Real Estate Finance Practice
exam||Newest Exam With Questions
And Answers||Graded A+
A __________ is a permanent change in one or more of the terms of a borrower's loan.
Loan Qualification
Loan Modification
Loan Approval
Loan Origination -CORRECT ANSWERLoan Modification
What time period must borrowers have in job history with the same employer to qualify?
2 months
6 months
1 year
2 years -CORRECT ANSWER2 years
Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower
in taking a mortgage that carries high fees, a high interest rate, strips the borrower of
equity, or places the borrower in a lower credit rated loan to benefit the lender.
Predatory lending
Sub prime Mortgage
Participation Agreement
Fraud -CORRECT ANSWERPredatory lending
Why do lender care about unpaid taxes?
They want to ensure your mortgage payment is not late
It makes the loan difficult to sell in the secondary market
Unpaid property taxes are a superior lien to the right of the lender
Lenders don't care about unpaid taxes -CORRECT ANSWERUnpaid property taxes
are a superior lien to the right of the lender
A burden, obstruction, or impediment on the property that lessens its value or makes it
less marketable.
Lien
Interest
Encumbrance
Mortgage -CORRECT ANSWEREncumbrance
, Which party is not included on the deed of trust?
Mortgagor
Mortgagee
Trustor
Trustee -CORRECT ANSWERTrustor
The mortgage or deed of trust will contain ___________ that permits the lender to
demand that the entire balance of the loan be repaid if the borrower defaults.
Due on sale clause
Acceleration clause
Alienation clause
Balloon clause -CORRECT ANSWERAcceleration clause
One of the largest buyers of securities is _________.
Credit Unions
Pension Funds
China
American Public -CORRECT ANSWERPension Funds
A company or individual that originates mortgage loans and sells them to investors,
while taking care of borrowers loan payments, records, taxes, and insurance.
Mortgage Bankers
Mortgage Brokers
Loan Originators
Secondary Market -CORRECT ANSWERMortgage Bankers
The largest buyer of residential mortgages in the United States today.
FHLMC
GNMA
Banks
FNMA -CORRECT ANSWERFNMA
Provides cash advances to members, including community banks, thrifts, credit unions
and community development financial institutions.
FNMA
FHLMC
FHLB
Banks -CORRECT ANSWERFNMA
Loan amount is $337,500. Down payment is $37,500. What is the LTV?
10%
exam||Newest Exam With Questions
And Answers||Graded A+
A __________ is a permanent change in one or more of the terms of a borrower's loan.
Loan Qualification
Loan Modification
Loan Approval
Loan Origination -CORRECT ANSWERLoan Modification
What time period must borrowers have in job history with the same employer to qualify?
2 months
6 months
1 year
2 years -CORRECT ANSWER2 years
Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower
in taking a mortgage that carries high fees, a high interest rate, strips the borrower of
equity, or places the borrower in a lower credit rated loan to benefit the lender.
Predatory lending
Sub prime Mortgage
Participation Agreement
Fraud -CORRECT ANSWERPredatory lending
Why do lender care about unpaid taxes?
They want to ensure your mortgage payment is not late
It makes the loan difficult to sell in the secondary market
Unpaid property taxes are a superior lien to the right of the lender
Lenders don't care about unpaid taxes -CORRECT ANSWERUnpaid property taxes
are a superior lien to the right of the lender
A burden, obstruction, or impediment on the property that lessens its value or makes it
less marketable.
Lien
Interest
Encumbrance
Mortgage -CORRECT ANSWEREncumbrance
, Which party is not included on the deed of trust?
Mortgagor
Mortgagee
Trustor
Trustee -CORRECT ANSWERTrustor
The mortgage or deed of trust will contain ___________ that permits the lender to
demand that the entire balance of the loan be repaid if the borrower defaults.
Due on sale clause
Acceleration clause
Alienation clause
Balloon clause -CORRECT ANSWERAcceleration clause
One of the largest buyers of securities is _________.
Credit Unions
Pension Funds
China
American Public -CORRECT ANSWERPension Funds
A company or individual that originates mortgage loans and sells them to investors,
while taking care of borrowers loan payments, records, taxes, and insurance.
Mortgage Bankers
Mortgage Brokers
Loan Originators
Secondary Market -CORRECT ANSWERMortgage Bankers
The largest buyer of residential mortgages in the United States today.
FHLMC
GNMA
Banks
FNMA -CORRECT ANSWERFNMA
Provides cash advances to members, including community banks, thrifts, credit unions
and community development financial institutions.
FNMA
FHLMC
FHLB
Banks -CORRECT ANSWERFNMA
Loan amount is $337,500. Down payment is $37,500. What is the LTV?
10%
