CHAMPIONS REAL ESTATE FINANCE EXAM 2024 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED A+, Exams of Real Estate Management

Download CHAMPIONS REAL ESTATE FINANCE EXAM 2024 | ALL QUESTIONS AND CORRECT ANSWERS | GRADED A+ and more Exams Real Estate Management in PDF only on Docsity! CHAMPIONS REAL ESTATE FINANCE EXAM 2024 | ALL QUESTIONS AND CORRECT ANSWERS | ALREADY GRADED A+ | VERIFIED ANSWERS | LATEST VERSION The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status. Ensures that all consumers are given an equal chance to obtain credit. ------CORRECT ANSWER--------------- Equal Credit Opportunity Act (ECOA) A United States federal law that is designed to protect consumers in any credit transactions by requiring clear disclosure of key terms of lending arrangments all associated cost. ------CORRECT ANSWER---------------Truth in Lending Act (TILA) Specific credit terms that may not be advertised unless the advertisement includes other detailed information. ------ CORRECT ANSWER---------------Trigger Terms Sometimes called the Fair Credit Reporting Dispute Act, is a federal law designed to protect consumers against unfair credit reporting practices and protect and credit privacy. To assure the consumer that these agencies are fair, accurate and exhibit confidentiality in their credit reporting methods. ------CORRECT ANSWER---------------The Federal Fair Credit Reporting Act (FCRA) Also referred to a "Section 502 loan" is insured by the U.S. Department of Agriculture. The program offers 100% financing (no down payment) for qualified borrowers. First time and repeat home buyers can obtain this loan. The program is for primary residence only; no second homes or investor financing is available under this program. The program is for purchases and refinancing only and cash-out refinances are Not allowed. ------ CORRECT ANSWER---------------U.S. Department of Agriculture (USDA) Is an agency of the US Dept of Agriculture. Farm Loan Programs for a farmer or rancher who is unable to obtain credit elsewhere to start, purchase, sustain, or expand a family farm. ------CORRECT ANSWER---------------USDA Farm Loans (FSA) Regulates the credit industry and educates consumers and creditors. Agency efforts help produce a fair, lawful and healthy credit environment for social and economic prosperity in Texas. -- ----CORRECT ANSWER---------------Office of Consumer Credit Commissioner (OCCC) Is responsible for affordable housing, housing related and community service programs, and the regulation of the states manufactured housing industry. ------CORRECT ANSWER---------- the supply of funds that mortgage lenders, such as commercial banks, mortgage bankers, saving institutions and credit unions can make available to homeowners and multi-family investors. ---- --CORRECT ANSWER---------------Freddie Mac (FHLMC) Legal right given to a person to manage the property and financial affairs of a person deemed incapable of doing that for himself or herself. ------CORRECT ANSWER---------------Conservatorship Enacted on July 30, 2008, is a major housing law that serves multiple purposes: The modernization of the Federal Housing Administration (FHA) , foreclosure prevention, and the enhancement of consumer protections. The SAFE ACT is a KEY component of HERA : -it is designed to enhance consumer protection and reduce Fraud by requiring national minimum standards for mortgage training, including prelicensing education and annual continuing education Way to Remember: in order to be SAFE, you need a HERA! (female version of a hero) ------CORRECT ANSWER--------------- The Housing and Economic Recovery Act (HERA) On September 7, 2008 this agency placed Fannie Mae and Freddie Mac in Conservatorship. Appoint (blank) as a conservator or receiver of the GSEs. ------CORRECT ANSWER--------------- FHFA (Federal Housing Finance Agency) Is a government-sponsored enterprise with the mission of providing secondary market for agriculture real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. ------CORRECT ANSWER---------------Farmer Mac Is used to qualify a borrower for a loan based upon the proposed house payment and his or her gross monthly income (GMI). The house payment is the monthly payment of principal, interest, taxes and insurance (PITI). ------CORRECT ANSWER--------------- Front Ratio The ratio of the borrowers total recurring monthly debts. ------ CORRECT ANSWER---------------Back Ratio Refers to a loan made with real estate as security and which does not involve government participation in the form of insuring or guaranteeing the loan. ------CORRECT ANSWER--------------- Conventional Loan Allows for the indirect investment in mortgages through the sale of securities. Purchases "pools" of mortgages ------CORRECT ANSWER---------------Real Estate Mortgage Investment Conduit (REMIC) The market where borrowers and lenders come together to create and negotiate terms of a mortgage transaction. ------CORRECT ANSWER---------------Primary Mortgage Market Perform a variety of functions, from being a depository institution to providing lines of credit and loan products to the communities in which they are charted. Working capital is primarily generated through deposits from clients. ------CORRECT ANSWER------------ ---Commercial Banks Not-for-profit banks set up by organizations that exist to serve their members. Return surplus income to their members in the form of dividends. ------CORRECT ANSWER---------------Credit Unions An instrument of corporate or governmental debt. (An IOU) ------ CORRECT ANSWER---------------Bonds An investment vehicle created by congress in 1960. The effort to make it possible for small investors to invest in larger commercial properties by purchasing shares in the organization that owns the real estate. ------CORRECT ANSWER---------------Real Estate Investment Trust (REIT) HELOC. ------CORRECT ANSWER---------------Open-End Mortgage The monthly house payment includes principal, interest, taxes and insurance (known as PITI) ------CORRECT ANSWER----------- ----Budget Mortgage A hard money loan is a specific type of asset-based financing in which a borrower receives funds secured by the value of a parcel of real estate. ------CORRECT ANSWER---------------Collateral - Dependent Loans Is a measure of the willingness of a borrower to make on-time payments. Credit character is revealed in the borrower's credit report. ------CORRECT ANSWER---------------Character Is a measure of the borrower's ability to repay the debt, and is demonstrated through current earnings and job stability. ------ CORRECT ANSWER---------------Capacity Is the sum of all assets that the borrower has accumulated. ------ CORRECT ANSWER---------------Capital Is something of value that can be pledged as security for repayment. ------CORRECT ANSWER---------------Collateral Is the return that the investor recieves over the life of the loan. (Also known as profit) ------CORRECT ANSWER---------------Yield The process of creating a new mortgage loan, including all steps taken by a lender to attract and qualify a borrower. ------ CORRECT ANSWER---------------Originator Typically functions as a middleman between the borrower and the lender, negotiating, selling or arranging loans to be delivered to larger investors. At one time originated up to 80% of all mortgage loans. (Back on the rise) ------CORRECT ANSWER--------------- Mortgage Broker Entities which provide their own funds for the purpose of providing mortgage financing, as opposed to commercial banks/savings associations. (Held, or "Warehoused") ------CORRECT ANSWER- --------------Mortgage Banker Usually smaller in scale than mortgage bankers or brokers, these lenders typically extend loans with their own funds, at their own risk. ------CORRECT ANSWER---------------Correspondent Lender Once application is complete the file moves into this phase. ------ CORRECT ANSWER---------------Processing The detailed process of evaluating a borrower's loan application to determine the risk involved for the lender. ------CORRECT ANSWER---------------Underwriting The consummation of a real estate transaction in which all appropriate documents are signed and the proceeds of the mortgage loan are then disbursed by the lender. ------CORRECT ANSWER---------------Closing Includes collecting monthly payments, maintaining records of payments and balances, collecting and paying taxes and insurance ( and managing escrow and impound funds) remitting funds to the note holder, and following up on delinquencies. ------ CORRECT ANSWER---------------Servicing an economic concept that states that the price of a good rises and falls depending on how many people want it and depending on how much of the good is available. ------CORRECT ANSWER------ ---------Supply and Demand Is the rate that the Federal reserve charges banks for unsecured loans, most of which are for a very short term. ------CORRECT ANSWER---------------Federal Funds Rate Was created to restore the nations financial stability and restart economic growth. ------CORRECT ANSWER---------------Trouble Asset Relief Program (TARP) Created by Congress in 1972 and became part of the Department of the Treasury in 1873. The primary mission is to serve the American people by manufacturing, distributing, and circulating precious metal coins, collecting coins and national medals. Also entrusted with providing security over assets. ------CORRECT ANSWER---------------United State Mint An agency created in 1933 to insure individuals' bank accounts, protecting people against losses due to bank failures (Insures deposits only) ------CORRECT ANSWER---------------The Federal Deposit Insurance Corporation (FDIC) A system of regional banks from which local lending institutions everywhere in America borrow funds to finance housing, economic development, infrastructure and jobs. ------CORRECT ANSWER---------------The Federal Home Loan Bank (FHLB) System Provides mortgage insurance on loans made by blank- approved lenders throughout the US and its territories. Insures mortgages on single-family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over 34 million properties since its inception in 1934. ------CORRECT ANSWER---------------The Federal Housing Administration (FHA) Provides lenders with protection against losses as the result of homeowners defaulting on their mortgage loans. ------CORRECT ANSWER---------------FHA mortgage insurance To help communities with economic development, job opportunities and housing rehabilitation ------CORRECT ANSWER---------------Community Development Block Grants (CDBG) Block grants to develop and support affordable housing for low- income residents. ------CORRECT ANSWER---------------HOME Investment Partnership Program In the form of section 8 certificates or vouchers for low-income households. ------CORRECT ANSWER---------------Rental assistance Was established in the U.S in 1968 to promote homeownership. It is wholly-owned government association that operates a mortgage-backed securities program designed to facilitate the flow of capital into housing industry. Does not issue, sell or buy pass-through mortgage-backed securities or purchases mortgages loans. It simply guarantees (insures). ------CORRECT ANSWER---------------Ginnie Mae (GNMA) An act prohibiting discrimination in the sale or rental of housing on the basis of race, color, religion or national origin sex, handicap and familial status. ------CORRECT ANSWER---------------Federal Fair Housing Act of 1968 A federal cabinet department is active in national housing programs. Its mission is to create strong, sustainable, inclusive communities and quality affordable homes. It prevents housing discrimination through public education and enforcement are administered by the Assistant Secretary for Fair Housing and Equal Opportunity (FHEO) ------CORRECT ANSWER--------------- Department of Housing and Urban Development (HUD) All residential mortgage loan originators must now be registered with the Nationwide Mortgage Licensing System and Registry. ---- --CORRECT ANSWER---------------NMLSR Is a unit of measure. (Discount charges) ------CORRECT ANSWER---------------Points The percent added to the index in order to calculate the payment interest rate. ------CORRECT ANSWER---------------Margin A lower interest rate is offered by the lender during the first year or more of the loan. ------CORRECT ANSWER--------------- Discounted Initial Rate (teaser rate) Limits the total amount the interest rate may increase over the life of an adjustable-rate mortgage loan. ------CORRECT ANSWER--- ------------Lifetime Cap ARMs that offer a fixed rate period during the first years of the loan usually have an initial rate cap that is higher than the per adjustment cap ------CORRECT ANSWER---------------Initial Adjustment Cap Partially amortized and most commonly done with secondary mortgages. ------CORRECT ANSWER---------------Balloon Note Have risk-based pricing. The rates are not published on these loans. Borrowers are rated A-F with a prime borrower having an A rating. A minus to F-rated borrowers will pay 1 to 5 % higher than those with good credit. These are non-conforming loans. ------ CORRECT ANSWER---------------Sub-Prime Loans More than two-thirds of sub-prime loans have this. ------ CORRECT ANSWER---------------prepayment penalties debt instrument issued by a corporation to raise long-term funds -- ----CORRECT ANSWER---------------Corporate Bond when an unscrupulous lender takes advantage of a consumer's lack of knowledge regarding lending practices ------CORRECT ANSWER---------------Predatory Lending Is an elaborate scam in which unsuspecting first-time homebuyers are sold houses in serious states of disrepair for prices far above what the houses are actually worth. ------CORRECT ANSWER----- ----------Property Flipping Is a person who is used to buy property in order to conceal the actual owner. ------CORRECT ANSWER---------------Straw Buyer Occurs when fraudsters forge a deed transfer or a satisfaction lien, and then obtain new liens on the property. ------CORRECT ANSWER---------------Equity Theft Is excessive selling/lending activity for the purpose of generating fees and commissions. ------CORRECT ANSWER--------------- Churning occurs when a fraudster promises to show investors how to get rich by buying investment properties. ------CORRECT ANSWER--- ------------Chunking The sale of capital asset results in either a gain or a loss. ------ CORRECT ANSWER---------------Capital gains tax The actual age of the property in years. ------CORRECT ANSWER---------------chronological Age An appraiser's estimate of the age of the house based upon its ongoing maintenance and upgrades. ------CORRECT ANSWER--- ------------Effective Age The lender files suit with the (blank) system, and the borrower will receive a note in the mail demanding payment. If payment is not made after a certain time period, the mortgage property is then sold through an auction. ------CORRECT ANSWER--------------- Judicial Foreclosure Also known as a statutory foreclosure. Foreclosure without going to court. (Have no choice) ------CORRECT ANSWER--------------- Power of Sale The lender files a lawsuit on the homeowner that has defaulted. If the borrower cannot pay the mortgage within a specific timeline ordered by the court, ownership the property is transferred directly to the mortgage holder. The take place only when the debt amount is greater than the value of the property. ------CORRECT ANSWER---------------Strict Foreclosure A claim, lien, charge, or liability attached to and binding real property. An easement for ingress and egress. ------CORRECT ANSWER---------------Encumbrances Is a right given by law to certain creditors to have debts paid out of the property of a defaulting debtor, usually by means of a court sale. ------CORRECT ANSWER---------------Lien What is the prime rate? ------CORRECT ANSWER---------------The interest rate that is determined by individual banks. Who provides VA home loans? ------CORRECT ANSWER---------- -----Private lenders Section 502 Direct Loan Program ------CORRECT ANSWER------- --------The single Family Housing Direct Home loan is also known as Policies that support job creation ------CORRECT ANSWER-------- -------Through which avenue does the US Treasury promote economic growth. 203(k) ------CORRECT ANSWER---------------The (blank) loan was developed by HUD for the rehabilitation and repair of single family properties. 2009 ------CORRECT ANSWER---------------When was HARP introduced? Increases the ins coverage on all federally insured credit union accounts up to $250,000 ------CORRECT ANSWER--------------- Dodd-Frank Wall Street Reform Act Periodic review, Pre-approval and consumer initiated ------ CORRECT ANSWER---------------Neutral inquiries that are not rated as either positive or negative on a credit report. Raising taxes ------CORRECT ANSWER---------------At the treasury level, funds can be raised to pay for government spending by increasing borrowing and An arrangement where the lender agrees to pay money to an elderly homeowner, either regularly or occasionally, and to be repaid from the homeowner's equity when he or she sells the home or obtains other financing. ------CORRECT ANSWER--------- ------Reverse Mortgage Cannot be accepted from borrower's who can financially afford their mortgage payments. ------CORRECT ANSWER--------------- Deed in Lieu Insurance provided by a private carrier that protects a lender against a loss in the event of a foreclosure and deficiency. ------ Townhouses or Row houses Individual units within FHA- approved Condominium Projects ------ CORRECT ANSWER---------------FHA's Single Family programs are limited to one-to four Family Property secured by a one-time mortgage insurance fee paid at closing on FHA mortgage loans. And it can be added to the loan even if it causes the loan to exceed the appraised value of the property. ------ CORRECT ANSWER---------------Up-front mortgage insurance premium (UFMIP) Sales Price/Value × 96.5% LTV = Base Loan Amount ------ CORRECT ANSWER---------------Up-Front Mortgage Insurance Premium (UFMIP) Calculations based on the LTV and its added to the borrower's monthly payment. ------CORRECT ANSWER---------------Annual Premium Fully Amortized loans Downpayment as low as 3.5% Low Interest rates Mandatory collection of taxes and hazard ins premiums in an escrow account Guidelines for borrower qualification ------CORRECT ANSWER---- -----------Major loan reforms spearheaded by the FHA have included. Loans that are not sold in the secondary market ------CORRECT ANSWER---------------Portfolio Loans Governmental loans include ------CORRECT ANSWER-------------- -FHA, VA and USDA loans The four C's of good lending: ------CORRECT ANSWER------------- --Character, Capacity, Capital and Collateral A loan with no discount points ------CORRECT ANSWER------------ ---Par loan Taking buyers or renters to or away from a particular area based on the race, religion, etc. of the buyer or renter (most common complaint under law) ------CORRECT ANSWER--------------- Steering (channeling) A written promise to pay a certain amount of money with a certain interest rate on a certain date ------CORRECT ANSWER------------- --promisary note If borrower defaults on the primary instrument, the secondary instrument is automatically defaulted. This protects a subordinate lien holder by allowing him to foreclose a property if the first lien went into default, even if the subordinate lien was not in default. -- ----CORRECT ANSWER---------------Cross-default clause a tax penalty equal to .5 percent of the amount of tax owed for each month (or fraction thereof) that the tax is not paid. ------ CORRECT ANSWER---------------Late payment penalty Is included in some loans, and allows a borrower to pay off the loan prior to the due date without incurring penalties ------ CORRECT ANSWER---------------Prepayment Privilege Clause a second mortgage (or second deed of trust) is an instrument subordinate to the primary mortgage ------CORRECT ANSWER--- ------------Second and Third Mortgages A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount. Also called an installment contract or cash for deed. ------CORRECT ANSWER---------------Contract for Deed (Land Contract) Property Address, Estimated Value, Name of the borrower, SSN, Income, Loan Amount ------CORRECT ANSWER--------------- PENSIL Application Designed to enhance consumer protection and reduce fraud. ------ CORRECT ANSWER---------------SAFE Act The industry term for residential loan originators, as mandated by the SAFE Act. ------CORRECT ANSWER---------------RMLO 1977 ------CORRECT ANSWER---------------The Community Reinvestment Act enacted in (blank) ensures that banks serve the needs of the community in which they where charted. A fixed rated mortgage remains fixed for ? ------CORRECT ANSWER---------------The entire term of the loan Entitlement ------CORRECT ANSWER---------------The size of a loan a veteran may receive determine by this service commonly known as GI Bill of Rights ------CORRECT ANSWER--- ------------Service Readjustment Act, 1944 Demand Utility Scarcity Transferability ------CORRECT ANSWER---------------D.U.S.T is what the lender uses as an instrument for measuring changes in interest rates ------CORRECT ANSWER---------------Index States where a mortgagee holds actual title to property until the loan is repaid. Compare to Lien Theory States. ------CORRECT ANSWER---------------In title theory states a state where the mortgage lender has a lien on the property and the borrower has title. I own the title of my house. ------CORRECT ANSWER---------------In a lien theory state the third party trustee holding title to the property in trust has the right to foreclose once the buyer defaults. If the borrower doesn't make the payment we don't take them to court the forecloser starts. ------CORRECT ANSWER---------------Intermediary theory states A deed of trust is a three-party instrument who's parties include: -- ----CORRECT ANSWER---------------Borrower, Lender, Trustee Congress created the Federal Housing Administration in ------ CORRECT ANSWER---------------1934 In order to qualify for exemption from capital gains, the property must have been the primary residence for two of the previous ___ years ------CORRECT ANSWER---------------5 years A loan with no discount points is known as a ------CORRECT ANSWER---------------Par loan What is Fiat money ------CORRECT ANSWER--------------- Currency that is not backed up by any precious metals At the treasury level, funds can be raised to pay for government spending by increasing borrowing and _____ ------CORRECT ANSWER---------------Raising Taxes The ________ is the interest rate a reserve bank charges eligible financial to borrow funds on a short term basis ------CORRECT ANSWER---------------Discount rate Conforming Loan ------CORRECT ANSWER---------------Adheres to Fannie Mae and Freddie Mac requirement for purchase of a mortgage Yield ------CORRECT ANSWER---------------return on an investment Redlining ------CORRECT ANSWER---------------The practice of refusing to provide financing in a particular area because of location SML ------CORRECT ANSWER---------------Responsible for the chartering, regulation and supervision of Texas thrift industry TDHCA ------CORRECT ANSWER---------------Responsible for the regulation of the Texas manufactured housing industry SAFE Act ------CORRECT ANSWER---------------Designed to enhance consumer protection and reduce fraud RMLO ------CORRECT ANSWER---------------The industry term for residential loan originators, as mandated by the SAFE act Monetary policy ------CORRECT ANSWER---------------policy that deals with interest rates and the supply of money in the US economy Fiscal Policy ------CORRECT ANSWER---------------Relates to federal government Open-Market Operations ------CORRECT ANSWER--------------- Buying or selling government securities by the federal reserve Discount Rate ------CORRECT ANSWER---------------Set by the board of directors of the Federal Reserve Banks subject to approval by the Board of Governors Loan Processing ------CORRECT ANSWER---------------The process of collecting information about a borrower in order to build a loan file that will be used to make an underwriting decisions Underwriting ------CORRECT ANSWER---------------The process of evaluating a borrowers loan application to determine the risk involved for the lender Funding ------CORRECT ANSWER---------------The process of transferring funds to a title or escrow company for disbursement Servicing ------CORRECT ANSWER---------------sending monthly payments statements and collecting monthly payments, maintaining payment records and following up on delinquencies Origination ------CORRECT ANSWER---------------the process of creating a new mortgage loan A tax lien can be classified as an involuntary lien and a ______ lien ------CORRECT ANSWER---------------statutory lien An easement for ingress and egress is known as an _______ ----- -CORRECT ANSWER---------------encumbrance Which of the following types of liens is one that is freely given, usually as collateral for a loan? ------CORRECT ANSWER---------- -----Voluntary lien credit union ------CORRECT ANSWER---------------member-owned depository institions, are not for-profit organizations that exist to serve their members REIT ------CORRECT ANSWER---------------investment vehicle created by congress in 1960 Points ------CORRECT ANSWER---------------percentages based on the amount of the loan Conforming loan ------CORRECT ANSWER--------------- conventional loans that conform to FNMA/FHLMC standards Ballon Loan ------CORRECT ANSWER---------------partially amortized loan with a substantially larger final payment blanket mortgage ------CORRECT ANSWER---------------a loan which covers more than on piece of property churning ------CORRECT ANSWER---------------excessive selling/lending activity for the purpose of generating fees and commission Pier Diem interest charged to borrower from the day of closing through to the end of the month is called.....___ ------CORRECT ANSWER---------------Interium interest A fixed rate-mortgage remains fixed for ________. ------ CORRECT ANSWER---------------Entire term of loan Disadvantages of adjustable rate mortgages include possibly increased monthly payments, _________, borrower confusion, and higher long term costs. ------CORRECT ANSWER--------------- The inability to refinance early The ______ loan was developed by HUD for the rehabilitation and repair of single-family properties ------CORRECT ANSWER--------- ------203K The Serviceman's Readjustment Act, signed into law in ________ is more commonly known as the GI Bill of Rights ------CORRECT ANSWER---------------1944 Major loan reforms spearheaded by the FHA have included _________. ------CORRECT ANSWER---------------Partially amortized loans, high interest rates, no limits on borrower qualification or none of these are correct Entitlement ------CORRECT ANSWER---------------The size of loan a veteran may receive, determined by the term of services Back Ratio ------CORRECT ANSWER---------------The ratio of the borrower's total recurring monthly debts Native American Direct Loan ------CORRECT ANSWER------------- --Direct loans for construction or improvement on Federal Trust Land. Annual Premium ------CORRECT ANSWER---------------Insurance cost based on the loan-to-value ratio Servicemen's Readjustment Act ------CORRECT ANSWER--------- ------Commonly known as the GI Bill of Rights Verification of Deposit (VOD) ------CORRECT ANSWER------------- --Form lenders use to obtain borrower balance information Front Ratio ------CORRECT ANSWER---------------Ratio of proposed loan payments to GMI Loan Estimate ------CORRECT ANSWER---------------Form which replaces the good faith estimate Market Value ------CORRECT ANSWER---------------The most probable price a property should bring on the open market Judicial Foreclosure ------CORRECT ANSWER---------------go before a judge statutory foreclosure, get auction Non Judicial Foreclosure ------CORRECT ANSWER--------------- used when a power of sale clause exists in a mortgage or deed of trust Depreciation ------CORRECT ANSWER---------------the reduction in value of property from causes such as deterioration or obsolescence Chronological Age ------CORRECT ANSWER---------------The actual age of the property in years. The house is 20 years old, it has a chronological age of 20 Effective age ------CORRECT ANSWER---------------the apprasiers estimate of the age of the house based upon its on going maintenance and upgrades. A house might have been well maintained and updated over all the years, therefor the apprasier might determine that a 20 year old house might have an effective age of 10 Nationwide Mortgage Licensing System and Registry (NMLSR) --- ---CORRECT ANSWER---------------All residential mortgage loan originators must be registered under________ Federal Fair Housing ------CORRECT ANSWER--------------- statutes prohibit housing discrimination based on race, color, national orgin, sex, religion, families with children and disabilities. Collateral-Dependent Loans (Hard money loan) ------CORRECT ANSWER---------------is a specific type of asset-based financing in which a borrower receives funds secured by the value of a parcel of real estate Lifting Clauses ------CORRECT ANSWER---------------which gives the borrower the ability to replace the primary instrument with another without affecting the subordinate instruments position Mortgagor ------CORRECT ANSWER---------------the borrower Sale of bonds ------CORRECT ANSWER---------------money that mortgage companies use to make loans, which is considered a business transaction, not a saving account deposit procedures Soverighty of the soil ------CORRECT ANSWER--------------- government is the original owner of all land Patent ------CORRECT ANSWER---------------The original conveyance of land by the sovereign is usually done with a document Abstract of title ------CORRECT ANSWER---------------complete history of the title of piece of property that includes deeds, The Federal Deposit Insurance Corp (FDIC) insurance limit for deposits is __________. ------CORRECT ANSWER--------------- $250,000 ____________ charters, regulates and supervises all national banks and federal savings associations ------CORRECT ANSWER---------------Office of the comptroller of the currency (OCC) Which on of these programs is not administered by HUD? ------ CORRECT ANSWER---------------Consumer Financial Protection Bureau (CFPB) Which of the following transactions is exempt from Real Estate Settlement Procedures Act (RESPA)? ------CORRECT ANSWER- --------------Temporary loans such as construction loans Under ____________ the use of certain terms in an advertisement triggers the need for full disclosure of tending terms. ------CORRECT ANSWER---------------Truth in Lending Act (TILA) At least ______ of CDBG funds must be used for activities that benefit low and moderate income persons. ------CORRECT ANSWER---------------70% Which of the following housing objectives does Fannie Mae address? ------CORRECT ANSWER---------------Regional imbalances of available mortgage credit, origination of mortgages for sale, standardization of mortgage loans, all of these The Agricultural Credit Act, which established Farmer Mac to facilitate the creation of a secondary market for agricultural mortgage products was pass in _______ by congress ------ CORRECT ANSWER---------------1987 A _______ is a return on an investment ------CORRECT ANSWER---------------yield What percentage of its net income does an Equity Estate Real Estate Investment Trust (REIT) distribute to investors in the form of dividends? ------CORRECT ANSWER---------------95-100% What type of property might an Equity Estate REIT purchase? ---- --CORRECT ANSWER---------------Office buildings, apartments, self storage facilities, all of these A __________ is a debt instrument. ------CORRECT ANSWER---- -----------Corporate bond Under a(n) ________ when the final payment is made to the seller, title transfers to the buyer. ------CORRECT ANSWER-------- -------contract for deed A standard mortgage form is a two-party instrument. A deed of trust is a ________ instrument. ------CORRECT ANSWER---------- -----A three-party instrument Pre-payment penalties can be found in more than two-thirds of _______ . ------CORRECT ANSWER---------------Sub-prime mortgages A (n) __________ is a partially-amortized loan with a final payment that is substantially larger than the previous payments. -- ----CORRECT ANSWER---------------Balloon note The practice of ________ occurs when unscrupulous lenders take advantage of a consumers lack of knowledge regarding lending practices. ------CORRECT ANSWER---------------predatory lending