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