REE 3043 Woodyard Exam 3 with accurate ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
detailed solutions ||\\//||
A clause which grants the holder of the note the rights to all remaining payments on the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
loan should the borrower default. - correct answer✔✔Acceleration clause
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
An acceleration clause that is enforceable upon the sale of the property. - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔Due-on-sale clause ||\\//||
A clause that allows lenders to adjust the interest rate charged with respect to some stated
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
index. - correct answer✔✔Interest escalation and adjustment clause
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A clause that imposes a penalty (fee) on borrowers for making early payments of principal
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
on the amount borrowed. - correct answer✔✔Prepayment clause
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A clause which requires borrowers to make payments of their hazard insurance premium
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
along with their periodic payments of principal and interest. - correct answer✔✔Insurance
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Clause
Technically a mortgage is best described as: ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. a loan from a lending institution
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
B. A loan on a property
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
C. A contractual pledge for real estate to serve as collateral for a loan.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
D. All of the above - correct answer✔✔C. A mortgage is a special debt contract given by
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
borrowers who pledge real estate as the security for a loan. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
,In the U.S.: ||\\//|| ||\\//||
A. The government encourages the development of mortgage securities.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
B. Wall Street investment banks participate in the commercial mortgage market.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
C. Equity financing sources include life insurance companies.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
D. All of the above - correct answer✔✔D
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
The secondary mortgage market serves as:
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. A source for the sale of mortgages to investors.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
B. A source for loan origination
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
C. A source for load renegotiation
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
D. All of the above - correct answer✔✔A
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Firms which assist pension funds, insurance companies, or other lender's in distributing
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
mortgage obligations to mortgage investors are known as: ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. Conduits ||\\//||
B. Advisors||\\//||
C. Go betweens||\\//|| ||\\//||
D. Tranches - correct answer✔✔A. Firms known as conduits assist in various ways with the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
movement of the mortgage from the lender's portfolio through the secondary market into
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the investment portfolios of investors.
||\\//|| ||\\//|| ||\\//|| ||\\//||
Mortgage documents containing notes with specific language about the borrower's promise ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
to repay loans establish what is termed:
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
, A. Resource financing
||\\//|| ||\\//||
B. A lien
||\\//|| ||\\//||
C. A foreclosure statement
||\\//|| ||\\//|| ||\\//|| ||\\//||
D. Nonrecourse financing - correct answer✔✔A
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
The public equity quadrant of real estate markets includes the following major participants:
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. Pension funds
||\\//|| ||\\//||
B. Equity REITs
||\\//|| ||\\//||
C. Insurance companies
||\\//|| ||\\//||
D. Banks - correct answer✔✔B
||\\//|| ||\\//|| ||\\//|| ||\\//||
Money that is invested in shares issued and traded in securities markets of pools of
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
mortgage loans such as mortgage-backed securities is termed: ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. Private equity
||\\//|| ||\\//||
B. Public equity
||\\//|| ||\\//||
C. Private debt
||\\//|| ||\\//||
D. Public debt - correct answer✔✔D
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A loan in which a builder is required to obtain a forward commitment to secure
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
construction financing is termed: ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. An open-end loan
||\\//|| ||\\//|| ||\\//||
B. A wrap-around loan
||\\//|| ||\\//|| ||\\//||
detailed solutions ||\\//||
A clause which grants the holder of the note the rights to all remaining payments on the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
loan should the borrower default. - correct answer✔✔Acceleration clause
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
An acceleration clause that is enforceable upon the sale of the property. - correct
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
answer✔✔Due-on-sale clause ||\\//||
A clause that allows lenders to adjust the interest rate charged with respect to some stated
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
index. - correct answer✔✔Interest escalation and adjustment clause
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A clause that imposes a penalty (fee) on borrowers for making early payments of principal
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
on the amount borrowed. - correct answer✔✔Prepayment clause
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A clause which requires borrowers to make payments of their hazard insurance premium
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
along with their periodic payments of principal and interest. - correct answer✔✔Insurance
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Clause
Technically a mortgage is best described as: ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. a loan from a lending institution
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
B. A loan on a property
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
C. A contractual pledge for real estate to serve as collateral for a loan.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
D. All of the above - correct answer✔✔C. A mortgage is a special debt contract given by
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
borrowers who pledge real estate as the security for a loan. ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
,In the U.S.: ||\\//|| ||\\//||
A. The government encourages the development of mortgage securities.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
B. Wall Street investment banks participate in the commercial mortgage market.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
C. Equity financing sources include life insurance companies.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
D. All of the above - correct answer✔✔D
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
The secondary mortgage market serves as:
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. A source for the sale of mortgages to investors.
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
B. A source for loan origination
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
C. A source for load renegotiation
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
D. All of the above - correct answer✔✔A
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
Firms which assist pension funds, insurance companies, or other lender's in distributing
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
mortgage obligations to mortgage investors are known as: ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. Conduits ||\\//||
B. Advisors||\\//||
C. Go betweens||\\//|| ||\\//||
D. Tranches - correct answer✔✔A. Firms known as conduits assist in various ways with the
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
movement of the mortgage from the lender's portfolio through the secondary market into
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
the investment portfolios of investors.
||\\//|| ||\\//|| ||\\//|| ||\\//||
Mortgage documents containing notes with specific language about the borrower's promise ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
to repay loans establish what is termed:
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
, A. Resource financing
||\\//|| ||\\//||
B. A lien
||\\//|| ||\\//||
C. A foreclosure statement
||\\//|| ||\\//|| ||\\//|| ||\\//||
D. Nonrecourse financing - correct answer✔✔A
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
The public equity quadrant of real estate markets includes the following major participants:
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. Pension funds
||\\//|| ||\\//||
B. Equity REITs
||\\//|| ||\\//||
C. Insurance companies
||\\//|| ||\\//||
D. Banks - correct answer✔✔B
||\\//|| ||\\//|| ||\\//|| ||\\//||
Money that is invested in shares issued and traded in securities markets of pools of
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
mortgage loans such as mortgage-backed securities is termed: ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. Private equity
||\\//|| ||\\//||
B. Public equity
||\\//|| ||\\//||
C. Private debt
||\\//|| ||\\//||
D. Public debt - correct answer✔✔D
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
A loan in which a builder is required to obtain a forward commitment to secure
||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//|| ||\\//||
construction financing is termed: ||\\//|| ||\\//|| ||\\//|| ||\\//||
A. An open-end loan
||\\//|| ||\\//|| ||\\//||
B. A wrap-around loan
||\\//|| ||\\//|| ||\\//||
