Real Estate Finance Final

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

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