REAL ESTATE FINANCE EXAM 2024 ACTUAL EXAM COMPLETE 180 QUESTIONS WITH DETAILED VERIFIED, Exams of Nursing

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REAL ESTATE FINANCE EXAM 2024 ACTUAL EXAM

COMPLETE 180 QUESTIONS WITH DETAILED

VERIFIED ANSWERS (100% CORRECT ANSWERS) /

ALREADY GRADED A+

Loan-to-Value Ratio (LTV) ANSWER>>>> The percentage of the lesser of the appraised

value or sales price that the lender will lend.

ex: If a borrower is approved for an 80% loan, it means that the lender will loan

up to 80% of the sales price or appraised value, whichever is lower.

Package Mortgage ANSWER>>>> Includes both real and personal property ( fixtures and

furnishings)

Blanket Mortgage ANSWER>>>> Covers more than one piece of property.

Wraparound Mortgage ANSWER>>>> Method of financing which preserves the low,

existing interest rate on the original note.

Open-End Mortgage ANSWER>>>> Permits additional borrowing on the same note. This

is sometimes called a credit card mortgage or a home equity line of credit -

HELOC.

Budget Mortgage ANSWER>>>> The monthly house payment includes principal, interest,

taxes and insurance (known as PITI)

Collateral - Dependent Loans ANSWER>>>> A hard money loan is a specific type of asset-

based financing in which a borrower receives funds secured by the value of a

parcel of real estate.

Character ANSWER>>>> Is a measure of the willingness of a borrower to make on - time

payments. Credit character is revealed in the borrower's credit report.

Capacity ANSWER>>>> Is a measure of the borrower's ability to repay the debt, and is

demonstrated through current earnings and job stability.

Capital ANSWER>>>> Is the sum of all assets that the borrower has accumulated.

Collateral ANSWER>>>> Is something of value that can be pledged as security for

repayment.

Yield ANSWER>>>> Is the return that the investor recieves over the life of the loan.

(Also known as profit)

Originator ANSWER>>>> The process of creating a new mortgage loan, including all

steps taken by a lender to attract and qualify a borrower.

Mortgage Broker ANSWER>>>> Typically functions as a middleman between the

borrower and the lender, negotiating, selling or arranging loans to be delivered to

larger investors. At one time originated up to 80% of all mortgage loans. (Back on

the rise)

Mortgage Banker ANSWER>>>> Entities which provide their own funds for the purpose

of providing mortgage financing, as opposed to commercial banks/savings

associations. (Held, or "Warehoused")

Correspondent Lender ANSWER>>>> Usually smaller in scale than mortgage bankers or

brokers, these lenders typically extend loans with their own funds, at their own

risk.

Processing ANSWER>>>> Once application is complete the file moves into this phase.

Underwriting ANSWER>>>> The detailed process of evaluating a borrower's loan

application to determine the risk involved for the lender.

Closing ANSWER>>>> The consummation of a real estate transaction in which all

appropriate documents are signed and the proceeds of the mortgage loan are

then disbursed by the lender.

Servicing ANSWER>>>> Includes collecting monthly payments, maintaining records of

payments and balances, collecting and paying taxes and insurance ( and managing

escrow and impound funds) remitting funds to the note holder, and following up

on delinquencies.

Supply and Demand ANSWER>>>> an economic concept that states that the price of a

good rises and falls depending on how many people want it and depending on

how much of the good is available.

Funding ANSWER>>>> The process of transferring funds to a title or escrow company

for disbursement

The Safe Act ANSWER>>>> Designed to enhance consumer protection and reduce

fraud. (Key component of HERA)

M1 ANSWER>>>> Is defined as the sum of currency held by the public and

transaction deposits at depository institutions.

M2 ANSWER>>>> Is defined as M1 plus saving deposits, small - denomination time

deposits (those issued in amounts of less than $100,000) and retail money market

mutual funds shares.

Fiat Money ANSWER>>>> Is currency that is not backed by any precious metals at all.

Monetary Policy ANSWER>>>> Is the maintenance of a stable money supply that

provides for growth in the economy while keeping inflation in. The federal

reserves is responsible for this policy in the United States.

Fiscal Policy ANSWER>>>> Federal Government spending. Approved by Congress. At the

treasury level, funds can be raised to pay for government spending by raising

taxes and increasing borrowing.

Federal Reserve (The Fed) ANSWER>>>> is the central bank of the United States

Monetary inflation ANSWER>>>> When there is an excess of money supply in the

market.

Demand-pull inflation ANSWER>>>> When there is more money in the market and less

goods for sale.

Cost-push inflation ANSWER>>>> Occurs when the cost of production and offering

services increase, thereby causing manufacturers and tradespeople/vendors to

rais their prices accordingly.

Discount rate ANSWER>>>> The interest rate charged member banks that borrow from

the Federal Reserve Systems

Federal Funds Rate ANSWER>>>> Is the rate that the Federal reserve charges banks for

unsecured loans, most of which are for a very short term.

Trouble Asset Relief Program (TARP) ANSWER>>>> Was created to restore the nations

financial stability and restart economic growth.

United State Mint ANSWER>>>> Created by Congress in 1972 and became part of the

Department of the Treasury in 1873. The primary mission is to serve the American

people by manufacturing, distributing, and circulating precious metal coins,

collecting coins and national medals. Also entr usted with providing security over

assets.

The Federal Deposit Insurance Corporation (FDIC) ANSWER>>>> An agency created in 1933 to

insure individuals' bank accounts, protecting people against losses due to bank

failures (Insures deposits only)

The Federal Home Loan Bank (FHLB) System ANSWER>>>> A system of regional banks from

which local lending institutions everywhere in America borrow funds to finance

housing, economic development, infrastructure and jobs.

The Federal Housing Administration (FHA) ANSWER>>>> Provides mortgage insurance on

loans made by blank- approved lenders throughout the US and its territories.

Insures mortgages on single-family and multifamily homes including

manufactured homes and hospitals. It is the largest insurer of mortgages in the

world, insuring over 34 million properties since its inception in 1934.

FHA mortgage insurance ANSWER>>>> Provides lenders with protection against losses as

the result of homeowners defaulting on their mortgage loans.

Community Development Block Grants (CDBG) ANSWER>>>> To help communities with

economic development, job opportunities and housing rehabilitation

HOME Investment Partnership Program ANSWER>>>> Block grants to develop and support

affordable housing for low-income residents.

Rental assistance ANSWER>>>> In the form of section 8 certificates or vouchers for low -

income households.

Ginnie Mae (GNMA) ANSWER>>>>Was established in the U.S in 1968 to promote homeownership. It is wholly-owned government association that operates a mortgage-backed securities program designed to facilitate the flow of capital into housing industry. Does not issue, sell or buy pass-through mortgage- backed securities or purchases mortgages loans. It simply guarantees (insures). Federal Fair Housing Act of 1968 ANSWER>>>>An act prohibiting discrimination in the sale or rental of housing on the basis of race, color, religion or national origin sex, handicap and familial status.

Department of Housing and Urban Development (HUD) ANSWER>>>>A federal cabinet department is active in national housing programs. Its mission is to create strong, sustainable, inclusive communities and quality affordable homes. It prevents housing discrimination through public education and enforcement are administered by the Assistant Secretary for Fair Housing and Equal Opportunity (FHEO) NMLSR ANSWER>>>>All residential mortgage loan originators must now be registered with the Nationwide Mortgage Licensing System and Registry. Consumer Financial Protection Bureau (CFPB) ANSWER>>>>Established by the Dodd-Frank Act. The Bureau has the authority to examine and enforce consumer protection regulations for all mortgage- related businesses, large non-bank financial companies, and banks and credit unions with assets greater than $10 billion. Redlining ANSWER>>>>A practice in which banks refuse to make loans to people living in certain geographic locations. Equal Credit Opportunity Act (ECOA) ANSWER>>>>The federal law that prohibits discrimination in the extension of credit because of race, color, religion, national origin, sex, age, or marital status. Ensures that all consumers are given an equal chance to obtain credit. Truth in Lending Act (TILA) ANSWER>>>>A United States federal law that is designed to protect consumers in any credit transactions by requiring clear disclosure of key terms of lending arrangments all associated cost. Trigger Terms ANSWER>>>>Specific credit terms that may not be advertised unless the advertisement includes other detailed information. The Federal Fair Credit Reporting Act (FCRA) ANSWER>>>>Sometimes called the Fair Credit Reporting Dispute Act, is a federal law designed to protect consumers against unfair credit reporting practices and protect and credit privacy. To assure the consumer that these agencies are fair, accurate and exhibit confidentiality in their credit reporting methods. U.S. Department of Agriculture (USDA) ANSWER>>>>Also referred to a "Section 502 loan" is insured by the U.S. Department of Agriculture. The program offers 100% financing (no down payment) for qualified

borrowers. First time and repeat home buyers can obtain this loan. The program is for primary residence only; no second homes or investor financing is available under this program. The program is for purchases and refinancing only and cash-out refinances are Not allowed. USDA Farm Loans (FSA) ANSWER>>>>Is an agency of the US Dept of Agriculture. Farm Loan Programs for a farmer or rancher who is unable to obtain credit elsewhere to start, purchase, sustain, or expand a family farm. Office of Consumer Credit Commissioner (OCCC) ANSWER>>>>Regulates the credit industry and educates consumers and creditors. Agency efforts help produce a fair, lawful and healthy credit environment for social and economic prosperity in Texas. Texas Department of Housing and Community Affairs (TDHCA) ANSWER>>>>Is responsible for affordable housing, housing related and community service programs, and the regulation of the states manufactured housing industry. Texas Veterans Land Board (VLB) ANSWER>>>>a division of the General Land Office of Texas that administers three programs to assist Texas veterans in purchasing a principal residence and/or land and in financing home improvements Regulation X ANSWER>>>>The Consumer Financial Protection Bureau's (CFPB)( Blank )which implement the Real Estate Settlement Procedures Act (RESPA) Ensures that consumers throughout the nation are provided with more helpful information about the cost of the mortgage settlement and protection from unnecessarily high settlement charges caused by certain abusive practices. RESPA Section 8 ANSWER>>>>Prohibits kickbacks, fee-splitting, and unearned fees. Loan Estimate (LE) ANSWER>>>>Form replaced the GFE form and the initial TILA disclosures and includes some new disclosures. The form must be provided by the mortgage broker or creditor upon receipt of an application. The creditor or broker must give the form to the consumer no later than 3 business days after the consumer applies for a mortgage loan. Closing Disclosure Delivery Requirement ANSWER>>>>The TRID rule requires that the consumer receives the Closing Disclosure no later than 3 business days before consummation.

Secondary Market ANSWER>>>>Exists for the purchase and sale of existing mortgages to investors. Designed to provide greater liquidity to the residential real estate market by providing for a steady supply of funds from investors. Wherein loan originators such as mortgage bankers and brokers can sell their loans and thus recover cash for originating more loans. Federal National Mortgage Association (FNMA) ANSWER>>>>Plays a vital role in financing mortgages and increasing homeownership opportunities in the US. Began in 1938 as an agency of the federal government and was created to bring stability to the US housing market. In 1968, it became a privately owned and managed corporation. US Congress re-chartered it as a private company. Mandating that it operate with private capital on a self-sustaining basis to enhance the flow of funds through the secondary market home buyers.The largest investor in home mortgage today. Freddie Mac (FHLMC) ANSWER>>>>Federally chartered corporation. Established in 1970 for the purpose of purchasing mortgages in the secondary market. Is a stockholder-owned corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage bankers, saving institutions and credit unions can make available to homeowners and multi- family investors. Conservatorship ANSWER>>>>Legal right given to a person to manage the property and financial affairs of a person deemed incapable of doing that for himself or herself. The Housing and Economic Recovery Act (HERA) ANSWER>>>>Enacted on July 30, 2008, is a major housing law that serves multiple purposes: The modernization of the Federal Housing Administration (FHA) , foreclosure prevention, and the enhancement of consumer protections. The SAFE ACT is a KEY component of HERA :

• it is designed to enhance consumer protection and reduce Fraud by requiring national minimum standards for mortgage training, including prelicensing education and annual continuing education Way to Remember: in order to be SAFE, you need a HERA! (female version of a hero) FHFA (Federal Housing Finance Agency) ANSWER>>>>On September 7, 2008 this agency placed Fannie Mae and Freddie Mac in Conservatorship. Appoint (blank) as a conservator or receiver of the GSEs.

Farmer Mac ANSWER>>>>Is a government-sponsored enterprise with the mission of providing secondary market for agriculture real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. Front Ratio ANSWER>>>>Is used to qualify a borrower for a loan based upon the proposed house payment and his or her gross monthly income (GMI). The house payment is the monthly payment of principal, interest, taxes and insurance (PITI). Back Ratio ANSWER>>>>The ratio of the borrowers total recurring monthly debts. Conventional Loan ANSWER>>>>Refers to a loan made with real estate as security and which does not involve government participation in the form of insuring or guaranteeing the loan. Real Estate Mortgage Investment Conduit (REMIC) ANSWER>>>>Allows for the indirect investment in mortgages through the sale of securities. Purchases "pools" of mortgages Primary Mortgage Market ANSWER>>>>The market where borrowers and lenders come together to create and negotiate terms of a mortgage transaction. Commercial Banks ANSWER>>>>Perform a variety of functions, from being a depository institution to providing lines of credit and loan products to the communities in which they are charted. Working capital is primarily generated through deposits from clients. Credit Unions ANSWER>>>>Not-for-profit banks set up by organizations that exist to serve their members. Return surplus income to their members in the form of dividends. Bonds ANSWER>>>>An instrument of corporate or governmental debt. (An IOU) Real Estate Investment Trust (REIT) ANSWER>>>>An investment vehicle created by congress in 1960. The effort to make it possible for small investors to invest in larger commercial properties by purchasing shares in the organization that owns the real estate.

Lifting Clause ANSWER>>>>A clause which gives the borrower the ability to replace the primary instrument with another without affecting the subordinate instrument's position. Lock-in Clause ANSWER>>>>Is a condition of a mortgage loan which prohibits prepayment of the loan prior to a certain date. Alienation (Due on Sale) Clause ANSWER>>>>Reserves the right of the lender to call the note (Declare the entire balance due) if the borrower sells the property without repaying the loan. Release Clause ANSWER>>>>When included in a loan instrument, a (Blank clause) allows for a portion of the loan to be paid in exchanged for the lender releasing part of the property from the mortgage. Also called blanket Mortgage Subordinate Clause ANSWER>>>>A clause in which a holder of a mortgage permits a subsequent mortgage to take priority. Exculpatory clause ANSWER>>>>Is used to limit the borrower's personal liability in the event of a default on a loan. Nonrecourse Clause ANSWER>>>>Often used by loan originators when selling loans on the secondary market. Protects the seller of the security from liability in the event of a default by the borrower. Acceleration Clause ANSWER>>>>A provision in a written mortgage or note, stating that in the event of default, the entire amount of the principal becomes payable. Escalation Clause ANSWER>>>>a clause allowing the lender to raise the existing interest rate - although most often associated with an adjustable rate mortgage, it can be used to overcome an alienation clause Assumption Clause ANSWER>>>>Allows a new borrower to take over the payments on an existing loan under specified terms and conditions. Interest ANSWER>>>>money paid at a particular rate for the use of money loaned to a person or entity, it is the cost of borrowing the money.

Interim Interest ANSWER>>>>The accounting for amortized home loans assumes that there are only 12 months in a year, consisting of the first day of each month. The account begins on the first day of the month following the day the loan closes. The borrower pays interest for the period between the closing day and the day the principal repayment record begins. (Prepaid interest) Loan Amortization ANSWER>>>>the repayment of a loan using equal monthly payments that cover a portion of the principal and the interest on the declining balance. The amount of the monthly payment going toward interest payment starts off large and steadily declines, while the amount going toward the principal starts off small and steadily increases Fixed-Rate Mortgages ANSWER>>>>Locks in the borrower's interest rate over the life of the mortgage. Points ANSWER>>>>Is a unit of measure. (Discount charges) Margin ANSWER>>>>The percent added to the index in order to calculate the payment interest rate. Discounted Initial Rate (teaser rate) ANSWER>>>>A lower interest rate is offered by the lender during the first year or more of the loan. Lifetime Cap ANSWER>>>>Limits the total amount the interest rate may increase over the life of an adjustable-rate mortgage loan. Initial Adjustment Cap ANSWER>>>>ARMs that offer a fixed rate period during the first years of the loan usually have an initial rate cap that is higher than the per adjustment cap Balloon Note ANSWER>>>>Partially amortized and most commonly done with secondary mortgages. Sub-Prime Loans ANSWER>>>>Have risk-based pricing. The rates are not published on these loans. Borrowers are rated A-F with a prime borrower having an A rating. A minus to F-rated borrowers will pay 1 to 5 % higher than those with good credit. These are non-conforming loans. prepayment penalties ANSWER>>>>More than two-thirds of sub-prime loans have this.

Corporate Bond ANSWER>>>>debt instrument issued by a corporation to raise long-term funds Predatory Lending ANSWER>>>>when an unscrupulous lender takes advantage of a consumer's lack of knowledge regarding lending practices Property Flipping ANSWER>>>>Is an elaborate scam in which unsuspecting first-time homebuyers are sold houses in serious states of disrepair for prices far above what the houses are actually worth. Straw Buyer ANSWER>>>>Is a person who is used to buy property in order to conceal the actual owner. Equity Theft ANSWER>>>>Occurs when fraudsters forge a deed transfer or a satisfaction lien, and then obtain new liens on the property. Churning ANSWER>>>>Is excessive selling/lending activity for the purpose of generating fees and commissions. Chunking ANSWER>>>>occurs when a fraudster promises to show investors how to get rich by buying investment properties. Capital gains tax ANSWER>>>>The sale of capital asset results in either a gain or a loss. chronological Age ANSWER>>>>The actual age of the property in years. Effective Age ANSWER>>>>An appraiser's estimate of the age of the house based upon its ongoing maintenance and upgrades. Income Approach ANSWER>>>>Will not be used in a typical residential transaction because it applies only to income-generating rental property. Physical Deterioration ANSWER>>>>Is the loss in a property's value due to daily wear and tear

Functional Obsolescence ANSWER>>>>Is the loss in desirability of the style, layout, or function of an element of a property over time. External Obsolescence ANSWER>>>>The loss in value of a property caused by factors outside the property itself. Depreciation ANSWER>>>>Is the reduction of value of property from causes of deterioration or obsolescence. Market Value ANSWER>>>>Is the most probable price a property should bring in a competitive and open market under all conditions requisite to fair sale, under guidelines published by federal institutions Fannie Mae and Freddie Mac. Ad Valorem ANSWER>>>>according to value Chain of Title ANSWER>>>>A history or list of all recorded owners all the way back to the sovereignty of the soil. Abstract of Title ANSWER>>>>A complete history of the title of a piece of property that includes deeds, easements, liens, foreclosure, wills, marriages, deaths, life, estates, fee simple estates, and anything else that had been recorded about a property. Recasting ANSWER>>>>Or re amortizing, a mortgage. This can reduce the borrower's monthly payment, thus making resolving a default situation more manageable. (Extending and reducing payments) Deed in Lieu (DIL) ANSWER>>>>Of foreclosure (blank) is a mortgage modification option in which a borrower voluntarily feeds their collateral property in exchange for a release from all obligations under the mortgage. Judicial Foreclosure ANSWER>>>>The lender files suit with the (blank) system, and the borrower will receive a note in the mail demanding payment. If payment is not made after a certain time period, the mortgage property is then sold through an auction.

Power of Sale ANSWER>>>>Also known as a statutory foreclosure. Foreclosure without going to court. (Have no choice) Strict Foreclosure ANSWER>>>>The lender files a lawsuit on the homeowner that has defaulted. If the borrower cannot pay the mortgage within a specific timeline ordered by the court, ownership the property is transferred directly to the mortgage holder. The take place only when the debt amount is greater than the value of the property. Encumbrances ANSWER>>>>A claim, lien, charge, or liability attached to and binding real property. An easement for ingress and egress. Lien ANSWER>>>>Is a right given by law to certain creditors to have debts paid out of the property of a defaulting debtor, usually by means of a court sale. The interest rate that is determined by individual banks. ANSWER>>>>What is the prime rate? Private lenders ANSWER>>>>Who provides VA home loans? The single Family Housing Direct Home loan is also known as ANSWER>>>>Section 502 Direct Loan Program Through which avenue does the US Treasury promote economic growth. ANSWER>>>>Policies that support job creation The (blank) loan was developed by HUD for the rehabilitation and repair of single family properties. ANSWER>>>>203(k) When was HARP introduced? ANSWER>>>> Dodd-Frank Wall Street Reform Act ANSWER>>>>Increases the ins coverage on all federally insured credit union accounts up to $250,

Neutral inquiries that are not rated as either positive or negative on a credit report. ANSWER>>>>Periodic review, Pre-approval and consumer initiated At the treasury level, funds can be raised to pay for government spending by increasing borrowing and ANSWER>>>>Raising taxes Reverse Mortgage ANSWER>>>>An arrangement where the lender agrees to pay money to an elderly homeowner, either regularly or occasionally, and to be repaid from the homeowner's equity when he or she sells the home or obtains other financing. Deed in Lieu ANSWER>>>>Cannot be accepted from borrower's who can financially afford their mortgage payments. Private Mortgage Insurance (PMI) ANSWER>>>>Insurance provided by a private carrier that protects a lender against a loss in the event of a foreclosure and deficiency. Real Estate Mortgage Trusts (REMT) ANSWER>>>>A special form REIT that invests in mortgages or mortgage-backed securities. FNMA/FHLMC Ratios ANSWER>>>>28% / 36% FHA ratio ANSWER>>>>31/ VA Ratio ANSWER>>>>41% OCCC-Regulate real estate transactions include: ANSWER>>>>Home Equity Loans Secondary Mortgages Home Improvement Loans Property Tax Lien Lenders

The Fed uses three primary monetary policy tools to influence the cost and availability of credit: ANSWER>>>>1. Open market operations

2. The discount rate
3. Reserve requirements Growth in employment, Transportation systems, Personal preference, Availability of credit, Federal government policy ANSWER>>>>The demand of real estate is affected by: VA Qualification ANSWER>>>>Approval is based on two separate evaluations: residual income and debt-to-income ratio. Both are considered to be a guide to underwriting, and while residual income is the primary consideration, it must be considered along with other credit factors. Gift Funds ANSWER>>>>cannot be cash on hand or be from a party related to the transaction (i.e. realtor, broker, seller) Only received by immediate family. Escrow ANSWER>>>>The deposit of funds with a neutral third party who is instructed to carry out the provisions of an agreement. FHA's Single Family programs are limited to one-to four Family Property secured by ANSWER>>>>Detached or semi-detached dwelling Manufacturered Housing Townhouses or Row houses Individual units within FHA- approved Condominium Projects Up-front mortgage insurance premium (UFMIP) ANSWER>>>>a one-time mortgage insurance fee paid at closing on FHA mortgage loans. And it can be added to the loan even if it causes the loan to exceed the appraised value of the property. Up-Front Mortgage Insurance Premium (UFMIP) Calculations ANSWER>>>>Sales Price/Value × 96.5% LTV = Base Loan Amount Annual Premium ANSWER>>>>based on the LTV and its added to the borrower's monthly payment.

Major loan reforms spearheaded by the FHA have included. ANSWER>>>>Fully Amortized loans Downpayment as low as 3.5% Low Interest rates Mandatory collection of taxes and hazard ins premiums in an escrow account Guidelines for borrower qualification Portfolio Loans ANSWER>>>>Loans that are not sold in the secondary market FHA, VA and USDA loans ANSWER>>>>Governmental loans include Character, Capacity, Capital and Collateral ANSWER>>>>The four C's of good lending: Par loan ANSWER>>>>A loan with no discount points Steering (channeling) ANSWER>>>>Taking buyers or renters to or away from a particular area based on the race, religion, etc. of the buyer or renter (most common complaint under law) promisary note ANSWER>>>>A written promise to pay a certain amount of money with a certain interest rate on a certain date Cross-default clause ANSWER>>>>If borrower defaults on the primary instrument, the secondary instrument is automatically defaulted. This protects a subordinate lien holder by allowing him to foreclose a property if the first lien went into default, even if the subordinate lien was not in default. Late payment penalty ANSWER>>>>a tax penalty equal to .5 percent of the amount of tax owed for each month (or fraction thereof) that the tax is not paid. Prepayment Privilege Clause ANSWER>>>>Is included in some loans, and allows a borrower to pay off the loan prior to the due date without incurring penalties

Second and Third Mortgages ANSWER>>>>a second mortgage (or second deed of trust) is an instrument subordinate to the primary mortgage Contract for Deed (Land Contract) ANSWER>>>>A financing technique wherein the seller agrees to deliver the deed at some future date and the buyer takes possession while paying the agreed amount. Also called an installment contract or cash for deed. Clauses ANSWER>>>>may be used in subordinate finance instruments to reduce the liability of the subordinate lien holder versus the first lien holders liability. US Treasury ANSWER>>>>primary responsible for raising funds to finance the operations of the U.S. government. Mortgage Revenue bonds ANSWER>>>>Are sold to raise funds for lending to first-time homebuyers or low income homebuyers. Foreclosure ANSWER>>>>A legal procedure by which secured property may be sold to satisfy an unpaid note. Default ANSWER>>>>Breach or non performance of the terms of a note or covenants of a mortgage The sale of mortgage loans as investments ANSWER>>>>The secondary mortgage market was designed to provide greater liquidity to the residential real estate market, primarily by Closed-End Mortgage ANSWER>>>>This loan includes a specific dollar amount and does not allow for additional borrowing on the same note and mortgage. Seller Financing ANSWER>>>>Any financing arrangement where a seller takes a note and mortgage from the buyer for all or part of the purchase price of the property. In order to qualify for exemption from capital gains, the property must have been the primary residence for two of the previous (blank) years ANSWER>>>>

Refinancing options that Harp offers ANSWER>>>>Change from an adjustable to a fixed-rate mortgage. Lower interest rates Shorter term loans SML ANSWER>>>>Responsible for the chartering, regulation and supervision of Texas' thrift industry. PENSIL Application ANSWER>>>>Property Address, Estimated Value, Name of the borrower, SSN, Income, Loan Amount SAFE Act ANSWER>>>>Designed to enhance consumer protection and reduce fraud. RMLO ANSWER>>>>The industry term for residential loan originators, as mandated by the SAFE Act. The Community Reinvestment Act enacted in (blank) ensures that banks serve the needs of the community in which they where charted. ANSWER>>>> The entire term of the loan ANSWER>>>>A fixed rated mortgage remains fixed for? The size of a loan a veteran may receive determine by this service ANSWER>>>>Entitlement Service Readjustment Act, 1944 ANSWER>>>>commonly known as GI Bill of Rights D.U.S.T ANSWER>>>>Demand Utility Scarcity Transferability

Index ANSWER>>>>is what the lender uses as an instrument for measuring changes in interest rates In title theory states ANSWER>>>>States where a mortgagee holds actual title to property until the loan is repaid. Compare to Lien Theory States. In a lien theory state ANSWER>>>>a state where the mortgage lender has a lien on the property and the borrower has title. I own the title of my house. Intermediary theory states ANSWER>>>>the third party trustee holding title to the property in trust has the right to foreclose once the buyer defaults. If the borrower doesn't make the payment we don't take them to court the forecloser starts. Borrower, Lender, Trustee ANSWER>>>>A deed of trust is a three-party instrument who's parties include: