Financing Exam

A  25%

B  22%

C  21%

D  20%

A  Subprime loans

B  Highly qualified loans

C  Prime loans

D  Secondary loans

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

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

C  Presenting a loan offer to a consumer for acceptance

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

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

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

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  Promissory notes

B  Title documents

C  Amortization plans

D  Security instruments

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

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

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  Investment group

C  Mortgage broker

D  Savings and loan

A  Obtaining a loan to purchase the home

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

C  Paying cash for the purchase

D  Receiving the property as a gift from the state

A  Wraparound mortgage

B  Reverse mortgage

C  Purchase money mortgage

D  Package mortgage

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

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

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

D  Scheduling the loan closing

A  Mortgage Insurance

B  VA tax

C  Guarantee Insurance

D  A funding fee

A  Payment ratio

B  Loan-to-value ratio

C  Total debt ratio

D  Housing ratio

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

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

C  Determine the amount of entitlement the veteran borrower has available

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

A  Foreign lenders

B  Predatory lenders

C  Subprime lenders

D  Speculators

A  Total debt

B  Payment debt

C  Housing ratio

D  Loan-to-value ratio

A  Federal Reserve

B  Federal Housing Administration

C  Federal Home Financing Agency

D  Fannie Mae and Freddie Mac

A  $36,000

B  $104,250

C  $320,000

D  $80,000

A  Origination fee

B  Loan amount

C  Sales price

D  Interest rate

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

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

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

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

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