Champions Real Estate Finance| 60 questions and answers

_____ is the consummation of a contractual real estate transaction in which all appropriate documents are signed, and the mortgage loan proceeds are disbursed by the lender. Closing The primary determinants of real estate values are supply and _____. Demand _____ is something of value that can be pledged as security for repayment of a loan. Collateral Servicing includes which of the following activities? Maintaining records of payment The monetary policies of the _____affects interest rates and the availability of funds. Federal Reserve An excess supply of money in the market results in monetary _____. Inflation Which agency insures deposits in banks and thrift institutions for up to $250,000? The Federal Deposit Insurance Corporation The _____ is the interest rate a reserve bank charges eligible financial institutions to borrow funds on a short-term basis. Discount rate Raising taxes and increasing borrowing are two ways at the treasury level to: Raise funds to pay for government spending The Fed uses three primary monetary policy tools to influence the cost and availability of credit: open market operations, the discount rate, and _____. Reserve requirements When the costs of production and services increase, causing manufacturing prices to rise, it is called _____. Cost-push inflation Which of the following transactions is exempt from RESPA? Temporary loans Under the _____, the use of certain terms in an advertisement triggers the need for full disclosure of lending terms. Truth in Lending Act The Dodd-Frank Wall Street Reform and Consumer Protection Act established the _____. Consumer Financial Protection Bureau How can Sylvia ensure that Victor is properly licensed as an RMLO? She can look him up in the NMLSR The secondary mortgage market was designed to provide greater liquidity to the residential real estate market, primarily by _____. The sale of mortgage loans as investments Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae requirements for purchase are called _____. Conforming loans Which of the following housing objectives does Fannie Mae address? Regional imbalances of available mortgage credit, The origination of mortgages for sale, The standardization of mortgage loans A _____ lender is one who funds mortgage loans from deposits on hand, retaining the loans long term. Portfolio is a government-sponsored enterprise with the mission of providing a secondary market for agricultural real estate mortgage loans, rural housing mortgage loans, and rural utility cooperative loans. Farmer Mac The secondary market provides greater _____ to the residential real estate market by providing a steady supply of funds from investors. Liquidity Fannie Mae operates with _____ to enhance the flow of funds through the secondary market to home buyers. Private capital The two largest issuers of Real Estate Mortgage Investment Conduits are _____ and _____. Fannie Mae and Freddie Mac Which of the following statements is INCORRECT? Ginnie Mae sells mortgage-backed securities and purchases mortgage loans. A(n) _____ is a person, corporation, or firm not otherwise in banking that provides its own funds for mortgage financing purposes. Mortgage banker Which act increased the insurance coverage on all federally insured credit union accounts up to $250,000? Dodd-Frank Wall Street Reform Act What type of property might an Equity Estate REIT purchase Office buildings, apartments, self storage A _____ is a debt instrument. Corporate bond The primary market is where _____ go to borrow money. Consumers Which of the following lends money in the primary market? Mortgage companies, commercial banks, credit unions ____ is the least common form of mortgage financing. seller financing ____ were created in the early 1800s because banks did not lend money for residential mortgages. savings and loans An easement for ingress and egress is known as a(n) _____. Encumbrance Which of the following types of liens is one that is freely given, usually as collateral for a loan? Involuntary lien Under a(n) _____, when the final payment is made to the seller, title transfers to the buyer. Special warranty deed A deed of trust is a(n) _____ instrument. Three-party The lender may also be referred to as the _____ in some deed of trust forms. Mortgagee The type of clause that allows a new borrower to take over payments on an existing loan is a(n) _____ clause. Assumption A(n) _____ clause states that the lien is defeated when the debt is repaid. Defeasance Prepayment penalties can be found in more than two-thirds of _____. Sub-prime mortgages A condition of a mortgage loan which prohibits prepayment of the loan prior to a certain date is known as a(n) _____ clause. Lock-in The basic formula for interim interest is _____. Interest x Payment Rate / 365 x # of days until the end of the month Semi-annual interest is calculated _____. Twice per year Ailene and Arnold are on a fixed income. They want to buy a home and are researching different loan options. Which type of loan would be a poor choice for the An adjustable-rate mortgage