Champions School of Real Estate - Real Estate Finance Questions & Answers 100% Correct

Champions School of Real Estate - Real Estate Finance Questions & Answers 100% Correct A loan unable to be sold to Fannie Mae or Freddie Mac (i.e. A sub-prime loan) - ANSWERNon-Conforming Loan VA - ANSWERVeteran's administration - assists veterans in the purchase of housing by guaranteeing loans) Seller's equity - ANSWERCash price minus the loan balance A clause often found in a blanket loan allowing the borrower to obtain partial releases of specific lots by making required lump sum payments. - ANSWERRelease Clause One percent of a loan that is a loan processing fee - ANSWEROrigination Point The repayment or satisfaction of a debt by installment payments of principal and interest on a regular basis. - ANSWERAmortization A law allowing individuals to inspect their credit files, correct errors and attach explanatory statements. - ANSWERFair Credit Reporting Act (FCRA) A law requiring lenders to meet the needs of the community in which they are chartered to do business. - ANSWERCommunity Reinvestment Act A clause allowing a lender to move to or take a lower lien position. - ANSWERSubordination Clause A loan whose payments start low and rise every year, usually for five years, after which they level off for the remaining term of the loan - can result in negative amortization. - ANSWERGraduated Payment Mortgage (GPM) An increase in debt due to payments less than the interest owed - can be associated with a graduated payment mortgage. - ANSWERNegative Amortization