Question 1

Choose the one most appropriate answer for each.
-a real estate industry nickname for the Government National Mortgage Association

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 2

The primary market is typically divided into two markets: those markets regulated by the federal government and those not regulated by the federal government.

Accepted Answer

A) True 
 B)False

Question 3

Mortgage companies tend to lend their own money and retain the loans in their portfolio.

Accepted Answer

A) True 
 B)False

Question 4

Choose the one most appropriate answer for each.
-a market where mortgage loans can be sold to investors

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 5

____________________ are sometimes a source of cash loans for real estate, with the bulk of these loans between relatives or friends.

Accepted Answer

The answer of ____________________ are sometimes a source of cash...

Question 6

To whom can a borrower turn for a direct loan for the financing of a single-family dwelling?

Accepted Answer

A)  Federal Housing Administration 
B)  Mortgage broker 
C)  Insurance company 
D)  Savings and loan institutions 
A)  Federal Housing Administration 
B)  Mortgage broker 
C)  Insurance company 
D)  Savings and loan institutions

Question 7

Choose the one most appropriate answer for each.
-charging a rate of interest higher than that permitted by law

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 8

Both fiat money and real savings represent ____________________ labor and materials.

Accepted Answer

The answer of Both fiat money and real savings represent...

Question 9

Choose the one most appropriate answer for each.
-a law signed in 1989 which provided a sweeping revision of the regulatory authorities governing savings and loans

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 10

_________________________ loans provide a "piece of the action" for insurance companies as well as more inflation protection than a fixed rate of interest.

Accepted Answer

The answer of _________________________ loans provide a "piece of the...

Question 11

Pension funds and trust funds offer money for real estate loans.

Accepted Answer

A) True 
 B)False

Question 12

A quasi-governmental agency, which was originally established to create a secondary mortgage market for FHA loans, is

Accepted Answer

A)  FNMA. 
B)  GNMA. 
C)  FHLMC. 
D)  HUD. 
A)  FNMA. 
B)  GNMA. 
C)  FHLMC. 
D)  HUD.

Question 13

The term "usury" in the field of real estate lending means charging an interest rate over and above

Accepted Answer

A)  the legal limit. 
B)  the prime rate. 
C)  10%. 
D)  20%. 
A)  the legal limit. 
B)  the prime rate. 
C)  10%. 
D)  20%.

Question 14

FNMA was organized by the federal government to buy FHA mortgage loans from lenders.

Accepted Answer

A) True 
 B)False

Question 15

From whom would a borrower obtain a VA or FHA loan?

Accepted Answer

A)  Approved mortgage lender 
B)  VA or FHA 
C)  Insurance companies 
D)  Sale of bonds 
A)  Approved mortgage lender 
B)  VA or FHA 
C)  Insurance companies 
D)  Sale of bonds

Question 16

Commercial banks are most likely to deal heavily in

Accepted Answer

A)  house boat loans. 
B)  mobile home purchase loans. 
C)  construction loans. 
D)  residential home loans. 
A)  house boat loans. 
B)  mobile home purchase loans. 
C)  construction loans. 
D)  residential home loans.

Question 17

Lenders who could be described as investing a major portion of their assets in long-term real estate loans, preferring not to service their own loans, and favoring large commercial properties would be

Accepted Answer

A)  commercial banks. 
B)  savings and loans. 
C)  mutual savings banks. 
D)  life insurance companies. 
A)  commercial banks. 
B)  savings and loans. 
C)  mutual savings banks. 
D)  life insurance companies.

Question 18

An investor can invest in mortgages by purchasing all EXCEPT

Accepted Answer

A)  Ginnie Mae pass-through certificates. 
B)  Freddie Mac participation certificates. 
C)  junior mortgages. 
D)  municipal bonds. 
A)  Ginnie Mae pass-through certificates. 
B)  Freddie Mac participation certificates. 
C)  junior mortgages. 
D)  municipal bonds.

Question 19

Choose the one most appropriate answer for each.
-a lending industry nickname for the Federal National Mortgage Association

Accepted Answer

A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury 
A) alienation clause 
B) automated underwriting systems 
C) computerized loan origination 
D) disintermediation 
E) due-on-sale clause
F)Fannie Mae
G)Farmer Mac
H)Fiat money
I)FIRREA
J)Freddie Mac
K)Ginnie Mae
L)mortgage broker
M)mortgage company
N)mortgage-backed securities
O)municipal bonds
P)participation certificates
Q)prepayment penalty
R)primary market
S)secondary mortgage market
T)usury

Question 20

Municipal bonds that provide a source of mortgage money for home buyers pay interest that is tax-free from federal income taxes.

Accepted Answer

A) True 
 B)False

Exam 12: Sources of Financing

Choose the one most appropriate answer for each. -a real estate industry nickname for the Government National Mortgage Association

The primary market is typically divided into two markets: those markets regulated by the federal government and those not regulated by the federal government.

Mortgage companies tend to lend their own money and retain the loans in their portfolio.

Choose the one most appropriate answer for each. -a market where mortgage loans can be sold to investors

____________________ are sometimes a source of cash loans for real estate, with the bulk of these loans between relatives or friends.

To whom can a borrower turn for a direct loan for the financing of a single-family dwelling?

Choose the one most appropriate answer for each. -charging a rate of interest higher than that permitted by law

Both fiat money and real savings represent ____________________ labor and materials.

Choose the one most appropriate answer for each. -a law signed in 1989 which provided a sweeping revision of the regulatory authorities governing savings and loans

_________________________ loans provide a "piece of the action" for insurance companies as well as more inflation protection than a fixed rate of interest.

Pension funds and trust funds offer money for real estate loans.

A quasi-governmental agency, which was originally established to create a secondary mortgage market for FHA loans, is

The term "usury" in the field of real estate lending means charging an interest rate over and above

FNMA was organized by the federal government to buy FHA mortgage loans from lenders.

From whom would a borrower obtain a VA or FHA loan?

Commercial banks are most likely to deal heavily in

Lenders who could be described as investing a major portion of their assets in long-term real estate loans, preferring not to service their own loans, and favoring large commercial properties would be

An investor can invest in mortgages by purchasing all EXCEPT

Choose the one most appropriate answer for each. -a lending industry nickname for the Federal National Mortgage Association

Municipal bonds that provide a source of mortgage money for home buyers pay interest that is tax-free from federal income taxes.

Nature and Description of Real Estate

Rights and Interests in Land

Forms of Ownership

Transferring Title

Recordation Abstracts and Title Insurance

Contract Law

Real Estate Sales Contracts

Mortgage and Note

Deed of Trust

Lending Practices

The Loan and the Consumer

Types of Financing

Taxes and Assessments

Title Closing and Escrow

Real Estate Leases

Real Estate Appraisal

Licensing Laws and Professional Affiliation

The Principal-Broker Relationship: Employment

The Principal-Broker Relationship: Agency

Fair Housing, Ada, Equal Credit, and Community Reinvestment

Condominiums, Cooperatives, Puds, and Timeshares

Property Insurance

Land-Use Control

Real Estate and the Economy

Investing in Real Estate

Filters