Financing

The term “Secondary Market,” as used in financing, refers to:

The source of money for most home loans by institutional lenders is:

Which of the following would NOT be illustrative of an institutional lender?

What is the form a lender must give the buyer-borrower when the loan terms have changed prior to the close of escrow?

Which of the following is a general difference between individual and institutional lenders?

Which of the following lenders invest more heavily in single-family home loans?

From which of the following could you most likely secure the greatest amount of money for the longest period of time?

A home owner would be least likely to obtain a $50,000 home improvement loan from a(n):

Commercial banks are interested in liquidity and marketability of their loans. Which of the following loans would they prefer?

A construction loan would most likely be made by a(n):

The Federal National Mortgage Association (FNMA) was primarily created to:

The primary activities of FNMA in the secondary market involves:

The functions of Ginnie Mae include all of the following EXCEPT:

Which of the following statements is TRUE?

A purchaser of a home five years ago is now interested in securing an FHA loan. A salesperson would most likely introduce the homeowner to:

Which would most likely pay a premium for mutual mortgage insurance?

Private Mortgage Insurance (PMI) can be canceled when you’ve paid down your mortgage to:

Mutual Mortgage Insurance is paid for by:

Title I FHA loans are for:

All of the following are characteristics of FHA loans EXCEPT:

Which of the following would not require a down payment?

Which of the following requires a NOV?

All of the following are characteristics of VA loans EXCEPT:

What distinguishes VA loans from FHA and other loans?

A veteran may purchase a home under Cal Vet by a:

The government actually lends the money for a(n):

Which of the following hold title under a Cal-Vet loan?

A veteran is eligible to use either the VA program or the DVA program in purchasing his owner occupied house. In which of these programs would the governmental body retain legal title to the house?

Under which of the following types of financing is the borrower required to purchase term life insurance?

Upon full repayment of a Cal-Vet loan, the borrower receives a:

Funds for Cal-Vet loans come from:

Why would a lender be interested in making a government-insured or government-guaranteed loan over a traditional conventional loan?

Which of the following would have the least impact on evaluating a man’s income for a loan?

The ratio of a loan’s principal to the property’s appraised value is called the:

A low loan-to-value ratio indicates:

From the lenders perspective, a large down payment:

When examining someone’s ability to purchase a home, what would you use?

Regarding a promissory note,:

Which of the following is TRUE concerning promissory notes?

A promissory note that provides for payment of interest only during the term of the note is a(n):

Why would the payor consider a straight note over an amortized note?

A loan to be completely repaid, principal and interest, by a series of regular equal installments is a:

When a loan is fully amortized by equal monthly payments of principal and interest, the amount applied to principal:

A loan that requires a balloon payment at its maturity is called a(n):

A mortgage is a:

With a mortgage, who signs the note?

Mortgages and deeds of trust differ in every respect EXCEPT:

The beneficiary of a trust deed is usually a:

Mortgages and trust deeds are both considered:

A document used by the mortgagee when a mortgage is paid in full is called a:

The first step a mortgagee would take to foreclose on a mortgage would be to:

Naked legal title is held by the:

The trustor under a trust deed is the party who:

Under the “power of sale” clause in a trust deed, the authority to sell is placed with the:

Which of the following would be security for a note and deed of trust?

Default in a mortgage may be caused by:

Which of the following gives the most protection to a property owner in default?

A document used to transfer legal title from the trustee back to the borrower (trustor) after the debt has been repaid is called a:

Total foreclosure time under a trust deed most nearly approaches:

A trust deed foreclosed as a mortgage would be foreclosed by:

During the one-year redemption period of a mortgagor in default:

After a trustee’s sale, there is money left over after paying the beneficiary of the first trust deed. This money would go first to the:

Proceeds from a trustee’s sale go to the:

A deficiency judgment is possible:

A first trust deed can be distinguished from a second trust deed by:

Upon receiving notification of default on the first trust deed, the holder of a second trust deed would most likely:

A request for notice of default would be of most help to the:

Mr. Johnson agrees to assume a trust deed from Mr. Jones. Which of the following is correct?

The relationship of the trustor to the beneficiary in a deed of trust is comparable to:

An “assignment of rents” clause in a trust deed benefits the:

All of the following fees are allowed under RESPA except:

Which of the following fees are allowed under RESPA?

Broker Jones uses ABC Escrow for every transaction because of an arrangement with ABC Escrow that the company gives Broker Jones $100 for every transaction. This arrangement violates:

RESPA would apply to:

What can the lender advertise in the newspaper for a loan offering that includes negative amortization?

An agent places an ad in the newspaper saying that he will give $50 to anyone who sells or buys a property through him. Which of the following is TRUE?

Which of the following is the purpose of the Federal Truth-in-Lending Act?

The right of rescission under truth-in-lending would apply to a(n):

What is the definition of an Offset Statement?

When the Federal Reserve Board wants to tighten the money supply, it would:

During periods of tight money:

In a tight money market, when interest rates are increasing, but rental rates are stable, how does it influence the market value of real property?

Who enforces the Truth-in-Lending Act?

The clause in a mortgage note which permits the lender to declare the unpaid balance due and payable upon default by the borrower is called a(n):

To subordinate means to:

A release clause associated with a blanket mortgage is a provision which:

To pledge a thing as security for an obligation without surrendering possession of it refers to:

A package mortgage is a loan in which:

A contractor obtained a construction loan and the loan funds are to be released in a series of progressive payments. Most lenders disburse the last payment when the:

The type of mortgage loan which permits borrowing additional funds at a later date is called a(n):

The nominal rate of interest is the:

The term mortgage warehousing refers to:

A seasoned loan is a:

Equity financing refers to:

The instrument used to secure a loan on personal property is called a:

A prepayment penalty clause found in a contract is often:

The owner of a property encumbered with a first and second trust deed wants to refinance the first trust deed. What should the second trust deed contain?

When lenders use the term “mortgage yield,” they are describing:

How much is the borrower paying if a lender charges 1 points on a $250,000 loan with a purchase price is $300,000?

The conscious charging by a private lender of more than the maximum amount of interest allowed by law is known as:

Most real estate loans charge the following kind of interest rate:

What is an imputed interest rate?

When a lender “calls” a loan, he/she:

From a financing standpoint, the relationship of the parties to a Land Contract would be closest to:

The buyer under the terms of a land contract is referred to as:

At the close of a Land Contract, the vendee is entitled to:

The seller (vendor) under a real property sales contract CANNOT:

An adjustable-rate mortgage loan is tied to an interest rate called the:

In an adjustable-rate loan, the amount added to the index rate that represents the lender’s cost of doing business is called the:

An adjustable-rate loan stabilizes at an interest rate above the loan index. This increase above the index rate is known as the:

In purchasing a home, the purchaser generally gives a note secured by a first deed of trust to a lending institution. In addition, he may give the seller cash and a note secured by a second deed of trust on the property. A “request for notice” would be filed for the benefit of the:

Why are housing prices so heavily weighted when calculating the Consumer Price Index?

When the FED takes measures to implement a “tight money” market, the net effect usually results in an increase in the:

A legal act to bring about a trust deed sale can be:

Who funds private mortgage companies?

What is the purpose of the Equal Credit Opportunity Act?

Mr. and Mrs. Lee sell their house and agree to carry back a second trust deed from the buyer to help complete the financing for the sale. This is most likely due to:

Who would be responsible for paying the 1% origination fee on an FHA loan?

For FHA purposes, acquisition costs include nonrecurring closing expenses. Which of the following would NOT be included:

The purchasing power of a dollar is measured:

The Gonzales family wanted to purchase a property and wanted to assume the seller’s VA loan, “subject to.” Which of the following is correct:

On a fully amortized loan payment, principal __________ as interest __________.

Why should a buyer seek legal counsel before assuming the seller’s first mortgage?

Which of the following best describes “Cash-On-Cash” return?

What form is sent when a short sale is completed?

What loan has negative amortization for the first few years?