Real estate Florida

The law requiring lenders to furnish borrowers with the APR disclosure is the

is enforcement of the mortgage lien.

Which qualifying ratio applies to conventional mortgage loans?

A conventional loan is one that is NOT insured or guaranteed by a government agency

A deed in lieu of foreclosure is a judicial procedure.

Mortgages that meet Fannie and Freddie guidelines are called conforming loans

Pledge both real and personal property as collateral is a package mortgage loan

loan is amortized the same way as fully amortized mortgage loans, except the borrower makes a payment every two weeks

The Equal Credit Opportunity Act applies to residential borrowers only

payments are paid for a short period of time, such as 5 yrs.The monthly payments are calculated for a 20-30 loan term.

How are unpaid property taxes entered on the Closing Disclosure?

Lenders are required to provide borrowers with a written Closing Disclosure at least 3 biz days before closing the loan

A reverse mortgage loan insured by the federal government is called a package mortgage

a notice recorded in the public records of a pending legal action that involves real estate.

a transaction where the net proceeds at closing won't satisfy the payoff amount of mort. and other liens on the prop.

licensees should recognize potential red flags, such as a sale contract that states "owner of record" in place of a name

WHat are the Physical Characteristics of Real Estate

Failure to comply with the terms of an agreement or to meet an obligation when due. This is a default.

When a property is sold "subject to the mortgage," the

The three-business-day right of rescission applies to

When investors bypass thrift institutions for direct investment elsewhere, the process is called

Loans that are for a larger loan amount that exceed the conforming loan limits are referred to as a conforming loan

allows a receiver to collect income from the prop. and use the income to make mortgage payments in the event of default

__ is the percentage added to the index. The __ represents the lender's cost of doing business plus profit.

A lis pendens is a type of constructive notice indicating that the property is involved in pending legal action

The recommended HER for a conventional mortgage loan is _%

Fannie Mae purchases primarily conventional conforming loans from large commercial banks

In a mortgage transaction in Florida, the legal evidence of the personal debt is the

A loan characterized by payment of a debt by regular installment payments.

Nonconventional loans are backed by the federal government

Three major depository lenders originate mortgages are

Nonconventional loans carry no gov. guarantee or gov. insurance for the lender if the borrower fails to repay the loan

purchase money mort, title passes to the buyer and the seller retains a vendor's lien right as security for the debt

refers to prospective buyers' preference for certain area

The recommended TOR for a conventional mortgage is __%.

license is required for an entity conducting loan originator activities

The various credits and debits are allocated between the buyer and the seller in the

A friendly foreclosure (nonjudicial procedure) in which the mortgagor gives title to the mortgagee.

being behind in the discharge of an obligation; paid at the end of the period is arrears. Taxes are paid in Arrears

The Uniform Residential Loan Application is used to qualify loan applicants to finance a single-family residential prop.

A mortgage assumed by the buyer is entered on the Closing Disclosure as a debit to the buyer

Sales associates must deliver the earnest money deposit (escrow) to the broker by the end of the 3rd business day

When in default, the lender has the right under the mort. contract to sue against the borrower for payment of the debt

Which set of qualifying ratios applies to FHA mortgage loans?

A final walk-through to verify that repairs have been completed and that the property is left in good condition

A financing technique in which the lender can raise or lower the interest rate according to a set index.

occurs when the mortgage payments are not large enough to cover the interest expense

The Truth in Lending Act (TILA) is a federal law designed to promote the informed use of consumer credit

How is the purchase price entered on the Closing Disclosure?

A buyer agrees to buy a prop. with an existing mort. lien. What way is the buyer the only party responsible for the debt

The calculated interest rate is the lender's margin added to the index.

Nonconventional loans do not include VA-guaranteed loans

Private mortgage insurance is required for conventional mortgages with a loan-to-value ratio (LTV) greater than 20%.

The total obligations ratio (TOR) may not exceed 36% for conventional mortgage loans

The person who borrows money to help pay for the purchase of real property is called at various times the

To change any % to an equivalent decimal, simply place a decimal point 2 places to the RIGHT of the # and drop the %

Monetary policy refers to the actions taken by the Federal Reserve to influence the availability and cost of credit

A partially amortized mortgage has a final payment required to completely pay off the loan called

Prorations are always the same dollar amount entered as a debit to one party and as a credit to the other party

a deceptive plan where a mort. lender offers a good loan with low closing costs or interest then switches at close

The VA charges a funding fee for VA mortgage loans

Ginnie Mae purchases existing conventional mortgage loans

Negative amortization results from a mortgage payment that does NOT pay all of the interest due for the period

Fixed-rate convent. loans has a acceleration clause that requires the loan to be paid in full when the property is sold

Triggering terms include

A lender can require an applicant's spouse to join in (sign) a loan application

Checking accounts; payable on demand by holder. Is a demand deposit

Among the specific federal laws under the CCPA are the

The buyer will write a personal check at the title closing for the funds required at closing

Uses homeowner's equity to provide monthly income for owners 62 and older

purchase money mortgage (PMM) is entered on the Closing Disclosure as a debit to the seller and as a credit to the buyer

A _ is someone whose credit is used to buy a pro. and secure financing but who isn't actually going to own the property

The Loan Estimate presents: the interest rate, monthly payment, total closing costs, and cash required to close

Which type of loan has NO established loan limit?

Sometimes a lender will offer borrowers an initial below-market interest rate

A lender declares all the unpaid balance due and payable as a result of default

involves inflating the appraised value of property for the purpose of obtaining more financing

A couple has just made the final mortgage payment on their home. What document must the mortgagee file on their behalf?

TRID rule prohibits lenders from charging loanfees before receiving the Loan Estimate and indicating a desire to proceed

The flow of funds into deposits held by primary lenders, thereby increasing the mortgage money supply, is called

A type of seller financing in which the vendor holds legal title to the property until the buyer has repaid the debt is

When applying for a conventional mort. loan, the appraiser determines if the structure meets certain required standards.

In a partially amortized mortgage, the payments do fully amortize the loan.

Private mortgage insurance (PMI) is required for conventional loans that finance more than __ of the purchase price

The VA borrower's total obligations ratio cannot exceed 41%

FHA loans only require a __% down payment

consists of lenders that originate new mortgage loans for borrowers These lenders make $ available directly to borrowers

VA guidelines recommend a total housing expense ratio (HER) not exceeding 28%

finance consumer purchases, existing credit card debt, and pay for college, medical expenses, or home improvements

process when depositors withdraw $ from savings for direct investment in stocks, money market funds, and other security

Prepaid rent is entered on the Closing Disclosure as a debit to the seller and as a credit to the buyer

A method for amortizing a mortgage whereby the borrower pays the same amount each month

The earnest money deposit is credited to the buyer on the Closing Disclosure

if the borrower makes a down payment of less than __% of the purchase price, PMI is required.

a payment cap in an adjustable-rate mort. reduces the amount of interest the borrower will pay over the life of the loan

is an economic indicator that is used to adjust the interest rate in the loan.

Which statement is FALSE?