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Real Estate 4-15-21
Terms in this set (50)
The element of an adjustable interest rate is the "moving party" is the
A lender may reserve the right to require prepayment of a loan at any time they see fit through a(n):
When a buyer of a property with an existing mortgage loan acquires the property without signing the note for an existing loan the buyer is acquiring the property:
Subject to the mortgage
To finance property where either the borrower, the property, or both fail to qualify for the standard mortgage financing, a common nonmortgage solution is through the:
Contract for Deed
A common risk that frequently interferes with a lender's efforts to work out a defaulted loan through either nonforeclosure means or foreclosure is:
The characteristics of a borrower that can be considered by a lender in a mortgage loan application are limited by the
Equal Credit Opportunity Act
A type of loan that has grown in volume in recent years which has raised concerns about predatory lending practices is the:
Which of these statements is true about mortgage loans for income producing real estate?
All of the above
The Truth in Lender Act gives some mortgage borrower how long to rescind a mortgage loan?
Which statement is correct about the right of a prepayment of a home mortgage loan?
Most home mortgage loans have the right of prepayment without charge but not all and the borrower should check the loan carefully.
Private mortgage insurance (PMI) is usually required on _____ loans with loan-to-value ratios greater than _____ percent.
Home, 80 percent
The type of mortgage loan that best fits the asset liability mix of most depositor institutions is
Adjustable rate mortgages
Which of the following mortgage types has the most default risk, assuming the initial loan to value ratio, contract interest rate, and all other loan terms are identical?
Interest only loans
A mortgage that is intended to enable older households to "liquify" the equity in their home is the:
Reverse annuity mortgage
A jumbo loan is
A conventional loan that is too large to be purchased by Fannie Mae or Freddie Mac.
The maximum loan to value ratio for an FHA loan over $50k is approximately
The maximum loan to value ratio for a VA guaranteed loan is
Conforming conventional loans are loans that:
Are eligible for purchase by Fannie Mae and Freddie Mac
Home equity loan typically
have tax deductible interest charges
A simple but durable method of determining whether to refinance is to use
net benefit analysis
Mortgage banking companies:
Collect monthly payments and forward them to the mortgage investor
In the last 20 years the mortgage banking industry has experienced
Currently, which type of financial institution in the primary mortgage market provides the most funds for the residential (owner-occupied) housing market?
For conforming conventional home loans the standard payment ratios for underwriting are:
28 and 36 percent
The numerator of the standard housing expense (front end) ratio in home loan underwriting includes
Monthly principal, interest, property taxes, and hazard insurance
The most profitable activity of residential mortgage bankers is typically
Potential justifiable subprime borrowers include persons who:
All of these
The normal securitization channel for jumbo conventional loans is:
Over the last two decades, the reduced importance of certain institutions in the primary mortgage market has been largely offset by an expanded role for others. Which diminished and which expanded?
Thrifts, mortgage banking and commercial banks
Warehousing in home mortgage lending refers to
Short-term loans made by commercial banks to mortgage bankers
A down payment deposit from a potential buyer must be held in:
The brokers escrow trust account
One of the most effective ways that salespersons or brokers can distinguish themselves as a preferred agent in a particular specialization of real estate brokerage is to:
Obtaining a related industry designation
All of the following are duties that a broker would have to the seller i a single agency listing contract. EXCEPT?
Real estate sales persons can lose their licenses for?
Commingling escrow money with personal funds
The state real estate commission is responsible for?
Establishing education requirements for licenses
Real estate brokers are paid commissions primarily for?
Providing a service
Traditionally, a real estate broker is what type of agent for his or her principal?
The subagency relationship that traditionally has characterized multiple listings services (MLS) has tended to result in the widespread danger of?
Unintended dual agency
How are commission rates that real estate brokers charge determined?
By agreement between broker and principal
According to most listing contracts, a broker has earned commission when?
The broker finds a buyer who is ready, willing, and able to buy on the terms specified in the listing contract
If a buyer defaults on a contract to purchase real property, which of the following is not a remedy the seller can pursue?
Sue for assignment
When contracts for the sale of real property are placed with a disinterested third party for executing and closing, they are said to be placed in
Which of the following conditions would be a defect to mutual assent in a contract for the sale of real property?
One party attempts to perpetrate fraud on the other
Oral evidence in contract disputes is prohibited by
The parol evidence rule
Which of the following is one of the terms of a real estate contract?
Price to be paid
Real estate transactions do not close when the contract for sale is signed by both parties because:
All of the above
An earnest money deposit is
A payment of money by a buyer to evidence good faith
In most straightforward transactions involving houses or other relatively small properties, the contract is
A form, with blanks filled in by the broker
Equitable title to real estate is
The right to obtain legal title conveyed by the contract for sale
The purpose of a closing statement is to
All of the above
Other sets by this creator
Real Estate - 5-5-21
Real Estate - Test 1