TX 30 Hour Real Estate Finance.pdf file:///C:/Users/HP/Desktop/NIW/TX%2030%20Hour%20Real%20E
TX 30 Hour Real Estate Finance
1. What type of property is Gerald appraising if he's using the cost approach?-
ANS An industrial warehouse
2. Borrower Max is reviewing his Closing Disclosure to check the amount of prepaid
mortgage insurance, taxes, and interest. In addition to itemizing whathis borrower-paid
closing costs are, the prepaid section includes for
each item.
ANS The applicable time period
3. Both the Housing and Economic Recovery Act and the American Recoveryand
Reinvestment Act funded a program called the program, which
provided emergency assistance grants to states to purchase and redevelop foreclosed and
abandoned homes and residential properties.
ANS Neighborhood Stabilization
4. The FHA has helped to significantly improve the mortgage market through
.
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ANS The introduction of the long-term amortized loan
5. Which real estate finance instrument includes the promise to repay and thesecurity
instrument within the same document?
ANS Contract for deed
6. Which of the following is a significant drawback to an FHA loan as comparedto
conventional financing?
ANS Required mortgage insurance must remain in place for the life of the loan.
7. Which of the following can you offer to your low-income buyer clients witha small
down payment?
ANS Housing choice vouchers
8. Which of the following is an example of an involuntary, specific, statutorylien?
ANS Materialman's lien
9. When HUD pursues actions that are designed to reduce housing discrimi-nation and
help communities recover from disasters, which of its goals is itsupporting?
ANS Build strong, resilient, and inclusive communities
10. What type of provision is standard with either the mortgage or the deed oftrust, but is
included in the promissory note rather than the security instru- ment?
ANS Late charge
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11. Which of these acts has special provisions for borrowers who are victimsof over-
charging?
ANS Real Estate Settlement Procedures Act
12. Maggie has a neighbor, Jim, who is facing foreclosure. She likes Jim andwants to help
him out, so they agree to do a "subject to" purchase.What doesthis mean?
ANS Maggie will take over Jim's loan payments without telling his lender she's doing so.
13. The FHA Energy Efficient Mortgage allows modifications such as solar panels as
long as .
ANS The cost of the modification is within limits based onthe value of the home
14. Who or what entity directs the activities of credit unions?
ANS A board ofdirectors
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15. Which of these best describes a home equity loan?
ANS The funds are oftenused for home renovations or to fund a college education.
16. A quitclaim deed does which of these?
ANS Transfers without warranty any inter-est or title the grantor has when conveying it
17. Who holds the promissory note while it's being repaid?
ANS The payee
18. A multibillion dollar online retail distributor has decided to set up opera-tions in
Ashland. The population of Ashland is 22,000. What is the potential impact to the area?
ANS The community is potentially put at risk.
19. The rate at which a bank can obtain a loan from its Federal Reserve bankwhen using
commercial paper as collateral is called the rate.
ANS Discount
20. Jarod has obtained an FHA loan for which he pays an annual mortgage insurance
premium. How will he likely make this payment?
ANS He will pay 1/12 ofit monthly with his mortgage payment.
21. Which of the following best describes the state of the market during the recovery
phase of the real estate cycle?
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