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Real Estate exam > Chapter 13 > Flashcards

Chapter 13 Flashcards

1
Q

Which is NOT an agency that deals (buys loans) in the secondary market?

  • Government National Mortgage Association
  • Federal Home Loan Mortgage Corporation
  • Federal Housing Administration
  • Federal National Mortgage Association
A

Federal Housing Administration

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2
Q

_______________ guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary market. The lenders can then use the proceeds to make new mortgage loans available.

  • Government National Mortgage Association (GNMA)
  • The Real Estate Settlement Procedures Act (RESPA)
  • The Department of Housing and Urban Development (HUD)
  • The Department of Veteran’s Affairs (VA)
A

Government National Mortgage Association (GNMA)

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3
Q

The VA benefit from the Department of Veteran’s Affairs for a veteran approved home loan guarantees that

  • the veteran will make the scheduled payments.
  • the property cannot be foreclosed.
  • all loans made to veterans are affordable.
  • the loan, or a portion of it, made by an approved lending institution will be paid.
A

the loan, or a portion of it, made by an approved lending institution will be paid.

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4
Q

Which agency administers RESPA?

  • Consumer Federal Protection Bureau (CFPB)
  • Consumer Federal Consumer Board (CFCB)
  • Consumer Financial Protection Bureau (CFPB)
  • Consumer Financial Credit Bureau (CFCB)
A

Consumer Financial Protection Bureau (CFPB)

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5
Q

The primary distinction between the primary and secondary mortgage market is what?

  • The primary market is not active in the origination of mortgage loans.
  • The secondary market is fundamentally a holding or warehousing process.
  • The homeowner can get a mortgage from either the primary or secondary market.
  • Only lenders can get loans in the primary market.
A

The secondary market is fundamentally a holding or warehousing process.

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6
Q

Which law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of various lenders?

  • TRID
  • ECOA
  • TIL
  • HMDA
A

TIL

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7
Q

A developer would MOST LIKELY obtain which type of mortgage on a new subdivision?

  • Open end mortgage
  • Package mortgage
  • Blanket mortgage
  • Wrap around mortgage
A

Blanket mortgage

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8
Q

A lender generally charges discount points on an FHA loan to

  • provide greater interest yield to the investor.
  • provide a competitive rate.
  • fill the gap between the lender rate and the fixed rate.
  • increase the availability of loan funds.
A

provide greater interest yield to the investor.

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9
Q

__________ mission is to increase homeownership, support community development, and increase access to affordable housing free from discrimination.

  • FNMA’s
  • GNMA’s
  • HUD’s
  • FHLMC’s
A

HUD’s

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10
Q

An FHA mortgage is obtained through

  • any qualified lending institution.
  • any government agency.
  • FHA.
  • VA.
A

any qualified lending institution

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11
Q

What kind of a loan would be fully paid out over the life of the loan?

  • Fully amortized
  • Straight term mortgage
  • Balloon loan
  • Package loan
A

Fully amortized

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12
Q

___________________________ ensures that all consumers are given an equal chance to obtain credit. This doesn’t mean all consumers who apply for credit get it; factors such as income, expenses, debt, and credit history are considerations for creditworthiness.

  • The Equal Credit Opportunity Act (ECOA)
  • The Real Estate Settlement Procedures Act (RESPA)
  • The Truth in Lending Law
  • Regulation Z
A

The Equal Credit Opportunity Act (ECOA)

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13
Q

The basic difference between an FHA and a VA loan is

  • FHA guarantees loans; VA insures them.
  • FHA insures loans, VA guarantees them.
  • both require 20% down payment.
  • FHA requires no down payment; VA requires 5% down payment.
A

FHA insures loans, VA guarantees them.

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14
Q

The amount of a loan expressed as a percentage of the value of the real estate offered as security is the

  • loan balance.
  • amortization.
  • loan to value ratio.
  • interest rate.
A

loan to value ratio.

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15
Q

According to the TRID rule, lenders must give a copy of which booklet to every person at the time of application for a loan?

  • Your home loan toolkit
  • Your credit history toolkit
  • Your first home purchase toolkit
  • Your home mortgage kit
A

Your home loan toolkit

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16
Q

Which mortgage allows a person to buy a home with no money down?

  • Conventional insured
  • Conventional
  • FHA
  • VA
A

VA

17
Q

In making a home mortgage loan, a lender would consider all EXCEPT

  • other financial obligations of the borrower.
  • appraised value of the property pledged as security.
  • interest rate.
  • financial need of the borrower.
A

financial need of the borrower.

18
Q

A veteran had a VA loan using his full entitlement. He allows another veteran to assume the loan without VA approval. Could he immediately get another VA loan?

  • Yes, because another veteran assumed the loan.
  • Yes, because he is no longer liable for the loan.
  • No, because he cannot use VA eligibility more than once.
  • No. He is still liable for the loan.
A

No. He is still liable for the loan.

19
Q

For a veteran to obtain a VA loan, the VA must issue a certificate of

  • eligibility.
  • entitlement.
  • endorsement.
  • enterprise.
A

eligibility.

20
Q

Which of these organization’s public mission and defining goal is to help more families achieve the American Dream of homeownership?

  • Government National Mortgage Association.
  • Federal National Mortgage Association.
  • The National Low Income Housing Coalition.
  • The Department of Veteran’s Affairs.
A

Federal National Mortgage Association.

21
Q

A final payment of a mortgage loan that is considerably larger than the other monthly payments because the loan was not fully amortized describes a(n)

  • wraparound mortgage.
  • balloon mortgage.
  • amortized mortgage.
  • adjustable mortgage.
A

balloon mortgage.

22
Q

_________________ was created to stabilize the nation’s mortgage markets and expand opportunities for homeownership and affordable rental housing.

  • Government National Mortgage Association (GNMA)
  • The National Low Income Housing Coalition (NLIHC)
  • The Department of Housing and Urban Development (HUD)
  • The Department of Veteran’s Affairs (VA)
A

The Department of Housing and Urban Development (HUD)

23
Q

Buyer Carr went to get an FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points because it is below market rates. Which BEST describes this situation?

  • Points can be charged to either the buyer or seller.
  • Points can be charged only to the buyer.
  • Points can only be charged to the seller.
  • No points are allowed on an FHA loan.
A

Points can be charged to either the buyer or seller.

24
Q

A man had a loan for $60,000 and he had to pay 2.5 points. How much would he have to pay in cash?

  • $150
  • $1,000
  • $1,500
  • $3,000
A

$1,500

Real Estate exam (16 decks)

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