Chapter 9 Flashcards

1
Q

A buyer can obtain a conventional mortgage from:

a. portfolio lenders.
b. institutional lenders.
c. warehousing lenders.
d. All of the above.

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Documents the buyer needs to gather and submit to the lender to process the mortgage include W-2s or other tax documents and:

a. recent tax returns.
b. recent bank statements.
c. recent pay stubs.
d. All of the above.

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

The Real Estate Settlement Procedures Act (RESPA) is administered and enforced by the:

a. Consumer Financial Protection Bureau (CFPB).
b. Department of Housing and Urban Development (HUD).
c. Both a. and b.
d. Neither a. nor b.

A

A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Lenders use the ________________ to evaluate the buyer’s ability to make timely mortgage payments, referred to as buyer mortgage capacity.

a. income-to-taxes quotient
b. debt-to-income (DTI) ratio
c. loan-to-volume (LTV) ratio
d. debt-to-expenses percentage

A

B

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

To be enforceable, a mortgage commitment needs to be:

a. in writing.
b. given in exchange for consideration.
c. signed.
d. All of the above.

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

_______________ is a federal consumer mortgage law regulating the conduct of all services involved in closing a sales transaction.

a. Truth in Lending Act (TILA)
b. Real Estate Settlement Procedures Act (RESPA)
c. Both a. and b.
d. Neither a. nor b.

A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

A(n) _______________ is a fee improperly paid to a transaction agent as compensation for rendering no service other than the referral of a principal in a transaction for which the agent is already paid a fee for a service provided.

a. kickback
b. point
c. customary charge
d. None of the above

A

A

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

A broker may earn a second fee under the Real Estate Settlement Procedures Act (RESPA) if the earnings the broker is to receive for the second service were due as:

a. payment for services actually rendered.
b. payment for goods.
c. Both a. and b.
d. Neither a. nor b.

A

C

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

A mortgage loan originator (MLO) may:

a. be paid on the terms of a mortgage.
b. accept compensation related to the transaction from any other person when they are already paid a fee by the borrower.
c. Both a. and b.
d. Neither a. nor b.

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

To avoid unnecessary fees and stress caused by the lender at the time of funding, the buyer may:

a. submit mortgage applications to a minimum of two lenders on entering into a purchase agreement.
b. seek financing and pre-approval for a mortgage prior to entering into a purchase agreement with a seller.
c. consider seller extended carryback financing as a less expensive alternative to a new mortgage.
d. All of the above.

A

D

How well did you know this?
1
Not at all
2
3
4
5
Perfectly