Financing The Transaction And Settlement

Question 1

Priority of Liens is determined by

Answer 1

Recording date

Question 2

Who usually has responsibility of providing evidence of good title during escrow?

Answer 2

The seller

Question 3

Which of the following liens has the highest priority?
First mortgage, homeowners association dues, irrigation district assessment of real estate property taxes

Answer 3

Real estate property taxes

Question 4

Which of the following items appears on the settlement statements?
Offer acceptance date, brokerage commission, square footage of the lot, agent commission split with their broker

Answer 4

Brokerage commission

Question 5

When is flood insurance required?

Answer 5

If you use a federally regulated mortgage loan and live in a flood plain

Question 6

An agreement whereby a holder of a superior mortgage agrees to give up their priority position to an existing or future lien

Answer 6

Subordination agreement

Question 7

Using other people’s money to buy real estate is an example of

Answer 7

Leverage

Question 8

What type of deed gives the most protection to the grantee?

Answer 8

Warranty deed

Question 9

Which deed imposes the least liability to the grantor?

Answer 9

Quit claim deed

Question 10

What step of the transfer of deed occurs last?

Answer 10

Giving actual notice to the grantee of a recording

Question 11

Which set of words gives the least protection to the grantee?

Answer 11

“Convey, Release, Remise, Forever Quit Claim”

Question 12

What is true of the bargain and sale deed?

Answer 12

It gives no warranties against prior encumbrances

Question 13

An agent should do what with the preliminary title report

Answer 13

Read it and share it with their party

Question 14

What type of loan has the buyer paying interest only for 8 years then the principal balance owed?

Answer 14

Straight loan

Question 15

How do you release a deed trust when paid?

Answer 15

Deed of Reconveyance

Question 16

What document evidences a debt?

Answer 16

Promissory note

Question 17

This law limits legal interest rates

Answer 17

Usury Laws

Question 18

Amortization means

Answer 18

Reducing debt through periodic payments of principal and interest

Question 19

Where do you go get a VA loan?

Answer 19

An approved VA lender

Question 20

If you are behind on a debt what right allows yo to catch up and keep your loan in place and avoid foreclosure

Answer 20

Reinstatement

Question 21

What federal law prohibits kickbacks from lenders and title companies

Answer 21

RESPA

Question 22

What is regulation Z designed to disclose?

Answer 22

The borrowers true cost of the loan

Question 23

What type of foreclosure is the bank required to use to get the property back?

Answer 23

Non-judicial

Question 24

What is pledging property as collateral called?

Answer 24

Hypothecation

Question 25

Who is on the title in a lien theory state?

Answer 25

The mortgagor

Question 26

What law is designated for disclose to borrowers the cost of their loans

Answer 26

Truth in lending

Question 27

What does the acceleration clause do?

Answer 27

Calls the entire loan balance due

Question 28

What private agency provides funds to buy loans on the secondary market

Answer 28

Fannie Mae

Question 29

What type of loan includes personal property?

Answer 29

Package mortgage

Question 30

In a land sale contract when does the buyer get title?

Answer 30

When they make the last payment

Question 31

What does a usury law do?

Answer 31

Set legal interest rates

Question 32

What can a lender seek after a loss from foreclosing on a property?

Answer 32

A deficiency judgment

Question 33

What is the responsibility of the owner if they sell their property “subject to?”

Answer 33

To make sure the original loan is paid as agreed

Question 34

Mortgages and Deeds of Trusts are considered

Answer 34

Security instruments

Question 35

If a mortgage is a 600 acre farm is foreclosed on, how long does the mortgagor have to redeem

Answer 35

12 months

Question 36

In a land sale contract who retains title to the property while the payments are being made

Answer 36

The vendor

Question 37

Where does a borrower go to apply for a FHA loan?

Answer 37

Any FHA approved lender

Question 38

Name the 4 advertising trigger words

Answer 38

Payment amount, APR, Term, Down payment

Question 39

What federal law is designed to trigger certain disclosures at a real estate closing?

Answer 39

RESPA

Question 40

A package mortgage has which feature

Answer 40

Real estate plus personal property

Question 41

What is the prepayment penalty for VA loan

Answer 41

There is no penalty

Question 42

How are prepaid HOA dues handled at closing?

Answer 42

A seller credit and buyer debt

Question 43

If you put e-money deposit in your personal account and then write a check to your broker’s trust what has happened?

Answer 43

Commingling

Question 44

FHA _____ loans

Answer 44

Insures

Question 45

3-way lending agreements are called

Answer 45

Deeds of trust

Question 46

RESPA governs which real estate closings?

Answer 46

Any I-4 residential using a federally related mortgage loan

Question 47

What type of loan has buyer paying interest only for 3 years then the principal balance owed?

Answer 47

Straight loan

Question 48

What type of loan allows the borrower to get more money during the loan without reapplying?

Answer 48

Open-end mortgage

Question 49

The Veteran’s Administration (VA) _______ loans are made to qualified veterans

Answer 49

Guarantees

Question 50

When must the lender supply to a borrower the Loan Estimator (LE)?

Answer 50

3 days after loan application

Question 51

The HUD-1 and Truth in Lending Disclosure have been replaced with

Answer 51

Loan Estimator (LE)

Question 52

If the loan’s interest rate goes up more than _____ from the Loan Estimator (LE) originally supplied to the borrower, the lender is re required to re-disclose to the borrower which will more time to escrow

Answer 52

1.25%

Question 53

New federal laws governing mortgage lending is overseen by

Answer 53

CFPB