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A comprehensive set of questions and answers related to real estate finance, covering topics such as mortgage origination, underwriting, government agencies involved in housing, and key concepts in real estate finance. It is a valuable resource for students studying real estate finance, offering insights into the intricacies of the industry and providing a foundation for understanding the principles and practices of real estate finance.
Typology: Quizzes
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"___________, created November 9, 1965, to create strong, sustainable, inclusive communities and qualify affordable homes.
"Created 1934, administered by HUD, the ___________ provides mortgage insurance on loans on single- family and multifamily homes, including manufactured homes and hospitals.
"___________ is the largest insurer of mortgages in the world.
"The primary programs administered by HUD include (3 types):
low-income households.
"Within HUD, ___________ housing for low-income individuals and families.
"Within HUD, ___________, a wholly-owned federal corporation within HUD.
"___________ statues prohibit housing discrimination based on race, color, national origin, religion, families with children, disabilities, sex. Sec per a ___________ executive order.
“___________ is the process of creating a new mortgage loan.
"The detailed process of evaluating a borrower's loan application to determine the risk involved for the lender is defined as ___________.
"The process of making a lending decision is ___________.
"Consumation =
"___________ is something of value that can be pledged as security for repayment of a loan.
"Fiat means
"The central banking system, AKA ___________.
"Under Dodd-Frank, the ___________ was established.
"___________ prohibits redlining.
"___________ is the practice of refusing to provide financing in a particular area becuase of the location.
"___________ is an angency responsible for affording, housing-related and community service programs, and the regulation of the state's manufactured hoising industry.
"Veterans, military members, and their spouses may recieve up to ___________ on a fixed-rate loan for 15, 20, 25, or 30-year terms.
"The creditor must ensure that the consumer receives the ___________ at least 3 business days before the consumer closes the loan.
"Establish 1970, ___________ is a federally chartered corporation used to purchase mortgages in the secondary market.
"The market where consumers (buyers) and mortgage lenders come together to create and negotiate terms of a mortgage transaction is called ___________.
"___________ include savings and loans, commercial banks, mutual savings banks, mortgage companies, credit unions, individuals, or any person or business that provides cash for someone seeking a mortgage.
"A consumer is ___________.
"A claim, lien, charge, or liability attached to and binding real property in an.
"A ___________ is a right given by law to certain creditors to have debts paid out of a defaulting debtor, usually theoughh a court sale.
"The borrower is know an ___________.
"The lenders is known as ___________.
"In the borrower's unconditional promiseto rpay and includes the amount borrowers unconditional promise to repay and includes the amount borrowed, yet amount, due date, and rate of interest.
"The promissory note is also known as ___________.
"A ___________, which is a document that pledges the property as security repayment of the note, recorded in the county in which the property is located.
"Any excess money left over from the forced sale is given to the ___________.
interest all payments have been made." "Contract for deed becomes fully executed when the ___________, and the seller delivers the deed to the buyer.
"The seller is also known as the ___________
"The buyer is also known as the ___________
"A clause that gives the borrower the ability to replace the primary instrument with another without affecting the subordinate instrument's position.
"More than two-thirds of subprime loans have ___________, compared to less than ___________% of conventional prime loans.
less than 2%" "A clause in which a holder of a mortgage permits a subsequent mortgage to take priority. It allows a mortgage to take a lower lien position.
"An easement for ingress and egress is known as a(n) ______.
"A lien given freely, usuallly as collateral for a loan.
"Calculate: Interim Interest:
loan × interest as decimal (0% to 0.0) ÷ days in a year (365) × interim day(s) to the end of month = $ pg.
"Calculate: New Loan Balance P×R×T = Annual Interest ÷ 12 = Monthly Interest interest - monthly interest = X Loan Balance - X = New Loan Balance
"PITI payments do NOT include which of the following: A. Principle B. Funding Fee C. Hazard Insurance D. Interest
"Semi-annual means ___________.
"The term "house payment" typically includes a monthly payment of ___________ of the annual taxes, homeowner's insurance and mortgage insurance (if any).
"Points are % points based on the loan amount. 1 point = 1% of the loan amount
"___________ includes both Principal (P) and Interest (I)
"___________ is used by buyers when Interest Rates are forecast to go down.
"With a ___________ loan, the loan balance is due before the loan fully amortizes, possibly in 1, 5, 10 years.
"___________ loan is when a buyer wants to purchase a residential property in need of repairs or ___________, the buyer usually has to obtain financing first to purchase the dwelling, additional financing to do the rehabilitation construction, and a permanent mortgage when the work is completed to pay off the interim loans with a permanent mortgage.
modernization" "This type of loan is likely to contain a release clause, allowing the borrower to obtain partial release of specific lots by making required lump sum payments.
"lump sum means
be broken into smaller installments." "___________ = the percentage of value that the lender is willing to lend.
___________ is excessive selling/lending activity to generate fees and commissions.
"Who administers the FHA loan program?
"What kind of properties can you get an FHA loan on?
"FHA includes a downpayment as low as ___________%. Therefore, FHA is not 100% financing. It is ___________%.
"What is FHA?
borrower default, by insuring full amount of the loan." "What does FHA most resemble?
"FHA is not a ___________.
"3 advantages to FHA loan:
"Conventional LTV higher than 8% has a ___________ that can go away.
"FHA charges ___________ and can be paid at closing or added to the loan at funding.
"FHA allows the seller to help the buyer up to ___________%, but cannot provide the ___________.
downpayment." "FHA allows family co-signers and gift grants from friends.
""gross" means ___________.
"GMI means ___________.
"The ___________ ratio, at ___________ %, is used to qualify a borrower for a loan based on the proposed house payment and their gross monthly income (GMI).
"The ___________ ratio, at ___________ %, of the borrower's total recurring monthly debts or recurring monthly payments.
"Front Ratio Formula:
"Back Ratio Formula:
"FHA Conventional Pre-Approved form is ___________.
"PENCIL acronym: P- E- N- C- I- L- must receive loan estimate within ___________ ___________ days, ___________ P.M.
E- Estimate Value N- Name
C- Credit I- Income L- Loan amount 3 business 5 PM" "Value is created by DUST acronym, D- U- S- T-
S- Scarcity- T- Transferability-" "Market Value is the most ___________ a property should bring in a competitive market and open market under all conditions requisite to a fair sale, under guidelines published by federal institutions Fannie Mae and Freddie Mac.
"Ad Valorem (___________) taxes are assessed based upon the ___________ of the property and the current tax rate.
assessed value" "___________ is the best indicating value of value for existing properties.
"Used in ___________, the ___________ Approach is a standard part of all appraisal reports and is generally considered the most reliable approach because it is based on verifiable market events.
Sales Comparison Approach"
"___________ is the property being appraised by the appraiser and the appraisal assessment is their ___________.
opinion" "If a borrower is in default, the mortgage servicer may start the ___________ process.
"In many states, the borrower may also be responsible for paying any ___________, which is the difference between what is owed on the mortgage and the price the home sells for a foreclosure auction.
"___________, which ended in 2016, allowed the Treasury to work with loan providers to refinance existing loans to achieve a ___________% front-end ratio.
"If the borrower fails to repay the note (default), the mortgage allows the lender to ___________ the property.
"___________ allows
"The lender files a lawsuit against the homeowner, is a ___________. The lender files a lawsuit in the judicial system, is a ___________.
Judicial Foreclosure." "___________, also known as Statutory Foreclosure, includes a ___________ clause.
Power of Sale:" "A ___________ cannot be accepted from borrowers who can financially afford their mortgage payments.