Principles of Real Estate II -
Real Estate Express Texas
Questions & Answers(RATED
A+)
Which act was passed to regulate appraisal? - ANSWER in 1989, Congress passed the Financial
Institutions Reform, Recovery and Enforcement Act (FIRREA) in response to the savings and loan
crisis.
What does Title XI of FIRREA require? - ANSWER competent individuals whose professional conduct
is properly supervised to perform all appraisals in federally-related transactions.
January 1, 1993 FIRREA - ANSWER federally-related appraisals must be performed only by state-
certified appraisers.
Requirements for certification of appraisers must follow at a minumum - ANSWER Appraiser
Qualifications Board of the Appraisal Foundation
What is TALCB - ANSWER Texas Appraiser and Licensing and Certifcation Board (TALCB) to license
certify and regulate real estate appraisals, made in 1991.
appriaser trainee - ANSWER - citizen of us or legally admitted alient,
- be sponsored by a current certified general or certified residential real estate appraiser in good
standing
- be at least 18,
-be a legal resident of texas for at least 60 days immediately before filing an application,
- complete seventy-five hours of qualifying appraisal education and 4-hour appriaser
trainee/supervisory appraiser course
- no college education requirement
,types of appraiser certifications - ANSWER appraiser trainee
provisional licensed real estate appraiser
licensed real estate appraiser
certified residential real estate appraiser
certified general real estate appraiser
under what authority act can credit unions make 30-year loans? - ANSWER federal credit union act.
Can also make FHA and VA loans
Under what conditions are REITs exempt from paying corporate tax - ANSWER if they invest at least
seventy-five percent of their assets in real estate and distribute 95 percent or more of their annual
real estate income to their investors
Who must have valid mortgage loan originator license and under what act? - ANSWER any individual
acting as or engaged in the business of a residential mortgage loan originator under the Texas Secure
and Fair Enforcement for Mortgage Licensing Act of 2009 (Texas SAFE act)
Players in secondary mortgage market - ANSWER Federal National Mortgage Association (FNMA or
Fannie Mae)
Government National Mortgage Association (GNMA or Ginnie Mae)
Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
Which items are standard to mortgage forms - ANSWER identification of participants
property description
attachment of note
property taxes
insurance
preservation and maintenance of property
defeasance clause
acceleration clause
signatures and acknowledgement
prepayment penalty
, due-on-sale clause
deed in lieu of foreclosure - ANSWER voluntarily giving the lender the title
right of redemption - ANSWER borrower is allowed to reclaim property if debts owed are payed off,
after the default and up to the sale of the property
How much of a percent per discount point - ANSWER 1/8 percent per discount point. So a 8.25%
rate with two discount points increases to 8.50% yield
what does promissory note do - ANSWER establishes legal evidence of the debt incurred
what must lender determine when processing a loan - ANSWER ability of borrower to repay the loan
estimate value of the property that is collateral for the loan
research and analyze the marketability of the title
prepare the documents necessary to approve the loan and close the transaction
straight or term mortgage - ANSWER the monthly payments are allocated only to interest, so
payments are much lower than with other loan types
straight amortized loan vs. fully amortized loan - ANSWER straight amortized loan has different
payment amount every month. a fixed amount goes to the principal with each payment
fully amortized loan, the borrower has same payment amount every month. Payment goes first to
interest and then principal.
Components of adjustable rate mortgage - ANSWER index
margin
calculated rate
intitial rate
adjustment period
interest rate caps
pament cap
negative amortization cap
Real Estate Express Texas
Questions & Answers(RATED
A+)
Which act was passed to regulate appraisal? - ANSWER in 1989, Congress passed the Financial
Institutions Reform, Recovery and Enforcement Act (FIRREA) in response to the savings and loan
crisis.
What does Title XI of FIRREA require? - ANSWER competent individuals whose professional conduct
is properly supervised to perform all appraisals in federally-related transactions.
January 1, 1993 FIRREA - ANSWER federally-related appraisals must be performed only by state-
certified appraisers.
Requirements for certification of appraisers must follow at a minumum - ANSWER Appraiser
Qualifications Board of the Appraisal Foundation
What is TALCB - ANSWER Texas Appraiser and Licensing and Certifcation Board (TALCB) to license
certify and regulate real estate appraisals, made in 1991.
appriaser trainee - ANSWER - citizen of us or legally admitted alient,
- be sponsored by a current certified general or certified residential real estate appraiser in good
standing
- be at least 18,
-be a legal resident of texas for at least 60 days immediately before filing an application,
- complete seventy-five hours of qualifying appraisal education and 4-hour appriaser
trainee/supervisory appraiser course
- no college education requirement
,types of appraiser certifications - ANSWER appraiser trainee
provisional licensed real estate appraiser
licensed real estate appraiser
certified residential real estate appraiser
certified general real estate appraiser
under what authority act can credit unions make 30-year loans? - ANSWER federal credit union act.
Can also make FHA and VA loans
Under what conditions are REITs exempt from paying corporate tax - ANSWER if they invest at least
seventy-five percent of their assets in real estate and distribute 95 percent or more of their annual
real estate income to their investors
Who must have valid mortgage loan originator license and under what act? - ANSWER any individual
acting as or engaged in the business of a residential mortgage loan originator under the Texas Secure
and Fair Enforcement for Mortgage Licensing Act of 2009 (Texas SAFE act)
Players in secondary mortgage market - ANSWER Federal National Mortgage Association (FNMA or
Fannie Mae)
Government National Mortgage Association (GNMA or Ginnie Mae)
Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac)
Which items are standard to mortgage forms - ANSWER identification of participants
property description
attachment of note
property taxes
insurance
preservation and maintenance of property
defeasance clause
acceleration clause
signatures and acknowledgement
prepayment penalty
, due-on-sale clause
deed in lieu of foreclosure - ANSWER voluntarily giving the lender the title
right of redemption - ANSWER borrower is allowed to reclaim property if debts owed are payed off,
after the default and up to the sale of the property
How much of a percent per discount point - ANSWER 1/8 percent per discount point. So a 8.25%
rate with two discount points increases to 8.50% yield
what does promissory note do - ANSWER establishes legal evidence of the debt incurred
what must lender determine when processing a loan - ANSWER ability of borrower to repay the loan
estimate value of the property that is collateral for the loan
research and analyze the marketability of the title
prepare the documents necessary to approve the loan and close the transaction
straight or term mortgage - ANSWER the monthly payments are allocated only to interest, so
payments are much lower than with other loan types
straight amortized loan vs. fully amortized loan - ANSWER straight amortized loan has different
payment amount every month. a fixed amount goes to the principal with each payment
fully amortized loan, the borrower has same payment amount every month. Payment goes first to
interest and then principal.
Components of adjustable rate mortgage - ANSWER index
margin
calculated rate
intitial rate
adjustment period
interest rate caps
pament cap
negative amortization cap
