Practice 1 Flashcards by Meaghan Strey

Who is on the primary mortgage market

Lenders
Banks
Savings loans

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What is the secondary market

Fannie Mae
Freddie Mac
Ginnie Mae

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Are banks reluctant to give loans

Yes

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What is a promissory note/ note

Evidence of debt
Promise to pay back debt

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What is a mortgage

If the borrower doesn’t pay loan back then home is collateral

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What is a deed of trust

A third party takes legal title of property

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What happens when the bank doesn’t have money to give loans

The bank sells them to the secondary market

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What is Ginnie Mae

Provides liquidity to high risk loans from investors to banks with pass through certificates

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What loans do Ginnie Mae pick up

High risk loans Fannie and Freddie don’t pick up

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What is Fannie Mae and Freddie Mac?

Buy loans on the secondary market

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FHA loan characteristics

Low down payment
Lend to credit challenged people

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What is the FHA

They do not lend money
Federal housing administration that insures loans

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Do government entities lend money?

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What is the FHA insurance

MIP
Mortgage insurance premium

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What is a VA loan

Loans for qualified veterans

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What types of homes can veterans purchase with a VA loan and Downpayment

Primary residence
Zero down payment

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Are VA loans guaranteed

Yes

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How do I identify a conventional loan

No government backing

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What loan is private mortgage insurance for

Conventional loans

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What loan to value ratio is the baseline for private mortgage insurance

80 percent +

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What does the 1866 civil rights act protect

Race

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What does the fuse housing act of 1968 protect

Race
Color
Religion
National origin
Ancestry

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What did the fair housing act of 1968 add in 74

Sex

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What did the fair housing act of 1968 add in 88

Familial status
Mental physical handicaps
AIDS victims

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Are alcoholics a protected class in the fair housing act

Yes if they are in treatment

If someone is an illegal substance abuser are they a protected class based on the fair housing act

What is steering

Directing buyers to or away from an area

What is blockbusting (panic selling)

Telling people to sell because one group is moving in

Why is redlining

Lenders or insurance companies who wont lend to a certain area

What is an implied contract

Understood through actions

What is an expressed contract

Terms are clearly defined

What is a unilateral contact

Binding to one party

What is a bilateral contract

Promise for a promise

What is an executory contract

Still in progress

What is an executed contract

A completed contract

What would make a contract void

Illegal contract

What is a voidable contract

A minor Under duress Temporary incompetence

What is an unenforceable contract

Does not meet the statue of frauds

What is the statue of frauds

Unenforceable in the courts

What is an enforceable contract

Meets all legal requirements

What are the essential elements of a contract

CLOC Competent parties Legal object Offer and acceptance Consideration

What is agency

When an agent works on behalf of principal or client

Who is a customer?

The third party in a transaction

What are the fiduciary duties?

OLD CAR Obedience Loyalty Disclosure Confidentiality Accounting Reasonable care

In regards to fiduciary duties what is obedience

You must be obedient if it is lawful

In regards to fiduciary duties what is loyalty

You must put clients interest above your own

In regards to fiduciary duties what is disclosure

You must tell your client everything you know

In regards to fiduciary duties what is confidentiality

Don’t disclose client info to third party

In regards to fiduciary duties what is accounting

Deposit money in timely fashion

In regards to fiduciary duties what is reasonable care

Be honest and communicate

What happens with fiduciary duties with dual agency

Turns into fair and honest dealing

What are the three types of agency

Universal agency General agency Special agency

What is universal agency

Power of attorney

What is general agency

Universality for the client within one business aspect

What is special agency

Assigned to do one specific thing

What type of agency are real estate agents

Special agents

What is title

Ownership

How do we transfer title

With a deed

What is a deed

Evidence of transfer

What are ways to take title in property

Tenancy in severalty Tenants in common Joint tenancy

What is tenancy in severalty

One owner or corporation

What is tenants in common

Two or more owners

What is joint tenancy

Right of survivorship Going to remaining joint tenants

Canna joint tenant sell or transfer their interest

Yes

What must you have to create joint tenancy

TTIP Time Title Interest Possession

Will joint tenancy ever be automatic

What is tenancy by entirety

Married couple same as joint tenancy

Practice 1 Flashcards

(67 cards)