Flashcards in Chapter 13: Types of Mortgages and Sources of Finance Deck (33)
The FHA does not make loans. Instead, it ______ loans.
FHA section ______ is the original program for insuring loans.
FHA loans are underwritten in _____ increments.
UFMIP (______) is paid at the time of closing, but may be financed.
up-front mortgage premium
An FHA insured mortgage must include the right to _______ without penalty.
A _______ mortgage is one in which the payments in the first few years are lower than necessary to repay the loan, which results in negative amortization.
true/false: FHA loans may be used to finance condominiums.
In order to receive a VA loan, a ______ is obtained from the VA.
certificate of eligibility
FHA loans _____ have a maximum loan amount and _____ require a downpayment.
A VA loan _____ have a maximum loan amount, and _____ require a downpayment.
PMI (Private Mortgage Insurance) is required when the LTV ration exceeds ______.
If a balance is due at the end of a loan term, it's called a _____.
In an ARM, the _______ is a percentage added to the index rate to cover the lender's overhead and provide a profit.
The date when interest rates can change in an ARM is the _______.
rate adjustment date
The amount of time between rate adjustment dates is the ______.
rate adjustment period
Most ARMs have both a _____ cap and a _____ cap.
Construction loans are paid in ______ at specific stages of development.
A _______ is a mortgage obtained from the seller.
A ______ mortgage is interest-only payments.
A ______ mortgage includes both real and personal property as security for the loan repayment.
_______ is the term used to describe the flow of deposits into lending institutions.
_____ occurs when depositors bypass traditional depository institutions or withdraw money.
_________ is the most abrupt tool the FED has for regulating money.
The _______ is the least effective of the FED's tools to regulate money.
_______ is the most effective method tool the FED has for controlling the flow of money.
Open market operations
______ are financial institutions which originate loans.
_____ do not make loans. Instead, they arrange loans by matching up lenders with lendees.
Regarding Savings Associations, time deposits are another word for ______ accounts and NOW accounts are ______ accounts.
The ______ regulates federal savings associations.
Office of Thrift Supervision (OTS)