Chapter 10: The Residential Lending Process Flashcards Preview

California Real Estate Principles 2017 > Chapter 10: The Residential Lending Process > Flashcards

Flashcards in Chapter 10: The Residential Lending Process Deck (20):
1

The California state-sponsored residential finance program for veterans is called the:

California Veterans Farm and Home Purchase Program.

2

A loan structured to gradually pay off the entire loan debt by regular installment payments of principal and interest is known as a:

fully amortized loan.

3

A percentage amount of a loan charged at the beginning of the loan to increase the lender's yield is called:

discount points.

4

APR refers to:

the annual percentage rate after all finance charges have been applied.

5

The Department of Veterans Affairs will issue a __________ based on the results of a appraisal by a VA appraiser.

Certificate of Reasonable Value (CRV)

6

A Cal-Vet loan: (name three correct statements about)
Purchased from?
Loan Amounts?
May Require?

1. is purchased from the state under a land contract.
2.has established maximum loan amounts that vary from county to county.
3. may require the veteran to purchase life insurance.

7

A mortgage broker:

brings lenders and borrowers together.

8

The relationship, expressed as a percentage, between the loan amount and the sales price or appraised value of the property (whichever is less) is the:

loan-to-value ratio.

9

In an adjustable rate mortgage, the difference between the index rate and interest rate charged to the borrower is known as the __________ .

margin

10

When a property is being purchased by a veteran wanting to finance the property with a VA loan, the veteran must be in possession of a __________ obtained from the Department of Veterans Affairs.

Certificate of Eligibility

11

When the interest rate charged to the borrower is adjusted at specified intervals, the payment:

will increase or decrease along with the interest rate.

12

RESPA is a federal law that: (name three)
Requires..
Requires..
governs..

1. requires institutional lenders to make disclosures regarding closing costs to loan applicants.
2. requires escrow agents to prepare a Closing Disclosure.
3. governs residential real estate closings.

13

The Truth in Lending Act is implemented by:

Regulation Z.

14

__________ is the payment of discount points to reduce the interest rate on a buyer's loan.

A buydown

15

Generally, FHA loans:(name two)
Requires..
have less...

require MIP.
have less stringent qualifying guidelines.

16

Loans that meet the standard requirements of the secondary mortgage market are known as:

conforming loans.

17

A conforming loan is a:

loan that meets the standard requirements to be offered for sale on the secondary market.

18

A REIT is:

an unincorporated association of real estate investors.

19

Conventional loans with a loan-to-value ratio that exceeds 80% generally require:

private mortgage insurance.

20

Which of the following loans are generally assumable, under specified conditions, by any buyer? (name two)

1. FHA loans
2. VA loans