Chapter 10-The Residential Lending Process Flashcards Preview

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Flashcards in Chapter 10-The Residential Lending Process Deck (20)
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1

____ is the payment of discount points to reduce the interest rate on a buyer's loan

a buydown

2

RESPA is a federal law that:

  • -governs residential real estate closings
  • -requires institutional lenders to make disclosures regarding closing costs to loan applicants
  • -requires escrow agents to prepare a closing disclosure
  • -all of the above

all of the above

 

  • -governs residential real estate closings
  • -requires institutional lenders to make disclosures regarding closing costs to loan applicants
  • -requires escrow agents to prepare a closing disclosure
  • -all of the above

3

Loans that meet the standard requirements of the secondary mortgage market are known as

conforming loans

4

APR refers to

the annual percentage rate after all finance charges have been applied

5

the relationship, expressed as a percentage between the loan amount and the sales price or appraised value of the property (whichever is less) is the

loan-to-value ration

6

The truth in lending act is implemented by

regulation z

7

A REIT is

an unincorporated associate of real estate investors

8

a loan structured to gradually pay off the entire loan debt by regular installment payments of principal and interest is known as a

fully amortized loan

9

when a property is being purchased by a veteran wanting to finance the property with a VA loan, the veteran must be in possession of a ____ obtained from the department of veterans affairs

certificate of eligibility

10

in an adjustable rate mortgage, the difference between the index rate and interest rate charged to the borrower is known as the _____

margin

11

a percentage amount of a loan charged at the beginning of the loan to increase the lender's yield is called

discount points

12

Conventional loans with a loan-to-value ratio that exceeds 80% generally require

private mortgage insurance

13

The california state-sponsored residential finance program for veterans is called the

california veterans farm and home purchase program

14

a conforming loan is a

loan that meets the standard requirements to be offered for sale on the secondary market

15

a cal-vet loan:

  • -may offer the veteran the option to purchase life insurance
  • -has established maximum loan amounts that vary from county to county
  • -is owned and serviced by the California Department of Veterans affairs
  • -all of the above

all of the above

 

  • -may offer the veteran the option to purchase life insurance
  • -has established maximum loan amounts that vary from county to county
  • -is owned and serviced by the California Department of Veterans affairs
  • -all of the above

16

the department of veterans affairs will issue a ____ based on the results of an appraisal by a VA appraiser

certificate of reasonable value (CRV)

17

Generally, FHA loans (check all that apply)

  • -have less stringent qualifying guidelines
  • -require MIP
  • -are funded by the FHA

  • -have less stringent qualifying guidelines
  • -require MIP

18

when the interest rate charge to the borrower is adjusted at specified intervals, the payment

will increase or decrease along with the interest rate

19

a mortgage broker

brings lenders and borrowers together

20

which of the following loans are generally assumable, under specified conditions, by any buyer? (check all that apply)

  • cal-vet loans
  • va loans
  • fha loans

  • va loans
  • fha loans