ACEABLE Agent Principles Of Real Estate 2 Exam
Questions And Answers Verified 100% Correct
Government Sponsored Enterprises - ANSWER -Publicly traded institutions that
were created by Congress to provide liquidity, stability, and affordability to the
mortgage market
General Agricultural Mortgage Corporation - ANSWER -A government-
sponsored enterprise (GSE) providing a secondary market for agricultural and rural
mortgage loans; also known as Farmer Mac
Depository Lenders - ANSWER -Institutions that make mortgage loans from
funds derived from their customers' savings accounts
Saving Associations - ANSWER -Specialize in long-term residential loans;
primary function is to promote thrift and home ownership
Federal Home Loan Bank System - ANSWER -eleven private, wholesale regional
U.S. banks chartered to regulate member organizations, set reserve requirements
establish discount rates, and provide insurance or depositors
Federal Deposit Insurance Corportation - ANSWER -created by Congress in 1933
to insure deposits, supervise financial institutions, make large financial institutions
resolvable, and manage receiverships
Commercial Banks - ANSWER -designed to be sage depositories and lenders for a
multitude of commercial banking activities, relying mainly on demand deposits
(checking accounts) for their basic supply of funds
Credit Unions - ANSWER -provide members with a source of funding for
personal property and, more recently, real estate mortgage loans
, Savings Banks - ANSWER -Play an active and important role in local real estate
financing activities, providing long-term mortgage loans with funds derived from
customer savings accounts
Life Insurance Companies - ANSWER -prefer investments in large projects such
as shopping centers as opposed to smaller loans for home mortages and
construction loans
Mortgage Bankers - ANSWER -not bankers in the traditional sense, but as private
entrepreneurs, their income is derived from fees received for originating and
servicing real estate loans
Mortgage Brokers - ANSWER -bring together borrowers and lenders and earns a
fee for that service
Fannie Mae - ANSWER -a government-sponsored enterprise created to act as a
secondary mortgage market facility that could purchase, hold, and sell FHA-
insured loans
Freddie Mac - ANSWER -a government-sponsored enterprise created in 1970 to
further support the secondary mortgage market, specifically to support smaller
thrift banks
Ginnie Mae - ANSWER -a Government National Mortgage Association is a
government-owned entity that supports the secondary mortgage market by
guaranteeing timely payment of principal and interest on privately issued
mortgage-baked securities (MBS) collateralized by FHA, VA, or other government
-insured or guaranteed mortgages
Balloon Payment - ANSWER -a payment made at the mortgage term's end that is
comparatively much larger than the payments that preceded it
Pre-qualifications - ANSWER -the first step in the loan application process where
lenders take prospective borrowers at their word and give borrowers a general
estimate of the amount for which they will be approved
, Pre-approval - ANSWER -the second step in the loan application process where
lenders thoroughly review the borrower's qualifications and, if approved, offer a
pre-approval letter indicating the borrower's ability to obtain financing
Loan Approval - ANSWER -the final step in the loan application process, here
lenders review the borrower's credit-worthiness and the value of the property
Fixed-rate - ANSWER -when the interest rate does NOT change over the life of a
loan
Adjustable-Rate - ANSWER -when the interest rate can change over the life of the
loan; adjustable-rate mortgages are known as "ARMs"
Flexible-Payment Loan - ANSWER -a specific type of adjustable rate mortgage
that starts with a lower payment for the first several years then shifts to larger
payments for the remainder of the term
Balloon Payment Loan - ANSWER -employs periodic payments that will not fully
amortize the loan, thereby requiring a final payment that is larger than previous
payments
Interest-Only loans - ANSWER -a type of balloon payment loan that calls for
periodic payments of interest. the principal is to be paid in full at the end of the
term as a balloon payment
Conventional Loan - ANSWER -a loan that is not underwritten by any agency of
the federal government
Government-backed Loan - ANSWER -a loan that is insured guaranteed, or
provided by any government agency
Loan-to-value Ratio - ANSWER -a ratio of debt to value of the property
Questions And Answers Verified 100% Correct
Government Sponsored Enterprises - ANSWER -Publicly traded institutions that
were created by Congress to provide liquidity, stability, and affordability to the
mortgage market
General Agricultural Mortgage Corporation - ANSWER -A government-
sponsored enterprise (GSE) providing a secondary market for agricultural and rural
mortgage loans; also known as Farmer Mac
Depository Lenders - ANSWER -Institutions that make mortgage loans from
funds derived from their customers' savings accounts
Saving Associations - ANSWER -Specialize in long-term residential loans;
primary function is to promote thrift and home ownership
Federal Home Loan Bank System - ANSWER -eleven private, wholesale regional
U.S. banks chartered to regulate member organizations, set reserve requirements
establish discount rates, and provide insurance or depositors
Federal Deposit Insurance Corportation - ANSWER -created by Congress in 1933
to insure deposits, supervise financial institutions, make large financial institutions
resolvable, and manage receiverships
Commercial Banks - ANSWER -designed to be sage depositories and lenders for a
multitude of commercial banking activities, relying mainly on demand deposits
(checking accounts) for their basic supply of funds
Credit Unions - ANSWER -provide members with a source of funding for
personal property and, more recently, real estate mortgage loans
, Savings Banks - ANSWER -Play an active and important role in local real estate
financing activities, providing long-term mortgage loans with funds derived from
customer savings accounts
Life Insurance Companies - ANSWER -prefer investments in large projects such
as shopping centers as opposed to smaller loans for home mortages and
construction loans
Mortgage Bankers - ANSWER -not bankers in the traditional sense, but as private
entrepreneurs, their income is derived from fees received for originating and
servicing real estate loans
Mortgage Brokers - ANSWER -bring together borrowers and lenders and earns a
fee for that service
Fannie Mae - ANSWER -a government-sponsored enterprise created to act as a
secondary mortgage market facility that could purchase, hold, and sell FHA-
insured loans
Freddie Mac - ANSWER -a government-sponsored enterprise created in 1970 to
further support the secondary mortgage market, specifically to support smaller
thrift banks
Ginnie Mae - ANSWER -a Government National Mortgage Association is a
government-owned entity that supports the secondary mortgage market by
guaranteeing timely payment of principal and interest on privately issued
mortgage-baked securities (MBS) collateralized by FHA, VA, or other government
-insured or guaranteed mortgages
Balloon Payment - ANSWER -a payment made at the mortgage term's end that is
comparatively much larger than the payments that preceded it
Pre-qualifications - ANSWER -the first step in the loan application process where
lenders take prospective borrowers at their word and give borrowers a general
estimate of the amount for which they will be approved
, Pre-approval - ANSWER -the second step in the loan application process where
lenders thoroughly review the borrower's qualifications and, if approved, offer a
pre-approval letter indicating the borrower's ability to obtain financing
Loan Approval - ANSWER -the final step in the loan application process, here
lenders review the borrower's credit-worthiness and the value of the property
Fixed-rate - ANSWER -when the interest rate does NOT change over the life of a
loan
Adjustable-Rate - ANSWER -when the interest rate can change over the life of the
loan; adjustable-rate mortgages are known as "ARMs"
Flexible-Payment Loan - ANSWER -a specific type of adjustable rate mortgage
that starts with a lower payment for the first several years then shifts to larger
payments for the remainder of the term
Balloon Payment Loan - ANSWER -employs periodic payments that will not fully
amortize the loan, thereby requiring a final payment that is larger than previous
payments
Interest-Only loans - ANSWER -a type of balloon payment loan that calls for
periodic payments of interest. the principal is to be paid in full at the end of the
term as a balloon payment
Conventional Loan - ANSWER -a loan that is not underwritten by any agency of
the federal government
Government-backed Loan - ANSWER -a loan that is insured guaranteed, or
provided by any government agency
Loan-to-value Ratio - ANSWER -a ratio of debt to value of the property
