Chapter 1 Flashcards
The goals, anticipations and positions of lenders and owners of real estate are:
a. diametrically opposed.
b. adversarial.
c. similar.
d. Both a and b.
D
Mortgage law prohibits enforcement of any trust deed provision which purports to restrict the owner’s right to sell, lease or encumber their property, called a:
a. restraint on alienation.
b. Notice of Delinquency (NODq)
c. choice of law provision.
d. None of the above.
A
An individual’s ability to borrow money, determined by their present income and previous debt payment history, is known as their:
a. purchasing power.
b. creditworthiness.
c. due-on clause.
d. acceleration rights.
B
_______________ became more common during the Millennium Boom as mortgage underwriting standards became lax and underqualified tenants were lured into homeownership.
a. A reduction in the homeownership rate
b. Seller carryback financing
c. Subprime lending
d. All of the above.
C
_______________ drives mortgage bankers to produce ever-greater short-term profits in a race to retain private sector investors to prevent them from being lost to a competitor.
a. Government regulation
b. Comparative advantage
c. Philanthropy
d. All of the above.
B
A protracted period of lackluster economic growth is referred to as:
a. secular stagnation.
b. the Great Recession.
c. the Millennium Boom.
d. a virtuous cycle.
A
The Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) applies to:
a. construction loans.
b. business mortgages.
c. residential mortgages.
d. All of the above
C
California Bureau of Real Estate (CalBRE) licensees are required to obtain a(n) _____________ when they take an application for or negotiate a residential mortgage loan for a fee.
a. unique Nationwide Mortgage Licensing System and Registry (NMLS) ID
b. mortgage loan originator (MLO) endorsement
c. Consumer Financial Protection Bureau (CFPB) certification
d. Both a. and b.
D
In the wake of the Millennium Boom, the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) created the:
a. Consumer Financial Protection Bureau (CFPB).
b. Department of Housing and Urban Development (HUD).
c. California Bureau of Real Estate (CalBRE).
d. None of the above.
A
The _____________ is not a type of qualified mortgage.
a. general qualified mortgage
b. business-purpose qualified mortgage
c. small lender qualified mortgage
d. balloon-payment qualified mortgage
B
