Financing And Federal Laws

Question 1

Another word for borrower

Answer 1

Mortgagor

Question 2

What is the theory that a mortgage is a conveyance of title to the mortgage

Answer 2

Title theory

Question 3

Retention of all money and return of possession is known as

Answer 3

Foreclosure

Question 4

Law requiring lenders to disclose finance charges and APR

Answer 4

Regulation Z (truth in lending)

Question 5

Which type of loan is most likely to include a due on sale clause

Answer 5

VA loan

Question 6

Borrower has the right to cancel a home equity line of credit when?

Answer 6

Within three days of settlement.

Question 7

Right to cure the default and stop foreclosure

Answer 7

Equitable redemption

Question 8

Ability to sell the property without losing initial investment

Answer 8

Appreciation

Question 9

Correct example of positive leverage

Answer 9

A high yield on borrowed money

Question 10

Disadvantage of real estate investment

Answer 10

Management considerations

Question 11

Person who specializes in sale, purchase or lease of a business

Answer 11

Business broker

Question 12

Estimating value as a multiple of monthly gross rental income is?

Answer 12

Gross rent multiplier

Question 13

Which valuation uses income capitalization as an approach to reach a value

Answer 13

Income

Question 14

As ney operating income increases, present value…

Answer 14

Increases

Question 15

Which type of income is used to compute a gross rent multiplier

Answer 15

Gross monthly income

Question 16

V = ? / ?

Answer 16

Value = income / capitalization rate

Question 17

What kind of mortgage includes personal and real property

Answer 17

Package mortgage

Question 18

Equity of redemption ends when?

Answer 18

Certificate of sale is issued

Question 19

How many points must be charged to yield an increase of 1%

Answer 19

8 points

Question 20

Document setting forth the unpaid balance of the mortgage

Answer 20

Estoppel certificate

Question 21

Mortgagee has title to the real property in which state

Answer 21

Title theory state

Question 22

A balloon payment is a feature of what type of loan

Answer 22

Partially amortized loan

Question 23

Allowing a mortgage created at a later date to take priority is called what?

Answer 23

Subordination

Question 24

Difference between value of property and liens held against it

Answer 24

Equity

Question 25

A clause in a conventional mortgage instrument that entitles the lender to accelerate the loan without consent.

Answer 25

Due on sale or alienation

Question 26

Clause in the mortgage that give the lender right to call the entire balance due upon a default

Answer 26

Acceleration

Question 27

A loan that provides for changes in interest rate

Answer 27

Adjustable rate loan

Question 28

A home equity loan is more popular that other types of consumer credit because

Answer 28

Interest rate is lower

Question 29

T/F. The lender can charge a pre payment penalty on FHA/VA Loan

Answer 29

False

Question 30

T/F. In a VA loan, seller must pay discount points

Answer 30

False

Question 31

What organization keeps capital flowing to mortgage lenders

Answer 31

Fannie Mae

Question 32

Types of primary lenders

Answer 32

Mortgage Banker
Commercial Bank
Mutual Savings Bank

Question 33

Clause in mortgage where lender waives right to deficiency judgement against the borrower.

Answer 33

Exculpatory clause

Question 34

Broker represented that recent integration will reduce property value. This is known as?

Answer 34

Blockbusting

Question 35

Process where financial middlemen consolidate belonging to individual depositors and invest that money.

Answer 35

Intermediation

Question 36

Monetary policy set by the federal reserve is designed to influence

Answer 36

Availability and cost of money and credit