Exam (elaborations)
Champions School of Real Estate - Real Estate Finance
Champions School of Real Estate - Real Estate Finance
[Show more]
Content preview
Champions School of Real Estate - RealEstate Finance
A loan unable to be sold to Fannie Mae or Freddie Mac (i.e. A sub-prime loan)
Correct Ans - Non-Conforming Loan
VA Correct Ans - Veteran's administration - assists veterans in the
purchase of housing by guaranteeing loans)
Seller's equity Correct Ans - 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
Ans - Release Clause
One percent of a loan that is a loan processing fee Correct Ans -
Origination Point
The repayment or satisfaction of a debt by installment payments of principal
and interest on a regular basis. Correct Ans - Amortization
A law allowing individuals to inspect their credit files, correct errors and
attach explanatory statements. Correct Ans - 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 Ans - Community Reinvestment Act
A clause allowing a lender to move to or take a lower lien position. Correct
Ans - 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 Ans - 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 Ans -
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
Ans - Truth in Lending
Buyer's Equity Correct Ans - The down payment amount at closing.
DD 214 Correct Ans - Veteran's discharge papers - provided to
demonstrate eligibility for a VA loan.
A loan secured by real property plus personal property. Correct Ans -
Package loan
An upfront payment of points used to reduce the borrower's monthly
payment - by paying points at closing a borrower may secure a lower rate on
the loan. Correct Ans - Buy Down
A clause outlining the obligations of the original borrower and a new
borrower in the event the loan is assumed. Correct Ans - Assumption
Clause
Lender under a mortgage Correct Ans - Mortgagee
The action of pledging real property as security for a debt Correct Ans -
Hypothecation
A loan with an investor/lender who collects principal and interest payments
and then a percent of the profits when the property is sold. Correct Ans -
Shared Appreciation Loan
Borrower under a mortgage Correct Ans - Mortgagor
A loan that is neither federally insured nor guaranteed - a private sector loan.
Correct Ans - Conventional Loan
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LeCrae. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for CA$16.45. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
79271 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now