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Champions Real Estate Finance Updated
Ailene and Arnold are on a fixed income. They want to buy a home and are researching different loan options. Which type of loan would be a poor choice for the - ✔️ ✔️ An adjustable-rate mortgage
A cash-out refinancing loan is a loan guaranteed by the _________ which refinances any type of lien against a secured property. - ✔️ ✔️ VA
____ were created in the early 1800s because banks did not lend money for residential mortgages. - ✔️ ✔️ savings and loans
_____ is something of value that can be pledged as security for repayment of a loan. - ✔️ ✔️ Collateral
_____ is the consummation of a contractual real estate transaction in which all appropriate documents are signed, and the mortgage loan proceeds are disbursed by the lender. - ✔️ ✔️ Closing
A _____ is a debt instrument. - ✔️ ✔️ Corporate bond
A _____ lender is one who funds mortgage loans from deposits on hand, retaining the loans long term. - ✔️ ✔️ Portfolio
____ is the least common form of mortgage financing. - ✔️ ✔️ seller financing
A ______ cannot be accepted from borrowers who can financially afford their mortgage payments. - ✔️ ✔️ Deed in lieu
A condition of a mortgage loan which prohibits prepayment of the loan prior to a certain date is known as a(n) _____ clause. - ✔️ ✔️ Lock-in
A deed of trust is a(n) _____ instrument. - ✔️ ✔️ Three-party
A(n) _____ clause states that the lien is defeated when the debt is repaid. - ✔️ ✔️ Defeasance
A(n) _____ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes. - ✔️ ✔️ Mortgage banker
All types of foreclosure require _____ to be issued, and all parties to be notified regarding the proceedings. - ✔️ ✔️ Public notices
An easement for ingress and egress is known as a(n) _____. - ✔️ ✔️ Encumbrance
An excess supply of money in the market results in monetary _____. - ✔️ ✔️ Inflation
An FHA borrower can use gift funds from a(n) _____ as funds for a downpayment. - ✔️ ✔️ a parent
Appraisers commonly refer to the property being appraised as the _____. - ✔️ ✔️ Subject property
Default can lead to a number of negative consequences for the defaulting party, including _____. - ✔️ ✔️ Damage to credit score, foreclosure, Default-related fees
Fannie Mae operates with _____ to enhance the flow of funds through the secondary market to home buyers. - ✔️ ✔️ Private capital
For a property to have value, it must have four characteristics, including demand, scarcity, _____, and transferability. - ✔️ ✔️ Utility
How can Sylvia ensure that Victor is properly licensed as an RMLO? - ✔️ ✔️ She can look him up in the NMLSR
If Mr. and Mrs. Wu are pre-approved for a mortgage, what form will they receive? - ✔️ ✔️ Form B Conditional approval letter
is a government-sponsored enterprise with the mission of providing a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. - ✔️ ✔️ Farmer Mac
Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase are called _____. - ✔️ ✔️ Conforming loans
Prepayment penalties can be found in more than two-thirds of _____. - ✔️ ✔️ Sub-prime mortgages
Raising taxes and increasing borrowing are two ways at the treasury level to: - ✔️ ✔️ Raise funds to pay for government spending
The type of foreclosure that involves the lender filing a lawsuit on the homeowner that has defaulted is known as _____. - ✔️ ✔️ Strict foreclosure
The VA partial _____ on a real estate loan reduces lenders' risk. - ✔️ ✔️ Guarantee
Under a(n) _____, when the final payment is made to the seller, title transfers to the buyer. - ✔️ ✔️ Special warranty deed
Under the _____, the use of certain terms in an advertisement triggers the need for full disclosure of lending terms. - ✔️ ✔️ Truth in Lending Act
What type of property might an Equity Estate REIT purchase - ✔️ ✔️ Office buildings, apartments, self storage
What would the interest rate be on a $155,000 loan if the annual interest owed is $5,425? (Use a 365-day year.) - ✔️ ✔️ 3.50%
Which act increased the insurance coverage on all federally insured credit union accounts up to $250,000? - ✔️ ✔️ Dodd-Frank Wall Street Reform Act
Which agency insures deposits in banks and thrift institutions for up to $250,000? - ✔️ ✔️ The Federal Deposit Insurance Corporation
Which agency oversees the Home Affordable Modification Program (HAMP)? - ✔️ ✔️ HUD and the Department of the Treasury
Which loan program would allow Edmund to purchase a home with a downpayment of $0? - ✔️ ✔️ A VA loan
Which of the following housing objectives does Fannie Mae address? - ✔️ ✔️ Regional imbalances of available mortgage credit, The origination of mortgages for sale, The standardization of mortgage loans
Which of the following types of liens is one that is freely given, usually as collateral for a loan? - ✔️ ✔️ Involuntary lien
Which of the following statements is INCORRECT? - ✔️ ✔️ Ginnie Mae sells mortgage- backed securities and purchases mortgage loans.
Which of the following transactions is exempt from RESPA? - ✔️ ✔️ Temporary loans
The basic formula for interim interest is _____. - ✔️ ✔️ Interest x Payment Rate / 365 x
of days until the end of the month
Which of the following lends money in the primary market? - ✔️ ✔️ Mortgage companies, commercial banks, credit unions
When the costs of production and services increase, causing manufacturing prices to rise, it is called _____. - ✔️ ✔️ Cost-push inflation
