AYPO Real Estate: Real Estate Finance Final Exam
Review Questions and Answers
Which of these is not among the generally reliable market source for home finance? - -
Inheritance
-An amortized loan is best described by which of the following? - -One that is paid off with
a fixed schedule in regular installments over time.
-Which of these is not one of the four phases of the real estate cycle? - -Demand
-Investment products (such as securities) are purchased and/or exchanged in the: - -1.
Primary market
2. Secondary market
-Which of these financial resources in not a credit reporting agency? - -Standard and
Poor's
-The Federal Reserve System does not directly control which of the following? - -1. Levels
of employment.
2. National production.
3. Inflation.
-Which of these is not a negotiable instrument? - -Crossed check
-Which of these IS NOT a function of the Dept. of the Treasury? - -Providing home loans
directly to consumers
-Which of these is a major focus area of the FDIC? - -1. Bank deposit insurance
2. Receivership management
3. Banking regulation supervision
-Which of these cities IS NOT home to one of the 11 regional FHLBs? - -Seattle
-What occurs in secondary capital markets? - -Securities are traded between investors
-Government-sponsored agencies that provide support to the real estate finance industry
include which of the following? - -1. Federal Deposit Insurance Corporation (FDIC)
2. U. S. Department of the Treasury
3. Federal Home Loan Banks
-The FHA assists in providing mortgage insurance for all of these, except for which of the
following? - -Retail business establishments.
, -If a borrower has credit scores above 580, the required downpayment on an FHA-backed
loan is normally what percent of the value of the property? - -3.50%
-Which of these acts revised the mortgage lending disclosures effective as of October
2015? - -TILA-RESPA
-What is the purpose of a Certificate of Eligibility? - -To verify that the borrower is in fact
allowed to receive a VA loan
-Which of the following is a part of the Making Home Affordable® Program? - -The
Principal Reduction Alternative
-Which of these is a housing resource in Texas? - -1. TSAHC
2. HUD - Texas
3. TDHCA
-Agricultural loans make up approximately ___ of all bank loans. - -1%
-Which of these IS NOT required to request a Loan Estimate from a lender? - -Borrower
employment history
-Which of these IS NOT a focus of the Closing Disclosure? - -Inspection and repair
agreements
-IPOs (initial public offerings) take place in the ________ market while MBSs (mortgage-
backed securities) sales generally occur in the ________ market. - -Primary, secondary
-Which of these is owned and operated as a government agency? - -Ginnie Mae
-Which of these is allowed to be a part of the pool of assets forming a REMIC? - -Single-
family mortgages
-Which is NOT generally true of commercial banks? - -Their primary focus is on
underwriting and the securities trade
-Life Insurance Companies currently are leaning more toward _______ mortgage loans. - -
Commercial
-Mortgages and mortgage-backed securities (MBSs) make up approximately what percent
of pension fund holdings? - -3%
-Which of these is true of credit unions? - -1. Credit union mortgage loans can take longer
to close because their underwriting process can be slower than a bank's.
2. Credit unions most frequently keep the mortgages that they write in their own portfolios.
3. Some credit unions help new homebuyers with costs by refunding a portion of the real
estate agent commission.
Review Questions and Answers
Which of these is not among the generally reliable market source for home finance? - -
Inheritance
-An amortized loan is best described by which of the following? - -One that is paid off with
a fixed schedule in regular installments over time.
-Which of these is not one of the four phases of the real estate cycle? - -Demand
-Investment products (such as securities) are purchased and/or exchanged in the: - -1.
Primary market
2. Secondary market
-Which of these financial resources in not a credit reporting agency? - -Standard and
Poor's
-The Federal Reserve System does not directly control which of the following? - -1. Levels
of employment.
2. National production.
3. Inflation.
-Which of these is not a negotiable instrument? - -Crossed check
-Which of these IS NOT a function of the Dept. of the Treasury? - -Providing home loans
directly to consumers
-Which of these is a major focus area of the FDIC? - -1. Bank deposit insurance
2. Receivership management
3. Banking regulation supervision
-Which of these cities IS NOT home to one of the 11 regional FHLBs? - -Seattle
-What occurs in secondary capital markets? - -Securities are traded between investors
-Government-sponsored agencies that provide support to the real estate finance industry
include which of the following? - -1. Federal Deposit Insurance Corporation (FDIC)
2. U. S. Department of the Treasury
3. Federal Home Loan Banks
-The FHA assists in providing mortgage insurance for all of these, except for which of the
following? - -Retail business establishments.
, -If a borrower has credit scores above 580, the required downpayment on an FHA-backed
loan is normally what percent of the value of the property? - -3.50%
-Which of these acts revised the mortgage lending disclosures effective as of October
2015? - -TILA-RESPA
-What is the purpose of a Certificate of Eligibility? - -To verify that the borrower is in fact
allowed to receive a VA loan
-Which of the following is a part of the Making Home Affordable® Program? - -The
Principal Reduction Alternative
-Which of these is a housing resource in Texas? - -1. TSAHC
2. HUD - Texas
3. TDHCA
-Agricultural loans make up approximately ___ of all bank loans. - -1%
-Which of these IS NOT required to request a Loan Estimate from a lender? - -Borrower
employment history
-Which of these IS NOT a focus of the Closing Disclosure? - -Inspection and repair
agreements
-IPOs (initial public offerings) take place in the ________ market while MBSs (mortgage-
backed securities) sales generally occur in the ________ market. - -Primary, secondary
-Which of these is owned and operated as a government agency? - -Ginnie Mae
-Which of these is allowed to be a part of the pool of assets forming a REMIC? - -Single-
family mortgages
-Which is NOT generally true of commercial banks? - -Their primary focus is on
underwriting and the securities trade
-Life Insurance Companies currently are leaning more toward _______ mortgage loans. - -
Commercial
-Mortgages and mortgage-backed securities (MBSs) make up approximately what percent
of pension fund holdings? - -3%
-Which of these is true of credit unions? - -1. Credit union mortgage loans can take longer
to close because their underwriting process can be slower than a bank's.
2. Credit unions most frequently keep the mortgages that they write in their own portfolios.
3. Some credit unions help new homebuyers with costs by refunding a portion of the real
estate agent commission.
