Exam 1- Part 2

Question 1

What features can a qualified mortgage NOT have? (4)

Answer 1

1. An interest only period
2. Negative amortization
3. Terms longer than 30 years
4. Balloon payments

Question 2

Ginnie Mae

Answer 2

Assist with cash flow for FHA and VA loans

Question 3

HUD

Answer 3

Housing and Urban Devlopment

Question 4

Act 91 Notice

Answer 4

• Advises borrower to file for HEMAP
• May receive 120 day stay of foreclosure
• Borrower then receives Act 6 notice
• 30 days to schedule payments
• If not resolved, lend complaints and borrower has 30 days to respond
• No response results in sheriff’s sale

Question 5

Short Sale

Answer 5

lender may accept an offer that is lower than the mortgage loan in order to avoid foreclosure process

Question 6

Equitable Right of Redemption

Answer 6

borrower can repay their debt and bring their payments up to date in order to stop foreclosure

Question 7

Regulation Z

Answer 7

Credit institutions must inform consumers of true cost of obtaining credit

Question 8

FHA

Answer 8

insures loans and allows low down payments

Question 9

VA Loan

Answer 9

guaranteed loan for eligible veterans and spouses; guarantee is for the lender

Question 10

Reverse Annuity Mortgage

Answer 10

lender pays the borrower; loan is repaid when the last member of the house dies or leaves permanently

Question 11

3 Responsibilities of a Property Manager

Answer 11

Fiscal Management
Physical Management
Administrative Management

Question 12

What are reserves used for?

Answer 12

anticipated expenses

ex. replacing a roof, replacing carpets

Question 13

How is residential rent determined?

Answer 13

monthly amount/unit

Question 14

How is commercial rent determined?

Answer 14

annual/square foot

Question 15

What does a high level of vacancy indicate?

Answer 15

rents too high
poor management
defective or undesirable property

Question 16

What does a low level of vacancy indicate?

Answer 16

rates may be too low

you should examine more opportunities

Question 17

GSE

Answer 17

Government sponsored enterprise- enhances flow of credit to targeted sectors of the economy and to make those segments of the capital market more efficient and transparent, and reduce the risk to investors
FNMA, FDMC, FHA

Question 18

HEMAP

Answer 18

Homeowners’ Emergency Mortgage Assistance Program
Loan program designed to protect Pennsylvanians who, through no fault of their own, are financially unable to make their mortgage payments and are in danger of foreclosure