AYPO REAL ESTATE FINANCE ACTUAL FINAL EXAM QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+
IRRRL stands for - answer-Interest Rate Reduction Refinance Loan
A Participation Agreement Generally DOES NOT provide which of the following information a.
The date of the participation
b. The size of the loan
c. The share of the loan bought
d. A guarantee against buyer default - answer-d. A guarantee against buyer default
Which of these IS NOT required for a Making Home Affordable Loan?
a. A credit score above 700
b. A mortgage payment more than 31% of the current gross monthly income
c. All of these are required
d. An unpaid principal balance equal to or less than $729,750 for a single-unit property - answer-a. A
credit score above 700
A title search might reveal any of these information, except:
a. Seller credit history
b. Other claims, such as mechanic's liens, second mortgages or other debts
c. Actual "owner of record"
d. That the property being offered as collateral is, in fact, the one being purchaced - answer-a. Seller
credit history
As an alternative to Verification of Deposit, some lenders may accept: a.
Both of these
b. Neither of these
c. A sworn statement from the borrower
d. The most recent three months of bank statements - answer-d. The most recent three months of bank
statements
,In its 80 years of operation, the FHA has insured over ________ (Pick the closest number) of homes: a.
46 million
b. 23 million
c. 32 million
d. 34 million - answer-a. 46 million
The term "subordinate finance instrument" generally includes all of these except which of the following?
a. First mortgage
b. Judgement Lien
c. Secondary Mortgage
d. Mechanic's Lien - answer-a. First mortgage
Mortgage bonds are considered "safer" because:
a. They are virtually loss-proof because they are backed by MBS
b. They provide higher than average yields
c. They are backed by collateral i.e., the mortgaged properties
d. The FDIC guarantees them - answer-c. They are backed by collateral i.e., the mortgaged properties
Which of these IS NOT an FHA-insured program or product?
a. Help for Seniors Reverse Mortgage
b. Making Homes More Energy Efficient
c. Title 1 loans
d. All of these are FHA-insured programs or products - answer-d. All of these are FHA-insured programs
or products
Which of these IS NOT generally covered by the title insurance?
a. None of these
b. Issues not identified in the title policy arising after transfer of title
, c. Exceptions listed in the title insurance policy
d. Easements not listed in the title policy - answer-c. Exceptions listed in the title insurance policy
The Closing Disclosure (H-25) must be delivered to the borrower by which of the following:
a. At least seven business days before the consummation of the loan
b. At least three business after the approval of the loan
c. At least three business days before the consummation of the loan
d. At least three days prior to closing - answer-c. At least three business days before the consummation
of the loan
Which of these IS NOT a function of the Uniform Residential Loan Application?
a. Authorization for obtaining the credit report
b. To establish the date of aplication
c. All of these are functions of the Uniform Residential Loan Application
d. Borrower confirmation of the application information - answer-c. All of these are functions of the
Uniform Residential Loan Application
Much of pension funds' real estate activity is performed through which of the following?
a. Secondary mortgage market
b. All of these
c. Mortgage bankers and mortgage brokers
d. Mortgage-backed securities - answer-b. All of these
Regarding "direct endorsement," participating FHA lenders are separated into two different types, with
different authority. As state in the class, the first type has the authority to do which of the following?
a. These lenders are not separated into two different types, and have no authority to approve FHA loan
applications or offer conditional approval
b. Authority to both approve an FHA loan application and grant conditional approval of the FHA-insured
loan
c. Authority to grant conditional approval of the FHA-insured loan
ALREADY GRADED A+
IRRRL stands for - answer-Interest Rate Reduction Refinance Loan
A Participation Agreement Generally DOES NOT provide which of the following information a.
The date of the participation
b. The size of the loan
c. The share of the loan bought
d. A guarantee against buyer default - answer-d. A guarantee against buyer default
Which of these IS NOT required for a Making Home Affordable Loan?
a. A credit score above 700
b. A mortgage payment more than 31% of the current gross monthly income
c. All of these are required
d. An unpaid principal balance equal to or less than $729,750 for a single-unit property - answer-a. A
credit score above 700
A title search might reveal any of these information, except:
a. Seller credit history
b. Other claims, such as mechanic's liens, second mortgages or other debts
c. Actual "owner of record"
d. That the property being offered as collateral is, in fact, the one being purchaced - answer-a. Seller
credit history
As an alternative to Verification of Deposit, some lenders may accept: a.
Both of these
b. Neither of these
c. A sworn statement from the borrower
d. The most recent three months of bank statements - answer-d. The most recent three months of bank
statements
,In its 80 years of operation, the FHA has insured over ________ (Pick the closest number) of homes: a.
46 million
b. 23 million
c. 32 million
d. 34 million - answer-a. 46 million
The term "subordinate finance instrument" generally includes all of these except which of the following?
a. First mortgage
b. Judgement Lien
c. Secondary Mortgage
d. Mechanic's Lien - answer-a. First mortgage
Mortgage bonds are considered "safer" because:
a. They are virtually loss-proof because they are backed by MBS
b. They provide higher than average yields
c. They are backed by collateral i.e., the mortgaged properties
d. The FDIC guarantees them - answer-c. They are backed by collateral i.e., the mortgaged properties
Which of these IS NOT an FHA-insured program or product?
a. Help for Seniors Reverse Mortgage
b. Making Homes More Energy Efficient
c. Title 1 loans
d. All of these are FHA-insured programs or products - answer-d. All of these are FHA-insured programs
or products
Which of these IS NOT generally covered by the title insurance?
a. None of these
b. Issues not identified in the title policy arising after transfer of title
, c. Exceptions listed in the title insurance policy
d. Easements not listed in the title policy - answer-c. Exceptions listed in the title insurance policy
The Closing Disclosure (H-25) must be delivered to the borrower by which of the following:
a. At least seven business days before the consummation of the loan
b. At least three business after the approval of the loan
c. At least three business days before the consummation of the loan
d. At least three days prior to closing - answer-c. At least three business days before the consummation
of the loan
Which of these IS NOT a function of the Uniform Residential Loan Application?
a. Authorization for obtaining the credit report
b. To establish the date of aplication
c. All of these are functions of the Uniform Residential Loan Application
d. Borrower confirmation of the application information - answer-c. All of these are functions of the
Uniform Residential Loan Application
Much of pension funds' real estate activity is performed through which of the following?
a. Secondary mortgage market
b. All of these
c. Mortgage bankers and mortgage brokers
d. Mortgage-backed securities - answer-b. All of these
Regarding "direct endorsement," participating FHA lenders are separated into two different types, with
different authority. As state in the class, the first type has the authority to do which of the following?
a. These lenders are not separated into two different types, and have no authority to approve FHA loan
applications or offer conditional approval
b. Authority to both approve an FHA loan application and grant conditional approval of the FHA-insured
loan
c. Authority to grant conditional approval of the FHA-insured loan
