Financial leverage is described as?
Using borrowed money to inquire property
Under regulations Z, a consumer who obtains financing for a remodeling project has a right to rescind the transaction up to how many business days after the loan application?
3 business days
The housing and economic recovery act of 2008 (HERA) is a government program to help first-time home buyers by providing?
A direct tax credit up to 10% but capped at $7500
One of the primaries duties of the Federal Housing Finance Agency is to?
To regulate Fannie Mae and Freddie Mac
The primary activity that distinguishes a mortgage broker from a mortgage banker is that a mortgage banker will?
Service the loan after settlement
A specific lien differs from a general lien in that it?
Attaches to a single property only
A drawback of balloon loan financing is that the borrower might have difficulty?
Meeting the final payment when it comes due and if necessary retain
The FHA is under the direct administration of?
HUD
The underwriter may decline an applicant for all of the following reasons EXCEPT?
Age (It will be the option to look for)
The impact of a foreclosure on a borrower does NOT include?
A default judgment
Under the Veterans Home Improvement Program (VHIP), the VLB will lend eligible Texas veterans up to $10,000 on a fixed-rate note to make substantial repairs to an existing primary residence. What is the term of this type of loan?
10 years
A borrower obtains a $76,000 mortgage loan at 11.5% interest. If the monthly payment of $785 are credited first on interest and then on principle, what will the balance of the principle be after the borrower makes the first payment?
76K x 11.5 = 8740 / 12 = 728.337
785 - 728.337 = 56.67
76K - 56.67 = 75943.33
A buyer is purchasing a property with a loan from a mortgage broker, who is charging an origination fee of 1%. If the loan requires a 90% LTV and the purchase is $200,000, how much is the origination fee?
$200,000 x 90% = 180,000 x 1% = $1,800
In an 80-15-5 loan scenario, the 15 represents what?
The second loan
When demand goes up?
Supply goes down
Open market operations does what?
Buy and sell treasury
Loans created using the underwriting guidelines for Fannie Mae and Feddie Mac are known as what kind of loans?
Conforming Loan
Lenders would be required to fund a loan for a married couple with poor credit using public assistance to qualify.
(FALSE)
FHA allows debt-to-income ratios of what?
31/43
Where is a foreclosure sale in Texas conducted?
In the facility of the court house
If a buyer offered $110K for a property that appraised for $105K, the buyer may order a new appraisal and request that it come in for the sales price.
(FALSE)
ECOA includes protection for sexual orientation
(FALSE)
One of the primary indicators is that the real estate market is rebounding is what?
An increase of new homes constructing sites
Fed open market operations include buying and selling loans in the open market
(TRUE)
A man is purchasing a house using a contract for deed. His contract will include the provision of conveyance of title to the purchase
(FALSE)
26. A carpenter owns a vacant lot and plans to build a home on it to sell. When the carpenter finds a buyer, he will seek a loan from a local bank for the construction costs. What type of loan is this?
Interim financing loan
The value of a bond will fluctuate with the money market
(TRUE)
A release clause is found in a Deed of Trust
(TRUE)
A married couple has a combined income of $50,000. Using standard Fannie Mae/ Freddie Mac guidelines, how much will be allowed for their total debt obligations each month?
50,000 / 12 x 36% = 15,000
A person's homestead would be subject to a forced sale for all of the following reasons EXCEPT
Judgement liens
Homebuyers can avoid paying PMI by putting
20% down
Financial leverage is?
Borrowed Funds
The Truth in Lending Act (TILA) requires lenders to?
Disclose payment terms
The difference between mortgage brokers and mortgage bankers is what?
That mortgage broker brings the buyers and lenders together, but don't fund the loan.
A balloon note is one in which the?
last payment bigger than the other payment.
The FICO credit score range is?
300-850
A requirement for the borrower to be approved for a prime loan is for the borrower to have?
High credit and low debt
Age and maturity is a factor that influences an applicant's credit score
(FALSE)
The MOST commonly used loan for residential home purchases is a?
30 years fix
A right or interest in a property held by one who is not the legal owner of the property is known as an?
Encumbrances
The BEST way to describe a real estate mortgage investment conduit (REMIC) is?
Organized pools of real estate loans to secure mortgage back securitize.
All of the following are considered separate property EXCEPT
The income earned during the marriage from a separate property.
FDIC stands for?
Federal Deposit Insurance Corporation
A teaser rate is typically associated with which type of loan?
ARM
What type of trust would be used by an investor to earn money from apartments, houses, offices, and shopping centers?
RETI
Fannie Mae was created for the sole purpose of?
Providing a secondary market
An individual has invested in a real estate trust that will derive income using the net profits from the rental and sale of rental properties. She has invested in a?
REIT
The Equal Credit Opportunity Act (ECOA) is a consumer protection law that prohibits lenders from discriminating against qualified applicants based on all of the following factors EXCEPT?
Handicap
What is a basis point?
100 basis points in 1%
A veteran wants to buy a new home using a VA loan. The veteran used her VA guarantee of $46,000 in 1989 on a property she has leased to a family friend. Based on a guarantee of $104,250, she will be able to use her partial eligibility to obtain a VA loan
$104,250 - $46,000 = 58,250 x 4 = 233,000
Allowing one lien to take or have priority over other liens or debt is known as?
Subordination Clause
A real estate developer is seeking to finance. The lender suggests they form a partnership, will provide better terms for the developer and give the lender an equity position in the development. This type of financing is called?
Participation financing
London Interbank Offered Rate (LIBOR) interest rates are often used on adjustable-rate mortgages to establish.
An Index
For a self-employed borrower, the underwriter must analyze the borrower's tax returns for the past.
2 years including a current P & L statement completed by an accountant
The Community Development Block Grant (CDBG) program does all of the following EXCEPT
Generate additional funds through local bond initiatives
Which of the following circumstances would create a voluntary lien?
Mortgage on the property
To qualify for a reverse mortgage, one of the homeowners must be at LEAST how old?
62
Which of the following information is on a credit report?
Status of the borrower's current credit accounts
An equitable redemption period gives the borrower the opportunity to?
Make up outstanding balance before for closer sale
A buyer is putting $30,000 down on the purchase of a $100,000 property. The loan-to-value ratio (LTV) is?
70%
Financial leverage is described as?
Using borrowed money to inquire property
Under regulations Z, a consumer who obtains financing for a remodeling project has a right to rescind the transaction up to how many business days after the loan application?
3 business days
The housing and economic recovery act of 2008 (HERA) is a government program to help first-time home buyers by providing?
A direct tax credit up to 10% but capped at $7500
One of the primaries duties of the Federal Housing Finance Agency is to?
To regulate Fannie Mae and Freddie Mac
The primary activity that distinguishes a mortgage broker from a mortgage banker is that a mortgage banker will?
Service the loan after settlement
A specific lien differs from a general lien in that it?
Attaches to a single property only
A drawback of balloon loan financing is that the borrower might have difficulty?
Meeting the final payment when it comes due and if necessary retain
The FHA is under the direct administration of?
HUD
The underwriter may decline an applicant for all of the following reasons EXCEPT?
Age (It will be the option to look for)
The impact of a foreclosure on a borrower does NOT include?
A default judgment
Under the Veterans Home Improvement Program (VHIP), the VLB will lend eligible Texas veterans up to $10,000 on a fixed-rate note to make substantial repairs to an existing primary residence. What is the term of this type of loan?
10 years
A borrower obtains a $76,000 mortgage loan at 11.5% interest. If the monthly payment of $785 are credited first on interest and then on principle, what will the balance of the principle be after the borrower makes the first payment?
76K x 11.5 = 8740 / 12 = 728.337
785 - 728.337 = 56.67
76K - 56.67 = 75943.33
A buyer is purchasing a property with a loan from a mortgage broker, who is charging an origination fee of 1%. If the loan requires a 90% LTV and the purchase is $200,000, how much is the origination fee?
$200,000 x 90% = 180,000 x 1% = $1,800
In an 80-15-5 loan scenario, the 15 represents what?
The second loan
When demand goes up?
Supply goes down
Open market operations does what?
Buy and sell treasury
Loans created using the underwriting guidelines for Fannie Mae and Feddie Mac are known as what kind of loans?
Conforming Loan
Lenders would be required to fund a loan for a married couple with poor credit using public assistance to qualify.
(FALSE)
FHA allows debt-to-income ratios of what?
31/43
Where is a foreclosure sale in Texas conducted?
In the facility of the court house
If a buyer offered $110K for a property that appraised for $105K, the buyer may order a new appraisal and request that it come in for the sales price.
(FALSE)
ECOA includes protection for sexual orientation
(FALSE)
One of the primary indicators is that the real estate market is rebounding is what?
An increase of new homes constructing sites
Fed open market operations include buying and selling loans in the open market
(TRUE)
A man is purchasing a house using a contract for deed. His contract will include the provision of conveyance of title to the purchase
(FALSE)
26. A carpenter owns a vacant lot and plans to build a home on it to sell. When the carpenter finds a buyer, he will seek a loan from a local bank for the construction costs. What type of loan is this?
Interim financing loan
The value of a bond will fluctuate with the money market
(TRUE)
A release clause is found in a Deed of Trust
(TRUE)
A married couple has a combined income of $50,000. Using standard Fannie Mae/ Freddie Mac guidelines, how much will be allowed for their total debt obligations each month?
50,000 / 12 x 36% = 15,000
A person's homestead would be subject to a forced sale for all of the following reasons EXCEPT
Judgement liens
Homebuyers can avoid paying PMI by putting
20% down
Financial leverage is?
Borrowed Funds
The Truth in Lending Act (TILA) requires lenders to?
Disclose payment terms
The difference between mortgage brokers and mortgage bankers is what?
That mortgage broker brings the buyers and lenders together, but don't fund the loan.
A balloon note is one in which the?
last payment bigger than the other payment.
The FICO credit score range is?
300-850
A requirement for the borrower to be approved for a prime loan is for the borrower to have?
High credit and low debt
Age and maturity is a factor that influences an applicant's credit score
(FALSE)
The MOST commonly used loan for residential home purchases is a?
30 years fix
A right or interest in a property held by one who is not the legal owner of the property is known as an?
Encumbrances
The BEST way to describe a real estate mortgage investment conduit (REMIC) is?
Organized pools of real estate loans to secure mortgage back securitize.
All of the following are considered separate property EXCEPT
The income earned during the marriage from a separate property.
FDIC stands for?
Federal Deposit Insurance Corporation
A teaser rate is typically associated with which type of loan?
ARM
What type of trust would be used by an investor to earn money from apartments, houses, offices, and shopping centers?
RETI
Fannie Mae was created for the sole purpose of?
Providing a secondary market
An individual has invested in a real estate trust that will derive income using the net profits from the rental and sale of rental properties. She has invested in a?
REIT
The Equal Credit Opportunity Act (ECOA) is a consumer protection law that prohibits lenders from discriminating against qualified applicants based on all of the following factors EXCEPT?
Handicap
What is a basis point?
100 basis points in 1%
A veteran wants to buy a new home using a VA loan. The veteran used her VA guarantee of $46,000 in 1989 on a property she has leased to a family friend. Based on a guarantee of $104,250, she will be able to use her partial eligibility to obtain a VA loan
$104,250 - $46,000 = 58,250 x 4 = 233,000
Allowing one lien to take or have priority over other liens or debt is known as?
Subordination Clause
A real estate developer is seeking to finance. The lender suggests they form a partnership, will provide better terms for the developer and give the lender an equity position in the development. This type of financing is called?
Participation financing
London Interbank Offered Rate (LIBOR) interest rates are often used on adjustable-rate mortgages to establish.
An Index
For a self-employed borrower, the underwriter must analyze the borrower's tax returns for the past.
2 years including a current P & L statement completed by an accountant
The Community Development Block Grant (CDBG) program does all of the following EXCEPT
Generate additional funds through local bond initiatives
Which of the following circumstances would create a voluntary lien?
Mortgage on the property
To qualify for a reverse mortgage, one of the homeowners must be at LEAST how old?
62
Which of the following information is on a credit report?
Status of the borrower's current credit accounts
An equitable redemption period gives the borrower the opportunity to?
Make up outstanding balance before for closer sale
A buyer is putting $30,000 down on the purchase of a $100,000 property. The loan-to-value ratio (LTV) is?
70%