Real Estate Financing and Settlement UPDATED ACTUAL Questions and CORRECT Answers
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Course
Real Estate Financing and Settlement
Institution
Real Estate Financing And Settlement
Real Estate Financing and Settlement
UPDATED ACTUAL Questions and
CORRECT Answers
On a real estate closing transaction involving an exclusive right-to-sell listing, the
commission is a debit to the - CORRECT ANSWER- seller; The commission is a seller's
obligation (debit) and is never a cred...
Real Estate Financing and Settlement
UPDATED ACTUAL Questions and
CORRECT Answers
On a real estate closing transaction involving an exclusive right-to-sell listing, the
commission is a debit to the - CORRECT ANSWER✔✔- seller; The commission is a seller's
obligation (debit) and is never a credit.
Which lender uses its own funds to fund loans that will be sold in the secondary mortgage
market? - CORRECT ANSWER✔✔- Mortgage banker; Mortgage brokers seldom use their
own funds. The VA only guarantees loans.
A buyer would have to seek new financing if the seller's existing loan.. - CORRECT
ANSWER✔✔- contained an alienation clause; an alienation clause is a due-on-sale clause
that prohibits loan assumption.
A tenant in a foreclosed property was on a month-to-month tenancy. If the new owner wants
the tenant to vacate, how long of notice should be given? - CORRECT ANSWER✔✔- 90
days; If tenant was on a lease, then tenancy continues until the lease expires unless the owner
wants to occupy the unit.
The three parties to a trust deed are - CORRECT ANSWER✔✔- Trustor, trustee,
beneficiary; Trustor is the borrow and trustee holds title to protect the beneficiary.
What kind of loan provides that a borrower's loan eligibility benefits are restored when the
loan is paid off? - CORRECT ANSWER✔✔- VA loan; VA loan include certificate of
eligibility, appraisal and a certificate of reasonable value.
An example of negative amortization is a loan - CORRECT ANSWER✔✔- where the
payments are insufficient to cover the loan interest.; the loan balance increases each month.
What is not a characteristic of a qualified mortgage? - CORRECT ANSWER✔✔- An option
ARM; an option ARM is not amortized, which is a requirement
, Seller financing where the seller takes back a loan written for the amount of existing loans
plus part or all of the seller's equity is called - CORRECT ANSWER✔✔- A wraparound
mortgage; The seller benefits by an interest higher than that provided by the existing low-
interest loans.
MERS (Mortgage Electronic Registration System) refers to - CORRECT ANSWER✔✔- A
private mortgage database; A private firm that maintains a central mortgage database and
holds mortgage notes.
First notice of foreclosure cannot be issued until the homeowner is delinquent for -
CORRECT ANSWER✔✔- 120 days; part of the Dodd-Frank act.
What is the fund source for loans made by commercial banks? - CORRECT ANSWER✔✔-
Deposits;
A lender charged an illegal rate of interest. This is called - CORRECT ANSWER✔✔- Usury;
a rate that exceeds a statutory limit.
An elderly couple has difficulty paying their expenses although they own their home free and
clear. A solution to their problem, without requiring them to move, is.. - CORRECT
ANSWER✔✔- A reverse-annuity mortgage; They could recieve payments as with an annuity
Reverse-Annuity Mortgage (RAM) or reverse mortgage - CORRECT ANSWER✔✔-
Owners borrow against the equity of their homes by receiving monthly payments. This
mortgage provides a means for elderly people to keep their homes. The mortgage is paid off
when the mortgagors die or when the property is sold.
What lender may consider making a loan to a person who had a poor credit and job history? -
CORRECT ANSWER✔✔- A subprime lender; Charges high cost for funds to offset greater
risk.
The activities of Fannie Mae include - CORRECT ANSWER✔✔- Purchasing mortgages
originated by others; active in the secondary mortgage market
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