Học Thi Real Estate License ở California: Real Estate Lenders, FHA, VA, CALVET Loans, and the Secondary Mortgage Market 1. An advantage of FHA financing is not that it: provides for a low down payment protects the buyer with FHA insurance provides loans for people for whom other loans are not possible provides long-term loans and thus lower payments None Hint 2. As to loan brokers, which of the following is true? balloon payments are not allowed commissions are regulated for all broker loans none of these is true credit life insurance can be required None 3. A lender on a note signed by multiple borrowers would prefer that their liability be: several individual joint joint and several None Hint 4. A borrower has a gross monthly income of $3,400. The borrower wishes to obtain a loan in which the mortgage payment including taxes and insurance will be $950. The front-end ratio would be: 35.7 percent 24 percent 26.7 percent 28 percent None Hint 5. A loan-t0-value ratio is best described as: the ratio of the loan to the sale price the ratio of the loan amount to its selling price on teh secondary mortgage market the ratio of the loan to the appraisal none of these None 6. "It is now operating under a conservatorship" describes: Fannie Mae CALHFA HUD CALVET None Hint 7. William, whose credit is good, wants to buy a small business. He is a good customer of the bank where he heeps his account. The business he wants to buy is a reasonable one to make money. Who will most likely be the lender? a mortgage loan company a state savings and loan bank a federal savings and loan association his bank None Hint 8. An advantage of FHA financing to the buyer is: minimum property requirements (MPR) all of these elimination of short-term financing inclusion of local taxes in the monthly payments None 9. Which of the following is corect? the FHA prepayment penalty is six percent the VA prepayment penalty is one percent the California Department of Veterans Affairs charges a one-percent penalty for loans prepaid within two years none of these is correct None Hint 10. The lender's best protection would be: the income of the borrower the credit of the borrower the value of the property a term insurance policy on the life of the borrower None Hint 11. Who pays for Mutual Mortgage Insurance? all of these the purchaser under an FHA loan the purchaser under a VA loan the purchaser under a CALVET loan None 12. In buying a home for rental use, a borrower would not obtain: an FHA loan a VA loan either b or c a CALVET loan None Hint 13. A substantial down payment in real estate: results in less danger of default normally ensures that the property will be well maintained all of these results in better loan terms None 14. In California most of the real estate syndicates are: real estate investment trusts general partnerships corporations limited partnerships None 15. The government is actually the lender of: an FHA loan a VA loan a CALVET loan all of these None Hint 16. A seller insists on $280,000 as a sales price. The buyer can obtain an FHA loan of $270,000 but has only $6,000 down. The broker should: take a second trust deed for her commission suggest to the seller that he take a second trust deed from the buyer arrange secondary financing forget the deal None Hint 17. A mortgage loan correspondent would be regulated primarily by: city ordinance federal regulations the Federal Trade Commission state laws and regulations None 18. A prospective homebuyer is interested in a home that will have a PITI payment of $1,800. His gross monthly income is $7,600. The buyer has long term debt payments of $1,420 per month. What is his back-end ratio? 38% 36.1% 42.3% 44.6% None Hint 19. A borrower obtained a haft-million dollar home purchase loan at a low rate without a down payment. He likely went to: FHA an insurance company a mortgage broker CALVET None Hint 20. A lending institution might make a government-insured or goverment guaranteed loan rather than a conventional loan at higher interest because of: easier foreclosure lower risk all of these longer loans None Hint 21. Which loan is available for registered domestic partners? VA FHA CALVET HUD None 22. As to mortgage brokers and mortgage bankers, which of the following is true? neither a nor is true neither deal in the primary mortgage market mortgage bankers use their own funds, while mortgage brokers seldom do so both a and b are true None 23. The major purpose for which the Federal National Mortgage Association (FNMA) was created was to: make secondary financing more readily available encourage lenders to make home loans provide uniformity as to construction standards provide public housing for low-income people None Hint 24. A broker should direct a buyer on an offer contingent on an FHA loan to: a HUD-approved lender Fannie Mae Ginnie Mae the FHA None Hint 25. Which of the following is true? a firm is licensed to deal either in the primary or in the secondary mortgage market but not both secondary financing is normally handled through the secondary mortgage market mortgage loan correspondents deal primarily in the secondary mortgage market the primary mortgage market is where first trust deeds are sold None Hint 26. A veteran wishes to refinance her home with a VA loan. The lender is willing but insists on 31/2 points. the veteran can be required to pay a maximum of 1 point as an origination fee VA loans are available for purchase, not refinancing the veteran can refinance with a VA loan providing there are no points the veteran may pay the points None Hint 27. Albert lost his job but his house payments were made for him because he had a: VA loan CALHFA loan CALVET loan FHA loan None Hint 28. In considering the liquidity of its mortgage portfolio, a lender would be realating to: the ratio of performing and nonperforming loans secondary market sales the average loan-to-value ratio of the portfolio the average holding period before loans are refinanced None Hint 29. The property is usually in close proximity; small loans and business loans are preferred; and the past record of the customer is important. What type of lender does the preceding description represent? bank mortgage company insurance company savings and loan None 30. Mutual savings banks are located primarily in the __ part of the United States. northeastern southeastern southwestern northwestern None 31. The primary advantage that an FHA loan offers to an institutional lender over a conventional loan is: shorter processing time a shorter maturity date a higher yield FHA insurance None Hint 32. A number of people wish to invest money only in a real estate project but wish to limit their liability. They would form a: any of these limited partnership real estate investment trust corporate syndicate None Hint 33. The term impounds refers to: title insurance prepayment penalties reserves late fees None Hint 34. FHA mortgage insured loans are made by: Fannie Mae HUD either a or b mortgage companies and banks None 35. A buyer wishes to obtain a loan on a house and assume the bonded indebtedness. Which of the following would be true? the maximum loan would be less than if there were no bond the bond indebtedness could not be assumed the maximum loan would be increased because of the bond the existence of the bond would have no effect on the loan None Hint 36. If appraisal on a VA loan is less than the purchase-price agreement: both a and b are true the buyer may rescind the buyer must increase the down payment the seller must lower the price None Hint 37. The highest interest rate is most likely to be charged by: individual lenders of cash banks savings and loan associations insurance companies None Hint 38. Which of the following is not a description of FHA loans? housing only guaranteed high loan to value ratio amortized None Hint 39. Rental housing loans are available through: FHA VA CALHFA CALVET None Hint 40. The amount of a VA loan is limited to: no limit $60,000 $22,500 $36,000 None Hint 41. Title is held under a CALVET loan by: the State of California the buyer the trustor the Veterans Administration None Hint 42. In evaluating a man's income for a loan, the least weight would be given to: his wife's income his investment earnings his overtime earnings his earnings from a part-time job None Hint 43. A borrower has a gross monthly income of $3,400. The borrower wishes to obtain a loan in which the mortgage payment including taxes and insurance will be $950. The borrower is making long term debt payments of $350 per month. The back-end ratio would be: 38 percent 40 percent 34 percent 36 percent None Hint 44. Disintermediation refers to: a course of logical appraisal a snap decision not based on fact a sudden withdrawal of savings from lending institutions by depositors a buildup of funds in savings as people cut spending None Hint 45. A broker aided a buyer in the preparation of fraudulent income statements in order to qualify for a bank loan. This would: neither a nor b both a and b place the broker's license in jeopardy be a federal crime None Hint 46. On a $45,000 loan, the VA guarantee would be: $22,500 $46,000 90 percent 100 percent None Hint 47. A CRV would be needed for a(n) ___ loan. FHA all of these VA conventional None Hint 48. A veteran is purchasing a home under the California Veterans Farm and Home Purchase Program. Who would be designated the grantee in the grant deed given by the seller? the veteran buyer the title company the Veterans Administration the California Department of Veterans Affairs None Hint 49. The function of Ginnie Mae do not include: guarantees for mortgage-backed securities insuring housing loans management and liquidation functions the Tandem Plan for special assistance None Hint 50. With a monthly gross income of $3,800, loan payment (PITI) of $1,142, and long term monthly debt obligations of $340, the back end ratio would be: 39 percent 38 percent 41 percent 40 percent None Hint 51. A lender who sells the loans it makes is likely: CALVET a life insurance company CALHFA a mortgage company None 52. A government agency that issues mortgage-backed securities would be: all of the above Ginnie Mae Freddie Mac Fannie Mae None Hint 53. Which type of property has the highest loan-to-value ratio? improved residential property commercial property unimproved residential lots industrial property None Hint 54. Title I FHA loans: may be used to purchases of multiple units are property improvement loans are only for purchases of homes none of these None 55. A buyer was able to get down payment assistance as well as a below market rate of interest. Where did she obtain this loan? FHA CALHFA VA CALVET None 56. A borrower did not have a sufficient down payment for an FHA loan. The broker loaned the buyer $1,000 on a personal note in order for the buyer to complete this transaction. This loan: has subjected the broker to criminal penalties both a and b has placed the broker's license in jeopardy neither a nor b None Hint 57. An advantage of a government-insured loan compared with a conventional loan would not be a: shorter processing time lower interest rate higher loan to value ratio longer term and lower monthly payment None Hint 58. After a borrower pays off a CALVET loan by: a grant deed none of these a deed of reconveyance a satisfaction None Hint 59. Their loans are all variable rate. What agency is this? Freddie Mac FHA CALVET CALHFA None Hint 60. Which of the following loans is not available for the purchase of a farm? VA FHA CALVET conventional None Hint 61. A CALVET/VA loan differs from other CALVET loans in that it can be obtained: without an appraisal with no loan costs without a down payment for rental property None Hint 62. FICO refers to: mortgage insurance blind pool credit score front-end ratio None 63. Life and disability insurance must be purchased by a borrower under a(n) ___ loan. conventional VA FHA CALVET None 64. An insurance company is least likely to make a loan on a(n): apartment complex shopping center factory building older home None Hint 65. A construction loan would most likely be made by: the Veterans Administration an insurance company a bank FNMA None Hint 66. When are the premiums paid on the insurance for an FHA loan? neither a nor b up front both a and b with payments None 67. A low loan to value ratio would be indicative of: CALVET financing a large down payment a government insured loan low buyer equity None 68. Insurance companies, in givin real estate loans: can lend only within 100 miles of their headquarters make large loans are concerned primarily with secondary financing generally make only small loans to spread the risk None 69. As a general rule, the difference between individual and institutional lenders is that individual lenders: give loans for shorter periods charge lower interest are more likely to giv amortized loans make larger loans than institutional lenders None Hint 70. Which of the following is true? Fannie Mae provides a secondary mortgage market for FHA and VA loans FNMA is a private corporation under government conservatorship all of these Ginnie Mae is involved in federally assisted housing projects and guarantees FNMA securities None 71. Both FHA and VA loans cover: renter and owner occupied premises business and home loans none of these farm and home loans None 72. The source of money for most home loans by institutional lenders is: federal funds individual and family savings bond issues business profits None Hint 73. Which of the following is not a characteristic of VA loans? guaranteed housing or farm property lower interest rates than conventional loans rental units allowed None Hint 74. Which of the following is an open-end loan? FHA none of these VA CALVET None Hint 75. Which of the following is not a general characteristic of loan broker-arranged secondary financing? short term noninstitutional lender amortized high interest None Hint 76. Under federal law, a real estate trust must have: none of these a corporate charter 100 or more investors under 100 investors None 77. A prospective homebuyer is interested in a home that will have a PITI payment of $1,800. His gross monthly income is $7,600. What is his front-end ratio? 23.6% 12.1% 36% 28% None Hint 78. CALVET loans are made from: federal grants state surplus funds money received from bonds federal loans to the state None Hint
