Real estate Finance Homework

The process of making a lending decision is known as underwriting
each consumer has three different credit scores from the three major credit reporting agencies because not all creditors report to all of the agencies
——-typically extend loans with their own funds, at their own risk correspondent lenders
The collecting of monthly payments and the maintenance of records of payments and balances is known as servicing
locally, real estate values are affected by availability of employment,population trends, and local government
is the maintenance of a stable money supply that provides for growth in the economy while keeping inflation in check. monetary policy
responsible for raising money to support the spending decisions of the congress U.S. treasury
The U.S. Mint is part of department of the treasury
banks and federal savings associations are regulated by the —- office of the comptroller of the currency
in residential lending, mortgage brokers and correspondent lenders are now universally known as residential mortgage loan originators (RMLOs)
all residential mortgage loan originators mush now be registered with NMLS
USDA loans are available for primary residence only
according to the loan estimate, services you cannot shop for include credit report fee
the loan estimate form replaces which of the following forms? the good faith estimate
the community development block grants (CDBG) program was created to help communities with economic development, job opportunities and housing rehabilitation in 1974
federal fair housing statutes prohibit housing discrimination based on which of the following? NATIONAL ORGIN
exists for the purchase and sale of existing mortgages to investors secondary market
buys loans in the secondary market fannie mae
how many Federal Home Loan Banks are there? twelve
a return on an investment is a yield
the housing and economic recovery act of 2008 authorized the FHFA to enforce compliance with housing goals
the Federal Agricultural Mortgage corporation, better known as farmer mac, was established as a part of the agricultural credit act of 1987 by congres
the working capital of a commercial bank is primarily generated through deposits from its clients
life insurance companies are funded by premiums
the money that mortgage companies use to make loans comes from the sale of Bonds
sold by government entities to fund major capital investments municipal bonds
in cases where they participate in commercial lending, life insurance companies often prefer to engage in participation loans
return surplus income to their members in the form of dividends credit unions
a mortgage lien is a common example of a voluntary lien
the lender on a mortgage is the mortgagee
the borrower retains title to the property in a lien theory
which of the followin g can result in foreclosure? failure to pay property taxes,payment delinquency,failure to keep mortgaged property properly insured
aa second mortgage is an instrument that is what to the first mortgage subordinate
covenants, conditions and restrictions (CC&Rs) private deed restrictions, and easements are examples of possible encumbrances on a real estate property
gives the borrower the ability to replace the primary finance instrument with another, without affecting the position of the subordinate instrument lifting
a mortgage loan in which the balance is reduced with regular fixed monthly payments of both principal and interest is known as an amortizing loan
when a loan has a escrow account, the monthly payment will consits of principal and interest plus 1/12th of the annual taxes and insurance
the rate at which an adjustable rate mortgage begins in called the initial rate
one of the major protections offered to borrowers who accept an ARM loan is that any change in the rate of interest must be tied to the change in the index
A loan in which two or more lenders own an interest is known as a participation loan
private mortgage insurance will most often be required for borrowers whose LTV on a conventional loan is greater than 80%
A unit of measure, typically used to denote the charging of fees in the mortgage business point
FHA requires a minimum down payment of 3.5%
The FHA borrower can pay the downpayment with gift funds provided by any of the following except his or her real estate agent
Escrow of taxes and insurance is requierd for FHA loans always all fha loans require escrow of taxes and insurance
FHA loans are available for single -family homes, multifamily properties, manufactured homes
what is the minimum borrower’s age for an FHA loan in texas 18
seller contributions to buyer closing cost in an FHA loan are limited to what percent of the sales price? 6
for a property to have value, it must have the following four characteristics demand, Utility, scarcity and transferability
the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale is known as market value
appraisal uses comps to determine the value of the subject (home, property) sales comparison
the actual age of a property is known as its chronological age
a loan application includes the following six pieces of information Property address, estimated value, name of the borrower, social security number, income and loan amount
the standard loan application in use is the aka fannie mae 1003 uniform residential loan applicaiton
sources of down payment may include checking and savings accounts, cash on hand, gift from relative
a breach or nonpreformance of the terms of a note or the covenants of a mortgage default
offers delinquent borrowers the opportunity to prevent foreclosure by working with lenders to refinance existing loans streamlined modification program
offers programs for rural homeowners to lower their monthly mortgage payments USDA
which type of foreclosure is also known as a statutory foreclosure? power of sale
when a property is foreclosed and is sold at auction for less than is owed on the mortgage, the lender may seek a deficiency judgment for the unpaid balance

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