Chpt. 15, Governent Involvement

Question 1

Creates a secondary market for agricultural mortgage loans

Answer 1

Farmer Mac

Question 2

Lenders who originate loans by making money available to borrow

Answer 2

Primary mortgage market

Question 3

Thrifts, savings associations and commercial banks

Answer 3

Fiduciary lenders

Question 4

Intermediaries who bring borrowers and lenders together

Answer 4

Mortgage brokers

Question 5

Investors who buy and sell loans after the loan is funded

Answer 5

Secondary mortgage markets

Question 6

A method of providing a lender with part of a conventional loan balance in the event that a borrower defaults on the loan

Answer 6

Private mortgage insurance

Question 7

A wholly government agency organized as a non-stock corporation that administers special assistance programs and guarantees mortgage backed securities using FHA and VA loans

Answer 7

Ginnie Mae

Question 8

The rate charged for loans the Fed makes to banks

Answer 8

Discount rate

Question 9

The ratio of debt to the value of the property

Answer 9

Loan to value (LTV)

Question 10

Fiduciary lenders are subject to the standards and regulations established by this office

Answer 10

Office of the comptroller of the currency

Question 11

The type of loan viewed as most secure because of its low loan to value ratio

Answer 11

Conventional loan

Question 12

The document that determines the maximum VA loan guarantee to which a veteran is entitled

Answer 12

Certificate of eligibility

Question 13

A form of seller financing whereby the buyer gives the seller a note and mortgage

Answer 13

Purchase money mortgage

Question 14

A loan that finances the purchase of both real and personal property

Answer 14

Package loan

Question 15

A method of financing the purchase of property that temporarily ( or permanently) lowers the interest rate through the payment of a lump sum of cash to the lender

Answer 15

Buy down

Question 16

Lending law prohibiting discrimination based on marital status or sex

Answer 16

Equal credit opportunity act

Question 17

Type of mortgage used by developers securing the loan with several parcels

Answer 17

Blanket loan

Question 18

Law that is designed to ensure that buyer and seller are both fully informed of all closing costs

Answer 18

Real Estate Settlement Procedures Act

Question 19

Law that requires lenders to reveal the true cost of borrowing money

Answer 19

Truth in Lending Act

Question 20

A national system of banking districts designed to maintain sound credit conditions and a favorable economic climate

Answer 20

Federal reserve

Question 21

Federal government regulates the lending practices of mortgage lenders through this act

Answer 21

Truth in Lending Act

Question 22

Implements the Truth in Lending Act, requiring credit institutions to inform borrowers of the true cost of obtaining credit

Answer 22

Regulation Z

Question 23

The federal law that requires certain disclosures to consumers about mortgage loan settlements. The law also prohibits the payment or receipt of kickbacks and certain kinds of referral fees

Answer 23

Real Estate Settlement Procedures Act (RESPA)

Question 24

The law providing that a loan applicant who is rejected must be provided with a statement of the reasons for the rejection within 30 days

Answer 24

Fair Credit Reporting Act

Question 25

The conservatorship of Fannie Mae and Freddie Mac is the responsibility of the …

Answer 25

Federal Housing Finance Agency