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extra studying
| Question | Answer |
|---|---|
| what is true about a VA loan | they are assumable |
| as a GSE, what is Fannie Mae's primary function in the secondary market? | to provide a source of funds for lenders |
| a borrower is a 65 year old retiree with a fixed income and significant equity in his home. Which of the following would be the best option to supplement his income? | HECM |
| The Federal Housing Adminstration: | insure loans |
| What is used to determine the interest rate change on an ARM? | Index and Margin |
| Nontraditional ARMs are considered the riskiest of loans when they include any of the following except: | a refinance provision |
| Concerning ARMs, marg%n is best defined as: | A number, expressed as a percentage, that represents a lenders operating costs and profit margin |
| Increasing loan balances resulting from the application of periodic payments creates which of the following for borrowers: | negative amortization |
| which of the following loan types is best described as a loan with a payment schedule made up of a series of small period payments and a larger lump sum due upon maturity | a loan with a balloon provision |
| which of the following is the best example of a loan that exceed Fannie Mae and Freddie Mac's maximum loan limits? | A non-conforming loan |
| What is PFC (prepaid finance charge) | upfront cost associated with a loan agreement and must be paid in addition to standard loan payments fees: origination - uw- document fees |
| why are FHA loans beneficial to lenders ? | they are insured by the federal government |
| Costs of Funds Index (COFI) is associated with what? | ARMS |
| A loan-level price adjustment (LLPA) is best described as: | Premium pricing paid by GSEs to purchase loans made to highly creditworthy customers |
| Which of the following is the best example of a conventional loan that exceeds Fannie Mae and Freddie Mac's maximum loan limits? | a non-confomring loan |
| MIP would be used for which of the following? | An FHA loan |
| Every ARM includes a: | Index |
| A borrower obtaining a 3/1 hybrid ARM will have a loan with a: | cap on the interest rate for the first 3 years and an interim cap thereafter |
| CRV is a common phrase used in the financing of real estate. The CRV is issued by the: | Veteran's Administration |
| Hard money loans are usually offered by ____ who want to earn a return on their investment | private lenders |
| On an ARM, what limits the amount an interest rate moves up or down from one period to the next after the first adjustment? | Periodic adjustment cap |
| The annual percentage rate is: | a measure of the cost of credit, expressed as a yearly rate |
| which would not be a conforming loan that Fannie Mae would purchase? | Timeshare |
| When interest is not paid on a payment-option ARM because of a payment cap, the interest is: | added to the balance of the loan |
| which of the following statements is true about a no-ratio loan? | income is not used in qualifying the borrower |
| what is included in the finance charge for a loan secured by real property? | broker fee |
| when compared to a 25-year amortized loan, a 30-year amortized loan has: | lower monthly payments of principal and interest |
| How can home buyers protect themselves from claims by others to legal rights in their new property? | Buy an owner's title insurance policy |
| if the payments on a loan financing a real estate purchase are insufficient to service the debt, the result will be: | negative amortization |
| In real estate financing, the role of the Department of Veterans Affairs is to: | the VA doest not make loans. It gurantees loans made by approved lenders,(like the FHA) |
| The VA has programs that provide benefits to all of the following, except: | government employees |
| Harry is 67 years old. He has no outstanding loans on his home. He would like to have additional income so that can travel. what loan product is suitable for Harry in this situation? | reverse mortgage |
| which index reacts quickly to changes in the market? | certificate of Deposits (CD) |
| what happens to portfolio loans after the lender originates them? | they are kept in lender's loan portfolio |
| the FHA was established to: (3) | -facilitate home financing, -improve housing standards and -increase employment in the home construction industry -stimulate the housing industry |
| A loan discount: | lowers the interest rate on the loan |
| A borrower who applies for a subprime loan is most likely someone who: | experienced bankruptcy or foreclosure in the past |
| with a stand income stated asests loan: | both income and assets are disclosed but not verified |
| Benefits of FHA-insured loans include all of the following, except: | complicated qualifying |
| which of the following will necessarily involve a balloon payment? | partially amortized loan |
| an ____ loan is a type of loan a borrower can get to finance the costs associated with construction | interim |
| all of the following types of loans could be used for a construction loan except an: | reverse mortgage |
| in a deed of trust, the power of sale in the event of default is given from the: | truster to the trustsee |
| the liquid of financial obligation on a an installment basis defines: | Amortization |
| what home loan characteristic can possibly lead to foreclosure? | higher rates and fees |
| what does COFi stand for? | cost of funds index |
| what do banks use as a base to determine interest charged on commercial loans? | prime rate |
| a promissory note: | the borrower's written signed promise to repay the loan |
| which of the following is an FHA loan program? | section 203(b) loans |
| the ARM loan has an interest rate that adjust with a movable ____ index | economic |
| which of the four C's of credit is associated with the ability to repay loans? | capacity |
| new organization formed in 1968 to assume of the functions of FNMA , also works hand in hand with HUD | GNMA or Ginnie Mae |
| a lender with automatic authority from VA may: | close VA- guaranteed loans without the prior approval of VA |
| A way to finance several properties under one loan is to obtain a: | blanket loan |
| the main benefit of VA-guaranteed home loan is: | no down payment |
| what type of loan can a borrower get if he or she wants to purchase a cooperative unit? | share loan |
| which of the following is not a purchase money loan? | second loan to remodel the kitchen |
| VA administers program of veteran's benefits for veterans, their families and survivors. The benefits include: (3) | home loan programs education benefits medical benefits |
| all of the following are nontraditional loan products, except | reverse mortgages |
| who is an ideal candidate for a reverse mortgage? | homeowners, age 62 or older, with equity but little income |
| the utilization of borrowed funds to increase purchasing power is | leverage |
| which statement is NOT true regarding the prime rate? the prime rate is: | a long-term rate that lags behind market rates |
Created by:
cortnick1
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