Champions Real Estate Finance Practice Exam Questions and Answers 2024, Exams of Real Estate Management

Download Champions Real Estate Finance Practice Exam Questions and Answers 2024 and more Exams Real Estate Management in PDF only on Docsity! 1 Champions Real Estate Finance Practice Exam Questions and Answers 2024 A __________ is a permanent change in one or more of the terms of a borrower's loan. Loan Qualification Loan Modification Loan Approval Loan Origination - Answer Loan Modification What time period must borrowers have in job history with the same employer to qualify? 2 months 6 months 1 year 2 years - Answer 2 years Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taking a mortgage that carries high fees, a high interest rate, strips the borrower of equity, or places the borrower in a lower credit rated loan to benefit the lender. Predatory lending Sub prime Mortgage Participation Agreement Fraud - Answer Predatory lending Why do lender care about unpaid taxes? They want to ensure your mortgage payment is not late It makes the loan difficult to sell in the secondary market Unpaid property taxes are a superior lien to the right of the lender Lenders don't care about unpaid taxes - Answer Unpaid property taxes are a superior lien to the right of the lender A burden, obstruction, or impediment on the property that lessens its value or makes it less marketable. Lien Interest Encumbrance Mortgage - Answer Encumbrance Which party is not included on the deed of trust? Mortgagor 2 Mortgagee Trustor Trustee - Answer Trustor The mortgage or deed of trust will contain ___________ that permits the lender to demand that the entire balance of the loan be repaid if the borrower defaults. Due on sale clause Acceleration clause Alienation clause Balloon clause - Answer Acceleration clause One of the largest buyers of securities is _________. Credit Unions Pension Funds China American Public - Answer Pension Funds A company or individual that originates mortgage loans and sells them to investors, while taking care of borrowers loan payments, records, taxes, and insurance. Mortgage Bankers Mortgage Brokers Loan Originators Secondary Market - Answer Mortgage Bankers The largest buyer of residential mortgages in the United States today. FHLMC GNMA Banks FNMA - Answer FNMA Provides cash advances to members, including community banks, thrifts, credit unions and community development financial institutions. FNMA FHLMC FHLB Banks - Answer FNMA Loan amount is $337,500. Down payment is $37,500. What is the LTV? 10% 11% 90% 91% - Answer 90% The market where borrowers and mortgage originators come together to negotiate terms and effectuate mortgage transactions. 5 $75.62 $63.95 $92.30 - Answer $75.62 The evidence of indebtedness. Credit instrument Lien Debt Promise - Answer Credit instrument All of the following are functions of the department of Treasury EXCEPT: Managing Federal finances Currency and coinage Determining national debt Enforcing Federal finance and tax laws - Answer Determining national debt Major responsibilities of the Mint include all of the following EXCEPT: Manufacturing and selling platinum, gold and silver bullion coins Distributing U.S. coins to the Federal Reserve banks and branches Receiving, redeeming and processing mutilated coins Education for collectors on rare coins - Answer Education for collectors on rare coins Federal Home Loan Banks are cooperatives. True False - Answer True Insurance is $2800/year. Sales price $437,500. LTV is 95%. Insurance start date is December 5th. Close date is August 13th. Using a banker's year, calculate the monthly insurance payment. Assume no leap year. $7.78 $233.33 $255.00 $1983.90 - Answer $233.33 The science that describes the management, creation and study of money, banking, credit, investments assets and liabilities. Economics Finance Credit Banking - Answer Finance Most real estate cycles in Texas are determined by: Politics and demand Economics and politics 6 Economics and supply Supply and demand - Answer - Correct answer ______________ measures the wealth and resources of a particular area or region as well as production and consumption. Supply and demand Interest rates Economy Finance - Answer Economy Loan amount is $765,000. Down Payment is $85,000. LTV is 90%. Interest rate is 4.5%. Using an actual year, calculate the dollar amount of 2.5 points. $1912.50 $2125.00 $19125.00 $21250.00 - Answer $19125.00 The U.S. Mint is a part of the: Department of Treasury Federal Reserve A stand-alone agency FNMA - Answer Department of Treasury The ____________ was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices. FDIC Federal Reserve Department of Treasury U.S. Mint - Answer FDIC The ______________ fulfills its role in housing finance by providing members with access to reliable, economical funding and technical assistance, and special affordable housing programs. FHA Federal Home Loan Bank System Secondary market Primary market - Answer Federal Home Loan Bank System The NATIONAL HOUSING ACT of 1934 created what entity to relieve unemployment and stimulate the release of private credit? VA USDA FNMA FHA - Answer FHA 7 RESPA is a ___________ consumer protection statute. TILA HUD FNMA Federal Reserve - Answer HUD Which act is designed to enhance consumer protection by requiring the FDIC, National Credit Union Administration, Board of Governors of the Federal Reserve System and others to jointly develop and maintain a Federal registration system for individual employees of Agency regulated institutions who engage in the business of residential mortgage loan origination? Dodd-Frank CRA Safe APA - Answer Safe Which law requires federal agencies who make rule to have a 30 day delayed effective date? Dodd-Frank Safe Administration Procedures Act Consumer Financial Protection Act - Answer Administration Procedures Act Which act was passed in 2010 in an attempt to create accountability by regulating mortgage lenders and mortgage brokers? Dodd-Frank SAFE Administration Procedures Act Consumer Financial Protection Act - Answer Dodd-Frank Bryan and Carla have located a home they wish to purchase. They have been told that the monthly payment will be $1780. If their monthly long term debt is $630 and the qualifying ratios are 28%/36%, how much monthly income must they have to qualify $3194.44 $4944.44 $6357.14 $6694.44 - Answer $6694.44 Which of the following are NOT a part of the secondary money market? Fannie Mae Sallie Mae Banks Freddie Mac - Answer Sallie Mae Name the entity that is a publicly trade, federally chartered corporation who purchases newly originated and seasoned agricultural loans from lenders. 10 Vacation home Condominium Manufactured home Buy land and build a home - Answer Vacation home If the borrower has a previous foreclosure, can he use FHA to purchase a new home? No Yes, anytime Yes, after a 3 year wait with clean credit Yes, after a 1 year wait with clean credit - Answer Yes, after a 3 year wait with clean credit The purpose of __________ is to promote the informed use of consumer credit by requiring disclosures about its terms and cost. TILA RESPA SAFE HUD-1 – Answer 11 Champions Real Estate Finance Practice Exam Questions and Answers 2024