Real Estate Finance Practice exam questions with correct solutions

A __________ is a permanent change in one or more of the terms of a borrower's loan. Loan Qualification Loan Modification Loan Approval Loan Origination - ANSWER-Loan Modification What time period must borrowers have in job history with the same employer to qualify? 2 months 6 months 1 year 2 years - ANSWER-2 years Unscrupulous actions carried out by a lender to entice, induce and/or assist a borrower in taking a mortgage that carries high fees, a high interest rate, strips the borrower of equity, or places the borrower in a lower credit rated loan to benefit the lender. Predatory lending Sub prime Mortgage Participation Agreement Fraud - ANSWER-Predatory lending Why do lender care about unpaid taxes? They want to ensure your mortgage payment is not late It makes the loan difficult to sell in the secondary market Unpaid property taxes are a superior lien to the right of the lender Lenders don't care about unpaid taxes - ANSWER-Unpaid property taxes are a superior lien to the right of the lender