Finance: Essentials of RE Play2Learn

Conforming loans are those created using the underwriting rules for Fannie Mae and Freddie Mac

The value of a bond fluctuates with the money market

The income earned during marriage from a separate property is considered "separate property"

A deed of trust includes a release clause

In a 80-10-10 loan, what do these numbers represent?

An ARM is associated with a teaser rate

What is the FHA debt-to-income ratio?

What is underwriting?

The "impact" of a foreclosure on a borrower does not include a judgement lien

What is "subordination"?

The status of a borrower's current credit accounts is on a credit report

ECOA does not protect sexual orientation

A basis point is 1/100 of a percent

When the lender suggests partnering with the developer in financing the development, this is called

PMI is not required when a buyer makes a down payment of

What is leverage?

The Truth in Lending Act (TILA) requires lenders to disclose payment terms

First time home-buyers can get a direct tax credit of 10%, max. $7500 thru The Housing & Economic Recovery Act of 2008

Which factor is not included by the Equal Credit Opportunity Act for lender discrimination against qualified applicants?

Duties of the Federal Housing Finance Agency include regulating Fannie Mae and Freddie Mac

A borrower could have a problem with a balloon loan

Factors that influence an applicant's credit score is age and maturity

What is the standard debt ratio of a Fannie Mae/Freddie Mac loan?

Mortgage is $85,000 at 10 1/2 interest. Monthly payment is $825. After the 1st payment the principle bal is

CDBG (Community Development Block) program generates additional funds through local bond drives

What is a default judgement?

Financing for a remodel can be rescinded up to 3 business days after the loan application per Regulation Z

What is an encumbrance?

Once an owner finds a buyer for a house he will build on his vacant lot, he can get interim financing

To earn money from apartments, houses, offices, shopping centers, the trust used by investors is

In Texas, where is a foreclosure conducted?

Escrow funds are funds collected by the lender to pay property taxes and homeowner's insurance

An increase in new home construction is a primary indicator that the market is rebounding

A couple using public assistance to qualify but with a poor credit rating can be denied a loan

What is collateral?

Adjustable Rate Mortgages are used by LIBOR (London Interbank Offered Rate) to establish an index

Veterans can get a home improvement loan up to $10,000 for a term of up to 10 yrs.

Supply and Demand

A difference between a mortgage broker and a mortgage banker is the mortgage banker can service the loan

What is the "right of first refusal" (RFR)?

What does FDIC mean?

Equitable right of redemption: the defaulted owner's right to recover property b4 it is sold by paying what is owed+fees

A prime loan can be acquired by a buyer that

What is the age requirement for a Reverse Mortgage loan?

What is the most common loan for residential home purchases?

A mortgage on the property creates what kind of lien?

Using borrowed funds to buy property is called " financial leverage"

What is ECOA?

A buyer is putting $10,000 on a $100,000 loan. What is his LTV?

Why was Fannie Mae created?

What is the FICO credit score range?

An organized pool of real estate loans sold as mortgage backed securities are called REMICS

A homestead protects

What is "open market operations"?

Mortgage brokers can fund loans

Using Fannie Mae/Freddie Mac rules, a couple with a combined income of $70,000 can have a total debt monthly of

In a balloon payment

The underwriter cannot decline an applicant because

In a "contract for deed" (seller financing) the contract does not include

If an appraisal comes in lower than the sales price, the buyer can ask for a new appraisal at the sales price

A "specific" lien is a lien on a specific property

A real estate investment trust that provides income from net profits of renting and selling rental properties is

How do you calculate the cost of 1% origination cost on a $300,000 property with the LTV of 90%?

Part of underwriting is analyzing a borrowers tax returns for a period of

HUD administers FHA

An equity loan is money borrowed on the equity that has been accumulated