NATIONAL AND UST MORTGAGE
PRACTICE EXAM 1 QUESTIONS WITH
100% COMPLETE SOLUTIONS!!
1 of 66
Term
Which of the following is a government-owned entity which
facilitates home ownership in the United States?
Georgie Mac
Ginnie Mae
Freddie Mac
Fannie Mae
Give this one a try later!
,B. It is nonrefundable
VA loans are made by approved lenders and guaranteed by the U.S. Department
of Veterans Affairs. The guarantee is similar to mortgage insurance in that it
limits the lender's exposure to loss in the event of a borrower's default that
results in
foreclosure. However, the veteran borrower is charged a nonrefundable unfront
funding fee that can be financed, instead of a mortgage insurance premium for
the guarantee. A veteran receiving VA compensation for a service-
connected
disability is expect from the fee requirement.
D. FHA
In FHA loans, the FHA insures the issuing lender against loss in the event of
default. The FHA funds the insurance from a mortgage insurance premium (MIP)
charged to the borrower. Most FHA mortgage require payment of an
upfront mortgage insurance premium (UFMIP). The UFMIP is nonrefundable
(except to the extent that a portion may be applied to the UFMIP of another
FHA-insured
mortgage within three years). In addition, most FHA loans require payment of an
annual mortgage insurance premium payable monthly as part of the mortgage
payment. This premium is based on the loan program, the loan term, and the
LTV.
B. It is both a promise to repay the money borrowed with interest and evidence
of the debt
In the typical real estate sales transaction, the seller gives the buyer a deed at
closing and the buyer gives the lender a promissory note and a security
instrument (i.e., a mortgage or trust deed) that creates a lien on the property. The
promissory note is both a promise to repay the money borrowed with interest
and evidence of the debt.
B. Ginnie Mae
The GNMA, also known as Ginnie Mae, is a government corporation within
HUD. Its purpose is to facilitate home ownership in the United States and
increase the supply of credit available for housing, by directing funds from
the securities market into the mortgage market. It does this by
guaranteeing mortgage loans made by private lenders and insured by the
,FHA or guaranteed by the VA or the USDA, which are then placed into
, mortgage-backed securities and issued by the private party that holds
them.
Don't know?
2 of 66
Term
Which of the following factors does not directly affect interest rates?
A. Foreclosure rates
B.Federal Reserve activities
C. Loan fraud
D.Loan payoff rates
Give this one a try later!
B. Employer's phone number
Nonpublic personal information (NPI) is any personally identifiable financial
information that a financial institution collects about an individual in connection
with providing a financial product or service. NPI does not include information
where there is reasonable basis to believe it is lawfully made publicly available,
such as an employer's phone number.
B. Federal Reserve activities
Interest rates on long-term debt instruments, such as residential
mortgages, are influenced by changes in such economic indicators as the
gross domestic product (GDP), which measures the amount of goods and
services produced in the United States, and the Consumer Price Index
(CPI), which measures the average change in prices of consumer goods
and services. Features of the economic climate, such as loan fraud, loan
PRACTICE EXAM 1 QUESTIONS WITH
100% COMPLETE SOLUTIONS!!
1 of 66
Term
Which of the following is a government-owned entity which
facilitates home ownership in the United States?
Georgie Mac
Ginnie Mae
Freddie Mac
Fannie Mae
Give this one a try later!
,B. It is nonrefundable
VA loans are made by approved lenders and guaranteed by the U.S. Department
of Veterans Affairs. The guarantee is similar to mortgage insurance in that it
limits the lender's exposure to loss in the event of a borrower's default that
results in
foreclosure. However, the veteran borrower is charged a nonrefundable unfront
funding fee that can be financed, instead of a mortgage insurance premium for
the guarantee. A veteran receiving VA compensation for a service-
connected
disability is expect from the fee requirement.
D. FHA
In FHA loans, the FHA insures the issuing lender against loss in the event of
default. The FHA funds the insurance from a mortgage insurance premium (MIP)
charged to the borrower. Most FHA mortgage require payment of an
upfront mortgage insurance premium (UFMIP). The UFMIP is nonrefundable
(except to the extent that a portion may be applied to the UFMIP of another
FHA-insured
mortgage within three years). In addition, most FHA loans require payment of an
annual mortgage insurance premium payable monthly as part of the mortgage
payment. This premium is based on the loan program, the loan term, and the
LTV.
B. It is both a promise to repay the money borrowed with interest and evidence
of the debt
In the typical real estate sales transaction, the seller gives the buyer a deed at
closing and the buyer gives the lender a promissory note and a security
instrument (i.e., a mortgage or trust deed) that creates a lien on the property. The
promissory note is both a promise to repay the money borrowed with interest
and evidence of the debt.
B. Ginnie Mae
The GNMA, also known as Ginnie Mae, is a government corporation within
HUD. Its purpose is to facilitate home ownership in the United States and
increase the supply of credit available for housing, by directing funds from
the securities market into the mortgage market. It does this by
guaranteeing mortgage loans made by private lenders and insured by the
,FHA or guaranteed by the VA or the USDA, which are then placed into
, mortgage-backed securities and issued by the private party that holds
them.
Don't know?
2 of 66
Term
Which of the following factors does not directly affect interest rates?
A. Foreclosure rates
B.Federal Reserve activities
C. Loan fraud
D.Loan payoff rates
Give this one a try later!
B. Employer's phone number
Nonpublic personal information (NPI) is any personally identifiable financial
information that a financial institution collects about an individual in connection
with providing a financial product or service. NPI does not include information
where there is reasonable basis to believe it is lawfully made publicly available,
such as an employer's phone number.
B. Federal Reserve activities
Interest rates on long-term debt instruments, such as residential
mortgages, are influenced by changes in such economic indicators as the
gross domestic product (GDP), which measures the amount of goods and
services produced in the United States, and the Consumer Price Index
(CPI), which measures the average change in prices of consumer goods
and services. Features of the economic climate, such as loan fraud, loan
