Financing Exam

A  20%

B  25%

C  21%

D  22%

A  Highly qualified loans

B  Secondary loans

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

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

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

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

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

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

A  Title documents

B  Amortization plans

C  Security instruments

D  Promissory notes

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

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

C  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

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

A  Insurance company

B  Savings and loan

C  Investment group

D  Mortgage broker

A  Paying cash for the purchase

B  Obtaining a loan to purchase the home

C  Receiving the property as a gift from the state

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

A  Package mortgage

B  Purchase money mortgage

C  Wraparound mortgage

D  Reverse mortgage

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

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

C  Scheduling the loan closing

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

A  VA tax

B  A funding fee

C  Guarantee Insurance

D  Mortgage Insurance

A  Housing ratio

B  Loan-to-value ratio

C  Payment ratio

D  Total debt ratio

A  Determine the amount of entitlement the veteran borrower has available

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

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

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

A  Foreign lenders

B  Speculators

C  Subprime lenders

D  Predatory lenders

A  Housing ratio

B  Payment debt

C  Total debt

D  Loan-to-value ratio

A  Fannie Mae and Freddie Mac

B  Federal Housing Administration

C  Federal Reserve

D  Federal Home Financing Agency

A  $80,000

B  $320,000

C  $36,000

D  $104,250

A  Sales price

B  Origination fee

C  Interest rate

D  Loan amount

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

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

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

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

A  Farm Credit Administration Rural Loan Program

B  USDA Rural Development Single Family Housing Program

C  Small Town America Residential Loan Program

D  Farmer Mac Direct Loan Program