Real Estate Module 7 Question and answers verified to pass 2024/2025
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REFM
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REFM
Real Estate Module 7 Question and answers verified to pass 2024/2025 Real Estate Module 7
mortgage menu - correct answer -different kinds of residential loans offered by originating lenders to residential borrowers
-includes cost of various mortgage items, including contract interest rate an...
real estate module 7 question and answers verified
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Real Estate Module 7
mortgage menu - correct answer ✔-different kinds of residential loans
offered by originating lenders to residential borrowers
-includes cost of various mortgage items, including contract interest rate and
number of upfront discount points and origination fees
primary mortgage market - correct answer ✔-loan origination market where
borrowers and lenders negotiate mortgage terms
secondary mortgage market - correct answer ✔-market where mortgage
originators can divest their holdings & existing mortgages are resold
the difference b/w the primary mortgage market and the secondary mortgage
market is ___ - correct answer ✔-primary market: new loans are created by
borrowers and lenders
-secondary market: existing loans are sold by one investor to another
conventional mortgage loan - correct answer ✔-do not enjoy gov backing in
the form of FHA insurance or Veterans Affairs (VA) guarantee
-aka not guaranteed by US government
conforming conventional loan - correct answer ✔-conventional loan that
meets standards required for purchase in secondary market by Fannie or
Freddie
nonconforming conventional loan - correct answer ✔-conventional loan that
does not satisfy one or more underwriting standards required for purchase in
secondary market by Fannie or Freddie
, jumbo loans - correct answer ✔-nonconforming loans that exceed max loan
amount for purchase by Fannie or Freddie
-cannot be purchased by one of the GSEs they usually carry a slightly higher
interest rate
-most common nonconforming loan
what were the 3 major events in the evolution of conventional mortgages
since the 1930s? - correct answer ✔1.intro of LPM, assisted by private
mortgage insurance
2. intro of adjustable mortgage loans
3. intro of numerous alternatives to standard 80-90% LPM beginning in late
1900s
maturity imbalance problem - correct answer ✔-situation faced by banks,
thrifts, and other financial institutions in which long term assets are funded
with short term liabilities
private mortgage insurance (PMI) - correct answer ✔insurance offered by
private companies that reimburses the lender of capital losses in the event of
default by borrower
whom does private mortgage insurance protect? against what? - correct
answer ✔-protects lender from losses due to default
-indirectly aids borrower by making the LPM a viable investment for lenders
lenders usually require mortgage insurance for loans in excess of _____ -
correct answer ✔-80% of value
VA loan - correct answer ✔- Veterans Affairs
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