texas real estate principles 2; unit 3 exam tough questions Flashcards
New construction under the VHAP program requirements must include Environmental Protection Agency’s (EPA) guidelines for (blank) qualified homes.
No clue, come back
What is a charge incurred for the use of money?
I think its interest, double check
what is the most common security instrument in Texas?
I think a deed of trust; double check
What is the FHA?
Federal Housing Administration
Like the FHA, the Department of Veteran Affairs does not;
No idea; come back
Which of the following activities is not associated with a mortgage company or mortgage banker?
No idea; come back
What is the primary purpose of a promissory note?
No idea; come back; I think it’s to serve as evidence of the debt
The process of pooling and repackaging cash flow that turns financial assets into securities that are sold to investors is;
no idea; my guess is securitization; come back and double check
What criteria do lenders use to calculate the maximum loan amount?
I think it’s the value of the property and the borrower’s financial condition, I could be wrong; come back and double check
All of the following must be disclosed by lenders in accordance with the Truth-in-Lending Act, except;
I think the correct answer is the lender’s annual net profit, double check.
the relative cost of credit expressed as a yearly rate is the;
I think its APR or annual percentage rate, double check.
What is the initial equity a borrower has in the property?
I think its the down payment; double check
Under the TRID rule, the integrated mortgage disclosure forms are the;
Loan Estimate and Closing Disclosure
The (blank) generally requires that both a Loan Estimate and Closing Disclosure be provided for most closed-end consumer mortgage loans.
TRID Rule
the (blank) integrated mortgage loan disclosures required by TILA, and RESPA and other disclosures required by Congress into two disclosure forms.
the TRID Rule
Also known as “Know Before You Owe” rules because they address information or mortgages, credit and fees that consumers should read and understand before they make an offer on a house and consent to monthly loan payments.
TRID rules; a series of guidelines enforced by the CFPB or Consumer Financial Protection Bureau
the (blank) protects you against inaccurate and unfair credit billing and credit card practices.
Truth in Lending Act or TILA
The (Blank) of 1968 is a United States federal law designed to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.
TILA or Truth in Lending Act
the (blank) was a law passed by the United States Congress in 1974 and codified as Title 12, Chapter 27 of the United States Code, 12 U.S.C
RESPA; Real Estate Settlement Procedures Act
the (blank) provides consumers with improved disclosures of settlement costs and to reduce the cost of closing by the elimination of referral fees and kickbacks
RESPA; Real Estate Settlement Procedures Act
Under the TRID rule, the integrated mortgage disclosure forms are the (blank) and (blank);
I think it’s the Loan Estimate and Closing Disclosure; double check
a (blank) is a government-insured 100% purchase loan for properties in rural areas.
No idea: come back, I guessed USDA loan. I do think it is USDA Loan confidently though;
a (blank) home loan from the (blank) program also known as the (blank) Rural Development Guaranteed Housing Loan Program, is a mortgage loan offered to rural property owners by the United States Department of Agriculture, Rural Development.
USDA
a VA loan is a mortgage loan in the United States guaranteed by the United States Department of (blank)
Veteran Affairs; a VA loan