Financing Exam

A  22%

B  20%

C  25%

D  21%

A  Secondary loans

B  Subprime loans

C  Highly qualified loans

D  Prime loans

A  Contacting a consumer to obtain tax returns or payroll receipts to verify loan application information

B  Presenting a loan offer to a consumer for acceptance

C  Explaining the steps the consumer needs to take to obtain a loan offer

D  Receiving a loan application through the mail and forwarding it, without review

A  Maggie will co-sign a second mortgage with Jim so that he’ll have the funds to pay off the first mortgage.

B  Maggie will sign an agreement with the lender to assume liability for Jim’s loan.

C  Maggie will take over Jim’s loan payments without telling his lender she’s doing so.

D  Maggie will purchase the home at the foreclosure auction and rent it to Jim at a reduced rate.

A  Amortization plans

B  Promissory notes

C  Security instruments

D  Title documents

A  Requiring that settlement companies provide an attorney to represent the borrower’s interests, at no cost to the borrower, as part of a residential real estate transaction involving credit

B  Prohibiting settlement service providers-including real estate professionals-from discriminating during a residential real estate transaction

C  Eliminating illegal kickbacks and referral fees among settlement service providers and requiring lender disclosures as part of a residential real estate transaction involving credit

D  Requiring all settlement service providers to restrict their fees to only those types and amounts that Regulation X allows

A  Investment group

B  Savings and loan

C  Insurance company

D  Mortgage broker

A  Squatting in the home until legal possession of the home can be claimed

B  Obtaining a loan to purchase the home

C  Receiving the property as a gift from the state

D  Paying cash for the purchase

A  Purchase money mortgage

B  Package mortgage

C  Reverse mortgage

D  Wraparound mortgage

A  Informing a consumer of the loan rates that are publicly available

B  Presenting a revised loan offer to the consumer after they requested a lower rate

C  Explaining the steps the consumer needs to take to obtain a loan offer

D  Scheduling the loan closing

A  A funding fee

B  Mortgage Insurance

C  VA tax

D  Guarantee Insurance

A  Loan-to-value ratio

B  Payment ratio

C  Housing ratio

D  Total debt ratio

A  Restore entitlement for a veteran who has used the VA loan before

B  Determine the value of the loan that the VA will guarantee

C  Determine the amount of entitlement the veteran borrower has available

D  Negotiate with sellers when the buyer wants a lower sale price

A  Speculators

B  Subprime lenders

C  Foreign lenders

D  Predatory lenders

A  Payment debt

B  Housing ratio

C  Loan-to-value ratio

D  Total debt

A  Fannie Mae and Freddie Mac

B  Federal Home Financing Agency

C  Federal Reserve

D  Federal Housing Administration

A  $104,250

B  $36,000

C  $80,000

D  $320,000

A  Interest rate

B  Origination fee

C  Loan amount

D  Sales price

A  A loan that meets certain criteria that are accepted by Fannie Mae and Freddie Mac

B  A loan to buy a high-priced or luxury home

C  A loan that requires a larger-than-usual, one-time payment at the end of the term

D  A loan that fails to meet the criteria set forth by Fannie Mae and Freddie Mac

A  Farm Credit Administration Rural Loan Program

B  Small Town America Residential Loan Program

C  Farmer Mac Direct Loan Program

D  USDA Rural Development Single Family Housing Program