Which is NOT an agency that deals (buys loans) in the secondary market?
- Government National Mortgage Association
- Federal Home Loan Mortgage Corporation
- Federal Housing Administration
- Federal National Mortgage Association
Federal Housing Administration
_______________ guaranty allows mortgage lenders to obtain a better price for their mortgage loans in the secondary market. The lenders can then use the proceeds to make new mortgage loans available.
- Government National Mortgage Association (GNMA)
- The Real Estate Settlement Procedures Act (RESPA)
- The Department of Housing and Urban Development (HUD)
- The Department of Veteran’s Affairs (VA)
Government National Mortgage Association (GNMA)
The VA benefit from the Department of Veteran’s Affairs for a veteran approved home loan guarantees that
- the veteran will make the scheduled payments.
- the property cannot be foreclosed.
- all loans made to veterans are affordable.
- the loan, or a portion of it, made by an approved lending institution will be paid.
the loan, or a portion of it, made by an approved lending institution will be paid.
Which agency administers RESPA?
- Consumer Federal Protection Bureau (CFPB)
- Consumer Federal Consumer Board (CFCB)
- Consumer Financial Protection Bureau (CFPB)
- Consumer Financial Credit Bureau (CFCB)
Consumer Financial Protection Bureau (CFPB)
The primary distinction between the primary and secondary mortgage market is what?
- The primary market is not active in the origination of mortgage loans.
- The secondary market is fundamentally a holding or warehousing process.
- The homeowner can get a mortgage from either the primary or secondary market.
- Only lenders can get loans in the primary market.
The secondary market is fundamentally a holding or warehousing process.
Which law requires lenders to disclose to buyers the true cost of obtaining credit so that the borrower can compare the costs of various lenders?
- TRID
- ECOA
- TIL
- HMDA
TIL
A developer would MOST LIKELY obtain which type of mortgage on a new subdivision?
- Open end mortgage
- Package mortgage
- Blanket mortgage
- Wrap around mortgage
Blanket mortgage
A lender generally charges discount points on an FHA loan to
- provide greater interest yield to the investor.
- provide a competitive rate.
- fill the gap between the lender rate and the fixed rate.
- increase the availability of loan funds.
provide greater interest yield to the investor.
__________ mission is to increase homeownership, support community development, and increase access to affordable housing free from discrimination.
- FNMA’s
- GNMA’s
- HUD’s
- FHLMC’s
HUD’s
An FHA mortgage is obtained through
- any qualified lending institution.
- any government agency.
- FHA.
- VA.
any qualified lending institution
What kind of a loan would be fully paid out over the life of the loan?
- Fully amortized
- Straight term mortgage
- Balloon loan
- Package loan
Fully amortized
___________________________ ensures that all consumers are given an equal chance to obtain credit. This doesn’t mean all consumers who apply for credit get it; factors such as income, expenses, debt, and credit history are considerations for creditworthiness.
- The Equal Credit Opportunity Act (ECOA)
- The Real Estate Settlement Procedures Act (RESPA)
- The Truth in Lending Law
- Regulation Z
The Equal Credit Opportunity Act (ECOA)
The basic difference between an FHA and a VA loan is
- FHA guarantees loans; VA insures them.
- FHA insures loans, VA guarantees them.
- both require 20% down payment.
- FHA requires no down payment; VA requires 5% down payment.
FHA insures loans, VA guarantees them.
The amount of a loan expressed as a percentage of the value of the real estate offered as security is the
- loan balance.
- amortization.
- loan to value ratio.
- interest rate.
loan to value ratio.
According to the TRID rule, lenders must give a copy of which booklet to every person at the time of application for a loan?
- Your home loan toolkit
- Your credit history toolkit
- Your first home purchase toolkit
- Your home mortgage kit
Your home loan toolkit
Which mortgage allows a person to buy a home with no money down?
- Conventional insured
- Conventional
- FHA
- VA
VA
In making a home mortgage loan, a lender would consider all EXCEPT
- other financial obligations of the borrower.
- appraised value of the property pledged as security.
- interest rate.
- financial need of the borrower.
financial need of the borrower.
A veteran had a VA loan using his full entitlement. He allows another veteran to assume the loan without VA approval. Could he immediately get another VA loan?
- Yes, because another veteran assumed the loan.
- Yes, because he is no longer liable for the loan.
- No, because he cannot use VA eligibility more than once.
- No. He is still liable for the loan.
No. He is still liable for the loan.
For a veteran to obtain a VA loan, the VA must issue a certificate of
- eligibility.
- entitlement.
- endorsement.
- enterprise.
eligibility.
Which of these organization’s public mission and defining goal is to help more families achieve the American Dream of homeownership?
- Government National Mortgage Association.
- Federal National Mortgage Association.
- The National Low Income Housing Coalition.
- The Department of Veteran’s Affairs.
Federal National Mortgage Association.
A final payment of a mortgage loan that is considerably larger than the other monthly payments because the loan was not fully amortized describes a(n)
- wraparound mortgage.
- balloon mortgage.
- amortized mortgage.
- adjustable mortgage.
balloon mortgage.
_________________ was created to stabilize the nation’s mortgage markets and expand opportunities for homeownership and affordable rental housing.
- Government National Mortgage Association (GNMA)
- The National Low Income Housing Coalition (NLIHC)
- The Department of Housing and Urban Development (HUD)
- The Department of Veteran’s Affairs (VA)
The Department of Housing and Urban Development (HUD)
Buyer Carr went to get an FHA loan because rates were significantly below the current market rate for conventional loans. The loan requires 3 discount points because it is below market rates. Which BEST describes this situation?
- Points can be charged to either the buyer or seller.
- Points can be charged only to the buyer.
- Points can only be charged to the seller.
- No points are allowed on an FHA loan.
Points can be charged to either the buyer or seller.
A man had a loan for $60,000 and he had to pay 2.5 points. How much would he have to pay in cash?
- $150
- $1,000
- $1,500
- $3,000
$1,500
