Ch. 4 - Financing Flashcards
California Veterans Farm and Home Purchase Plan aka?
CAL-VET
Refers to a refund when insurance policy is cancelled
Short Rate
What is the Alquist-Piolo Act?
Disclosure required on properties located close to earthquake fault lines
What is a perfect escrow?
An escrow where all terms of the instructions have been met or performed; escrow officer has everything needed to close
What did the Easton v. Strassburger case give rise to?
The law requiring the seller an agent to make an inspection in full disclosure of the condition of the property
If the frequency of the business cycle increases, with an accompanying rapid change in business and money conditions, the environment for a long-term investment is:
Unattractive
According to economic theory, during inflationary periods, investors usually do not take long-term positions because:
They fear erosion of capital from escalating interest rates and short term investments usually provide a higher yield
What advantage do real estate investment shave when compared to an investment in securities?
Depreciation allowances
Which federal entity would most likely be involved in buying and selling government securities in the open market?
The Federal Open Market Committee
What indicator would best define purchasing power of the US dollar?
Price Indexes
What is a loan-qualifying tool?
Debt to income ratio
Identify the stages of the economic cycle.
Prosperity. Recession. Depression. Expansion.
What is the basic interest-rate the local bank pays to borrow money?
Discount Rate
What is a cash reserve rate?
Required amount of deposits that must be retained by the bank (to lend money)
In connection with real property financing, the term that would normally describe a mortgage banker collecting loans prior to sale is called:
Warehousing
Which government agency would most likely be a primary lender on large tracts of land?
Federal Land Banks
Whose primary role is to guarantee timely payment of interest on the mortgages?
Government national mortgage association (GNMA) aka Ginnie Mae
According to the bankruptcy code, the dates that are discharged are those that exist when?
On the day when the bankruptcy petition was filed
According to the civil code, the payment of a loan secured by a deed of trust can be subject to a late charge when it is received by the lender:
More than 15 days after the due date
The effective INTEREST RETURN obtained from a first trust deed by an investor
Mortgage yield
A commitment by the lender to make a permanent take out loan upon the borrowers demand refers to:
A standby loan commitment
Which act assures a MEANINGFUL DISCLOSURE of credit terms?
Truth-in-Lending
Purpose of this act is to provide CONSUMERS INFORMATION concerning the COST OF CREDIT
Federal Truth-in-Lending
Which two loans do not have to comply with the Federal Truth-in-Lending law?
A business loan and a farm/agricultural
Residential and personal loans must comply
What is required to clear the title of the seller under a recorded contract of sale that is in default?
Quiet title action or quitclaim deed
What is the pneumonic Coca-Cola used for?
Used for the 4 legal essentials of a valid contract:
COnsideration
CApable parties
COnsent
LAwful object
Means doing some thing by lie trickery or deceit
Subornation
