Financing

Question 0

Veterans Administration

Answer 0

The VA will guarantee 60% of a loan amount not to exceed a total guarantee of $36,000

Question 1

Origination fee

Answer 1

Origination fee is the loan fee or sometimes is referred to as the discount fee

Question 2

Three day right recession

Answer 2

The three-day right of recession only applies when A lien can be placed on a persons home that he already owns.

Question 3

Junior mortgage

Answer 3

The Junior mortgage is secondary financing

Question 4

The function of the Federal housing administration FHA is to

Answer 4

Insure loans

Question 5

Mortgage brokers

Answer 5

Mortgage broker does not issue loans but they locate borrowers and lenders as an intermediary. They do charge a loan fee.
Locate borrowers , find lenders, and process applications.

Question 6

Mortgage bankers

Answer 6

Mortgage bankers are in the business ofl originating, selling, and servicing loans

Question 7

Subject to mortgage

Answer 7

A buyer purchasing property with a subject to mortgage is not liable for any deficiencies. Would be most beneficial to a buyer

Question 8

Hypothecation

Answer 8

Is when a lender allows a borrow to possess pledged real estate for use

Question 9

Federal housing administration FHA

Answer 9

The FHA lends money to qualified individuals

Question 10

FHA

Answer 10

The FHA does not lend any money. The FHA administers an insurance program that allows home buyers to borrow almost the full purchase price with a low down payment. (insures loans)

Question 11

Wrap around mortgage

Answer 11

A wraparound mortgage incorporates existing mortgages and becomes subordinate to them

Question 12

Truth in lending law

Answer 12

The truth and lending law requires disclosure to mortgage applicants
(To inform mortgage applicants of the cost of obtaining the loan)

Question 13

Closing attorney

Answer 13

The closing attorney is responsible for prorating the expenses between the parties

Question 14

Fannie Mae

Answer 14

Fannie Mae does not lend money its part of the secondary mortgage market

Question 15

Regulation Z

Answer 15

Regulation Z of the truth in lending law requires that a meaningful disclosure must be given to the borrower regarding the cost of obtaining credit

Question 16

A purchase money mortgage

Answer 16

In a purchase money mortgage, the seller finances the sale of the property by lending the money to the buyer

Question 17

Origination fees

Answer 17

The origination fee is the loan fee or sometimes is referred to as the discount fee

Question 18

Discount rate

Answer 18

The federal discount rate has the greatest effect on persons interest rate. Federal Reserve Board will adjust its rate to encourage or discourage member banks to increase the supply of money

Question 19

Three main types of mortgages

Answer 19

Conventional, private backed mortgages, and government-backed mortgages such as FHA VA, etc.

Question 20

A commitment letter

Answer 20

A letter of commitment for a loan is issued by a lender after a review of the credit report of the borrower and an analysis of real estate asset. The letter contains the amount of the loan, the loan interest rate, and repayment options

Question 21

Mortgagee

Answer 21

Is the lender

Question 22

Deferred purchase money mortgage

Answer 22

A property sold with a second mortgage taken by the owner is a deferred purchase money mortgage. Sometimes the interest do is paid monthly or deferred as well

Question 23

An assumption mortgage

Answer 23

This is because the buyer agrees to assume and make himself personally responsible for payment

Question 24

The Defeasance clause

Answer 24

Defeasance clause are used in a mortgage that states that the lender will return title to the borrower once the depth or loan has been paid in full

Question 25

Purchase money mortgage

Answer 25

In a purchase money mortgage, the seller finances the sale of the property by lending the money to the buyer

Question 26

MGL 140C

Answer 26

Massachusetts as it’s own truth in lending law (TIL) known as MGL CH 140 C

Question 27

RESPA

Answer 27

Stands for real estate settlement procedures act that requires all settlement charges be itemized to buyers and sellers of 1 to 4 unit family residence and was passed in 1974