Champions School Of Real Estate ( Real Estate Finance) 2024 Tested

Champions School Of Real Estate ( Real Estate Finance) 2024 Tested A loan unable to be sold to Fannie Mae or Freddie Mac (i.e. A sub-prime loan) - CORRECT ANSWER-Non-Conforming Loan VA - CORRECT ANSWER-Veteran's administration - assists veterans in the purchase of housing by guaranteeing loans) Seller's equity - CORRECT ANSWER-Cash 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. - CORRECT ANSWER-Release Clause One percent of a loan that is a loan processing fee - CORRECT ANSWER-Origination Point The repayment or satisfaction of a debt by installment payments of principal and interest on a regular basis. - CORRECT ANSWER-Amortization A law allowing individuals to inspect their credit files, correct errors and attach explanatory statements. - CORRECT ANSWER-Fair Credit Reporting Act (FCRA) A law requiring lenders to meet the needs of the community in which they are chartered to do business. - CORRECT ANSWER-Community Reinvestment Act A clause allowing a lender to move to or take a lower lien position. - CORRECT ANSWER-Subordination 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. - CORRECT ANSWER-Graduated Payment Mortgage (GPM) An increase in debt due to payments less than the interest owed - can be associated with a graduated payment mortgage. - CORRECT ANSWER-Negative Amortization TIL, REG Z, Regulation Z, or the Consumer Credit Protection Act - a law passed to help consumers understand the true cost of borrowing money. - CORRECT ANSWER-Truth in Lending Buyer's Equity - CORRECT ANSWER-The down payment amount at closing.