Real Estate Finance CHAMPIONS questions and answers, Exercises of Nursing

Download Real Estate Finance CHAMPIONS questions and answers and more Exercises Nursing in PDF only on Docsity! Real Estate Finance CHAMPIONS questions and answers The minimum downpayment on a VA loan is: (a) 2% of the sales price (b) 0% of the sales price (c) 3.75% of the sales price (d) 1% of the sales price - correct answer ✅B _________ is the process of creating a new mortgage loan. (a) Origination (b) Funding (c) Underwriting (d) Servicing Real Estate Finance CHAMPIONS questions and answers * - correct answer ✅A A veteran can have more than one VA loan: (a) If the prior VA loan was paid in full and the property disposed of (b) The prior VA loan was assumed by an eligible veteran who substituted their entitlement (c) A or B (d) Under no circumstances - a VA loan is a "once in a lifetime" benefit * - correct answer ✅C _________ are not-for-profit organizations that exist to serve their members. (a) Mortgage companies Real Estate Finance CHAMPIONS questions and answers In the Closing Disclosure, prepaids include homeowner's and mortgage insurance premiums, prepaid interest, property taxes, and a maximum of __________ additional items. (a) 13 (b) 3 (c) 7 (d) 9 - correct answer ✅B When calculating the monthly payment, the lender will add an amount equal to: (a) Twelve months insurance and six months taxes (b) 1/12 of the annual taxes and insurance (c) 1/12 of the annual loan amortization Real Estate Finance CHAMPIONS questions and answers (d) An amount sufficient to create the escrow account - correct answer ✅B Which of the following is true regarding FHA loans? (a) An FHA loan requires a CRV (b) Ratios may be exceeded with compensating factors (c) FHA loans require a minimum 5% down payment (d) FHA loans are for low income borrowers only - correct answer ✅B The age of a property based upon the appraiser's assessment of the property's maintenance and upgrades is its __________. (a) Useful life (b) Market age (c) Chronological age Real Estate Finance CHAMPIONS questions and answers (d) Effective age - correct answer ✅D In an ARM, the index: (a) Is controlled by the lender (b) Is controlled by the borrower (c) Varies with fluctuations in financial markets (d) Is chosen by the lender on the adjustment date - correct answer ✅C The loan to value ratio is: (a) The minimum down payment (b) The percentage of value that a lender is willing to finance (c) Set by HUD on all loans Real Estate Finance CHAMPIONS questions and answers (c) 5% (d) 5.50% - correct answer ✅B The _________ is the central banking system of the United States. (a) Federal Deposit Insurance Company (b) The U.S. Treasury (c) The U.S. Mint (d) The Federal Reserve - correct answer ✅D The three major national credit reporting agencies are, Experian, Equifax and _________. (a) TransAtlantic (b) Union Pacific Real Estate Finance CHAMPIONS questions and answers (c) Transtar (d) TransUnion - correct answer ✅D Because it is a gift, the lender and/or the agent can provide gift funds to the borrower to be used as a down payment on an FHA loan. (a) True (b) False - correct answer ✅B The two major purchasers of mortgages in the secondary market are: (a) Freddie Mac and Ginnie Mae (b) Fannie Mae and Freddie Mac (c) Ginne Mae and Fannie Mae Real Estate Finance CHAMPIONS questions and answers (d) FHFA and HECM - correct answer ✅B If a borrower is in default, the mortgage servicer may start the _________ process. (a) Forestalling (b) Closing (c) Casting (d) Foreclosure - correct answer ✅D A collateral-dependent loan is also known as a __________. (a) Title loan (b) Cash advance (c) Hard money loan Real Estate Finance CHAMPIONS questions and answers (b) False - correct answer ✅A _________ is defined as the sum of currency held by the public and transaction deposits at depository institutions. (a) M1 (b) M2 (c) M3 (d) MI-5 - correct answer ✅A The _________ is where borrowers and mortgage lenders come together to create and negotiate the terms of a mortgage transaction. (a) Money market (b) Credit market Real Estate Finance CHAMPIONS questions and answers (c) Primary market (d) Secondary market - correct answer ✅C A home was built 30 years ago, but is much like a home that is 10 years old, based upon its condition. In the appraisal, ten years is the home's ___________. (a) Useful life (b) Effective age (c) Chronological age (d) Depreciated age - correct answer ✅B The process of making a lending decision is known as ___________. (a) Processing (b) Applying Real Estate Finance CHAMPIONS questions and answers (c) Underwriting (d) Credit Scoring - correct answer ✅C In the Loan Estimate, the Comparisons Table: (a) Displays offers from multiple lenders (b) Provides information to the borrower used to compare loan offers from different lenders (c) Assists the borrower in comparing different loan offers from the same lender (d) Is not used until the borrower has committed to a particular lender - correct answer ✅B Ownership of real estate in Texas is established by certificates of title recorded in the Torrens System. Real Estate Finance CHAMPIONS questions and answers (b) By the seller (c) In monthly installments added to the monthly payment (d) Only upon default - correct answer ✅A The most probable sale price of a property is known as: (a) Net Price (b) Market Value (c) Contract Price (d) Assessed Value - correct answer ✅B There are _________ Federal Home Loan Banks in the United States. (a) Twelve Real Estate Finance CHAMPIONS questions and answers (b) Twenty four (c) Sixteen (d) Fifty - correct answer ✅A A(n) _________ is a right given by law to creditors to have debts paid out of the property of a defaulting debtor. (a) Lien (b) Interest (c) Settlement (d) Foreclosure - correct answer ✅A _________ or re-amortizing a mortgage can reduce the borrower's monthly payment, making a default situation more manageable. Real Estate Finance CHAMPIONS questions and answers (a) Forecasting (b) Recasting (c) Forebearance (d) Foreclosure - correct answer ✅B A portfolio loan is: (a) An FHA loan sold in the secondary market (b) A loan not sold into the secondary market, but retained by the lender (c) A conventional loan sold to Freddie Mac (d) A construction to permanent loan sold in the primary market - correct answer ✅B Real Estate Finance CHAMPIONS questions and answers The State of Texas plays a role in affordable housing through: (a) TALCB (b) TREC (c) TDHCA (d) TDEC - correct answer ✅C If the marketing time in an appraisal is over six months, (a) It is not an issue because time is not a factor in valuation (b) It indicates a healthy market that is boosting property values (c) It suggests that the area is fully developed (d) It suggests that the market is slow enough to be a drag on property values - correct answer ✅D Real Estate Finance CHAMPIONS questions and answers If a home was built 30 years ago, thirty years is the home's ___________. (a) Useful life (b) Effective age (c) Chronological age (d) Depreciated age - correct answer ✅C An appropriate loan for a property in need of significant rehabilitation would be a(n): (a) Construction loan (b) Construction to permanent loan (c) Cash back to buyer loan Real Estate Finance CHAMPIONS questions and answers (d) Permanent loan - correct answer ✅B Each consumer has three different credit scores from the three major credit reporting agencies because: (a) Some consumers use only one or two of the reporting agencies (b) Some consumers have locked their credit file (c) Not all creditors report to all of the agencies (d) Some of the credit reporting agencies are slow to update their records - correct answer ✅C At closing, none of the charges listed on the Loan Estimate can change. (a) True (b) False - correct answer ✅B Real Estate Finance CHAMPIONS questions and answers (c) An interest-only loan (d) A fixed-rate mortgage - correct answer ✅D The Closing Information section of the Closing Disclosure form includes the date issued, the disbursement and closing dates, the address or location of the property, the value, and the ____________ name and file number. (a) Listing agent's (b) Broker's (c) Buyer's (d) Settlement agent's - correct answer ✅D _________ was established in 1970 for the purpose of purchasing mortgages in the secondary market. (a) Fannie Mae Real Estate Finance CHAMPIONS questions and answers (b) Farmer Mac (c) Ginnie Mae (d) Freddie Mac - correct answer ✅D The fixed rate charged on an adjustable rate mortgage until the first adjustment date is known as the ___________. (a) Prime rate (b) Index rate (c) Initial rate (d) Cap rate - correct answer ✅C The lender may also be referred to as the ___________ in some deed of trust forms. Real Estate Finance CHAMPIONS questions and answers (a) Mortgagor (b) Grantor (c) Mortgagee (d) Trustee - correct answer ✅C Which loan is most likely to contain a release clause? - correct answer ✅A blanket loan A VA loan is allowed to be given to whom? - correct answer ✅Any veteran and their spouse A young couple with a good credit score want to buy a house in a high risk neighborhood and the lender doesn't want to approve it? This is a case of? - correct answer ✅Red lining for community