Financing And Federal Laws Flashcards
Another word for borrower
Mortgagor
What is the theory that a mortgage is a conveyance of title to the mortgage
Title theory
Retention of all money and return of possession is known as
Foreclosure
Law requiring lenders to disclose finance charges and APR
Regulation Z (truth in lending)
Which type of loan is most likely to include a due on sale clause
VA loan
Borrower has the right to cancel a home equity line of credit when?
Within three days of settlement.
Right to cure the default and stop foreclosure
Equitable redemption
Ability to sell the property without losing initial investment
Appreciation
Correct example of positive leverage
A high yield on borrowed money
Disadvantage of real estate investment
Management considerations
Person who specializes in sale, purchase or lease of a business
Business broker
Estimating value as a multiple of monthly gross rental income is?
Gross rent multiplier
Which valuation uses income capitalization as an approach to reach a value
Income
As ney operating income increases, present value…
Increases
Which type of income is used to compute a gross rent multiplier
Gross monthly income
V = ? / ?
Value = income / capitalization rate
What kind of mortgage includes personal and real property
Package mortgage
Equity of redemption ends when?
Certificate of sale is issued
How many points must be charged to yield an increase of 1%
8 points
Document setting forth the unpaid balance of the mortgage
Estoppel certificate
Mortgagee has title to the real property in which state
Title theory state
A balloon payment is a feature of what type of loan
Partially amortized loan
Allowing a mortgage created at a later date to take priority is called what?
Subordination
Difference between value of property and liens held against it
Equity
A clause in a conventional mortgage instrument that entitles the lender to accelerate the loan without consent.
Due on sale or alienation
Clause in the mortgage that give the lender right to call the entire balance due upon a default
Acceleration
A loan that provides for changes in interest rate
Adjustable rate loan
A home equity loan is more popular that other types of consumer credit because
Interest rate is lower
T/F. The lender can charge a pre payment penalty on FHA/VA Loan
False
T/F. In a VA loan, seller must pay discount points
False
What organization keeps capital flowing to mortgage lenders
Fannie Mae
Types of primary lenders
Mortgage Banker
Commercial Bank
Mutual Savings Bank
Clause in mortgage where lender waives right to deficiency judgement against the borrower.
Exculpatory clause
Broker represented that recent integration will reduce property value. This is known as?
Blockbusting
Process where financial middlemen consolidate belonging to individual depositors and invest that money.
Intermediation
Monetary policy set by the federal reserve is designed to influence
Availability and cost of money and credit
