Question 1

There is no limit to the cost of a home under the Farmer Mac program.

Accepted Answer

A) True 
 B)False

Question 2

Usury laws are established by the federal statutes.

Accepted Answer

A) True 
 B)False

Question 3

FHLMC was formed primarily to provide a secondary market for

Accepted Answer

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

Question 4

Loan contracts sometimes call for a ____________________ penalty in return for giving the borrower the right to repay the loan early.

Accepted Answer

The answer of Loan contracts sometimes call for a ____________________...

Question 5

Deregulation of the lending industry had little or no effect on savings and loan institutions.

Accepted Answer

A) True 
 B)False

Question 6

With regard to real estate loans, life insurance companies tend to favor

Accepted Answer

A)  single family houses. 
B)  interim construction loans. 
C)  large commercial buildings. 
D)  not being involved in real estate. 
A)  single family houses. 
B)  interim construction loans. 
C)  large commercial buildings. 
D)  not being involved in real estate.

Question 7

_________________________ results when depositors take money out of their savings accounts and invest directly in government securities, corporate bonds, and money market funds.

Accepted Answer

The answer of _________________________ results when depositors take money out...

Question 8

Which of the following sources provides the most home mortgage money in the United States?

Accepted Answer

A)  Mutual savings banks 
B)  Commercial banks 
C)  Credit unions 
D)  Mortgage companies 
A)  Mutual savings banks 
B)  Commercial banks 
C)  Credit unions 
D)  Mortgage companies

Question 9

____________________ certificates allow a mortgage originator to deliver to Freddie Mac either whole mortgages or part interest in a pool of whole mortgages.

Accepted Answer

The answer of ____________________ certificates allow a mortgage originator to...

Question 10

Choose the one most appropriate answer for each.
-the market in which lenders originate loans and make funds available to borrowers

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 11

Choose the one most appropriate answer for each.
-securities issued, backed by the mortgages securing the loans and the full faith of the federal government

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 12

Choose the one most appropriate answer for each.
-penalty for paying a loan off prior to maturity

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 13

One of the primary reasons for the decline in loan demand at savings and loan institutions appears to be

Accepted Answer

A)  deregulation of the lending industry. 
B)  the poor location of many of the branch offices. 
C)  the high interest rates being charged by commercial banks. 
D)  poor supervision by regulating agencies. 
A)  deregulation of the lending industry. 
B)  the poor location of many of the branch offices. 
C)  the high interest rates being charged by commercial banks. 
D)  poor supervision by regulating agencies.

Question 14

Choose the one most appropriate answer for each.
-a real estate industry nickname for the Federal Agricultural Mortgage Corporation

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 15

Choose the one most appropriate answer for each.
-requires immediate repayment of the loan if ownership transfers, also called an alienation clause

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 16

Commercial banks tend to favor long term residential lending.

Accepted Answer

A) True 
 B)False

Question 17

Life insurance companies do no get involved in real estate loans.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Choose the one most appropriate answer for each.
-one who brings together borrowers and lenders

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

Commercial banks are most likely to deal heavily in

Accepted Answer

A)  interim loans. 
B)  40-year residential loans. 
C)  home improvement loans. 
D)  VA loans. 
A)  interim loans. 
B)  40-year residential loans. 
C)  home improvement loans. 
D)  VA loans.

Exam 12: Sources of Financing

There is no limit to the cost of a home under the Farmer Mac program.

Usury laws are established by the federal statutes.

FHLMC was formed primarily to provide a secondary market for

Loan contracts sometimes call for a ____________________ penalty in return for giving the borrower the right to repay the loan early.

Deregulation of the lending industry had little or no effect on savings and loan institutions.

With regard to real estate loans, life insurance companies tend to favor

_________________________ results when depositors take money out of their savings accounts and invest directly in government securities, corporate bonds, and money market funds.

Which of the following sources provides the most home mortgage money in the United States?

____________________ certificates allow a mortgage originator to deliver to Freddie Mac either whole mortgages or part interest in a pool of whole mortgages.

Choose the one most appropriate answer for each. -the market in which lenders originate loans and make funds available to borrowers

Choose the one most appropriate answer for each. -securities issued, backed by the mortgages securing the loans and the full faith of the federal government

Choose the one most appropriate answer for each. -penalty for paying a loan off prior to maturity

One of the primary reasons for the decline in loan demand at savings and loan institutions appears to be

Choose the one most appropriate answer for each. -a real estate industry nickname for the Federal Agricultural Mortgage Corporation

Choose the one most appropriate answer for each. -requires immediate repayment of the loan if ownership transfers, also called an alienation clause

Commercial banks tend to favor long term residential lending.

Life insurance companies do no get involved in real estate loans.

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

Choose the one most appropriate answer for each. -one who brings together borrowers and lenders

Commercial banks are most likely to deal heavily in

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

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