Chapter 13 & 14

Question 1

What are three features of an FHA loan

Answer 1

Ensures your loan

Limits max loan amount

Allows prepayment

Question 2

What type of residence do VA Mortgage loan program guarantee loans too

Answer 2

Owner occupied Residences

Question 3

What are the three requirements for a VA Loan

Answer 3

Owner occupied residence

Certificate of eligibility

Served specific amount of time and be honorably discharged

Question 4

When does PMI insurance have to be paid

Answer 4

Loan to value ratio is 81% or higher

Question 5

Which is the most abrupt of the three control devices used by the federal reserve

Answer 5

Changes in the reserve requirements

Question 6

What is the least effective of the three control devices used by the federal reserve

Answer 6

Discount rate

Question 7

Where are Loans originated

Answer 7

Primary mortgage market

Question 8

Who does short term loans for commerce

Answer 8

Commercial banks

Question 9

Which lender will only do large lending

Answer 9

Life insurance

Question 10

What is the largest source of funding for financing apartment and commercial projects

Answer 10

Life insurance

Question 11

What is a REIT

Answer 11

Business trust simulator to a mutual stock fund

Question 12

What is a mortgage loan originator

Answer 12

Arrange loan by taking mortgage applications and searching for lenders

Question 13

What is the secondary mortgage market

Answer 13

Market lender who purchase mortgages that originated in primary mortgage market.

Question 14

Who provides liquidity to make he primary market in mortgages

Answer 14

Secondary mortgage market

Question 15

Which are NOT primary mortgage lenders

Answer 15

FNMA
FHLMC
GNMA

Question 16

According to reaps what to lenders have to abide by

Answer 16

3 business days to provide Loan estimate on closing costs

Information booklet

Explain to buyer if lender intends to service the loan or transfer to another lender

Question 17

That is the consumer credit protection act of 1968

Answer 17

Truth in Lending Act

Consumers receive meaningful information concerning true cost of credit

Question 18

What is the percentage of credit referee to as and what does it include

Answer 18

APR

interest
Credit life insurance
Discount
Loan origination fees

Question 19

Triggering terms are always what

Answer 19

Numbers

Question 20

What is a binder deposit

Answer 20

Credit to the buyer on closing statement

Question 21

How do entries of prepayment and prorate appear on a closing statement

Answer 21

Always debit the seller

Credit the buyer

Question 22

What are property taxes paid in

Answer 22

Arrears

Question 23

Are there any credits in the expenses on a closing statement

Answer 23

No

Question 24

What is the deed

Answer 24

Sales prince

Question 25

How much are doc stamps on a deed

Answer 25

.70 or a fraction thereof

Question 26

What is the calculated tax on a promissory note

Answer 26

.35 cents per $100 or fractional part Therof

Question 27

Which of the following items cannot be prorated between buyer and seller on a closing statement

Answer 27

Title insurance

Question 28

What is price in a real estate transaction

Answer 28

Amount that is actually paid in a real estate transaction