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AZ Real Estate (ASREB) 5/2017 > A7 > Flashcards

Flashcards in A7 Deck (35)
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1

When a borrower is qualifying for a VA guaranteed loan, what would not apply?

PMI

(Funding fee, certificate of reasonable value, and certificate of reasonable value all relate to VA loans. PMI does not)

2

FHA Title I was created for what reason?

Home Improvement loans

3

The interest on a conventional loan is?

Simple

4

The total amount of the VA guaranteed loan entitlement is?

Determined by Congress

5

A veteren wishes to place a refinance loan on his existing home with a VA loan. The lender will make the loan at 10% and 2 points. What is true.

The veteran may take the loan and pay the points.

6

Is US citizenship required for an FHA insured loan

No, US citizenship is not required

7

The maximum VA loan limit is?

Determined by the lender

8

PMI covers?

Portion of the loan over 80%

9

When a variable rate loan quotes a specific margin, what is true?

The margin is set at the time of the loan

10

The main appeal of FHA loans to the borrower is?

Minimum down payment

11

A variable rate loan is characterized by what?

amortized payments

12

The back-end ratio of a loan would apply to what?

Total monthly obligations divided by gross monthly income

13

When a lender is allowed to determine if a borrower qualifies for FHA insurance the process is called?

Direct Endorsement

14

According to RESPA a lender must disclose what?

If the loan will be sold

15

Which law requires Disclosure of Affiliated Businesses?

RESPA

16

Which law pertains to NO BAIT AND SWITCH advertising

Truth in Lending

17

Which law restricts kickbacks and referrals?

RESPA

18

What is a lender required to give a borrower under RESPA?

Loan estimate and the closing disclosure

19

Who is responsible to deliver the RESPA information to the buyer?

Lender

20

When a new VA loan is created, who pays for the Tax Service Fee

Seller

21

When a buyer obtains a new VA loan, who pays for the document preparation fee?

Seller

22

What must show on a settlement sheet according to RESPA?

Origination fee

23

Which law would govern residential close of escrow disclosures?

Real Estate Settlement Procedures Act

24

When a borrower is qualifying for a VA guaranteed loan, what would not apply?

PMI

25

When a borrower takes a variable rate mortgage, what is true regarding the margain

It remains constant for the life of the loan

26

What would not be covered by Regulation Z

Seller carryback financing

27

What is the most frequently used FHA insured loan?

203B

28

Interest paid on an amortized real estate mortgage is paid...

in arrears

29

APR is regulated by what?

Reg Z

30

According to Reg Z and RESPA what is not prorated in escrow?

Title Insurance