Real Estate Finance and Mortgage Loans: Understanding the Basics, Exams of Business Fundamentals

Download Real Estate Finance and Mortgage Loans: Understanding the Basics and more Exams Business Fundamentals in PDF only on Docsity! Champions Real Estate Finance Exam-with 100% verified solutions-2024 is the consummation of a contractual real estate transaction in which all appropriate documents are signed, and the mortgage loan proceeds are disbursed by the lender. Closing The primary determinants of real estate values are supply and . Demand is something of value that can be pledged as security for repayment of a loan. Collateral Servicing includes which of the following activities? Maintaining records of payment The monetary policies of the affects interest rates and the availability of funds. Federal Reserve An excess supply of money in the market results in monetary . Inflation Which agency insures deposits in banks and thrift institutions for up to $250,000? The Federal Deposit Insurance Corporation The is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a short-term basis. Discount rate Raising taxes and increasing borrowing are two ways at the treasury level to: Raise funds to pay for government spending The Fed uses three primary monetary policy tools to influence the cost and availability of credit: open market operations, the discount rate, and . Reserve requirements When the costs of production and services increase, causing manufacturing prices to rise, it is called . Cost-push inflation Which of the following transactions is exempt from RESPA? Temporary loans Under the , the use of certain terms in an advertisement triggers the need for full disclosure of lending terms. Truth in Lending Act The Dodd-Frank Wall Street Reform and Consumer Protection Act established the . Consumer Financial Protection Bureau How can Sylvia ensure that Victor is properly licensed as an RMLO? She can look him up in the NMLSR The secondary mortgage market was designed to provide greater liquidity to the residential real estate market, primarily by . The sale of mortgage loans as investments Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase are called . Conforming loans Which of the following housing objectives does Fannie Mae address? Regional imbalances of available mortgage credit, The origination of mortgages for sale, The standardization of mortgage loans Mortgagee The type of clause that allows a new borrower to take over payments on an existing loan is a(n) clause. Assumption A(n) clause states that the lien is defeated when the debt is repaid. Defeasance Prepayment penalties can be found in more than two-thirds of . Sub-prime mortgages A condition of a mortgage loan which prohibits prepayment of the loan prior to a certain date is known as a(n) clause. Lock-in The basic formula for interim interest is . Interest x Payment Rate / 365 x # of days until the end of the month Semi-annual interest is calculated . Twice per year Ailene and Arnold are on a fixed income. They want to buy a home and are researching different loan options. Which type of loan would be a poor choice for the An adjustable-rate mortgage What would the interest rate be on a $155,000 loan if the annual interest owed is $5,425? (Use a 365-day year.) 3.50% An FHA borrower can use gift funds from a(n) as funds for a downpayment. a parent Which loan program would allow Edmund to purchase a home with a downpayment of $0? A VA loan A cash-out refinancing loan is a loan guaranteed by the which refinances any type of lien against a secured property. VA The VA partial on a real estate loan reduces lenders' risk. Guarantee The sales comparison approach focuses on or recent sales of similar properties, to determine value. Comparables Appraisers commonly refer to the property being appraised as the . Subject property Sales Price divided Monthly Rent calculates the . Gross Rent Multiplier For a property to have value, it must have four characteristics, including demand, scarcity, , and transferability. Utility If Mr. and Mrs. Wu are pre-approved for a mortgage, what form will they receive? Form B Conditional approval letter Default can lead to a number of negative consequences for the defaulting party, including. Damage to credit score, foreclosure, Default-related fees A cannot be accepted from borrowers who can financially afford their mortgage payments. Deed in lieu The type of foreclosure that involves the lender filing a lawsuit on the homeowner that has defaulted is known as . Strict foreclosure Which agency oversees the Home Affordable Modification Program (HAMP)? HUD and the Department of the Treasury All types of foreclosure require to be issued, and all parties to be notified regarding the proceedings. Public notices