practice exams Flashcards
(28 cards)
The deed promise that obligates the grantor to perform any acts necessary to protect the title conveyed is called: Warranty of title Seizin Quiet enjoyment Further assistance
Further assistance
Which of the following would not be a part of a property management agreement? The duties of the manager Vacancy rate Collecting the rent Paying bills
vacancy rate
When a lender generates a conventional mortgage, which of the following sources can the mortgage be generated from? Ginnie Mae Federal Home Loan mortgage Corporation Federal National Mortgage Association From private sources
From private sources
When GNMA is purchasing notes, which of the following will they not participate in? Experimental housing housing for the elderly new subdivisions urban renewal projects
new subdivisions
Which of the following could a lender do to reduce the mortgagee’s risk of default?
Requiring a prepayment penalty in the loan
Reducing the note from 30 years to 15 years
Charge the borrower a higher interest rate
Reduce the loan-to-value ratio
Reduce the loan-to-value ratio
When the mortgagee requires the mortgage or to purchase a mortgagee’s title insurance policy, what will this help the lender have?
A marketable title to foreclose on
A second lien against the property
Will help the lender have an enforceable lien on the property
Accelerate foreclosure on the property if the borrower defaults
Will help the lender have an enforceable lien on the property
When the borrower pays interest from the day of closing to the end of the current month, the interest paid is called Points loan origination interest compound interest interim interest
interim interest
which of the following would best describe the term amortization
paying off a straight note
prepaid interest
liquidation of the debt
making monthly payments for a set period of time
liquidation of the debt
what is the purpose of FNMA?
To lend money to borrowers buying homes over $500,000
increase the amount of money available for credit financing of housing
provide the lenders with lower interest money
work in depressed areas of the country
increase the amount of money available for credit financing of housing
When an endorser of a note signs the note with no guarantee of payment, what situation has been created?
FNMA won’t buy the note
the lender will charge PMI
this would create a home equity loan
this would be a note signed with no recourse
this would be a note signed with no recourse
Which of the following clause must be part of a promissory note?
Alienation clause
subordination clause
acceleration clause and a prepayment clause
alteration clause
acceleration clause and a prepayment clause
the best definition of loan-to-value ratio is
the difference between the appraisal and the sale price
the amount the borrower can get for a loan
the percentage of the contract sale amount that the lender will loan
the calculation used to determine the amount of PMI
the percentage of the contract sale amount that the lender will loan
Which of the following would not fall under the Consumer Financial Protection Bureau? Truth in Lending owner financing RESPA Kickbacks
owner financing
A loan that specializes in funding first time home buyers in rural areas is called USDA loan conventional loan bridge loan FHA loan
USDA loan
Many loans are set up that as payments are made, the portion toward the interest goes down and the portion towards the principal goes up. These loans are called straight notes negative amortization notes constant mortgage payment notes construction notes
constant mortgage payment notes
A contract that allows a vendor to retain legal title of a property, but the vendee pays the taxes and insurance is called a subject to contract assumed contract purchase money mortgage contract for deed
contract for deed
When a listing agreement is signed, the term for the listing may be called Protection period Contract time length of safety Guaranteed period
length of safety
Exclusive listing contract are all of the following except Expressed terminated upon death of the principal Bilateral Unilateral
unilateral
the form of agency where there is no expressed representation is called designated agency dual agency transactional agency limited agency
transactional agency
When a seller promises to sell and a buyer promises to buy, this has satisfied what element of a contract? Competent parties legal object Consideration Contingency
consideration
Which of the following agency relationships would give the broker the broadest powers Universal agency special agency General agency Limited agency
universal agency (POA)
When a property is listed, the listing price of the property is known as the appraised value market price assessed value market value
market value
If there is a change in economic conditions and an income-producing property has an 8% cap, what would be the effect on the value of the property if the cap is now 6%?
The return would be reduced
there is no effect on the property value
the property would increase in value
the property would go down
the property would increase in value
For the concept of demand to be effective, it must be implemented by
Good appraisals
seller must be able to provide marketable title
property must be scarce
purchasing power
purchasing power
