold estate
Which of the following estate offers the right of possession and control, but not title...?
FDIC
Which of the following helps to limit the impact on the economy and the financial system when a bank or thrift institution fails...?
HAMP
Which of the following is a governmental loan modification program...?
All of the above
Which of the following is a major valuation method used by appraisers...?
Obtaining financing to purchase a property
Which of the following is an example of using leverage in a real estate transaction...?
MIP
Which of the following is paid on FHA insured loans where the borrower puts down a minimum down payment...?
Tax Lien
Which of the following liens takes the highest priority over other liens...?
Tax lien
Which of the following liens takes top priority over other liens...?
30 years
Which of the following loan terms will yield the lowest monthly payment, assuming a fixed interest rate loan at a 4% interest rate...?
Reverse Annuity Mortgage (RAM)
Which of the following loans are typically utilized by senior homeowners...?
All of the above
Which of the following may be a lender in a real estate transaction...?
Federal Land Bank Association
Which of the following originates long-term mortgages for farmers and ranchers...?
All of the above
Which of the following participates in the secondary mortgage market...?
Good Neighbor Next Door Program
Which of the following programs is offered by HUD...?
All of the above
Which of the following provides liquidity for lenders in the primary mortgage market...?
Farmer Mac
Which of the following purchases agricultural loans...?
Truth in Lending Act (TILA)
Which of the following was designed primarily to insure that prospective borrowers and purchasers on credit receive credit cost information before entering into a transaction...?
