Real Estate State Exam for Ohio Test Questions and Answers
Fiscal Policy - -Treasury Department procedures and guidelines for disclosure of all
settlement costs in a credit transaction for 1 to 4
family residential properties
Monetary Policy - -Federal Reserve Bond
TRID - TILA, RESPA, integrated disclosure -
Truth In Lending Act - -To provide -Laws call for disclosure of all settlement
standard disclosure procedures that all lenders costs, using standardized settlement statements
must follow. Required so consumers will know given to borrowers
exactly what they are paying for credit so they
can compare
Qualified Mortgage - -loans made will be
reviewed by the lender and the buyer must have
Annual Percentage Rate (APR) - -The the ability to repay the loan without risky features
relationship between the cost of borrowing such as interest only period or a lump sum at the
money and the total amount financed, end of the loan term or any loan made for longer
represented by a percentage than 30 years
Affiliated business arrangement disclosure
Usury Lending Law - -Charging an interest
rate that exceeds the legal limit (set by state) (AfBA) - -Required whenever a settlement
service provider involved in a RESPA/TRID
covered transaction refers the consumer to a
provider with whom they have an ownership or
Regulation Z - -regulates the disclosures
other beneficial interest
concerning all finance charges and related
aspects of credit transactions
Promissory Note - -The lender gives a loan
to the borrower
Disclosures in TILA (Trigger Terms) - -1.
amount of down payment
2. amount of the payments
3. number of payments Lien on property - -The borrower gives a
4. period of repayment mortgage to the lender
5. amount of finance charge
Alienation Clause - -When a buyer sells the
Equal Credit Opportunity Act - -Federal law property, the mortgage must be cancelled and
prohibiting discrimination in granting credit to the remaining balance of the loan must be paid
people based on: sex, marital status, color, back to the lender
national origin, receipt of public assistance, age,
race, religion, and wage garnishment
Acceleration Clause - -When a buyer
defaults on a loan, this gives the lender the right
Real Estate Settlement Procedures Act (RESPA) to declare the entire balance of the loan to be
- -Federal law that sets forth specific paid back immediately
1/6
, Real Estate State Exam for Ohio Test Questions and Answers
Assumption Clause - -One party agrees to Ginnie Mae (GNMA) - -Government
take over payments of another parties debt, with National Mortgage Association
the terms of the note remaining the same The only mortgage backed security that carries
the full faith and credit of the US Government
Release Clause - -The new buyer needs to
be approved by the lender holding the note and 1st Mortgages - -straight notes, amortized
lender must release the original debtor of any loans, ARM, reverse mortgage
liability
2nd Mortgages - -home equity loans,
Prepayment Clause - -A contract clause HELOC
that gives the lender the right to charge the
borrower a penalty for paying off a loan early
Conventional Financing - -Amortized style
loans with payments applied to principal and
Prepayment Penalty - -Additional money interest
charged by the lender for a borrower paying off a
loan early
Private mortgage insurance - -Offered by
private companies to insure a lender against
Real Estate Mortgage Trusts (REMT) - - default by the buyer. Automatically cancelled
Groups of people who pool funds to make when the home has been paid down to 78% of its
mortgages for specific tax benefits original value
Real Estate Investment Trust (REIT) - - 5 Key points to VA loans - -1. 0 money
Groups of people who buy investment properties down
and receive specific tax benefits 2. need 2 documents to obtain loan (DD-214 and
certificate of eligibility)
3. loan is lesser sales price or CRV
Secondary Markets - -Private investors 4. variable funding fee is charged for all loans
and government agencies that buy and sell real 5. only a spouse can be a co-borrower
estate mortgages
USDA loans - -rural development loans are
Fannie Mae (FNMA) - -Federal National government insured loans with no down payment
Mortgage Association and no PMI
Largest secondary market company
Buydowns - -purchased from a lender to
Freddie Mac (FHLMC) - -Federal Home lower the interest rate and monthly payment
Loan Mortgage Corporation
2/6
Fiscal Policy - -Treasury Department procedures and guidelines for disclosure of all
settlement costs in a credit transaction for 1 to 4
family residential properties
Monetary Policy - -Federal Reserve Bond
TRID - TILA, RESPA, integrated disclosure -
Truth In Lending Act - -To provide -Laws call for disclosure of all settlement
standard disclosure procedures that all lenders costs, using standardized settlement statements
must follow. Required so consumers will know given to borrowers
exactly what they are paying for credit so they
can compare
Qualified Mortgage - -loans made will be
reviewed by the lender and the buyer must have
Annual Percentage Rate (APR) - -The the ability to repay the loan without risky features
relationship between the cost of borrowing such as interest only period or a lump sum at the
money and the total amount financed, end of the loan term or any loan made for longer
represented by a percentage than 30 years
Affiliated business arrangement disclosure
Usury Lending Law - -Charging an interest
rate that exceeds the legal limit (set by state) (AfBA) - -Required whenever a settlement
service provider involved in a RESPA/TRID
covered transaction refers the consumer to a
provider with whom they have an ownership or
Regulation Z - -regulates the disclosures
other beneficial interest
concerning all finance charges and related
aspects of credit transactions
Promissory Note - -The lender gives a loan
to the borrower
Disclosures in TILA (Trigger Terms) - -1.
amount of down payment
2. amount of the payments
3. number of payments Lien on property - -The borrower gives a
4. period of repayment mortgage to the lender
5. amount of finance charge
Alienation Clause - -When a buyer sells the
Equal Credit Opportunity Act - -Federal law property, the mortgage must be cancelled and
prohibiting discrimination in granting credit to the remaining balance of the loan must be paid
people based on: sex, marital status, color, back to the lender
national origin, receipt of public assistance, age,
race, religion, and wage garnishment
Acceleration Clause - -When a buyer
defaults on a loan, this gives the lender the right
Real Estate Settlement Procedures Act (RESPA) to declare the entire balance of the loan to be
- -Federal law that sets forth specific paid back immediately
1/6
, Real Estate State Exam for Ohio Test Questions and Answers
Assumption Clause - -One party agrees to Ginnie Mae (GNMA) - -Government
take over payments of another parties debt, with National Mortgage Association
the terms of the note remaining the same The only mortgage backed security that carries
the full faith and credit of the US Government
Release Clause - -The new buyer needs to
be approved by the lender holding the note and 1st Mortgages - -straight notes, amortized
lender must release the original debtor of any loans, ARM, reverse mortgage
liability
2nd Mortgages - -home equity loans,
Prepayment Clause - -A contract clause HELOC
that gives the lender the right to charge the
borrower a penalty for paying off a loan early
Conventional Financing - -Amortized style
loans with payments applied to principal and
Prepayment Penalty - -Additional money interest
charged by the lender for a borrower paying off a
loan early
Private mortgage insurance - -Offered by
private companies to insure a lender against
Real Estate Mortgage Trusts (REMT) - - default by the buyer. Automatically cancelled
Groups of people who pool funds to make when the home has been paid down to 78% of its
mortgages for specific tax benefits original value
Real Estate Investment Trust (REIT) - - 5 Key points to VA loans - -1. 0 money
Groups of people who buy investment properties down
and receive specific tax benefits 2. need 2 documents to obtain loan (DD-214 and
certificate of eligibility)
3. loan is lesser sales price or CRV
Secondary Markets - -Private investors 4. variable funding fee is charged for all loans
and government agencies that buy and sell real 5. only a spouse can be a co-borrower
estate mortgages
USDA loans - -rural development loans are
Fannie Mae (FNMA) - -Federal National government insured loans with no down payment
Mortgage Association and no PMI
Largest secondary market company
Buydowns - -purchased from a lender to
Freddie Mac (FHLMC) - -Federal Home lower the interest rate and monthly payment
Loan Mortgage Corporation
2/6
