PERRY REAL ESTATE QUESTIONS AND ANSWERS SET
A+
✔✔package loan - ✔✔all personal property and appliances are covered as security
along with the real estate
✔✔balloon loan - ✔✔any loan in which the final payment is larger than the preceding
payments
✔✔secondary mortgage market - ✔✔if a lender buys and sells loans after they are
already funded
✔✔redemption - ✔✔right of a mortgager to reclaim his property upon payment of the
obligation
✔✔subordination agreement - ✔✔change priority of liens
✔✔amount borrowed - ✔✔discount points on a mortgage are computed as percentage
of
✔✔primary mortgage market - ✔✔lenders who deal directly with borrowers
✔✔qualified lenders - ✔✔FHA loans are usually provided by
✔✔12 - ✔✔FRS consists of ___ federal reserve district banks
✔✔mortgagee - ✔✔lender
✔✔secondary market make up - ✔✔institutional investors who buy or sell loans
✔✔HUD - ✔✔FHA falls under which federal agency?
, ✔✔term mortgage loan - ✔✔The entire principal amount is due at the end of the term
✔✔Title theory states - ✔✔if owner gives up legal title of mortgaged real estate then the
state is known as
✔✔index - ✔✔in an adjustable rate mortgage, the interest rate is tied to an economic
indicator
✔✔Usury laws - ✔✔aim to protect borrowers from predatory lenders
✔✔FDIC - ✔✔Federal Deposit Insurance Corporation
✔✔Ginnie mae - ✔✔Administers special assistance programs and guarantees
mortgage backed securities and a pass through certificate
✔✔Blanket loan - ✔✔A mortgage covering more than one parcel of real estate,
providing for each parcel's partial release from the mortgage lien upon repayment of a
definite portion of the debt.
✔✔Sale and leaseback - ✔✔For industrial sales
✔✔deficiency judgement - ✔✔If the foreclosure sale does not produce enough to cover
the debt the mortgagee (lender) is entitled to a ____________ against the borrower for
the unpaid amount
✔✔capitalization rate - ✔✔The rate of return a property will produce on the owner's
investment.
income/capitalization rate
✔✔capital gains - ✔✔difference between adjusted cost basis of a property and selling
price
✔✔REMIC - ✔✔tax entity that issues securities backed by a pool of mortgages
✔✔lack of liquity - ✔✔disadvantage of owning real estate
✔✔sales comparison approach - ✔✔aka market data approach
✔✔most probable - ✔✔market value is the ___ price a property should bring in an arms
length sale
✔✔cost approach - ✔✔when appraising a church building, which approach is used?
A+
✔✔package loan - ✔✔all personal property and appliances are covered as security
along with the real estate
✔✔balloon loan - ✔✔any loan in which the final payment is larger than the preceding
payments
✔✔secondary mortgage market - ✔✔if a lender buys and sells loans after they are
already funded
✔✔redemption - ✔✔right of a mortgager to reclaim his property upon payment of the
obligation
✔✔subordination agreement - ✔✔change priority of liens
✔✔amount borrowed - ✔✔discount points on a mortgage are computed as percentage
of
✔✔primary mortgage market - ✔✔lenders who deal directly with borrowers
✔✔qualified lenders - ✔✔FHA loans are usually provided by
✔✔12 - ✔✔FRS consists of ___ federal reserve district banks
✔✔mortgagee - ✔✔lender
✔✔secondary market make up - ✔✔institutional investors who buy or sell loans
✔✔HUD - ✔✔FHA falls under which federal agency?
, ✔✔term mortgage loan - ✔✔The entire principal amount is due at the end of the term
✔✔Title theory states - ✔✔if owner gives up legal title of mortgaged real estate then the
state is known as
✔✔index - ✔✔in an adjustable rate mortgage, the interest rate is tied to an economic
indicator
✔✔Usury laws - ✔✔aim to protect borrowers from predatory lenders
✔✔FDIC - ✔✔Federal Deposit Insurance Corporation
✔✔Ginnie mae - ✔✔Administers special assistance programs and guarantees
mortgage backed securities and a pass through certificate
✔✔Blanket loan - ✔✔A mortgage covering more than one parcel of real estate,
providing for each parcel's partial release from the mortgage lien upon repayment of a
definite portion of the debt.
✔✔Sale and leaseback - ✔✔For industrial sales
✔✔deficiency judgement - ✔✔If the foreclosure sale does not produce enough to cover
the debt the mortgagee (lender) is entitled to a ____________ against the borrower for
the unpaid amount
✔✔capitalization rate - ✔✔The rate of return a property will produce on the owner's
investment.
income/capitalization rate
✔✔capital gains - ✔✔difference between adjusted cost basis of a property and selling
price
✔✔REMIC - ✔✔tax entity that issues securities backed by a pool of mortgages
✔✔lack of liquity - ✔✔disadvantage of owning real estate
✔✔sales comparison approach - ✔✔aka market data approach
✔✔most probable - ✔✔market value is the ___ price a property should bring in an arms
length sale
✔✔cost approach - ✔✔when appraising a church building, which approach is used?
