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