Financing

Question 1

What did the TILA enact to?

Answer 1

Disclose credit terms in a meaningful way

Question 2

Which party is responsible to disclose what under TILA?

Answer 2

Creditor furnishes disclosures

Question 3

An installment note is nearest to?

Answer 3

Principal and interest, specific amounts at intervals

Question 4

A fully amortized loan does?

Answer 4

Debt is liquidated

Question 5

A long term loan does what?

Answer 5

Payment to principal increases and interest decreases

Question 6

A loan where the interest rate can increase or decrease is called?

Answer 6

ARM

Question 7

A straight note does what?

Answer 7

No principal payments during term, an interest only loan

Question 8

A partially amortized loan is considered as a?

Answer 8

Balloon payment

Question 9

A balloon payment requires you to?

Answer 9

Pay the entire balance due

Question 10

What do you call when the vendor executes contract?

Answer 10

Vendor conveys equitable title to the vendee

Question 11

What does equitable title in a land contract mean?

Answer 11

Give right to use and possess, obtain legal title

Question 12

The relationship between vendor and vendee is?

Answer 12

Beneficiary and trustor

Question 13

In a land contract, what happens when a vendee defaults?

Answer 13

Vendor can quite title suit or quit claim deed

Question 14

What types of payments on a FHA?

Answer 14

Monthly payments

Question 15

FHA loans were created to provide?

Answer 15

Insurance for approved lenders

Question 16

FHA loan, the borrower directly applies for?

Answer 16

A mortgage

Question 17

What is not permitted as a FHA loan?

Answer 17

Junior loan

Question 18

What is permitted for a FHA loan?

Answer 18

Gift down payment

Question 19

What is an insured loan?

Answer 19

FHA and PMI

Question 20

In a VA loan, what is the down payment?

Answer 20

No down payment

Question 21

Which CA loan helps first time low income buyers?

Answer 21

CalHFA loan

Question 22

CAlHFA loans are funded by?

Answer 22

Tax exempt government bonds

Question 23

Inflation most nearly means?

Answer 23

Cost of goods and services increasing over time

Question 24

What is not considered a secondary mortgage market?

Answer 24

FHA

Question 25

Differences between mortgage bankers vs brokers?

Answer 25

Mortgage bankers service loans, sell on secondary market. Mortgage brokers do not loan their own money

Question 26

What size of loans do insurance companies loan?

Answer 26

Large loans

Question 27

CAL VET loans are set up as?

Answer 27

Land contract (real property purchase contract)

Question 28

Who is the vendor for the CAL VET loan?

Answer 28

Department of veterans affairs

Question 29

What protection does the department of veterans affairs have in a cal vet loan?

Answer 29

Protected by life/disability insurance

Question 30

Which type of loans does Regulation Z don’t exempt for?

Answer 30

Residential loans

Question 31

Right to rescind for loan on?

Answer 31

Existing principle dwelling

Question 32

When can a rate be placed in an ad?

Answer 32

Must be effective rate

Question 33

Two most critical facts to be disclosed in a loan?

Answer 33

Finance charge and annual percentage rate

Question 34

Effective interest rate vs nominal interest rate?

Answer 34

Effective rate is rate actually paid, nominal rate in note

Question 35

What are triggering terms in an ad?

Answer 35

Disclose APR and all terms, no down payment, how many months

Question 36

If loan ad contains only APR?

Answer 36

No additional disclosures

Question 37

RESPA was established for what purpose?

Answer 37

Accurate closing cost information

Question 38

RESPA applies to what type of properties

Answer 38

1 - 4 owner occupied residential properties

Question 39

Loan estimate must be provided by within

Answer 39

3 business days after application

Question 40

How much can the lender charge for closing disclosure?

Answer 40

Nothing

Question 41

What do points used in financial services do?

Answer 41

Adjust investor yields

Question 42

Can an agent get paid on referral fees for loans? “Kickback”

Answer 42

No

Question 43

What is the definition of liens

Answer 43

A charge imposed by a creditor

Question 44

Liens that are created by recording are

Answer 44

Trust deed or mortgage

Question 45

What’s an example of a lien?

Answer 45

Attachment

Question 46

What type of lien is it when a seller carries back a second lien

Answer 46

Specific lien

Question 47

What type is a judgment lien

Answer 47

Involuntary general

Question 48

What type is a property tax lien

Answer 48

Involuntary specific (tied to one piece of property)

Question 49

What type is an IRS lien

Answer 49

Involuntary general

Question 50

What type of lien is a trust deed

Answer 50

Voluntary specific

Question 51

A judgment lien differs from a mechanic lien by

Answer 51

Mechanic lien has Priority earlier than recording

Question 52

When do mechanic liens take place for a new house?

Answer 52

Beginning of construction

Question 53

Even when all the work is done themselves, when can a mechanic lien still take in effect

Answer 53

Failure to pay for materials

Question 54

After the completion of work is recorded, how long do you have till you can file a mechanic lien

Answer 54

60 days to file

Question 55

After the completion of work is NOT recorded, how long do you have till you can file a mechanic lien

Answer 55

90 days to file

Question 56

What is NOT considered a negotiable instrument

Answer 56

Mortgage

Question 57

In a trust deed, what evidence describes a promissory note

Answer 57

Evidence of debt

Question 58

In a trust deed, who is the trustor

Answer 58

The borrower

Question 59

In a trust deed, what does the trustor sign

Answer 59

Note and trust deed

Question 60

In a trust deed, what does the beneficiary do

Answer 60

Loans money

Question 61

In a trust deed, who gives the power to sell

Answer 61

Trustor to trustee (3rd party)

Question 62

In a trust deed, what does the trustee give to the beneficiary

Answer 62

Fiduciary to beneficiary

Question 63

In a trust deed, what are the services of trustee

Answer 63

Trustee’s sale and reconveyance deed

Question 64

What is a reconveyance deed

Answer 64

Request for full reconveyance, has 21 calendar days from request to cooperate

Question 65

After a Notice of default is recorded, how long until sale of property?

Answer 65

4 months to sale

Question 66

After date of sale is published, how long until sale of property?

Answer 66

21 days to sale

Question 67

How long do you have for reinstatement from foreclosure

Answer 67

5 days before sale

Question 68

At sale, winner gets

Answer 68

Trustee’s deed

Question 69

Explain the subordination clause

Answer 69

Rights of beneficiary are secondary

Question 70

When are construction loan funds released?

Answer 70

Released after lien period

Question 71

Who is involved in a mortgage contract

Answer 71

Mortgagor and mortgagee

Question 72

Explain court (judicial) foreclosure

Answer 72

Deficiency judgment, 1 year right of redemption

Question 73

In a court (judicial) foreclosure, what is considered for the trustee’s sale

Answer 73

Trustee’s sale is final, no recourse