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Texas Real Estate Exam > Real Estate Finance 2 > Flashcards

Real Estate Finance 2 Flashcards

(70 cards)

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1
Q

THe process of making a lending decision is known as:

A

Underwriting

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2
Q

Each consumer has three different credit scores form the three major credit reporting agencies because:

A

Not all creditors report to all of the agencies

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3
Q

____ typically extend loans with their own funds, at their own risk.

A

Correspondent lenders

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4
Q

The collecting of monthly payments and the maintenance of records of payments and balances is known as:

A

Servicing

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5
Q

Locally, real estate values are affected by:

A
  • availability of employment
  • population trends
  • local government policies
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6
Q

____ is the maintenance of a stable money supply that provides for growth in the economy while keeping inflation in check

A

Monetary policy

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7
Q

The ____ is responsible for raising money to support the spending decisions of the congress.

A

US Treasury

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8
Q

The US Mint is part of the ____

A

Department of the Treasury

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9
Q

Banks and federal savings associations are regulated by the ____

A

Office of the Comptroller of the Currency

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10
Q

In residential lending, mortgage brokers, bankers and correspondent lenders are no universally known as:

A

Residential Mortgage Loan Originators (RMLOs)

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11
Q

All residential mortgage loan originators must now be registered with:

A

NMLS

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12
Q

USDA loans are available for:

A

Primary residences only

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13
Q

According to the Loan Estimate, services you cannot shop for include:

A

Credit Report Fee

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14
Q

The Loan Estimate form replaces which of the following forms?

A

The Good Faith Estimate

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15
Q

THe Community Development Block Grants (CDBG) Program was created in ____ to help communities with economic development job opportunities and housing rehabilitation.

A

1974

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16
Q

Federal Fair Housing statues prohibit housing discrimination based on which of the following?

A. Sexual orientation
B. Age
C. Occupation
D. National origin

A

National Origin

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17
Q

A sales contract in which the buyer agrees to make regular payments to the seller for equitable title

A

Contract for deed

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18
Q

Debt instrument which attaches to all the property of the debtor not exempt from forced sale

A

General lien

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19
Q

Lending institution asset classification for property obtained through a foreclosure

A

Real Estate Owned (REO)

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20
Q

A claim, lien, charge, or liability attached to and binding real property

A

Encumbrance

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21
Q

The legal procedure whereby the secured property may be sold to satisfy the unpaid promissory note

A

Foreclosure

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22
Q

A(n) ____ is a right given by law to creditors to have debts paid out of the property of a defaulting debtor.

A

Lien

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23
Q

Deed restrictions, easements, and CC&Rs are examples of ____ on real property.

A

Encumbrances

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24
Q

A ____, also known as a real estate lien note, is the borrower’s unconditional promise to repay, and is not typically recorded.

A

Promissory note

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25
A ____, also known as a real estate lien note, is the borrower's unconditional promise to repay, and is not typically recorded.
Promissory note
26
Under a(n) ____, when the final payment is made to the seller, title automatically transfers to the buyer.
Contact for deed
27
A deed of trust mortgage which is in default does not require a ____, in most cases.
Judicial foreclosure
28
Prepayment penalties can be found in more than two-thirds of _____.
Sub-prime mortgages
29
The promissory note form identifies the lender, the place of repayment, and the ____.
Borrower
30
The lender may also be referred to as the ____ in some deed of trust forms.
Mortgagee
31
A loan which covers more than one piece of property
Blanket mortgage
32
Excessive selling/lending activity for the purpose of generating fees and commissions
churning
33
Percentages based on the amount of the loan
points
34
Partially-amortized loan with a substantially larger final payment
balloon loan
35
Conventional loans that conform to FNMA/FHLMC standards
conforming loan
36
Loans which have no federal government guarantees or insurance and come from traditional sources are known as ____.
Conventional loans
37
____ is one in which the interest rate remains the same for the entire term.
Fixed-rate mortgage
38
Disadvantages of adjustable rate mortgages include possibly increased monthly payments, ____, borrower confusion, and higher long-term costs.
the inability to refinance early
39
A(n) ____ is a partially-amortized loan with a final payment that is substantially larger than the previous payments.
balloon note
40
The practice of ____ occurs when unscrupulous lenders take advantage of a consumer's lack of knowledge regarding lending practices.
predatory lending
41
A participation loan in which a lender collects principal and interest and shares in profits when a property is sold is sold is called a ____.
shared appreciation mortgage
42
The rate charged on an adjustable rate mortgage until the first adjustment date is known as the ____.
initial rate
43
The ratio of the borrower's total recurring monthly debts
Back ratio
44
Insurance cost based on the loan-to-value ratio
Annual premium
45
Commonly known as the GI Bill of Rights
Servicemen's Readjustment Act
46
Direct loans for construction or improvement on Federal Trust Land
Native American Direct Loan
47
The size of loan a veteran may receive, determined by term of service
Entitlement
48
Maximum ratios for FHA loans are...
31% front ratio/43% back ratio
49
The Serviceman's Readjustment Act, signed into law in ____, is more commonly known as the GI Bill of Rights.
1944
50
An FHA borrower can use gift funds from a(n) _____ as funds for a downpayment.
Parent
51
A cash-out refinancing loan is a loan guaranteed by the ____ which refinances any type of lien against a secured Roberts.
VA
52
Specially Adapted Housing Grants are revised to veterans and service members with disabilities for the purpose of...
- Constructing specially adapted homes - Remodeling an existing home suitable for adaptation - Applying funds to unpaid principal of previously purchased existing adapted homes
53
Seller contributions to buyer closing costs for FHA loans are limited to ____ of the sales price.
6%
54
_____ are subject to a limitation on seller concessions, 4% of the reasonable value of the Roberts.
VA-guaranteed loans
55
The most probable price a property should bring on the open market
market value
56
The reduction in value of property from deterioration or obsolescence
Depreciation
57
Form which replaces the Good Faith Estimate
Loan Estimate
58
Form lenders use to obtain borrower balance information
Verification of Deposit (VOD)
59
Ratio of proposed loan payment to GMI
Front ratio
60
The ____ promulgates forms for the preparation of pre-qualification and pre-approval of financing.
Texas Department of Savings and Mortgage Lending
61
Downpayment sources may include ____.
- Gift funds - Stocs - Bonds
62
The borrower s asked to provide their full name, ____, SoCal security number, and present address in Part III of the Unform Residential Loan Application.
Marital status
63
A(n) ____ transfers ownership of property from the government to an individual.
Patent
64
For a property to have value, it must have four characteristics, including demand, scarcity, ____, and transferability.
Utility
65
The sales comparison approach focuses on ____, or recent sales of similar properties, to determine value.
Coma parables
66
A property which s being appraised is commonly referred to as the...
Subject Property
67
Both the HUD-1 and the Good Faith Estimate (GFE) forms have been replaced, the HUD-1 by the new Closing Disclosure Form, and the FGE by the new ____.
Loan Estmate
68
During closing, a seller must sign a deed which conveys the property authorize the payoff of any existing lens, sign additonal documents and if stipulated n the contract ____.
Provide title insurance
69
A chronological list of oweners n the title history of a property s known as a(n):
Chan of title
70
The ratio of a borrower's total recurring monthly debts to gross monthly come is called the ____.
Back ratio

Texas Real Estate Exam (19 decks)

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