Chapter 13 & 14 Flashcards
What are three features of an FHA loan
Ensures your loan
Limits max loan amount
Allows prepayment
What type of residence do VA Mortgage loan program guarantee loans too
Owner occupied Residences
What are the three requirements for a VA Loan
Owner occupied residence
Certificate of eligibility
Served specific amount of time and be honorably discharged
When does PMI insurance have to be paid
Loan to value ratio is 81% or higher
Which is the most abrupt of the three control devices used by the federal reserve
Changes in the reserve requirements
What is the least effective of the three control devices used by the federal reserve
Discount rate
Where are Loans originated
Primary mortgage market
Who does short term loans for commerce
Commercial banks
Which lender will only do large lending
Life insurance
What is the largest source of funding for financing apartment and commercial projects
Life insurance
What is a REIT
Business trust simulator to a mutual stock fund
What is a mortgage loan originator
Arrange loan by taking mortgage applications and searching for lenders
What is the secondary mortgage market
Market lender who purchase mortgages that originated in primary mortgage market.
Who provides liquidity to make he primary market in mortgages
Secondary mortgage market
Which are NOT primary mortgage lenders
FNMA
FHLMC
GNMA
According to reaps what to lenders have to abide by
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
That is the consumer credit protection act of 1968
Truth in Lending Act
Consumers receive meaningful information concerning true cost of credit
What is the percentage of credit referee to as and what does it include
APR
interest
Credit life insurance
Discount
Loan origination fees
Triggering terms are always what
Numbers
What is a binder deposit
Credit to the buyer on closing statement
How do entries of prepayment and prorate appear on a closing statement
Always debit the seller
Credit the buyer
What are property taxes paid in
Arrears
Are there any credits in the expenses on a closing statement
No
What is the deed
Sales prince
How much are doc stamps on a deed
.70 or a fraction thereof
What is the calculated tax on a promissory note
.35 cents per $100 or fractional part Therof
Which of the following items cannot be prorated between buyer and seller on a closing statement
Title insurance
What is price in a real estate transaction
Amount that is actually paid in a real estate transaction
