Freddie Mac is a(n) - ✔✔ Freddie Mac is a(n)
Which agency guarantees that investors will receive timely payments of principal and interest on
... [Show More] mortgage-backed securities backed by the FHA or DVA? - ✔✔ Ginnie Mae
Fannie Mae currently buys loans at - ✔✔ an administered price.
Which of the following types of loans do lenders generally keep in their own investment portfolios rather than sell on the secondary market? - ✔✔ Jumbo
When Fannie Mae purchases mortgage loans from lending institutions, they are packaged into - ✔✔ mortgage-backed securities.
Fannie Mae is a - ✔✔ a quasi-private corporation with government oversight
The term used to describe loans that conform to the Fannie Mae/Freddie Mac qualifying guidelines is - ✔✔ conforming.
Loan originators that sell mortgages to Fannie Mae can - ✔✔ continue to service the loans.
All of the following agencies are participants in the secondary mortgage market except - ✔✔ CalHFA
The Federal Housing Finance Agency (FHFA) regulates - ✔✔ Fannie Mae, Freddie Mac, and the FHLB.
Which of the following amounts is the interest adjustment on a new $100,000 loan at 7% issued on March 20th, if the first payment is not due until May 31? (Use 360 days) - ✔✔ $797.22
If the property taxes and insurance premiums are due in November and a new loan closes on the following first day of January, how many months' impounds will be charged to the borrower? - ✔✔ 3 months
The two-point discount on the sale of a $175,000 home subject to a new $150,000 loan is - ✔✔ $3,000.00
Which of the following items is usually charged to the buyer? - ✔✔ Impound fund balance on assumed loan
In the real estate lending business, assignment refers to - ✔✔ sale of a loan on the secondary market.
In order to remove a cloud from a property's title, the owner must file a(n) - ✔✔ suit to quiet title.
Title insurance guarantees the validity and accuracy of the - ✔✔ synopsis of the recorded history of a property.
In real estate finance, an abstract is a(n) - ✔✔ synopsis of the recorded history of a property.
Which of the following items is usually charged to the seller? - ✔✔ Prepayment penalties
All of the following items are categorized as actual notices except a(n) - ✔✔ unrecorded lien.
The income approach estimate of value for an apartment project generating $200,000 gross annual income with a 40% operating ratio and a 10% market capitalization rate is - ✔✔ $1.2 million.
Borrowers are considered good credit risks and eligible for real estate loans when their - ✔✔ current ratio is 2:1.
The cost approach estimate of the value of a 10-year old house (50-year life expectancy, straight line depreciation), with 2,500 square feet at an $82 replacement cost per square foot, and a lot value of $15,000 is - ✔✔ $179,000.
When creating a loan for 50 percent of a collateral property's value, most of the underwriting will be focused on the - ✔✔ value of the collateral.
Credit scoring reflects a borrower's - ✔✔ credit risk factors.
Underwriting a loan for real estate finance includes all of the following procedures except checking the - ✔✔ willingness of the lender to make the loan.
If an appraiser finds that the market, cost, and income approaches indicate values of $100,000, $105,000 and $110,000, and they are weighted 50%, 30% and 20% respectively, then the reconciliation value will be - ✔✔ $103,500.00
What is meant by the phrase "net worth is anything you want it to be, while cash is king"? - ✔✔ Lenders place great weight upon a borrower's cash position.
When checking on a loan applicant's employment circumstances, all of the following items will be questioned except - ✔✔ job qualifications.
Under a conventional loan with principal, interest, taxes, insurance, and homeowners fees totaling $850 per month, a borrower must earn at least which of the following gross monthly incomes to qualify? - ✔✔ $3,035
A Covenant of Seisin in a loan document - ✔✔ stipulates that the borrower has the authority to pledge the property as collateral.
Covenants that "run with the land" mean that they - ✔✔ endure no matter how many times the property sells.
Where possible, lenders prefer to use the deed of trust as a financing instrument primarily because it - ✔✔ avoids the time and costs of a judicial foreclosure.
A charge against a property wherein the property itself is made security for the performance of a certain act describes a(n) - ✔✔ lien.
The note executed for a loan - ✔✔ is a fully enforceable promise to pay.
When a property is purchased "subject-to" the balance of an existing loan, all of the following statements are true except that the - ✔✔ buyer becomes personally liable for the loan.
A mortgage is a(n) - ✔✔ lien on the property.
The power of sale clause in a trust deed in a nonjudicial foreclosure allows the lender - ✔✔ a shorter foreclosure period.
The inclusion of a Due-On-Sale clause in a loan contract - ✔✔ requires the lender's permission for its assumption.
The provisions of a real property sales contract - ✔✔ retain title in the name of the vendor.
A graduated payment loan with less than interest-only payments results in - ✔✔ negative amortization.
Under HUD's Home Equity Conversion Mortgage, monthly payments are paid to borrowers for - ✔✔ as long as equity is available.
A construction lender requires all of the following activities to take place before advancing any draws except that the - ✔✔ builder will pay additional points at each draw to offset the time value of money.
Under an open-end loan calling for obligatory future advances, the borrower is able to secure additional funds - ✔✔ under the terms of the original mortgage.
A lender's annual return on a $100,000 wraparound loan drawn at 10% interest-only for five years, subject to an existing $65,000 loan at 7.5% interest is - ✔✔ 14.64%.
A completion bond for a construction loan is generally issued by - ✔✔ an insurance company.
Borrowers are attracted to 15-year mortgages because they allow them to - ✔✔ save money on interest. [Show Less]