Finance

Question 1

Freddie Mac is a federally chartered corporation as the Federal Home Loan Mortgage Corporation (FHLMC) established in what year?

Answer 1

1970

Question 2

The Federal National Mortgage Association (FNMA) known as the Fannie Mae began on what year?

Answer 2

1938

Question 3

The Government National Mortgage Association (GNMA) or Ginnie Mae was established when?

Answer 3

1968

Question 4

Loans originated to adhere to Fannie Mae, Freddie Mac, Ginne Mae requirements for purchase are called _____.

Answer 4

Conforming loans

Question 5

The market where borrowers and mortgage lenders come together to create and negotiate terms of a mortgage transaction is called ______.

Answer 5

Primary Market

Question 6

Examples of the primary market lenders are:

Answer 6

savings
loans
commercial banks
mutual savings banks
mortgage companies
credit unions
individuals
any person or business that provides cash for someone seeking a mortgage.

Question 7

Bonds

Answer 7

an instrument of corporate or governmental debt

Question 8

Mortgage brokers

Answer 8

typically specialize as middlemen between borrowers and lenders

Question 9

Correspondent lender

Answer 9

Someone who processes, underwrites, closes and funds their own files in their name and then sells the loans to other mortgage lenders

Question 10

Mortgage loan originators can be broken down into three categories:

Answer 10

Mortgage Bankers
Mortgage Brokers
Correspondent Lenders

Question 11

Government Bonds are also known as _______

Answer 11

municipal bonds

Question 12

The ______ mortgage market is made up of the businesses that lend to borrowers for the purchase of real estate.

Answer 12

Primary

Question 13

A ______ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes.

Answer 13

mortgage banker

Question 14

Which act increased the insurance coverage on all federally insured credit union accounts up to $250,000.

Answer 14

Dodd-Frank Wall Street Reform Act

Question 15

Define encumbrance

Answer 15

A claim, lien, charge, or liability attached to and binding real property.

Question 16

define lien

Answer 16

a right given by law to certain creditors to have debts paid out of the property of a defaulting debtor, usually through a court sale.

Question 17

A mortgage is

Answer 17

a pledge of real estate as security for repayment of a debt.

Question 18

A borrower is

Answer 18

known as the mortgagor

Question 19

The lender

Answer 19

is known as a mortgagee

Question 20

portfolio

Answer 20

not sold in the secondary market.

Question 21

Deficiency Judgment

Answer 21

the unpaid balance of a foreclosed mortgage, payable by court order

Question 22

Foreclosure

Answer 22

Legal procedure by which secured properly may be sold to satisfy an unpaid note

Question 23

A promissory note is also known as _________.

Answer 23

the note

Question 24

Any excess money left over from sale is given to the

Answer 24

debtor

Question 25

Power of Sale

Answer 25

This type of foreclosure, also known as statutory foreclosure

Question 26

Judicial Foreclosure

Answer 26

the lender files suit with the judicial system

Question 27

Federal Housing ACT

Answer 27

statutes prohibits housing discrimination based on race, color, national origin, sex, religion, families with children and disabilities

Question 28

HUD enforces what programs:

Answer 28

FHACT

Question 29

Foreclosure is also know as ______.

Answer 29

force sale

Question 30

Any excess money left over from the foreclosure/forces sale is given to the

Answer 30

debtor

Question 31

Redlining

Answer 31

the practice of refusing to provide financing in particular area because of the location.

Question 32

RMLOs

Answer 32

Residential mortgage loan originators

Question 33

RMLOs must be registered with the _______.

Answer 33

National Mortgage Licensing System and Registry (NMLSR)

Question 34

NMLSR

Answer 34

National Mortgage Licensing System and Registry

Question 35

Federal Fair Housing ACT (FHACT)

Answer 35

Prohibit housing discrimination based on race, color, national origin, sex, religion, families with children, and disabilities.

Question 36

All residential mortgage loan originators (RMLO) must be registered with what agency?

Answer 36

National Mortgage Licensing System and Registry (NMLSR)

Question 37

Texas Department of Housing and Community Affairs (TDHCA)

Answer 37

is an agency responsible for affordable housing.

Question 38

Texas Veterans Land Board (VLB)

Answer 38

the Veteran must have been honorably discharged.

Question 39

Housing Assistance Program

Answer 39

Veteran, military members, and their surviving spouses may receive up to $424,100.

Question 40

Closing Disclosure Form

Answer 40

The creditor must ensure must that the consumer receives the Closing Disclosure Form at least three business days before the consumer closes the loan