Test Bank Champions Real Estate Finance
Exam Question and Answer | A+ Verified
Updated
Not all creditors will report to all three, they will -✓✓Each reporting agency will report a
different credit score for the borrower
Underwriting -✓✓The detailed process of evaluating a borrower's loan application to
determine the risk involved for lender
Fiscal Policy -✓✓Which relates to Federal Government spending. Government
spending is approved by the U.S. Congress
The Federal Reserve: 1913 -✓✓Is a central banking system of the US
Federal Fair Housing Statues -✓✓Prohibit housing discrimination based on race, color,
national origin, sex, religion, families with children, and disabilities
All residential mortgage loan originators must be registered with -✓✓the Nationwide
Mortgage Licensing System and Registry (NMLSR)
Texas Department of Housing and Affairs (TDHCA) -✓✓An agency responsible for
affordable housing, housing related and community service programs, and the
regulation of the state's manufactured housing industry
Yield -✓✓The return that represents the money earned on an investment
The two major purchasers of mortgages in the secondary market are: -✓✓Fannie Mae
and Freddie Mac
Freddie Mac -✓✓Is a federally chartered corporation established as the Federal Home
Loan Mortgage Corporation (FHLMC) in 197 for the purpose of purchasing mortgages in
the secondary market
Primary Market -✓✓Where borrowers and mortgage lenders come together to create
and negotiate terms of a mortgage transaction
Commercial banks are active in _________. While the majority of their loans are sold in
the ________, many of them are retained as ________. -✓✓Residential mortgage
lending, secondary market, portfolio loans
, Credit unions are: -✓✓Non-for-profit organizations that exist to serve their members.
They accept deposits and make loans
Credit Unions focus: -✓✓On providing a safe place to save and borrow at reasonable
rates. Unlike banks, they return surplus income to their members in the form of
dividends
The money that mortgage companies use to make loans come from the sale of
________, which is considered a business transaction, not a savings account deposit
procedure. -✓✓Bonds
Government entities regularly sell bonds to -✓✓Fund major capital investments
Advantage of municipal bonds is -✓✓That the interest paid to investors is not subject to
federal income tax, making them appealing to investors who need to shelter some
income from taxation
Municipal bond -✓✓May be exempt from state and local tax.
Encumbrance -✓✓A claim, lien, charge, or liability attached to and binding upon real
property.
lien -✓✓A right given by law to certain creditors to have their debts paid out of the
property of a defaulting debtor, usually by means of a court sale.
Borrower (mortgagor) -✓✓Is the party who signed the promissory note and is obligated
for the repayment of the loan
Occurrences that result in foreclosure include: -✓✓Payment delinquency
Failure to pay property tax
Failure to maintain the mortgaged property
Failure to keep the property properly insured
Second Mortgage -✓✓An instrument subordinate to the primary mortgage
Lifting clause: -✓✓A clause which gives the borrower the ability to replace the primary
instrument with another without affecting the subordinate instrument's position.
Determining the total (PITI) -✓✓The lender will add an amount equal to 1/12 of the
annual taxes and 1/12 of the annual homeowners insurance
Fixed-Rate Mortgages: in an amortizing loan, -✓✓The monthly payment includes an
amount that is applied first to interest that is due, with the remainder of the loan
Exam Question and Answer | A+ Verified
Updated
Not all creditors will report to all three, they will -✓✓Each reporting agency will report a
different credit score for the borrower
Underwriting -✓✓The detailed process of evaluating a borrower's loan application to
determine the risk involved for lender
Fiscal Policy -✓✓Which relates to Federal Government spending. Government
spending is approved by the U.S. Congress
The Federal Reserve: 1913 -✓✓Is a central banking system of the US
Federal Fair Housing Statues -✓✓Prohibit housing discrimination based on race, color,
national origin, sex, religion, families with children, and disabilities
All residential mortgage loan originators must be registered with -✓✓the Nationwide
Mortgage Licensing System and Registry (NMLSR)
Texas Department of Housing and Affairs (TDHCA) -✓✓An agency responsible for
affordable housing, housing related and community service programs, and the
regulation of the state's manufactured housing industry
Yield -✓✓The return that represents the money earned on an investment
The two major purchasers of mortgages in the secondary market are: -✓✓Fannie Mae
and Freddie Mac
Freddie Mac -✓✓Is a federally chartered corporation established as the Federal Home
Loan Mortgage Corporation (FHLMC) in 197 for the purpose of purchasing mortgages in
the secondary market
Primary Market -✓✓Where borrowers and mortgage lenders come together to create
and negotiate terms of a mortgage transaction
Commercial banks are active in _________. While the majority of their loans are sold in
the ________, many of them are retained as ________. -✓✓Residential mortgage
lending, secondary market, portfolio loans
, Credit unions are: -✓✓Non-for-profit organizations that exist to serve their members.
They accept deposits and make loans
Credit Unions focus: -✓✓On providing a safe place to save and borrow at reasonable
rates. Unlike banks, they return surplus income to their members in the form of
dividends
The money that mortgage companies use to make loans come from the sale of
________, which is considered a business transaction, not a savings account deposit
procedure. -✓✓Bonds
Government entities regularly sell bonds to -✓✓Fund major capital investments
Advantage of municipal bonds is -✓✓That the interest paid to investors is not subject to
federal income tax, making them appealing to investors who need to shelter some
income from taxation
Municipal bond -✓✓May be exempt from state and local tax.
Encumbrance -✓✓A claim, lien, charge, or liability attached to and binding upon real
property.
lien -✓✓A right given by law to certain creditors to have their debts paid out of the
property of a defaulting debtor, usually by means of a court sale.
Borrower (mortgagor) -✓✓Is the party who signed the promissory note and is obligated
for the repayment of the loan
Occurrences that result in foreclosure include: -✓✓Payment delinquency
Failure to pay property tax
Failure to maintain the mortgaged property
Failure to keep the property properly insured
Second Mortgage -✓✓An instrument subordinate to the primary mortgage
Lifting clause: -✓✓A clause which gives the borrower the ability to replace the primary
instrument with another without affecting the subordinate instrument's position.
Determining the total (PITI) -✓✓The lender will add an amount equal to 1/12 of the
annual taxes and 1/12 of the annual homeowners insurance
Fixed-Rate Mortgages: in an amortizing loan, -✓✓The monthly payment includes an
amount that is applied first to interest that is due, with the remainder of the loan
