Học Thi Real Estate License ở California: Real Estate Lenders, FHA, VA, CALVET Loans, and the Secondary Mortgage Market Dat Hoang April 5, 2020 No Comments 1. When are the premiums paid on the insurance for an FHA loan? both a and b with payments up front neither a nor b 2. 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 mortgage loan correspondents deal primarily in the secondary mortgage market secondary financing is normally handled through the secondary mortgage market the primary mortgage market is where first trust deeds are sold HintThey handle sales of existing loans. 3. 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 arrange secondary financing suggest to the seller that he take a second trust deed from the buyer take a second trust deed for her commission HintOr get the seller to lower the price. 4. 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% HintQualifies. 5. As to mortgage brokers and mortgage bankers, which of the following is true? mortgage bankers use their own funds, while mortgage brokers seldom do so both a and b are true neither deal in the primary mortgage market neither a nor is true 6. A lending institution might make a government-insured or goverment guaranteed loan rather than a conventional loan at higher interest because of: longer loans all of these easier foreclosure lower risk HintThe loan is insured or guaranteed. 7. Under federal law, a real estate trust must have: none of these a corporate charter 100 or more investors under 100 investors 8. After a borrower pays off a CALVET loan by: a deed of reconveyance a satisfaction a grant deed none of these HintSince the state-held title. 9. Their loans are all variable rate. What agency is this? CALHFA CALVET Freddie Mac FHA HintInterest can be adjusted. 10. A mortgage loan correspondent would be regulated primarily by: federal regulations the Federal Trade Commission state laws and regulations city ordinance 11. 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 HintNo down payment up to $521,250. 12. Which of the following is not a description of FHA loans? guaranteed housing only amortized high loan to value ratio HintThe FHA insures loan. 13. Which type of property has the highest loan-to-value ratio? improved residential property unimproved residential lots commercial property industrial property HintUnimproved is the lowest. 14. 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? 44.6% 36.1% 42.3% 38% HintDoes not qualify. 15. An advantage of a government-insured loan compared with a conventional loan would not be a: lower interest rate shorter processing time longer term and lower monthly payment higher loan to value ratio HintA government loan often takes longer. 16. Which of the following is corect? the California Department of Veterans Affairs charges a one-percent penalty for loans prepaid within two years the FHA prepayment penalty is six percent none of these is correct the VA prepayment penalty is one percent HintNo pelnaty. 17. A CRV would be needed for a(n) ___ loan. all of these FHA VA conventional HintCertificate of Reasonable Value. 18. 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 40 percent 39 percent 38 percent HintDivide gross income into PITI + monthly debt payments. 19. 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 HintAll of these provide limited liability. 20. 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 veteran buyer the Veterans Administration HintThe state takes title. 21. The major purpose for which the Federal National Mortgage Association (FNMA) was created was to: encourage lenders to make home loans provide uniformity as to construction standards make secondary financing more readily available provide public housing for low-income people HintIt provides a secondary mortgage market. 22. The primary advantage that an FHA loan offers to an institutional lender over a conventional loan is: a shorter maturity date shorter processing time a higher yield FHA insurance HintLower risk. 23. Insurance companies, in givin real estate loans: generally make only small loans to spread the risk are concerned primarily with secondary financing make large loans can lend only within 100 miles of their headquarters 24. Title I FHA loans: are property improvement loans none of these may be used to purchases of multiple units are only for purchases of homes 25. 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 HintFor investments elsewhere. 26. The function of Ginnie Mae do not include: insuring housing loans guarantees for mortgage-backed securities management and liquidation functions the Tandem Plan for special assistance HintThis is an FHA fuction. 27. "It is now operating under a conservatorship" describes: HUD CALHFA CALVET Fannie Mae HintAs is Freddie Mac. 28. An advantage of FHA financing is not that it: protects the buyer with FHA insurance provides long-term loans and thus lower payments provides loans for people for whom other loans are not possible provides for a low down payment HintThe insurance protects the lender. 29. A buyer was able to get down payment assistance as well as a below market rate of interest. Where did she obtain this loan? CALHFA CALVET FHA VA 30. Which of the following is an open-end loan? VA FHA none of these CALVET HintIt can be increased. 31. The term impounds refers to: title insurance prepayment penalties late fees reserves HintFor taxes and insurance. 32. 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 34 percent 36 percent 40 percent HintAdd debt payment to PITI. 33. 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 place the broker's license in jeopardy both a and b be a federal crime HintDefrauding a federally insured institution. 34. Who pays for Mutual Mortgage Insurance? all of these the purchaser under a VA loan the purchaser under a CALVET loan the purchaser under an FHA loan 35. A CALVET/VA loan differs from other CALVET loans in that it can be obtained: with no loan costs for rental property without a down payment without an appraisal HintFor up to $521,250. 36. In California most of the real estate syndicates are: limited partnerships real estate investment trusts corporations general partnerships 37. An insurance company is least likely to make a loan on a(n): older home apartment complex factory building shopping center HintSeldome on single home. 38. As to loan brokers, which of the following is true? commissions are regulated for all broker loans balloon payments are not allowed credit life insurance can be required none of these is true 39. A low loan to value ratio would be indicative of: a government insured loan CALVET financing low buyer equity a large down payment 40. CALVET loans are made from: federal grants state surplus funds federal loans to the state money received from bonds HintTax-exempt state bonds. 41. Rental housing loans are available through: CALHFA FHA CALVET VA HintOthers are for owner-occupied. 42. A broker should direct a buyer on an offer contingent on an FHA loan to: a HUD-approved lender Ginnie Mae Fannie Mae the FHA HintWho can directly endorse the loan. 43. The lender's best protection would be: the credit of the borrower the income of the borrower the value of the property a term insurance policy on the life of the borrower HintAs security for the loan. 44. In buying a home for rental use, a borrower would not obtain: either b or c an FHA loan a CALVET loan a VA loan HintBuyer occupancy is required. 45. FHA mortgage insured loans are made by: either a or b mortgage companies and banks HUD Fannie Mae 46. An advantage of FHA financing to the buyer is: minimum property requirements (MPR) elimination of short-term financing all of these inclusion of local taxes in the monthly payments 47. On a $45,000 loan, the VA guarantee would be: 100 percent $46,000 90 percent $22,500 Hint50 percent up to $45,000. 48. In evaluating a man's income for a loan, the least weight would be given to: his overtime earnings his investment earnings his earnings from a part-time job his wife's income HintNext least is answer d. 49. 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 his bank a state savings and loan bank a federal savings and loan association HintBanks like business loans. 50. The source of money for most home loans by institutional lenders is: individual and family savings bond issues business profits federal funds HintWith institutional lenders. 51. Both FHA and VA loans cover: farm and home loans none of these renter and owner occupied premises business and home loans 52. A construction loan would most likely be made by: a bank FNMA an insurance company the Veterans Administration HintBanks prefer the short term and higher interest. 53. In considering the liquidity of its mortgage portfolio, a lender would be realating to: the average holding period before loans are refinanced the ratio of performing and nonperforming loans secondary market sales the average loan-to-value ratio of the portfolio HintConversion of loans to cash. 54. 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 HintOwner occupancy is required. 55. Mutual savings banks are located primarily in the __ part of the United States. southeastern southwestern northeastern northwestern 56. Which of the following is true? Ginnie Mae is involved in federally assisted housing projects and guarantees FNMA securities FNMA is a private corporation under government conservatorship all of these Fannie Mae provides a secondary mortgage market for FHA and VA loans 57. A lender on a note signed by multiple borrowers would prefer that their liability be: several joint individual joint and several HintCan collect from one or all. 58. The government is actually the lender of: an FHA loan a VA loan a CALVET loan all of these HintThe state buys the property, then resells it to the veteran. 59. 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 VA loans are available for purchase, not refinancing the veteran may pay the points the veteran can be required to pay a maximum of 1 point as an origination fee HintPoints are negotiable. 60. Which of the following is not a general characteristic of loan broker-arranged secondary financing? high interest noninstitutional lender short term amortized HintPartially amortized (balloon payment). 61. A substantial down payment in real estate: results in better loan terms results in less danger of default normally ensures that the property will be well maintained all of these 62. As a general rule, the difference between individual and institutional lenders is that individual lenders: give loans for shorter periods are more likely to giv amortized loans make larger loans than institutional lenders charge lower interest HintOften with balloon payments. 63. 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 26.7 percent 28 percent 24 percent HintPITI / monthly gross. 64. FICO refers to: blind pool credit score mortgage insurance front-end ratio 65. The highest interest rate is most likely to be charged by: banks savings and loan associations insurance companies individual lenders of cash HintHard money. Noninstitutional lenders. 66. Life and disability insurance must be purchased by a borrower under a(n) ___ loan. CALVET FHA VA conventional 67. 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 existence of the bond would have no effect on the loan the maximum loan would be increased because of the bond the maximum loan would be less than if there were no bond HintThe bond reduces equity. 68. Title is held under a CALVET loan by: the trustor the Veterans Administration the State of California the buyer HintThe state sells the property on a land contract. 69. The amount of a VA loan is limited to: $36,000 no limit $60,000 $22,500 HintThe guarantee is limited. 70. A government agency that issues mortgage-backed securities would be: Ginnie Mae Fannie Mae all of the above Freddie Mac HintAdds mortgage liqquidity. 71. 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 bank mortgage company insurance company 72. A loan-t0-value ratio is best described as: the ratio of the loan to the sale price 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 73. A lender who sells the loans it makes is likely: CALHFA CALVET a life insurance company a mortgage company 74. Which loan is available for registered domestic partners? CALVET FHA VA HUD 75. Which of the following loans is not available for the purchase of a farm? FHA CALVET conventional VA HintHousing only. 76. If appraisal on a VA loan is less than the purchase-price agreement: the buyer must increase the down payment both a and b are true the seller must lower the price the buyer may rescind HintAnswers a and b are possible, but not mandatory. 77. Albert lost his job but his house payments were made for him because he had a: CALHFA loan CALVET loan VA loan FHA loan HintFor up to six months. 78. 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 both a and b neither a nor b has subjected the broker to criminal penalties HintFederal crime.