Private real estate loan companies are primarily engaged in the...

Private real estate loan companies are primarily engaged in

• the secondary market

• unsecured loans

• junior financing

• first deed of trust

Answer: Unsecured Loans

The best definition of real property is

Land and anything affixed to it

Trade fixtures are

personal property

The highest bundle of rights a person may enjoy under our allodial system is a(n)

Fee simple estate

Economic characteristics of land include

fixity of improvements

Fixity of real estate refers to its

location

Leverage involves using a small amount of money to

secure a large loan

One benefit of the taxpayer relief act of 1997 was to provide homeowners with broad exemptions from capital gains taxes on

profits made from the sale of a personal residence

The right of possession remaining with the borrower best describes

hypothentication

the Taxpayer relief act of 1997 reduced the maximum capital gains tax rate to

15%

Money can be defined with all of the following meanings except as a

standard of value

Our paper money is backed by

the federal gold reserves

which of the following statements is true

lower interest rates create less loan activity

All of the following responsibilities are functions of the FED except

buy and sell government securities

The federal open market committee (FOMC) impacts the

availability of money for real estate

Mortgage bankers are a type of intermediary also known as

correspondants

Which statement best describes Californias position among the states for real estate lending dollar volume by insurance companies?

it is at the top

An example of a demand deposit is a(n)

checking account

Of the following types of real estate loans commercial banks are most interested in

interim loans

What is the major source of funds for the mortgage loans offered by savings and loan associations

government grants

Which of the following lenders has the most flexibility in mortgage lending operations

savings associates

Penalties for loan refusals based on the collateral location (redlining) are imposed by

holden act

Life insurance companies are least interested in

large apartment loans

All of the following statements are general characteristics of mortgage brokers except that

they use their own capital to create new loans

Mortgage bankers

manage real estate loans

Unsecured corporate bonds are known as

debentures

Private real estate loan companies are primarily engaged in

registered bonds

Negative amortization describes a loan balance that

increases

Most real estate mortgages originate as

conventional loans

Compared with 30 year fixed rate loans, 15 year fixed rate loans tend to have higher

monthly payments

Loans made to borrowers with very marginal or poor credit are called

subprime loans

Private mortgage insurance has led to

the transfer of risk from lender to insurer

The FHA is under the jurisdiction of the

HUD

The purpose of FHA insurance is to

indemnify the lender against default loss

All of the following items are advantages to borrowers under the FHA insured loan programs except the

...

When monthly payments are insufficient to meet the interest required

negative amortization occurs

Under coinsurance an FHA approved lender

shares any loses with the FHA

DVA Loans require

borrowers occupancy

All lenders who issue FHA loans use the same

borrower credit criteria

DVA Loans are available for all of the following purposes except

commercial developments

The DVA loan guarantee has a current maximum of

104,250

Under the DVA when the CRV is less than the agreed purchase price the buyer can take all of the following actions except

requiring the seller to accept the CRV price

All of the following items are characteristics of DVA loans except a(n)

...

A novation is a(n)

entirely new loan

The farm credit system is owned by the

farmers and ranchers

HUD is involved in all of the following activities except supervising

...

All of the following properties are except from the interstate from the interstate land sales disclosure act except

improved parcels sold with homes

HUD's Housing choice voucher program provides

rent subsidies

Any citizen injured by discrimination in housing practices may, under the Fair Housing Act of 1968

file a compliant with the local comissioner

The truth in lending act is popularly referred to as

regulation Z

The illegal act of trying to convince a homeowner to sell a home by saying that property values in the community are dropping is referred to as the inducement of

blockbusting

The equal credit opportunity act prohibits lender discrimination based on all of the following reasons except

redlining

Under the equal credit opportunity act, lenders

must inform rejected applicants in writing why their credit was denied

The community reinvestment act

requires lenders to meet community credit needs

Which of the following clauses makes the delinquency on a senior loan a delinquency on the existing junior loan

cross default clause

Which of the following clauses allows an exiting senior loan to be refinanced without disturbing the junior loans status

lifting clause

A feature of the graduated payment loan is a (n)

negative amortization in the early years

An very low initial intent rate offered on an adjustable-rate loan is referred to as a

margin

The index on an adjustable rate mortgage loan must be

beyond the control of the lender

Borrowers using adjustable rate mortgages must receive an illustrative example showing how the payments and loan balances on a $10,000 loan

...

A reverse annuity mortgage

has the lender pay the borrower monthly payments

All of the following statements about construction loans are true except that

the loan is drawn for a short period of time

Including personal property in the collateral of a real estate loan would create a

package loan

A hard money mortgage would be a(n)

loan for cash

A wraparound loan

equals the balance of the existing loan plus the equity financed

A deed of trust on a home is a

voluntary liens

Which of the following items is considered a lien

deed of trust

A note would be used with all of the following types of loans except a(n)

unsecured loan

An acceleration clause in a real estate loan allows the lender to

call in the loan balance

In california, a real property sales contract is foreclosed by using a

judicial foreclosure

Which of the following clauses is a form of prepayment penalty

lock in clause

The original maker of a real estate loan is completely relieved of any contingent obligations when the purchaser of the collateral

assumes the loan

The price a property would most likely bring if it were exposed for sale in the open market for a reasonable period of time is the property's

market value

Ona financial statement liabilities include all of the following items except

notes receivable

Net worth is described as

assets plus liabilities

What is the total maximum debt ratio that underwriters apply apply to borrowers applying for conventional loans

36%

In determining the net income for an apartment property, all of the following expenses would be deducted from the gross income except

...

A duplex has a monthly income of $400 per unit, Using an annual gross rent multiplier of 8, its value estimate is

6400

A synopsis of the recorded history of a property is called a(n)

abstract

What is guaranteed to a home buyer who purchases title insurance

validity and accuracy of the title search

Monthly payments on a fixed rate mortgage loan may change due to changes in the

index

The transfer of the right, title, and interest in a property of one person to another is known as

novation

The sale of mortgage loans on the secondary market has a positive impact on the economy by

stabilizing mortgage money market

the secondary mortgage market provides all of the following benefits except

freeing capital for lenders

fannie mae replaced its free market system auction with a(n)

administered priced system

Fannie Mae participates in all of the following activities except

making loans directly to borrowers

What is the relationship between the interstate rate paid on pass through certificates and the interest on the loans in the pool

the rate on the pass through certificate is lower

Freddie Mac's prospector is an electronic

underwriting service

Disintermediation seriously affected

...

A breach of one or more of the conditions or terms of a loan agreement is a

default

An agreement to waive payments for a period of time is a(n)

moratorium

To avoid foreclosure a lender and borrower might agree to all of the following actions except

a deed in lieu of foreclosure

The purpose for recasting a loan when the borrower is in default is to

increase the interest rate

When filed, a lis pendens indicates a

pending foreclosure action

A deed of trust differs form a mortgage in which of the following areas

strict foreclosure

Which of the following techniques is used in foreclosing a deed of trust

judicial foreclosure

All of the following are advantageous to a seller under a sale-leaseback-buyback except

.

split fee financing is a form of

Lender participation

which of the following terms best describes a partnership among a developer, owner, and financier

joint venture

Refinancing one property to purchase another is known as

pyramiding

If a home is owned as a community property and one spouse dies, what is the maximum net value of the descendants estate that the survivor can inherit without paying estate taxes

...