ALABAMA REAL ESTATE COMPREHENSIVE
QUESTIONS AND ANSWERS SET A+
✔✔Quitclaim Deed - ✔✔Provides least protection of any deed.
Carries no warranties and conveys only whatever interest grantor may have when deed
is delivered.
.
Used to cure a defect or cloud on the title.
✔✔Property goes to the state if person dies intestate and no heirs are found. -
✔✔Escheat.
✔✔Transfer of Title by Will - ✔✔Devisor transfers title to Devisee.
✔✔Involuntary Transfer of Title - ✔✔Adverse Possession:
Acquire ownership of land because of an owner's failure to use or inspect the land for a
period of time (aka "Squatter's Rights").
✔✔Adverse Possession - ✔✔Hostile way to gain ownership.
✔✔Easement by Prescription - ✔✔Hostile way to gain an easement (use of the
property).
✔✔Discount Rate - ✔✔When member banks borrow money from the Fed, the discount
rate is the interest rate the Fed charges the member banks.
✔✔The Primary Mortgage Market includes: - ✔✔-Savings and Loan Associations.
-Mutual savings banks .
-Commercial banks.
-Insurance companies.
, -Mortgage bankers and brokers.
-Credit unions.
-Pension funds.
-Rural Economic and Community Development (an agency of the Department of
Agriculture).
✔✔The Secondary Mortgage Market includes: - ✔✔-Fannie Mae (FNMA)
(Federal National Mortgage Association)
-Ginnie Mae (GNMA)
(Government National Mortgage Association)
-FreddieMac (FHLMC)
(Federal Home Loan Mortgage Corporation)
✔✔Fannie Mae (FNMA) - ✔✔-Largest and oldest.
-Started in 1938 to purchase FHA insured loans.
-Today Fannie Mae purchases VA, FHA and conventional mortgages.
✔✔Ginnie Mae (GNMA) - ✔✔-Created by the government when Fannie Mae became
private.
-It is a federal agency of HUD.
-It purchases FHA and VA loans.
✔✔Freddie Mac (FHLMC) - ✔✔-Was created to provide a market for conventional
loans.
-Freddie Mac still purchases primarily conventional loans.
-To a lesser extent FHA and VA loans.
✔✔Conforming Loans - ✔✔Loans that meet the guidelines set forth by Fannie Mae or
Freddie Mac.
✔✔The TILA-RESPA Integrated Disclosure Rule - ✔✔Two Laws Combined and
Modified:
TILA - Truth In Lending Act and
RESPA - Real Estate Settlement Procedures Act
Two New Forms Created:
QUESTIONS AND ANSWERS SET A+
✔✔Quitclaim Deed - ✔✔Provides least protection of any deed.
Carries no warranties and conveys only whatever interest grantor may have when deed
is delivered.
.
Used to cure a defect or cloud on the title.
✔✔Property goes to the state if person dies intestate and no heirs are found. -
✔✔Escheat.
✔✔Transfer of Title by Will - ✔✔Devisor transfers title to Devisee.
✔✔Involuntary Transfer of Title - ✔✔Adverse Possession:
Acquire ownership of land because of an owner's failure to use or inspect the land for a
period of time (aka "Squatter's Rights").
✔✔Adverse Possession - ✔✔Hostile way to gain ownership.
✔✔Easement by Prescription - ✔✔Hostile way to gain an easement (use of the
property).
✔✔Discount Rate - ✔✔When member banks borrow money from the Fed, the discount
rate is the interest rate the Fed charges the member banks.
✔✔The Primary Mortgage Market includes: - ✔✔-Savings and Loan Associations.
-Mutual savings banks .
-Commercial banks.
-Insurance companies.
, -Mortgage bankers and brokers.
-Credit unions.
-Pension funds.
-Rural Economic and Community Development (an agency of the Department of
Agriculture).
✔✔The Secondary Mortgage Market includes: - ✔✔-Fannie Mae (FNMA)
(Federal National Mortgage Association)
-Ginnie Mae (GNMA)
(Government National Mortgage Association)
-FreddieMac (FHLMC)
(Federal Home Loan Mortgage Corporation)
✔✔Fannie Mae (FNMA) - ✔✔-Largest and oldest.
-Started in 1938 to purchase FHA insured loans.
-Today Fannie Mae purchases VA, FHA and conventional mortgages.
✔✔Ginnie Mae (GNMA) - ✔✔-Created by the government when Fannie Mae became
private.
-It is a federal agency of HUD.
-It purchases FHA and VA loans.
✔✔Freddie Mac (FHLMC) - ✔✔-Was created to provide a market for conventional
loans.
-Freddie Mac still purchases primarily conventional loans.
-To a lesser extent FHA and VA loans.
✔✔Conforming Loans - ✔✔Loans that meet the guidelines set forth by Fannie Mae or
Freddie Mac.
✔✔The TILA-RESPA Integrated Disclosure Rule - ✔✔Two Laws Combined and
Modified:
TILA - Truth In Lending Act and
RESPA - Real Estate Settlement Procedures Act
Two New Forms Created:
