ACEABLE AGENT- REAL ESTATE FINANCE QUESTIONS AND ANSWERS, GRADED A+

ACEABLE AGENT- REAL ESTATE FINANCE QUESTIONS AND ANSWERS, GRADED A+ Who owns the property when the borrower has a reverse mortgage? - -Borrower A period of significantly reduced economic activity that lasts longer than six months is known as - - Recession Stabilized high unemployment, home foreclosures and low govt interest rates are a sign of which phase of real estate cycle - -Recovery When Fannie Mae packages Kona's to be sold to investors they are creating - -Mortgages backed securities Why would a lender want to sell their loans on a secondary market - -Bc if they don't their mortgage loans are illiquid and their funds will be tied up in long term assets Why are real estate bonds considered a safe investment - -Bonds are tied to property that can be sold to compensate for a default NOT Required to obtain a VA loan - -Must have at least 3.5% down payment What is an adjustable rate mortgage (ARM) - -Mortgage with an interest rate that can be adjusted based on fluctuations in the cost of money What are Experian, Equifax, and transunion - -Credit reporting agencies Which of the following individuals works with a borrower and multiple lenders to find competitive loan terms - -Mortgage brokers Which of the reasons for foreclosure would allow a former homeowner to access a two year right of redemption period - -Unpaid ad valorem taxes What federal agency is credited with creating fully amortized 20,30, and 30 year mortgages - -FHA When would a deed in lieu of foreclosure be used - -When a borrower cannot keep the property and voluntarily transfers the title to the lender What clause pre-authorizes the lender to foreclose and sell the property without court oversight or having to file a lawsuit in a nonjudicial foreclosure - -Power of sale clause How is a promissory note secured - -by referencing a security instrument What does a defeasance clause in a deed of trust do - -Explains the title will transfer to owner after the mortgage is paid off Mortgages that meet Fannie Maes standards are known as - -Conforming loans Which of these investments would a life insurance company be most interested in - -Financing a commercial, multi-family development What does power of sale clause do - -allow a lender take possession of a property without court approval if a buyer defaults on their loan What is it called when a buyer adopts the sellers previously existing loan (without changing the terms) - -Assumption Loan type eligible to be insured by FHA - -Rehabilitation loan What happens to borrowers PMI when their equity in their property reaches 22% - -Automatically cancelled Interest rates have dropped. Homeowner Charlie wants to take advantage of new lower rates to lower monthly payment. What is the easiest way to do that