Kahoots Flashcards
(114 cards)
1
Q
What is the science that describes the management, creation and study of money, banking, credit, investments assets, and liabilities? A. Economics B. Finance C. Credit D. Banking
A
B. Finance
2
Q
Most real estate cycles in Texas are determined by: A. Politics and demand B. Economics and politics C. Economics and supply D. Supply and demand
A
D. Supply and demand
3
Q
\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ measure(s) the wealth and resources of a particular area or region as well as production and consumption. A. Supply and demand B. Interest rates C. Economy D. Finance
A
C. Economy
4
Q
Which of the following describes real estate?
A. All of the legal rights to the property
B. Land plus all improvement
C. The surface, subsurface, and the air above
D. None of the above
A
B. Land plus all improvement
5
Q
Things that are NOT attached to the land are called: A. Chattel B. Economic factors C. Subsurface rights D. Appraised items
A
A. Chattel
6
Q
What is the highest form of ownership? A. Leasehold estate B. Periodic estate C. Fee simple absolute D. Estate for years
A
C. Fee simple absolute
7
Q
Tenants in common own an undivided interest in the property.
A. True
B. False
A
A. True
8
Q
Who acquires the property if the property is owned by joint tenancy and one of the owners dies? A. The heirs of the deceased owner B. The other partner C. The corporation D. None of the above
A
B. The other partner
9
Q
How many different types of leasehold ownerships are there? A. 2 B. 4 C. 8 D. There is no specific number
A
B. 4
10
Q
What is a current medium of exchange collectively in the form of coins and banknotes? A. Trusts B. Securities C. Money D. Bonds
A
C. Money
11
Q
In the United States, money is controlled by \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_. A. Congress B. Wall Street C. Banks D. The Federal Reserve
A
D. The Federal Reserve
The Federal Reserve is the central banking system of the United States. The Fed has three key objectives: maximum employment, stable prices, and moderate
long-term interest rates.
12
Q
______________________ is/are the amount of funds that a depository institution must hold
in reserve against specified deposit liabilities.
A. FDIC
B. Reserve requirements
C. Discount requirements
D. None of the above
A
B. Reserve requirements
The Fed requires banks and lending institutions to hold a percentage of their deposits in reserve as protection against any liquidating problems.
13
Q
The FHLB system was created in 1932 as a result of: A. The Dodd-Frank Act B. The Great Depression C. WWII D. The Vietnam War
A
B. The Great Depression
The Federal Home Loan Bank was established
to provide funds for lending institutions and
provide liquidity for home lending.
14
Q
All of the following are functions of the Department of Treasury EXCEPT:
A. Managing federal finances
B. Currency and coinage
C. Determining national debt
D. Enforcing federal finance and tax laws
A
C. Determining national debt
The Department of Treasury, an entity outside the central bank, creates the currency we use and manages government revenue.
15
Q
The U.S. Mint is a part of the: A. Department of Treasury B. Federal Reserve System C. The U.S. Mint is a stand-alone agency. D. FNMA
A
A. Department of Treasury
The mint is where the currency is made and is part
of the Department of Treasury.
16
Q
What is the purpose of the treasury bill?
A. To allow depositors to obtain higher than
average interest rates
B. To distribute securities to member banks
C. To avoid default of the federal government
D. To help finance the national debt
A
D. To help finance the national debt
To help finance the national debt. Treasury bills are a way for the government to make money from the public. People and corporations can buy treasury bills.
17
Q
The ______________________ was created in 1933 to maintain public confidence and
en-courage stability in the financial system through the promotion of sound banking
practices.
A. FDIC
B. Federal Reserve
C. Department of Treasury
D. U.S. Mint
A
A. FDIC
The Federal Department Insurance Corporation insures deposits in U.S. banks. For example, if there
were a “run” on a bank, the FDIC insures the
deposit up to a certain amount ($250,000).
18
Q
The \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ fulfills its role in housing finance by providing member banks with access to reliable, economical funding and technical assistance, and special affordable housing program. A. FHA B. Federal Home Loan Bank System C. Secondary market D. Primary market
A
B. Federal Home Loan Bank System
Federal Home Loan Bank System. The FHLB was created by the Federal Home Loan Bank Act to increase the amount of funding available for lending institutions who provide mortgages to individuals
19
Q
Federal Home Loan Banks are cooperatives.
A. True
B. False
A
A. True
20
Q
What entity did the National Housing Act of 1934 create to relieve unemployment and stimulate the release of private credit? A. VA B. USDA C. FNMA D. FHA
A
D. FHA
21
Q
The _____________________ is intended to encourage depository institutions to help meet the
credit needs of the communities in which they operate.
A. Redline
B. TILA (Truth-in-Lending Act)
C. CRA (Community Reinvestment Act)
D. Fair Credit Act
A
C. CRA (Community Reinvestment Act)
22
Q
The purpose of ___________________ is to promote the informed use of consumer credit,
regu-late certain credit card practices, and impose limitations on home equity lines of credit.
A. TILA (Truth-in-Lending Act)
B. RESPA (Real Estate Settlement Procedures Act)
C. SAFE (Safe and Fair Enforcement for Mortgage Lending Act)
D. HUD (Housing and Urban Development)
A
A. TILA (Truth-in-Lending Act)
TILA (Truth-in-Lending Act). The Truth-in-Lending Act also requires disclosures about its terms and costs to standardize the way cost of borrowing is calculated and disclosed
23
Q
_________________ is about closing costs settlement procedures and prohibits certain practices
such as kickbacks.
A. TILA (Truth-in-Lending Act)
B. RESPA (Real Estate Settlement Procedures Act)
C. SAFE (Safe and Fair Enforcement for Mortgage Lending Act)
D. Regulation Z
A
B. RESPA (Real Estate Settlement Procedures Act)
RESPA (Real Estate Settlement Procedures Act). Real Estate Settlement Procedures Act also prohibits kickbacks between lender and title companies in the real estate settlement process as well as providing borrowers write pertinent and timely disclosure of closing costs.
24
Q
RESPA is a _________________ consumer protection statute.
A. TILA (Truth-in-Lending Act)
B. CFPB (Consumer Financial Protection Bureau)
C. FNMA (Federal National Mortgage Association)
D. Federal Reserve
A
B. CFPB (Consumer Financial Protection Bureau)
RESPA ensures that consumers throughout the nation are provided with helpful information about the cost of mortgage (closing) settlements and protected from high closing charges caused by abusive practices. The Consumer Financial Protection Bureau oversees RESPA.
25
Which act is designed to enhance consumer protection by requiring the FDIC, the National Credit
Union Administration, the Board of Governors of the Federal Reserve System, and others to jointly
develop and maintain a federal registration system for individual employees of agency regulated
institutions who engage in the business of residential mortgage loan origination?
A. Dodd-Frank Act
B. CRA (Community Reinvestment Act)
C. SAFE (Safe and Fair Enforcement for Mortgage Lending Act)
D. ADA (Americans with Disabilities Act)
C. SAFE (Safe and Fair Enforcement for Mortgage Lending Act)
The objective of the SAFE Act is to aggregate and improve the flow of information to and between negotiations, increasing accountability and tracking mortgage loan origination (MLOs).
26
. The Safe and Fair Enforcement for Mortgage Licensing Act (SAFE Act) has been
transferred to the _________________ for administration and enforcement.
A. APA (Administrative Procedures Act)
B. CFPB (Consumer Financial Protection Bureau)
C. SAFE (Safe and Fair Enforcement for Mortgage and Licensing Act
D. FHA (Federal Housing Administration)
B. CFPB (Consumer Financial Protection Bureau)
RESPA and the SAFE Act both are administered and enforced through The Consumer Financial Protection Bureau.
27
```
The ____________________ explains the basic information about the terms of a mortgage loan
for which the consumer applied.
A. HUD-1
B. Deed of Trust
C. Closing Statement
D. Loan Estimate
```
D. Loan Estimate
28
The lender or the mortgage broker must provide a Loan Estimate within _________________ of
receiving the application or other required information.
A. 24 hours
B. 3 days
C. One business day
D. 3 business days
D. 3 business days
Three business days is one of the new rules under The Consumer Financial Protection Bureau’s loan and settlement requirements.
29
```
What is the market where borrowers and mortgage originators come together to negotiate terms
and effectuate mortgage transactions?
A. Money Market
B. Primary Market
C. Secondary Market
D. Origination Market
```
B. Primary Market
30
```
Which of the following is NOT a part of the secondary money market?
A. Fannie Mae
B. Sallie Mae
C. GNMA
D. Freddie Mac
```
B. Sallie Mae
Sallie Mae was created to assist students with student loans and is not part of the secondary market
31
```
The largest buyer of residential mortgages in United States today is __________.
A. FHLMC
B. GNMA
C. Banks
D. FNMA
```
D. FNMA
FNMA was founded in 1938 and is a U.S. government-sponsored corporation created to establish a secondary market for mortgages.
32
The institution that provides cash advances to members, including community banks, thrifts,
credit unions, and community development financial institutions is ___________.
A. FNMA
B. FHLMC
C. FHLB
D. Banks
C. FHLB
The Federal Home Loan Banks are eleven U.S.
government-sponsored banks that provide liquidity to member financial institution (not individuals) to support housing financing and community investment. Member financial institutions would include community banks, credit unions, insurance companies, and thrifts.
33
What is the entity that is a publicly traded, federally chartered corporation that purchases newly
originated and seasoned agricultural loans from lenders?
A. REIT
B. Fannie Mae
C. Ginnie Mae
D. Farmer Mac
D. Farmer Mac
34
```
What is a collaboration among lenders to share in a loan too big to handle for any one of them
called?
A. A participation loan
B. A collaboration loan
C. A shared loan
D. A co-operation loan
```
A. A participation loan
Participation loans are generally done on large commercial properties to reduce any one lender’s risk
35
```
How many banks are in the Federal Home Loan Bank system?
A. 4
B. 6
C. 11
D. 20
```
C. 11
FHLB banks are government-sponsored enterprises involved in housing and community economic development.
36
FNMA (Fannie Mae) is one of the entities in the secondary market.
A. True
B. False
A. True
A part of the secondary market, FNMA also purchases the largest percentage of residential loans.
37
```
One of the largest buyers of asset-backed and U.S. Treasury securities is _____________.
A. Credit unions
B. Pension funds
C. China
D. American public
```
B. Pension funds
38
What is a company or individual that originates mortgage loans and sells them to investors,
while taking care of borrowers’ loan payments, records, taxes, and insurance called?
A. Mortgage bankers
B. Mortgage brokers
C. Loan originators
D. Secondary market
A. Mortgage bankers
39
```
All the following are sources of mortgage loans EXCEPT:
A. Commercial banks
B. Life Insurance companies
C. Credit unions
D. FHLMC (Freddie Mac)
```
D. FHLMC (Freddie Mac)
40
```
What type of mortgage provides seniors (62 years or older) monthly payments from the equity
they have built up on their home?
A. Real Estate Trust
B. Reverse Mortgage
C. Credit unions
D. Pension programs
```
B. Reverse Mortgage
41
Mortgage brokers originate and service mortgages.
A. True
B. False
B. False
42
```
What type of mortgage is most like a mutual fund?
A. Pension programs
B. Reverse Mortgage
C. Real Estate Investment Trust
D. Commercial loan
```
C. Real Estate Investment Trust
43
Insurance companies primarily invest in developed commercial property.
A. True
B. False
A. True
True. Insurance companies typically aim to build commercial mortgage loan portfolios that are diversified by property type and geography, as well as in accordance with applicable investment guidelines
44
Commercial bank loans include auto loans and student loans.
A. True
B. False
A. True
The general role of commercial banks is to provide financial services to the general public and businesses, encourage economic stability, and sustainable growth of the economy
45
What is the cap on the amount the owner can take out of a reverse mortgage loan?
A. 60% of the total loan amount
B. 20% of the total loan amount
C. 75% of the total loan amount
D. There is no limit, the owner can take out 100% of the total loan amount.
A. 60% of the total loan amount
A. 60% of the total loan amount. Generally, the cap is limited to 60% of the total loan amount. This is designed to help their home equity last longer.
46
```
What is a burden, obstruction, or impediment on the property that lessons its value or makes it
less marketable?
A. A lien
B. Interest
C. An encumbrance
D. A mortgage
```
C. An encumbrance
47
```
A(n) _________________ gives a creditor the right to seize or take the property if the owner is
unable to keep up with payments.
A. Encumbrance
B. Lien
C. Deed
D. Note
```
B. Lien
48
```
What is the term for a written promise to pay a certain sum of money at a future time?
A. Lien
B. Deed of Trust
C. Promissory Note
D. Mortgage
```
C. Promissory Note
49
```
Which party is NOT included on the deed of trust?
A. Mortgagor
B. Mortgagee
C. Trustor
D. Trustee
```
C. Trustor
50
```
Which of the following is NOT included in the Promissory Note?
A. Seller’s name
B. Interest rate
C. Term
D. Late charge amount
```
A. Seller’s name
51
The mortgage or deed of trust will contain a(n) ____________________ that permits the lender
to demand that the entire balance of the loan be repaid if the borrower defaults.
A. Due on sale clause
B. Acceleration clause
C. Alienation clause
D. Balloon clause
B. Acceleration clause
52
When does title change with contract for deed?
A. When the buyer has completed the terms of the contract
B. At closing
C. When the contract is executed
D. Upon funding
A. When the buyer has completed the terms of the contrac
53
```
This clause requires the balance of the loan to be paid upon the sale of the property.
A. Subordination clause
B. Due-on-sale clause
C. Habendum clause
D. Assumption clause
```
B. Due-on-sale clause
54
A ___________________ clause allows the lender to call the note due if the buyer is behind in
payments, does not pay his taxes, or does not adhere to other conditions of the loan.
A. Alienation clause
B. Due-on-sale clause
C. Subordination clause
D. Acceleration clause
D. Acceleration clause
55
```
The borrower obtains a loan to build improvements. What kind of mortgage is this?
A. Blanket mortgage
B. Package mortgage
C. Construction mortgage
D. New home mortgage
```
C. Construction mortgage
56
The lender and borrower agree to adjust the interest rate periodically to a new interest rate
based on a pre-determined index in the economy. This is a(n) ____________ mortgage.
A. Variable mortgage
B. Adjustable rate mortgage
C. Floating mortgage
D. Does not exist
B. Adjustable rate mortgage
57
```
Mortgage insurance is typically required when the LTV (loan-to-value) is greater than
___________%.
A. 75%
B. 80%
C. 85%
D. 90%
```
B. 80%
Private mortgage insurance (PMI) is
required on conventional loans over 80% LTV. There is an upfront premium
(one-time payment) and a percentage monthly fee added to the payment.
The PMI will drop off once the loan is below an 80% loan-to-value.
58
Lending institutions often charge interest on ________________at a rate that is higher than a
conventional mortgage to compensate for carrying more risk.
A. Predatory mortgage
B. FICO mortgages
C. Participation mortgages
D. Subprime mortgages
D. Subprime mortgages
59
What are unscrupulous actions carried out by a lender to entice, induce, and/or assist a borrower in taking a mortgage that carries high fees, a high interest rate, strips the borrower of equity,
or places the borrower in a lower credit rated loan to benefit the lender known as?
A. Predatory lending
B. Subprime mortgage
C. Participation agreement
D. Fraud
A. Predatory lending
60
Why do lenders care about unpaid taxes?
A. They want to ensure your mortgage payment is not late.
B. It makes the loan difficult to sell in the secondary market.
C. Unpaid property taxes are a superior lien to the rights of the lender.
D. Lenders do not care about unpaid taxes.
C. Unpaid property taxes are a superior lien to the rights of the lender
61
The payment of the principal and interest of a fixed rate amortized loan remains the same for
the life of the loan.
A. True
B. False
A. True
62
A non-conforming loan is one that FNMA and FHLMC purchase on the secondary market.
A. True
B. False
B. False
63
Predatory lenders generally target minorities, the poor, and elderly.
A. True
B. False
A. True
64
The lender and/or investor has two major concerns when making loans. What are they?
A. Never to lose money and never be in the real estate business.
B. Do not loan in minority areas and do not give loans to single people.
C. Never make a loan over 80% LTV and avoid escrowing taxes and insurance.
D. Do not use a three-month old appraisal to determine the loan amount and do not close
with a title company.
A. Never to lose money and never be in the real estate business.
65
```
Over _____ percent of credit reports have some type of error on them.
A. 50%
B. 25%
C. 100%
D. 85%
```
D. 85%
66
```
3. LTV means:
A. Long-time value
B. Loan-to-value
C. Lending to ad valorum
D. Later-time-value
```
Loan-to-value. The loan-to-value is the amount
the lender will loan in relation to the totally sales price. For example, if a lender will make a 90% loan on a sale of $450,000 that means the buyers are putting 10% as the down payment, $45,000, and financing the
remainder (90%) $405,000.
67
The front-end ratio is the most scrutinized ratio in the loan qualifying process.
A. True
B. False
B. False
68
```
What time must a borrower have to show stability in employment and income?
A. 2 months
B. 6 months
C. 1 year
D. 2 years
```
D. 2 years
69
```
Lenders use __________________ to measure a borrower’s monthly payment plus all longterm debt for qualification.
A. Market analysis
B. Front-end ratio
C. Income analysis
D. Back-end ratio
```
D. Back-end ratio
70
The __________________ is intended to encourage depository institutions to help meet the
credit needs of the communities in which they operate.
A. Redline
B. Truth-in-Lending Act
C. Community Reinvestment Act
D. Fair Credit Act
C. Community Reinvestment Act
71
PITI stands for principal, interest, taxes, and insurance.
A. True
B. False
A. True
72
```
The _______________ is the amount of costs associated with obtaining a rate of interest for a
loan.
A. Loan Estimate
B. Annual Percentage Rate (APR)
C. Sales price
D. Appraisal
```
B. Annual Percentage Rate (APR)
73
```
The Consumer Financial Protection Bureau came out of which act?
A. Community Reinvestment Act
B. Equal Opportunity Act
C. Dodd-Frank Act
D. Fair Housing Act
```
C. Dodd-Frank Act
74
```
Loan amount is $337,500. Down payment is $33,750. What is the LTV?
A. 10%
B. 11%
C. 90%
D. 91%
```
C. 90%
75
```
Sales price is $475,000. LTV is 90%. Tax rate is $1.97 / $100. Closing is July 17th. Using a banker’s year, prorate the taxes. Assume no leap year.
A. Credit the buyer $5,120.03
B. Debit the seller $4,608.57
C. Credit the buyer $4,631.22
D. Debit the seller $5,146.02
```
A. Credit the buyer $5,120.03
Banker’s year is 30 days in each month. Calendar year is actual number of days in each month. Taxes are figured on the sales price. $475,000 x 1.97 ÷ 100 = 9357.50 (annual taxes) ÷ 360=daily tax $25.99 x # of days 197=$5,120.03. Seller pays taxes while he lived in house January 30, February 30, March 30, April 30, May 30, June 30, and July 17. The amount will be credited to the buyer, and the buyer will pay the entire year of taxes at the end of the year. Debit the seller $5120.03.
76
```
Sales price is $323,500 and the LTV is 85%. Closing date is June 27th. Using an actual (calendar) year, calculate the monthly PMI if the PMI factor is .0033.
A. $88.96
B. $75.62
C. $63.95
D. $92.30
```
B. $75.62
77
Insurance is $2800/year. Sales price is $437,500. LTV is 95%. Insurance start date is December
5th. Close date is August 13th. Using a banker’s year, calculate the monthly insurance payment.
Assume no leap year.
A. $7.78
B. $233.33
C. $255.00
D. $1,983.90
B. $233.33
The PMI is based on the loan amount. $323,500 × .85 =
274,975 (loan amount) × .0033 = $907.42 (annual) ÷ 12 (months) = $75.62.
78
Loan amount is $765,000. Down payment is $85,000. LTV is 90%. Interest rate is 4.5%. Using an
actual (calendar) year, calculate the dollar amount of 2.5 points.
A. $1,912.50
B. $2,125.00
C. $19,125.00
D. $21,250.00
C. $19,125.00
Loan discount points are figured on the loan amount.
$765,000 × 2.5% = $19,125
79
Bryan and Carla have located a home they wish to purchase. They have been told that the monthly payment will be $1,780. If their monthly long term debt is $630 and the qualifying ratios are
28%/36%, how much monthly income must they have to qualify?
A. $3,194.44
B. $4,944.44
C. $6,357.14
D. $6,694.44
D. $6,694.44
Take payment $1,780 + LTD (long-term debt) of $630 =
$2,410. $2410 ÷ .36 = $6694.44
80
Sales price is $175,000. LTV is 85%. Interest rate is 4.75%. Term is 30 years. Closing date is
August 20th. Using a calendar year, calculate the amount of interest paid in the first full month.
A. $501.03
B. $232.29
C. $588.80
D. $692.71
C. $588.80
$588.80. Loan × interest rate = annual interest. $175,000 × .85 = Loan $148,750. $148,750 × 4.75% interest = $7,065.63 annual interest ÷ 12 (month) =
$588.80.
81
```
All the following items can be prorated EXCEPT:
A. Insurance
B. Loan amount
C. Taxes
D. Interest
```
B. Loan amount
82
The term proration basically means that the buyer and seller pay their share of taxes and
interest based on the closing date.
A. True
B. False
A. True
Each party pays for the time they owned the
property in the year in which the property was closed.
83
```
A ____________________ is a permanent change in one or more of the terms of a borrower’s
loan.
A. Loan qualification
B. Loan modification
C. Loan approval
D. Loan origination
```
B. Loan modification.
Any loan modification
represents a permanent change in one or more terms of a borrower's loan
84
In Texas, the Deed of Trust is used in a non-judicial foreclosure.
A. True
B. False
A. True
85
To modify a loan, the borrower must show all the following EXCEPT:
A. The borrower’s surplus income must be at least $300.
B. Verifiable loss of income
C. The borrower can never have received a loan modification before.
D. Verifiable increase in living expenses
C. The borrower can never have received a loan modification before.
The borrower can never have received a loan modification before.
86
A modified loan must be re-amortized for a 15-year period.
A. True
B. False
B. False
No, it must be a 30-year loan
87
When the proceeds of a foreclosure do not cover the loan against the property, a
_________________________ may be instituted.
A. Judicial foreclosure
B. Deficiency judgment
C. Loan modification
D. Non-judicial foreclosure
B. Deficiency judgment
Deficiency judgment. A deficiency judgment is a
court judgment that is a public record of the amount owed and by whom.
88
A non-recourse loan is one in which the lender has no additional financial recourse against the
buyer other than taking the property back.
A. True
B. False
A. True
89
The Mortgage Forgiveness Debt Relief Act of 2007 allows taxpayers to exclude income from
the discharge of debt on all property owned.
A. True
B. False
B. False
It is only allowed on their principal residence, not all property
90
With deficiency judgements, the only way to show evidence of fair market value is from the
cost of sale.
A. True
B. False
B. False
Other ways to determine value is by
expert testimony, comparable sales, and anticipated marketing time and holding cost
91
Texas is a right to redemption state where the homeowner can redeem the property once it
has been foreclosed.
A. True
B. False
B. False
Texas is a non-right of redemption state. Once the homeowner defaults on the mortgage, the lender can foreclose in as little as 41 days.
92
SOCIAL CHARACTERISTICS
A Taxation: The right of a government to collect a tax on the property.
B Eminent domain: The right of the government to take private property for public use.
C Condemnation: The act of the government taking private property.
D Public Restrictions: The right of the E government to enforce zoning laws.
G Private restrictions: The government’s right to enforce deed restrictions and homeowner’s associations.
H all of the above
H all of the above
93
Alienate or separate from your property you pay the lender what you owe called "Due On Sale Clause"
A True
B False
A True
94
Upon a certain event the whole note becomes due is called Acceleration clause
A True
B False
A True
95
Reserve banker is a bank.
A True
B False
A True
96
Mortgage red flags:
A Title held bb virtue of an unrecorded deed
B Loan Secured by property recently paid off
C Proposed ale within a year of obtaining title
D All the above
D All the above
97
Are FHA Loans government insured?
A True
B False
A True
98
What is the minimum required down on an FHA Loan?
A 2.5%
B 3.5%
C 5.5%
D 2.5%
B 3.5%
99
When does FHA mortgage insurance end.
After 25% equity
After 80% equity
You don't need PMI with FHA
Never
Never
100
How much Up front PMI is required to take out an FHA Loan?
1.5
1.7
1.85
2
1.7
101
Most Common type 203B
FHA Loan
VA Loan
Conventional loan
FHA Loan
102
Are conventional loans government loans?
Yes
No
No
103
FHA loans have moth up front mortgage insurance and ongoing MIP
True
False
True
104
FHA use only for primary residence
True
False
True
105
VA loans are gov. guaranteed?
yes
no
yes
106
Which is not an attribute of a VA loan
PMI
Gov guaranteed
0% Down
Funding Fee
PMI
107
VA funding fee is 2.3% on first use and 2+ attempts 3.6%
Yes
no
Yes
108
VHA Loans are Assumable by a another qualified veteran?
Yes
No
Yes
109
ARM is defined as an adjustable rate mortgage
Yes
No
Yes
110
Blanket Mortgage - more than 1 property are in the same mortgage.
Yes
No
Yes
111
Packaged Mortgage Real Estate & Chattel
Yes
No
Yes
112
Construction build from the ground up on a short term basis or also called a interim loan.
Yes
No
Yes
113
PMI is not charged on on conventional loans when the equity is more than 20%of the loan
Yes
No
Yes
114
If you have a profit in a short sale you will owe taxes
Yes
No
Yes
